[Title 40 CFR ]
[Code of Federal Regulations (annual edition) - July 1, 2011 Edition]
[From the U.S. Government Printing Office]



[[Page i]]

          

                           Title 40

                     Protection of Environment


                    ________________________

                        Parts 96 to 99

                   Revised as of July 1, 2011

          Containing a codification of documents of general 
          applicability and future effect

          As of July 1, 2011
                    Published by the Office of the Federal Register 
                    National Archives and Records Administration as a 
                    Special Edition of the Federal Register

[[Page ii]]

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[[Page iii]]







As of July 1, 2011

Title 40, Parts 87 to 99

Revised as of July 1, 2010

Is Replaced by

Title 40, Parts 87 to 95

and

Title 40, Parts 96 to 99



[[Page v]]





                            Table of Contents



                                                                    Page
  Explanation.................................................     vii

  Title 40:
          Chapter I--Environmental Protection Agency 
          (Continued)                                                3
  Finding Aids:
      Table of CFR Titles and Chapters........................     791
      Alphabetical List of Agencies Appearing in the CFR......     811
      List of CFR Sections Affected...........................     821

[[Page vi]]





                     ----------------------------

                     Cite this Code: CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 40 CFR 96.1 refers 
                       to title 40, part 96, 
                       section 1.

                     ----------------------------

[[Page vii]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

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HOW TO USE THE CODE OF FEDERAL REGULATIONS

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OMB CONTROL NUMBERS

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collection request.

[[Page viii]]

Many agencies have begun publishing numerous OMB control numbers as 
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OBSOLETE PROVISIONS

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that volume.

[[Page ix]]

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    Raymond A. Mosley,
    Director,
    Office of the Federal Register.
    July 1, 2011.







[[Page xi]]



                               THIS TITLE

    Title 40--Protection of Environment is composed of thirty-three 
volumes. The parts in these volumes are arranged in the following order: 
Parts 1-49, parts 50-51, part 52 (52.01-52.1018), part 52 (52.1019-end 
of part 52), parts 53-59, part 60 (60.1-end of part 60, sections), part 
60 (Appendices), parts 61-62, part 63 (63.1-63.599), part 63 (63.600-
63.1199), part 63 (63.1200-63.1439), part 63 (63.1440-63.6175), part 63 
(63.6580-63.8830), part 63 (63.8980-end of part 63) parts 64-71, parts 
72-80, parts 81-84, part 85-Sec.  86.599-99, part 86 (86.600-1-end of 
part 86), parts 87-95, parts 96-99, parts 100-135, parts 136-149, parts 
150-189, parts 190-259, parts 260-265, parts 266-299, parts 300-399, 
parts 400-424, parts 425-699, parts 700-789, parts 790-999, and part 
1000 to end. The contents of these volumes represent all current 
regulations codified under this title of the CFR as of July 1, 2011.

    Chapter I--Environmental Protection Agency appears in all thirty-
three volumes. Regulations issued by the Council on Environmental 
Quality, including an Index to Parts 1500 through 1508, appear in the 
volume containing part 1000 to end. The OMB control numbers for title 40 
appear in Sec.  9.1 of this chapter.

    For this volume, Susannah C. Hurley was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Michael L. White, assisted by Ann Worley.

[[Page 1]]



                   TITLE 40--PROTECTION OF ENVIRONMENT




                   (This book contains parts 96 to 99)

  --------------------------------------------------------------------
                                                                    Part

chapter i--Environmental Protection Agency (Continued)......          87

[[Page 3]]



         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)




  --------------------------------------------------------------------


  Editorial Note: Nomenclature changes to chapter I appear at 65 FR 
47324, 47325, Aug. 2, 2000; 66 FR 34375, 34376, June 28, 2001; and 69 FR 
18803, Apr. 9, 2004.

                 SUBCHAPTER C--AIR PROGRAMS (CONTINUED)
Part                                                                Page
96               NOX Budget Trading Program and 
                    Cair NOX and SO2 
                    Trading Programs for State 
                    implementation plans....................           5
97              Federal NOX Budget Trading 
                    Program and CAIR NOX and 
                    SO2 Trading Programs.........         170
98              Mandatory greenhouse gas reporting..........         358
99              [Reserved]

[[Page 5]]



                  SUBCHAPTER C_AIR PROGRAMS (CONTINUED)





PART 96_NOX BUDGET TRADING PROGRAM AND CAIR NOX AND SO[bdi2] TRADING
PROGRAMS FOR STATE IMPLEMENTATION PLANS--Table of Contents



         Subpart A_NOX Budget Trading Program General Provisions

Sec.
96.1 Purpose.
96.2 Definitions.
96.3 Measurements, abbreviations, and acronyms.
96.4 Applicability.
96.5 Retired unit exemption.
96.6 Standard requirements.
96.7 Computation of time.

   Subpart B_Authorized Account Representative for NOX Budget Sources

96.10 Authorization and responsibilities of the NOX 
          authorized account representative.
96.11 Alternate NOX authorized account representative.
96.12 Changing the NOX authorized account representative and 
          the alternate NOX authorized account 
          representative; changes in the owners and operators.
96.13 Account certificate of representation.
96.14 Objections concerning the NOX authorized account 
          representative.

                            Subpart C_Permits

96.20 General NOX Budget trading program permit requirements.
96.21 Submission of NOX Budget permit applications.
96.22 Information requirements for NOX Budget permit 
          applications.
96.23 NOX Budget permit contents.
96.24 Effective date of initial NOX Budget permit.
96.25 NOX Budget permit revisions.

                   Subpart D_Compliance Certification

96.30 Compliance certification report.
96.31 Permitting authority's and Administrator's action on compliance 
          certifications.

                   Subpart E_NOX Allowance Allocations

96.40 State trading program budget.
96.41 Timing requirements for NOX allowance allocations.
96.42 NOX allowance allocations.

                 Subpart F_NOX Allowance Tracking System

96.50 NOX Allowance Tracking System accounts.
96.51 Establishment of accounts.
96.52 NOX Allowance Tracking System responsibilities of 
          NOX authorized account representative.
96.53 Recordation of NOX allowance allocations.
96.54 Compliance.
96.55 Banking.
96.56 Account error.
96.57 Closing of general accounts.

                    Subpart G_NOX Allowance Transfers

96.60 Submission of NOX allowance transfers.
96.61 EPA recordation.
96.62 Notification.

                   Subpart H_Monitoring and Reporting

96.70 General requirements.
96.71 Initial certification and recertification procedures.
96.72 Out of control periods.
96.73 Notifications.
96.74 Recordkeeping and reporting.
96.75 Petitions.
96.76 Additional requirements to provide heat input data for allocations 
          purposes.

                    Subpart I_Individual Unit Opt-ins

96.80 Applicability.
96.81 General.
96.82 NOX authorized account representative.
96.83 Applying for NOX Budget opt-in permit.
96.84 Opt-in process.
96.85 NOX Budget opt-in permit contents.
96.86 Withdrawal from NOX Budget Trading Program.
96.87 Change in regulatory status.
96.88 NOX allowance allocations to opt-in units.

Subpart J--Mobile and Area Sources [Reserved]

Subparts K--Z [Reserved]

      Subpart AA_CAIR NOX Annual Trading Program General Provisions

96.101 Purpose.
96.102 Definitions.
96.103 Measurements, abbreviations, and acronyms.
96.104 Applicability.

[[Page 6]]

96.105 Retired unit exemption.
96.106 Standard requirements.
96.107 Computation of time.
96.108 Appeal procedures.

     Subpart BB_CAIR Designated Representative for CAIR NOX Sources

96.110 Authorization and responsibilities of CAIR designated 
          representative.
96.111 Alternate CAIR designated representative.
96.112 Changing CAIR designated representative and alternate CAIR 
          designated representative; changes in owners and operators.
96.113 Certificate of representation.
96.114 Objections concerning CAIR designated representative.
96.115 Delegation by CAIR designated representative and alternate CAIR 
          designated representative.

                           Subpart CC_Permits

96.120 General CAIR NOX Annual Trading Program permit 
          requirements.
96.121 Submission of CAIR permit applications.
96.122 Information requirements for CAIR permit applications.
96.123 CAIR permit contents and term.
96.124 CAIR permit revisions.

Subpart DD [Reserved]

                Subpart EE_CAIR NOX Allowance Allocations

96.140 State trading budgets.
96.141 Timing requirements for CAIR NOX allowance 
          allocations.
96.142 CAIR NOX allowance allocations.
96.143 Compliance supplement pool.

              Subpart FF_CAIR NOX Allowance Tracking System

96.150 [Reserved]
96.151 Establishment of accounts.
96.152 Responsibilities of CAIR authorized account representative.
96.153 Recordation of CAIR NOX allowance allocations.
96.154 Compliance with CAIR NOX emissions limitation.
96.155 Banking.
96.156 Account error.
96.157 Closing of general accounts.

                 Subpart GG_CAIR NOX Allowance Transfers

96.160 Submission of CAIR NOX allowance transfers.
96.161 EPA recordation.
96.162 Notification.

                   Subpart HH_Monitoring and Reporting

96.170 General requirements.
96.171 Initial certification and recertification procedures.
96.172 Out of control periods.
96.173 Notifications.
96.174 Recordkeeping and reporting.
96.175 Petitions.

                    Subpart II_CAIR NOX Opt-in Units

96.180 Applicability.
96.181 General.
96.182 CAIR designated representative.
96.183 Applying for CAIR opt-in permit.
96.184 Opt-in process.
96.185 CAIR opt-in permit contents.
96.186 Withdrawal from CAIR NOX Annual Trading Program.
96.187 Change in regulatory status.
96.188 CAIR NOX allowance allocations to CAIR NOX 
          opt-in units.

Subparts JJ--ZZ [Reserved]

      Subpart AAA_CAIR SO[bdi2] Trading Program General Provisions

96.201 Purpose.
96.202 Definitions.
96.203 Measurements, abbreviations, and acronyms.
96.204 Applicability.
96.205 Retired unit exemption.
96.206 Standard requirements.
96.207 Computation of time.
96.208 Appeal procedures.

  Subpart BBB_CAIR Designated Representative for CAIR SO[bdi2] Sources

96.210 Authorization and responsibilities of CAIR designated 
          representative.
96.211 Alternate CAIR designated representative.
96.212 Changing CAIR designated representative and alternate CAIR 
          designated representative; changes in owners and operators.
96.213 Certificate of representation.
96.214 Objections concerning CAIR designated representative.
96.215 Delegation by CAIR designated representative and alternate CAIR 
          designated representative.

                           Subpart CCC_Permits

96.220 General CAIR SO2 Trading Program permit requirements.
96.221 Submission of CAIR permit applications.
96.222 Information requirements for CAIR permit applications.
96.223 CAIR permit contents and term.
96.224 CAIR permit revisions.

[[Page 7]]

Subparts DDD-EEE [Reserved]

           Subpart FFF_CAIR SO[bdi2] Allowance Tracking System

96.250 [Reserved]
96.251 Establishment of accounts.
96.252 Responsibilities of CAIR authorized account representative.
96.253 Recordation of CAIR SO2 allowances.
96.254 Compliance with CAIR SO2 emissions limitation.
96.255 Banking.
96.256 Account error.
96.257 Closing of general accounts.

              Subpart GGG_CAIR SO[bdi2] Allowance Transfers

96.260 Submission of CAIR SO2 allowance transfers.
96.261 EPA recordation.
96.262 Notification.

                  Subpart HHH_Monitoring and Reporting

96.270 General requirements.
96.271 Initial certification and recertification procedures.
96.272 Out of control periods.
96.273 Notifications.
96.274 Recordkeeping and reporting.
96.275 Petitions.

                 Subpart III_CAIR SO[bdi2] Opt-in Units

96.280 Applicability.
96.281 General.
96.282 CAIR designated representative.
96.283 Applying for CAIR opt-in permit.
96.284 Opt-in process.
96.285 CAIR opt-in permit contents.
96.286 Withdrawal from CAIR SO2 Trading Program.
96.287 Change in regulatory status.
96.288 CAIR SO2 allowance allocations to CAIR SO2 
          opt-in units.

Subparts JJJ-ZZZ [Reserved]

  Subpart AAAA_CAIR NOXOzone Season Trading Program General Provisions

96.301 Purpose.
96.302 Definitions.
96.303 Measurements, abbreviations, and acronyms.
96.304 Applicability.
96.305 Retired unit exemption.
96.306 Standard requirements.
96.307 Computation of time.
96.308 Appeal procedures.

 Subpart BBBB_CAIR Designated Representative for CAIR NOX Ozone Season 
                                 Sources

96.310 Authorization and responsibilities of CAIR designated 
          representative.
96.311 Alternate CAIR designated representative.
96.312 Changing CAIR designated representative and alternate CAIR 
          designated representative; changes in owners and operators.
96.313 Certificate of representation.
96.314 Objections concerning CAIR designated representative.
96.315 Delegation by CAIR designated representative and alternate CAIR 
          designated representative.

                          Subpart CCCC_Permits

96.320 General CAIR NOX Ozone Season Trading Program permit 
          requirements.
96.321 Submission of CAIR permit applications.
96.322 Information requirements for CAIR permit applications.
96.323 CAIR permit contents and term.
96.324 CAIR permit revisions.

Subpart DDDD [Reserved]

        Subpart EEEE_CAIR NOX Ozone Season Allowance Allocations

96.340 State trading budgets.
96.341 Timing requirements for CAIR NOX Ozone Season 
          allowance allocations.
96.342 CAIR NOX Ozone Season allowance allocations.

      Subpart FFFF_CAIR NOX Ozone Season Allowance Tracking System

96.350 [Reserved]
96.351 Establishment of accounts.
96.352 Responsibilities of CAIR authorized account representative.
96.353 Recordation of CAIR NOX Ozone Season allowance 
          allocations.
96.354 Compliance with CAIR NOX emissions limitation.
96.355 Banking.
96.356 Account error.
96.357 Closing of general accounts.

         Subpart GGGG_CAIR NOX Ozone Season Allowance Transfers

96.360 Submission of CAIR NOX Ozone Season allowance 
          transfers.
96.361 EPA recordation.
96.362 Notification.

[[Page 8]]

                  Subpart HHHH_Monitoring and Reporting

96.370 General requirements.
96.371 Initial certification and recertification procedures.
96.372 Out of control periods.
96.373 Notifications.
96.374 Recordkeeping and reporting.
96.375 Petitions.

             Subpart IIII_CAIR NOX Ozone Season Opt-in Units

96.380 Applicability.
96.381 General.
96.382 CAIR designated representative.
96.383 Applying for CAIR opt-in permit.
96.384 Opt-in process.
96.385 CAIR opt-in permit contents.
96.386 Withdrawal from CAIR NOX Ozone Season Trading Program.
96.387 Change in regulatory status.
96.388 CAIR NOX Ozone Season allowance allocations to CAIR 
          NOX Ozone Season opt-in units.

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

    Source: 63 FR 57514, Oct. 27, 1998, unless otherwise noted.



         Subpart A_NOX Budget Trading Program General Provisions



Sec. 96.1  Purpose.

    This part establishes general provisions and the applicability, 
permitting, allowance, excess emissions, monitoring, and opt-in 
provisions for the NOX Budget Trading Program for State 
implementation plans as a means of mitigating the interstate transport 
of ozone and nitrogen oxides, an ozone precursor. The owner or operator 
of a unit, or any other person, shall comply with requirements of this 
part as a matter of federal law only to the extent a State that has 
jurisdiction over the unit incorporates by reference provisions of this 
part, or otherwise adopts such requirements of this part, and requires 
compliance, the State submits to the Administrator a State 
implementation plan including such adoption and such compliance 
requirement, and the Administrator approves the portion of the State 
implementation plan including such adoption and such compliance 
requirement. To the extent a State adopts requirements of this part, 
including at a minimum the requirements of subpart A (except for Sec. 
96.4(b)), subparts B through D, subpart F (except for Sec. 96.55(c)), 
and subparts G and H of this part, the State authorizes the 
Administrator to assist the State in implementing the NOX 
Budget Trading Program by carrying out the functions set forth for the 
Administrator in such requirements.



Sec. 96.2  Definitions.

    The terms used in this part shall have the meanings set forth in 
this section as follows:
    Account certificate of representation means the completed and signed 
submission required by subpart B of this part for certifying the 
designation of a NOX authorized account representative for a 
NOX Budget source or a group of identified NOX 
Budget sources who is authorized to represent the owners and operators 
of such source or sources and of the NOX Budget units at such 
source or sources with regard to matters under the NOX Budget 
Trading Program.
    Account number means the identification number given by the 
Administrator to each NOX Allowance Tracking System account.
    Acid Rain emissions limitation means, as defined in Sec. 72.2 of 
this chapter, a limitation on emissions of sulfur dioxide or nitrogen 
oxides under the Acid Rain Program under title IV of the CAA.
    Administrator means the Administrator of the United States 
Environmental Protection Agency or the Administrator's duly authorized 
representative.
    Allocate or allocation means the determination by the permitting 
authority or the Administrator of the number of NOX 
allowances to be initially credited to a NOX Budget unit or 
an allocation set-aside.
    Automated data acquisition and handling system or DAHS means that 
component of the CEMS, or other emissions monitoring system approved for 
use under subpart H of this part, designed to interpret and convert 
individual output signals from pollutant concentration monitors, flow 
monitors, diluent gas monitors, and other component parts of the 
monitoring system to produce a continuous record of the

[[Page 9]]

measured parameters in the measurement units required by subpart H of 
this part.
    Boiler means an enclosed fossil or other fuel-fired combustion 
device used to produce heat and to transfer heat to recirculating water, 
steam, or other medium.
    CAA means the CAA, 42 U.S.C. 7401, et seq., as amended by Pub. L. 
No. 101-549 (November 15, 1990).
    Combined cycle system means a system comprised of one or more 
combustion turbines, heat recovery steam generators, and steam turbines 
configured to improve overall efficiency of electricity generation or 
steam production.
    Combustion turbine means an enclosed fossil or other fuel-fired 
device that is comprised of 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.
    Commence commercial operation means, with regard to a unit that 
serves a generator, 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. 96.5, for a unit that is a 
NOX Budget unit under Sec. 96.4 on the date the unit 
commences commercial operation, such date shall remain the unit's date 
of commencement of commercial operation even if the unit is subsequently 
modified, reconstructed, or repowered. Except as provided in Sec. 96.5 
or subpart I of this part, for a unit that is not a NOX 
Budget unit under Sec. 96.4 on the date the unit commences commercial 
operation, the date the unit becomes a NOX Budget unit under 
Sec. 96.4 shall be the unit's date of commencement of commercial 
operation.
    Commence operation means to have begun any mechanical, chemical, or 
electronic process, including, with regard to a unit, start-up of a 
unit's combustion chamber. Except as provided in Sec. 96.5, for a unit 
that is a NOX Budget unit under Sec. 96.4 on the date of 
commencement of operation, such date shall remain the unit's date of 
commencement of operation even if the unit is subsequently modified, 
reconstructed, or repowered. Except as provided in Sec. 96.5 or subpart 
I of this part, for a unit that is not a NOX Budget unit 
under Sec. 96.4 on the date of commencement of operation, the date the 
unit becomes a NOX Budget unit under Sec. 96.4 shall be the 
unit's date of commencement of operation.
    Common stack means a single flue through which emissions from two or 
more units are exhausted.
    Compliance account means a NOX Allowance Tracking System 
account, established by the Administrator for a NOX Budget 
unit under subpart F of this part, in which the NOX allowance 
allocations for the unit are initially recorded and in which are held 
NOX allowances available for use by the unit for a control 
period for the purpose of meeting the unit's NOX Budget 
emissions limitation.
    Compliance certification means a submission to the permitting 
authority or the Administrator, as appropriate, that is required under 
subpart D of this part to report a NOX Budget source's or a 
NOX Budget unit's compliance or noncompliance with this part 
and that is signed by the NOX authorized account 
representative in accordance with subpart B of this part.
    Continuous emission monitoring system or CEMS means the equipment 
required under subpart H of this part to sample, analyze, measure, and 
provide, by readings taken at least once every 15 minutes of the 
measured parameters, a permanent record of nitrogen oxides emissions, 
expressed in tons per hour for nitrogen oxides. The following systems 
are component parts included, consistent with part 75 of this chapter, 
in a continuous emission monitoring system:
    (1) Flow monitor;
    (2) Nitrogen oxides pollutant concentration monitors;
    (3) Diluent gas monitor (oxygen or carbon dioxide) when such 
monitoring is required by subpart H of this part;
    (4) A continuous moisture monitor when such monitoring is required 
by subpart H of this part; and
    (5) An automated data acquisition and handling system.
    Control period means the period beginning May 1 of a year and ending 
on September 30 of the same year, inclusive.
    Emissions means air pollutants exhausted from a unit or source into 
the

[[Page 10]]

atmosphere, as measured, recorded, and reported to the Administrator by 
the NOX authorized account representative and as determined 
by the Administrator in accordance with subpart H of this part.
    Energy Information Administration means the Energy Information 
Administration of the United States Department of Energy.
    Excess emissions means any tonnage of nitrogen oxides emitted by a 
NOX Budget unit during a control period that exceeds the 
NOX Budget emissions limitation for the unit.
    Fossil fuel means natural gas, petroleum, coal, or any form of 
solid, liquid, or gaseous fuel derived from such material.
    Fossil fuel-fired means, with regard to a unit:
    (1) The combustion of fossil fuel, alone or in combination with any 
other fuel, where fossil fuel actually combusted comprises more than 50 
percent of the annual heat input on a Btu basis during any year starting 
in 1995 or, if a unit had no heat input starting in 1995, during the 
last year of operation of the unit prior to 1995; or
    (2) The combustion of fossil fuel, alone or in combination with any 
other fuel, where fossil fuel is projected to comprise more than 50 
percent of the annual heat input on a Btu basis during any year; 
provided that the unit shall be ``fossil fuel-fired'' as of the date, 
during such year, on which the unit begins combusting fossil fuel.
    General account means a NOX Allowance Tracking System 
account, established under subpart F of this part, that is not a 
compliance account or an overdraft account.
    Generator means a device that produces electricity.
    Heat input means the product (in mmBtu/time) of the gross calorific 
value of the fuel (in Btu/lb) and the fuel feed rate into a combustion 
device (in mass of fuel/time), as measured, recorded, and reported to 
the Administrator by the NOX authorized account 
representative and as determined by the Administrator in accordance with 
subpart H of this part, and does not include the heat derived from 
preheated combustion air, recirculated flue gases, or exhaust from other 
sources.
    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 from any 
specified unit and pays its proportional amount of such unit's total 
costs, pursuant to a contract:
    (1) For the life of the unit;
    (2) For a cumulative term of no less than 30 years, including 
contracts that permit an election for early termination; or
    (3) For a period equal to or greater than 25 years or 70 percent of 
the economic useful life of the unit determined as of the time the unit 
is built, with option rights to purchase or release some portion of the 
nameplate capacity and associated energy generated by the unit at the 
end of the period.
    Maximum design heat input means the ability of a unit to combust a 
stated maximum amount of fuel per hour on a steady state basis, as 
determined by the physical design and physical characteristics of the 
unit.
    Maximum potential hourly heat input means an hourly heat input used 
for reporting purposes when a unit lacks certified monitors to report 
heat input. If the unit intends to use appendix D of part 75 of this 
chapter to report heat input, this value should be calculated, in 
accordance with part 75 of this chapter, using the maximum fuel flow 
rate and the maximum gross calorific value. If the unit intends to use a 
flow monitor and a diluent gas monitor, this value should be reported, 
in accordance with part 75 of this chapter, using the maximum potential 
flowrate and either the maximum carbon dioxide concentration (in percent 
CO2) or the minimum oxygen concentration (in percent 
O2).
    Maximum potential NOX emission rate means the emission 
rate of nitrogen oxides (in lb/mmBtu) calculated in accordance with 
section 3 of appendix F of part 75 of this chapter, using the maximum 
potential nitrogen oxides concentration as defined in section 2 of 
appendix A of part 75 of this chapter,

[[Page 11]]

and either the maximum oxygen concentration (in percent O2) 
or the minimum carbon dioxide concentration (in percent CO2), 
under all operating conditions of the unit except for unit start up, 
shutdown, and upsets.
    Maximum rated hourly heat input means a unit-specific maximum hourly 
heat input (mmBtu) which is the higher of the manufacturer's maximum 
rated hourly heat input or the highest observed hourly heat input.
    Monitoring system means any monitoring system that meets the 
requirements of subpart H of this part, including a continuous emissions 
monitoring system, an excepted monitoring system, or an alternative 
monitoring system.
    Most stringent State or Federal NOX emissions limitation 
means, with regard to a NOX Budget opt-in source, the lowest 
NOX emissions limitation (in terms of lb/mmBtu) that is 
applicable to the unit under State or Federal law, regardless of the 
averaging period to which the emissions limitation applies.
    Nameplate capacity means the maximum electrical generating output 
(in MWe) that a generator can sustain over a specified period of time 
when not restricted by seasonal or other deratings as measured in 
accordance with the United States Department of Energy standards.
    Non-title V permit means a federally enforceable permit administered 
by the permitting authority pursuant to the CAA and regulatory authority 
under the CAA, other than title V of the CAA and part 70 or 71 of this 
chapter.
    NOX allowance means an authorization by the permitting 
authority or the Administrator under the NOX Budget Trading 
Program to emit up to one ton of nitrogen oxides during the control 
period of the specified year or of any year thereafter.
    NOX allowance deduction or deduct NOX 
allowances means the permanent withdrawal of NOX allowances 
by the Administrator from a NOX Allowance Tracking System 
compliance account or overdraft account to account for the number of 
tons of NOX emissions from a NOX Budget unit for a 
control period, determined in accordance with subpart H of this part, or 
for any other allowance surrender obligation under this part.
    NOX allowances held or hold NOX allowances 
means the NOX allowances recorded by the Administrator, or 
submitted to the Administrator for recordation, in accordance with 
subparts F and G of this part, in a NOX Allowance Tracking 
System account.
    NOX Allowance Tracking System means the system by which 
the Administrator records allocations, deductions, and transfers of 
NOX allowances under the NOX Budget Trading 
Program.
    NOX Allowance Tracking System account means an account in 
the NOX Allowance Tracking System established by the 
Administrator for purposes of recording the allocation, holding, 
transferring, or deducting of NOX allowances.
    NOX allowance transfer deadline means midnight of 
November 30 or, if November 30 is not a business day, midnight of the 
first business day thereafter and is the deadline by which 
NOX allowances may be submitted for recordation in a 
NOX Budget unit's compliance account, or the overdraft 
account of the source where the unit is located, in order to meet the 
unit's NOX Budget emissions limitation for the control period 
immediately preceding such deadline.
    NOX authorized account representative means, for a 
NOX Budget source or NOX Budget unit at the 
source, the natural person who is authorized by the owners and operators 
of the source and all NOX Budget units at the source, in 
accordance with subpart B of this part, to represent and legally bind 
each owner and operator in matters pertaining to the NOX 
Budget Trading Program or, for a general account, the natural person who 
is authorized, in accordance with subpart F of this part, to transfer or 
otherwise dispose of NOX allowances held in the general 
account.
    NOX Budget emissions limitation means, for a 
NOX Budget unit, the tonnage equivalent of the NOX 
allowances available for compliance deduction for the unit and for a 
control period under Sec. 96.54(a) and (b), adjusted by any deductions 
of such NOX allowances to account for actual utilization 
under Sec. 96.42(e) for the control period or to account for excess 
emissions for a prior

[[Page 12]]

control period under Sec. 96.54(d) or to account for withdrawal from 
the NOX Budget Program, or for a change in regulatory status, 
for a NOX Budget opt-in source under Sec. 96.86 or Sec. 
96.87.
    NOX Budget opt-in permit means a NOX Budget 
permit covering a NOX Budget opt-in source.
    NOX Budget opt-in source means a unit that has been 
elected to become a NOX Budget unit under the NOX 
Budget Trading Program and whose NOX Budget opt-in permit has 
been issued and is in effect under subpart I of this part.
    NOX Budget permit means the legally binding and federally 
enforceable written document, or portion of such document, issued by the 
permitting authority under this part, including any permit revisions, 
specifying the NOX Budget Trading Program requirements 
applicable to a NOX Budget source, to each NOX 
Budget unit at the NOX Budget source, and to the owners and 
operators and the NOX authorized account representative of 
the NOX Budget source and each NOX Budget unit.
    NOX Budget source means a source that includes one or 
more NOX Budget units.
    NOX Budget Trading Program means a multi-state nitrogen 
oxides air pollution control and emission reduction program established 
in accordance with this part and pursuant to Sec. 51.121 of this 
chapter, as a means of mitigating the interstate transport of ozone and 
nitrogen oxides, an ozone precursor.
    NOX Budget unit means a unit that is subject to the 
NOX Budget Trading Program emissions limitation under Sec. 
96.4 or Sec. 96.80.
    Operating means, with regard to a unit under Sec. Sec. 96.22(d)(2) 
and 96.80, having documented heat input for more than 876 hours in the 6 
months immediately preceding the submission of an application for an 
initial NOX Budget permit under Sec. 96.83(a).
    Operator means any person who operates, controls, or supervises a 
NOX Budget unit, a NOX Budget source, or unit for 
which an application for a NOX Budget opt-in permit under 
Sec. 96.83 is submitted and not denied or withdrawn and shall include, 
but not be limited to, any holding company, utility system, or plant 
manager of such a unit or source.
    Opt-in means to be elected to become a NOX Budget unit 
under the NOX Budget Trading Program through a final, 
effective NOX Budget opt-in permit under subpart I of this 
part.
    Overdraft account means the NOX Allowance Tracking System 
account, established by the Administrator under subpart F of this part, 
for each NOX Budget source where there are two or more 
NOX Budget units.
    Owner means any of the following persons:
    (1) Any holder of any portion of the legal or equitable title in a 
NOX Budget unit or in a unit for which an application for a 
NOX Budget opt-in permit under Sec. 96.83 is submitted and 
not denied or withdrawn; or
    (2) Any holder of a leasehold interest in a NOX Budget 
unit or in a unit for which an application for a NOX Budget 
opt-in permit under Sec. 96.83 is submitted and not denied or 
withdrawn; or
    (3) Any purchaser of power from a NOX Budget unit or from 
a unit for which an application for a NOX Budget opt-in 
permit under Sec. 96.83 is submitted and not denied or withdrawn under 
a life-of-the-unit, firm power contractual arrangement. However, 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, upon the revenues or income from the NOX Budget 
unit or the unit for which an application for a NOX Budget 
opt-in permit under Sec. 96.83 is submitted and not denied or 
withdrawn; or
    (4) With respect to any general account, any person who has an 
ownership interest with respect to the NOX allowances held in 
the general account and who is subject to the binding agreement for the 
NOX authorized account representative to represent that 
person's ownership interest with respect to NOX allowances.
    Permitting authority means the State air pollution control agency, 
local agency, other State agency, or other agency authorized by the 
Administrator to issue or revise permits to meet the requirements of the 
NOX

[[Page 13]]

Budget Trading Program in accordance with subpart C of this part.
    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 writing or by authorized 
electronic transmission), as indicated in an official correspondence 
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 
NOX allowances, the movement of NOX allowances by 
the Administrator from one NOX Allowance Tracking System 
account to another, 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 appendix A of part 60 of 
this chapter.
    Serial number means, when referring to NOX allowances, 
the unique identification number assigned to each NOX 
allowance by the Administrator, under Sec. 96.53(c).
    Source means any governmental, institutional, commercial, or 
industrial structure, installation, plant, building, or facility that 
emits or has the potential to emit any regulated air pollutant under the 
CAA. For purposes of section 502(c) of the CAA, a ``source,'' including 
a ``source'' with multiple units, shall be considered a single 
``facility.''
    State means one of the 48 contiguous States and the District of 
Columbia specified in Sec. 51.121 of this chapter, or any non-federal 
authority in or including such States or the District of Columbia 
(including local agencies, and Statewide agencies) or any eligible 
Indian tribe in an area of such State or the District of Columbia, that 
adopts a NOX Budget Trading Program pursuant to Sec. 51.121 
of this chapter. To the extent a State incorporates by reference the 
provisions of this part, the term ``State'' shall mean the incorporating 
State. The term ``State'' shall have its conventional meaning where such 
meaning is clear from the context.
    State trading program budget means the total number of 
NOX tons apportioned to all NOX Budget units in a 
given State, in accordance with the NOX Budget Trading 
Program, for use in a given control period.
    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,'' ``service,'' or ``mailing'' 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 
CAA 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 CAA and part 70 or 71 of this chapter.
    Ton or tonnage means any ``short ton'' (i.e., 2,000 pounds). For the 
purpose of determining compliance with the NOX Budget 
emissions limitation, total tons for a control period shall be 
calculated as the sum of all recorded hourly emissions (or the tonnage 
equivalent of the recorded hourly emissions rates) in accordance with 
subpart H of this part, with any remaining fraction of a ton equal to or 
greater than 0.50 ton deemed to equal one ton and any fraction of a ton 
less than 0.50 ton deemed to equal zero tons.
    Unit means a fossil fuel-fired stationary boiler, combustion 
turbine, or combined cycle system.
    Unit load means the total (i.e., gross) output of a unit in any 
control period (or other specified time period) produced by combusting a 
given heat input of fuel, expressed in terms of:
    (1) The total electrical generation (MWe) produced by the unit, 
including generation for use within the plant; or
    (2) In the case of a unit that uses heat input for purposes other 
than electrical generation, the total steam pressure (psia) produced by 
the unit, including steam for use by the unit.
    Unit operating day means a calendar day in which a unit combusts any 
fuel.

[[Page 14]]

    Unit operating hour or hour of unit operation means any hour (or 
fraction of an hour) during which a unit combusts any fuel.
    Utilization means the heat input (expressed in mmBtu/time) for a 
unit. The unit's total heat input for the control period in each year 
will be determined in accordance with part 75 of this chapter if the 
NOX Budget unit was otherwise subject to the requirements of 
part 75 of this chapter for the year, or will be based on the best 
available data reported to the Administrator for the unit if the unit 
was not otherwise subject to the requirements of part 75 of this chapter 
for the year.



Sec. 96.3  Measurements, abbreviations, and acronyms.

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

Btu--British thermal unit.
hr--hour.
Kwh--kilowatt hour.
lb--pounds.
mmBtu--million Btu.
MWe--megawatt electrical.
ton--2000 pounds.
CO2--carbon dioxide.
NOX--nitrogen oxides.
O2--oxygen.



Sec. 96.4  Applicability.

    (a) The following units in a State shall be NOX Budget 
units, and any source that includes one or more such units shall be a 
NOX Budget source, subject to the requirements of this part:
    (1) Any unit that, any time on or after January 1, 1995, serves a 
generator with a nameplate capacity greater than 25 MWe and sells any 
amount of electricity; or
    (2) Any unit that is not a unit under paragraph (a) of this section 
and that has a maximum design heat input greater than 250 mmBtu/hr.
    (b) Notwithstanding paragraph (a) of this section, a unit under 
paragraph (a) of this section shall be subject only to the requirements 
of this paragraph (b) if the unit has a federally enforceable permit 
that meets the requirements of paragraph (b)(1) of this section and 
restricts the unit to burning only natural gas or fuel oil during a 
control period in 2003 or later and each control period thereafter and 
restricts the unit's operating hours during each such control period to 
the number of hours (determined in accordance with paragraph (b)(1)(ii) 
and (iii) of this section) that limits the unit's potential 
NOX mass emissions for the control period to 25 tons or less. 
Notwithstanding paragraph (a) of this section, starting with the 
effective date of such federally enforceable permit, the unit shall not 
be a NOX Budget unit.
    (1) For each control period under paragraph (b) of this section, the 
federally enforceable permit must:
    (i) Restrict the unit to burning only natural gas or fuel oil.
    (ii) Restrict the unit's operating hours to the number calculated by 
dividing 25 tons of potential NOX mass emissions by the 
unit's maximum potential hourly NOX mass emissions.
    (iii) Require that the unit's potential NOX mass 
emissions shall be calculated as follows:
    (A) Select the default NOX emission rate in Table 2 of 
Sec. 75.19 of this chapter that would otherwise be applicable assuming 
that the unit burns only the type of fuel (i.e., only natural gas or 
only fuel oil) that has the highest default NOX emission 
factor of any type of fuel that the unit is allowed to burn under the 
fuel use restriction in paragraph (b)(1)(i) of this section; and
    (B) Multiply the default NOX emission rate under 
paragraph (b)(1)(iii)(A) of this section by the unit's maximum rated 
hourly heat input. The owner or operator of the unit may petition the 
permitting authority to use a lower value for the unit's maximum rated 
hourly heat input than the value as defined under Sec. 96.2. The 
permitting authority may approve such lower value if the owner or 
operator demonstrates that the maximum hourly heat input specified by 
the manufacturer or the highest observed hourly heat input, or both, are 
not representative, and that such lower value is representative, of the 
unit's current capabilities because modifications have been made to the 
unit, limiting its capacity permanently.
    (iv) Require that the owner or operator of the unit shall retain at 
the source that includes the unit, for 5 years, records demonstrating 
that the

[[Page 15]]

operating hours restriction, the fuel use restriction, and the other 
requirements of the permit related to these restrictions were met.
    (v) Require that the owner or operator of the unit shall report the 
unit's hours of operation (treating any partial hour of operation as a 
whole hour of operation) during each control period to the permitting 
authority by November 1 of each year for which the unit is subject to 
the federally enforceable permit.
    (2) The permitting authority that issues the federally enforceable 
permit with the fuel use restriction under paragraph (b)(1)(i) and the 
operating hours restriction under paragraphs (b)(1)(ii) and (iii) of 
this section will notify the Administrator in writing of each unit under 
paragraph (a) of this section whose federally enforceable permit issued 
by the permitting authority includes such restrictions. The permitting 
authority will also notify the Administrator in writing of each unit 
under paragraph (a) of this section whose federally enforceable permit 
issued by the permitting authority is revised to remove any such 
restriction, whose federally enforceable permit issued by the permitting 
authority includes any such restriction that is no longer applicable, or 
which does not comply with any such restriction.
    (3) If, for any control period under paragraph (b) of this section, 
the fuel use restriction under paragraph (b)(1)(i) of this section or 
the operating hours restriction under paragraphs (b)(1)(ii) and (iii) of 
this section is removed from the unit's federally enforceable permit or 
otherwise becomes no longer applicable or if, for any such control 
period, the unit does not comply with the fuel use restriction under 
paragraph (b)(1)(i) of this section or the operating hours restriction 
under paragraphs (b)(1)(ii) and (iii) of this section, the unit shall be 
a NOX Budget unit, subject to the requirements of this part. 
Such unit shall be treated as commencing operation and, for a unit under 
paragraph (a)(1) of this section, commencing commercial operation on 
September 30 of the control period for which the fuel use restriction or 
the operating hours restriction is no longer applicable or during which 
the unit does not comply with the fuel use restriction or the operating 
hours restriction.



Sec. 96.5  Retired unit exemption.

    (a) This section applies to any NOX Budget unit, other 
than a NOX Budget opt-in source, that is permanently retired.
    (b)(1) Any NOX Budget unit, other than a NOX 
Budget opt-in source, that is permanently retired shall be exempt from 
the NOX Budget Trading Program, except for the provisions of 
this section, Sec. Sec. 96.2, 96.3, 96.4, 96.7 and subparts E, F, and G 
of this part.
    (2) The exemption under paragraph (b)(1) of this section shall 
become effective the day on which the unit is permanently retired. 
Within 30 days of permanent retirement, the NOX authorized 
account representative (authorized in accordance with subpart B of this 
part) shall submit a statement to the permitting authority otherwise 
responsible for administering any NOX Budget permit for the 
unit. A copy of the statement shall be submitted to the Administrator. 
The statement shall state (in a format prescribed by the permitting 
authority) that the unit is permanently retired and will comply with the 
requirements of paragraph (c) of this section.
    (3) After receipt of the notice under paragraph (b)(2) of this 
section, the permitting authority will amend any permit covering the 
source at which the unit is located to add the provisions and 
requirements of the exemption under paragraphs (b)(1) and (c) of this 
section.
    (c) Special provisions. (1) A unit exempt under this section shall 
not emit any nitrogen oxides, starting on the date that the exemption 
takes effect. The owners and operators of the unit will be allocated 
allowances in accordance with subpart E of this part.
    (2)(i) A unit exempt under 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 
NOX authorized account representative of the source submits a 
complete NOX Budget permit application under Sec. 96.22 for 
the unit not less than 18 months (or such lesser time provided under the 
permitting

[[Page 16]]

authority's title V operating permits regulations for final action on a 
permit application) prior to the later of May 1, 2003 or the date on 
which the unit is to first resume operation.
    (ii) A unit exempt under this section and located at a source that 
is required, or but for this exemption would be required, to have a non-
title V permit shall not resume operation unless the NOX 
authorized account representative of the source submits a complete 
NOX Budget permit application under Sec. 96.22 for the unit 
not less than 18 months (or such lesser time provided under the 
permitting authority's non-title V permits regulations for final action 
on a permit application) prior to the later of May 1, 2003 or the date 
on which the unit is to first resume operation.
    (3) The owners and operators and, to the extent applicable, the 
NOX authorized account representative of a unit exempt under 
this section shall comply with the requirements of the NOX 
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.
    (4) A unit that is exempt under this section is not eligible to be a 
NOX Budget opt-in source under subpart I of this part.
    (5) For a period of 5 years from the date the records are created, 
the owners and operators of a unit exempt under 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 prior to 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.
    (6) Loss of exemption. (i) On the earlier of the following dates, a 
unit exempt under paragraph (b) of this section shall lose its 
exemption:
    (A) The date on which the NOX authorized account 
representative submits a NOX Budget permit application under 
paragraph (c)(2) of this section; or
    (B) The date on which the NOX authorized account 
representative is required under paragraph (c)(2) of this section to 
submit a NOX Budget permit application.
    (ii) For the purpose of applying monitoring requirements under 
subpart H of this part, a unit that loses its exemption under this 
section shall be treated as a unit that commences operation or 
commercial operation on the first date on which the unit resumes 
operation.



Sec. 96.6  Standard requirements.

    (a) Permit Requirements. (1) The NOX authorized account 
representative of each NOX Budget source required to have a 
federally enforceable permit and each NOX Budget unit 
required to have a federally enforceable permit at the source shall:
    (i) Submit to the permitting authority a complete NOX 
Budget permit application under Sec. 96.22 in accordance with the 
deadlines specified in Sec. 96.21(b) and (c);
    (ii) Submit in a timely manner any supplemental information that the 
permitting authority determines is necessary in order to review a 
NOX Budget permit application and issue or deny a 
NOX Budget permit.
    (2) The owners and operators of each NOX Budget source 
required to have a federally enforceable permit and each NOX 
Budget unit required to have a federally enforceable permit at the 
source shall have a NOX Budget permit issued by the 
permitting authority and operate the unit in compliance with such 
NOX Budget permit.
    (3) The owners and operators of a NOX Budget source that 
is not otherwise required to have a federally enforceable permit are not 
required to submit a NOX Budget permit application, and to 
have a NOX Budget permit, under subpart C of this part for 
such NOX Budget source.
    (b) Monitoring requirements. (1) The owners and operators and, to 
the extent applicable, the NOX authorized account 
representative of each NOX Budget source and each 
NOX Budget unit at the source shall comply with the 
monitoring requirements of subpart H of this part.
    (2) The emissions measurements recorded and reported in accordance 
with

[[Page 17]]

subpart H of this part shall be used to determine compliance by the unit 
with the NOX Budget emissions limitation under paragraph (c) 
of this section.
    (c) Nitrogen oxides requirements. (1) The owners and operators of 
each NOX Budget source and each NOX Budget unit at 
the source shall hold NOX allowances available for compliance 
deductions under Sec. 96.54, as of the NOX allowance 
transfer deadline, in the unit's compliance account and the source's 
overdraft account in an amount not less than the total NOX 
emissions for the control period from the unit, as determined in 
accordance with subpart H of this part, plus any amount necessary to 
account for actual utilization under Sec. 96.42(e) for the control 
period.
    (2) Each ton of nitrogen oxides emitted in excess of the 
NOX Budget emissions limitation shall constitute a separate 
violation of this part, the CAA, and applicable State law.
    (3) A NOX Budget unit shall be subject to the 
requirements under paragraph (c)(1) of this section starting on the 
later of May 1, 2003 or the date on which the unit commences operation.
    (4) NOX allowances shall be held in, deducted from, or 
transferred among NOX Allowance Tracking System accounts in 
accordance with subparts E, F, G, and I of this part.
    (5) A NOX allowance shall not be deducted, in order to 
comply with the requirements under paragraph (c)(1) of this section, for 
a control period in a year prior to the year for which the 
NOX allowance was allocated.
    (6) A NOX allowance allocated by the permitting authority 
or the Administrator under the NOX Budget Trading Program is 
a limited authorization to emit one ton of nitrogen oxides in accordance 
with the NOX Budget Trading Program. No provision of the 
NOX Budget Trading Program, the NOX Budget permit 
application, the NOX Budget permit, or an exemption under 
Sec. 96.5 and no provision of law shall be construed to limit the 
authority of the United States or the State to terminate or limit such 
authorization.
    (7) A NOX allowance allocated by the permitting authority 
or the Administrator under the NOX Budget Trading Program 
does not constitute a property right.
    (8) Upon recordation by the Administrator under subpart F, G, or I 
of this part, every allocation, transfer, or deduction of a 
NOX allowance to or from a NOX Budget unit's 
compliance account or the overdraft account of the source where the unit 
is located is deemed to amend automatically, and become a part of, any 
NOX Budget permit of the NOX Budget unit by 
operation of law without any further review.
    (d) Excess emissions requirements. (1) The owners and operators of a 
NOX Budget unit that has excess emissions in any control 
period shall:
    (i) Surrender the NOX allowances required for deduction 
under Sec. 96.54(d)(1); and
    (ii) Pay any fine, penalty, or assessment or comply with any other 
remedy imposed under Sec. 96.54(d)(3).
    (e) Recordkeeping and Reporting requirements. (1) Unless otherwise 
provided, the owners and operators of the NOX Budget source 
and each NOX 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 prior to the end of 5 years, in writing by the permitting 
authority or the Administrator.
    (i) The account certificate of representation for the NOX 
authorized account representative for the source and each NOX 
Budget unit at the source and all documents that demonstrate the truth 
of the statements in the account certificate of representation, in 
accordance with Sec. 96.13; 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 account 
certificate of representation changing the NOX authorized 
account representative.
    (ii) All emissions monitoring information, in accordance with 
subpart H of this part; provided that to the extent that subpart H of 
this part provides for a 3-year period for recordkeeping, the 3-year 
period shall apply.
    (iii) Copies of all reports, compliance certifications, and other 
submissions and all records made or required under the NOX 
Budget Trading Program.

[[Page 18]]

    (iv) Copies of all documents used to complete a NOX 
Budget permit application and any other submission under the 
NOX Budget Trading Program or to demonstrate compliance with 
the requirements of the NOX Budget Trading Program.
    (2) The NOX authorized account representative of a 
NOX Budget source and each NOX Budget unit at the 
source shall submit the reports and compliance certifications required 
under the NOX Budget Trading Program, including those under 
subparts D, H, or I of this part.
    (f) Liability. (1) Any person who knowingly violates any requirement 
or prohibition of the NOX Budget Trading Program, a 
NOX Budget permit, or an exemption under Sec. 96.5 shall be 
subject to enforcement pursuant to applicable State or Federal law.
    (2) Any person who knowingly makes a false material statement in any 
record, submission, or report under the NOX Budget Trading 
Program shall be subject to criminal enforcement pursuant to the 
applicable State or Federal law.
    (3) No permit revision shall excuse any violation of the 
requirements of the NOX Budget Trading Program that occurs 
prior to the date that the revision takes effect.
    (4) Each NOX Budget source and each NOX Budget 
unit shall meet the requirements of the NOX Budget Trading 
Program.
    (5) Any provision of the NOX Budget Trading Program that 
applies to a NOX Budget source (including a provision 
applicable to the NOX authorized account representative of a 
NOX Budget source) shall also apply to the owners and 
operators of such source and of the NOX Budget units at the 
source.
    (6) Any provision of the NOX Budget Trading Program that 
applies to a NOX Budget unit (including a provision 
applicable to the NOX authorized account representative of a 
NOX budget unit) shall also apply to the owners and operators 
of such unit. Except with regard to the requirements applicable to units 
with a common stack under subpart H of this part, the owners and 
operators and the NOX authorized account representative of 
one NOX Budget unit shall not be liable for any violation by 
any other NOX Budget unit of which they are not owners or 
operators or the NOX authorized account representative and 
that is located at a source of which they are not owners or operators or 
the NOX authorized account representative.
    (g) Effect on other authorities. No provision of the NOX 
Budget Trading Program, a NOX Budget permit application, a 
NOX Budget permit, or an exemption under Sec. 96.5 shall be 
construed as exempting or excluding the owners and operators and, to the 
extent applicable, the NOX authorized account representative 
of a NOX Budget source or NOX Budget unit from 
compliance with any other provision of the applicable, approved State 
implementation plan, a federally enforceable permit, or the CAA.



Sec. 96.7  Computation of time.

    (a) Unless otherwise stated, any time period scheduled, under the 
NOX 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 
NOX 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 NOX Budget Trading Program, falls on a weekend or a 
State or Federal holiday, the time period shall be extended to the next 
business day.



 Subpart B_NOX Authorized Account Representative for NOX Budget Sources



Sec. 96.10  Authorization and responsibilities of the NOX authorized
account representative.

    (a) Except as provided under Sec. 96.11, each NOX Budget 
source, including all NOX Budget units at the source, shall 
have one and only one NOX authorized account representative, 
with regard to all matters under the NOX Budget Trading 
Program concerning the source or any NOX Budget unit at the 
source.

[[Page 19]]

    (b) The NOX authorized account representative of the 
NOX Budget source shall be selected by an agreement binding 
on the owners and operators of the source and all NOX Budget 
units at the source.
    (c) Upon receipt by the Administrator of a complete account 
certificate of representation under Sec. 96.13, the NOX 
authorized account representative of the source shall represent and, by 
his or her representations, actions, inactions, or submissions, legally 
bind each owner and operator of the NOX Budget source 
represented and each NOX Budget unit at the source in all 
matters pertaining to the NOX Budget Trading Program, not 
withstanding any agreement between the NOX authorized account 
representative and such owners and operators. The owners and operators 
shall be bound by any decision or order issued to the NOX 
authorized account representative by the permitting authority, the 
Administrator, or a court regarding the source or unit.
    (d) No NOX Budget permit shall be issued, and no 
NOX Allowance Tracking System account shall be established 
for a NOX Budget unit at a source, until the Administrator 
has received a complete account certificate of representation under 
Sec. 96.13 for a NOX authorized account representative of 
the source and the NOX Budget units at the source.
    (e)(1) Each submission under the NOX Budget Trading 
Program shall be submitted, signed, and certified by the NOX 
authorized account representative for each NOX Budget source 
on behalf of which the submission is made. Each such submission shall 
include the following certification statement by the NOX 
authorized account representative: ``I am authorized to make this 
submission on behalf of the owners and operators of the NOX 
Budget sources or NOX Budget units for which the submission 
is made. I certify under penalty of law that I have personally examined, 
and am familiar with, the statements and information submitted in this 
document and all its attachments. Based on my inquiry of those 
individuals with primary responsibility for obtaining the information, I 
certify that the statements and information are to the best of my 
knowledge and belief true, accurate, and complete. I am aware that there 
are significant penalties for submitting false statements and 
information or omitting required statements and information, including 
the possibility of fine or imprisonment.''
    (2) The permitting authority and the Administrator will accept or 
act on a submission made on behalf of owner or operators of a 
NOX Budget source or a NOX Budget unit only if the 
submission has been made, signed, and certified in accordance with 
paragraph (e)(1) of this section.



Sec. 96.11  Alternate NOX authorized account representative.

    (a) An account certificate of representation may designate one and 
only one alternate NOX authorized account representative who 
may act on behalf of the NOX authorized account 
representative. The agreement by which the alternate NOX 
authorized account representative is selected shall include a procedure 
for authorizing the alternate NOX authorized account 
representative to act in lieu of the NOX authorized account 
representative.
    (b) Upon receipt by the Administrator of a complete account 
certificate of representation under Sec. 96.13, any representation, 
action, inaction, or submission by the alternate NOX 
authorized account representative shall be deemed to be a 
representation, action, inaction, or submission by the NOX 
authorized account representative.
    (c) Except in this section and Sec. Sec. 96.10(a), 96.12, 96.13, 
and 96.51, whenever the term ``NOX authorized account 
representative'' is used in this part, the term shall be construed to 
include the alternate NOX authorized account representative.



Sec. 96.12  Changing the NOX authorized account representative and 
the alternate NOX authorized account representative; changes in the

owners and operators.

    (a) Changing the NOX authorized account representative. 
The NOX authorized account representative may be changed at 
any time upon receipt by the Administrator of a superseding

[[Page 20]]

complete account certificate of representation under Sec. 96.13. 
Notwithstanding any such change, all representations, actions, 
inactions, and submissions by the previous NOX authorized 
account representative prior to the time and date when the Administrator 
receives the superseding account certificate of representation shall be 
binding on the new NOX authorized account representative and 
the owners and operators of the NOX Budget source and the 
NOX Budget units at the source.
    (b) Changing the alternate NOX authorized account 
representative. The alternate NOX authorized account 
representative may be changed at any time upon receipt by the 
Administrator of a superseding complete account certificate of 
representation under Sec. 96.13. Notwithstanding any such change, all 
representations, actions, inactions, and submissions by the previous 
alternate NOX authorized account representative prior to the 
time and date when the Administrator receives the superseding account 
certificate of representation shall be binding on the new alternate 
NOX authorized account representative and the owners and 
operators of the NOX Budget source and the NOX 
Budget units at the source.
    (c) Changes in the owners and operators. (1) In the event a new 
owner or operator of a NOX Budget source or a NOX 
Budget unit is not included in the list of owners and operators 
submitted in the account certificate of representation, such new owner 
or operator shall be deemed to be subject to and bound by the account 
certificate of representation, the representations, actions, inactions, 
and submissions of the NOX authorized account representative 
and any alternate NOX authorized account representative of 
the source or unit, and the decisions, orders, actions, and inactions of 
the permitting authority or the Administrator, as if the new owner or 
operator were included in such list.
    (2) Within 30 days following any change in the owners and operators 
of a NOX Budget source or a NOX Budget unit, 
including the addition of a new owner or operator, the NOX 
authorized account representative or alternate NOX authorized 
account representative shall submit a revision to the account 
certificate of representation amending the list of owners and operators 
to include the change.



Sec. 96.13  Account certificate of representation.

    (a) A complete account certificate of representation for a 
NOX authorized account representative or an alternate 
NOX authorized account representative shall include the 
following elements in a format prescribed by the Administrator:
    (1) Identification of the NOX Budget source and each 
NOX Budget unit at the source for which the account 
certificate of representation is submitted.
    (2) The name, address, e-mail address (if any), telephone number, 
and facsimile transmission number (if any) of the NOX 
authorized account representative and any alternate NOX 
authorized account representative.
    (3) A list of the owners and operators of the NOX Budget 
source and of each NOX Budget unit at the source.
    (4) The following certification statement by the NOX 
authorized account representative and any alternate NOX 
authorized account representative: ``I certify that I was selected as 
the NOX authorized account representative or alternate 
NOX authorized account representative, as applicable, by an 
agreement binding on the owners and operators of the NOX 
Budget source and each NOX Budget unit at the source. I 
certify that I have all the necessary authority to carry out my duties 
and responsibilities under the NOX Budget Trading Program on 
behalf of the owners and operators of the NOX Budget source 
and of each NOX Budget unit at the source and that each such 
owner and operator shall be fully bound by my representations, actions, 
inactions, or submissions and by any decision or order issued to me by 
the permitting authority, the Administrator, or a court regarding the 
source or unit.''
    (5) The signature of the NOX authorized account 
representative and any alternate NOX authorized account 
representative and the dates signed.
    (b) Unless otherwise required by the permitting authority or the 
Administrator, documents of agreement referred to in the account 
certificate of

[[Page 21]]

representation shall not be submitted to the permitting authority or the 
Administrator. Neither the permitting authority nor the Administrator 
shall be under any obligation to review or evaluate the sufficiency of 
such documents, if submitted.



Sec. 96.14  Objections concerning the NOX authorized account representative.

    (a) Once a complete account certificate of representation under 
Sec. 96.13 has been submitted and received, the permitting authority 
and the Administrator will rely on the account certificate of 
representation unless and until a superseding complete account 
certificate of representation under Sec. 96.13 is received by the 
Administrator.
    (b) Except as provided in Sec. 96.12(a) or (b), no objection or 
other communication submitted to the permitting authority or the 
Administrator concerning the authorization, or any representation, 
action, inaction, or submission of the NOX authorized account 
representative shall affect any representation, action, inaction, or 
submission of the NOX authorized account representative or 
the finality of any decision or order by the permitting authority or the 
Administrator under the NOX Budget Trading Program.
    (c) Neither the permitting authority nor the Administrator will 
adjudicate any private legal dispute concerning the authorization or any 
representation, action, inaction, or submission of any NOX 
authorized account representative, including private legal disputes 
concerning the proceeds of NOX allowance transfers.



                            Subpart C_Permits



Sec. 96.20  General NOX Budget trading program permit requirements.

    (a) For each NOX Budget source required to have a 
federally enforceable permit, such permit shall include a NOX 
Budget permit administered by the permitting authority.
    (1) For NOX Budget sources required to have a title V 
operating permit, the NOX Budget portion of the title V 
permit shall be administered in accordance with the permitting 
authority's title V operating permits regulations promulgated under part 
70 or 71 of this chapter, except as provided otherwise by this subpart 
or subpart I of this part. The applicable provisions of such title V 
operating permits regulations shall include, but are not limited to, 
those provisions addressing operating permit applications, operating 
permit application shield, operating permit duration, operating permit 
shield, operating permit issuance, operating permit revision and 
reopening, public participation, State review, and review by the 
Administrator.
    (2) For NOX Budget sources required to have a non-title V 
permit, the NOX Budget portion of the non-title V permit 
shall be administered in accordance with the permitting authority's 
regulations promulgated to administer non-title V permits, except as 
provided otherwise by this subpart or subpart I of this part. The 
applicable provisions of such non-title V permits regulations may 
include, but are not limited to, provisions addressing permit 
applications, permit application shield, permit duration, permit shield, 
permit issuance, permit revision and reopening, public participation, 
State review, and review by the Administrator.
    (b) Each NOX Budget permit (including a draft or proposed 
NOX Budget permit, if applicable) shall contain all 
applicable NOX Budget Trading Program requirements and shall 
be a complete and segregable portion of the permit under paragraph (a) 
of this section.



Sec. 96.21  Submission of NOX Budget permit applications.

    (a) Duty to apply. The NOX authorized account 
representative of any NOX Budget source required to have a 
federally enforceable permit shall submit to the permitting authority a 
complete NOX Budget permit application under Sec. 96.22 by 
the applicable deadline in paragraph (b) of this section.
    (b)(1) For NOX Budget sources required to have a title V 
operating permit:
    (i) For any source, with one or more NOX Budget units 
under Sec. 96.4 that commence operation before January 1, 2000, the 
NOX authorized account representative shall submit a complete 
NOX Budget permit application under Sec. 96.22 covering such 
NOX Budget units to the permitting authority at least 18

[[Page 22]]

months (or such lesser time provided under the permitting authority's 
title V operating permits regulations for final action on a permit 
application) before May 1, 2003.
    (ii) For any source, with any NOX Budget unit under Sec. 
96.4 that commences operation on or after January 1, 2000, the 
NOX authorized account representative shall submit a complete 
NOX Budget permit application under Sec. 96.22 covering such 
NOX Budget unit to the permitting authority at least 18 
months (or such lesser time provided under the permitting authority's 
title V operating permits regulations for final action on a permit 
application) before the later of May 1, 2003 or the date on which the 
NOX Budget unit commences operation.
    (2) For NOX Budget sources required to have a non-title V 
permit:
    (i) For any source, with one or more NOX Budget units 
under Sec. 96.4 that commence operation before January 1, 2000, the 
NOX authorized account representative shall submit a complete 
NOX Budget permit application under Sec. 96.22 covering such 
NOX Budget units to the permitting authority at least 18 
months (or such lesser time provided under the permitting authority's 
non-title V permits regulations for final action on a permit 
application) before May 1, 2003.
    (ii) For any source, with any NOX Budget unit under Sec. 
96.4 that commences operation on or after January 1, 2000, the 
NOX authorized account representative shall submit a complete 
NOX Budget permit application under Sec. 96.22 covering such 
NOX Budget unit to the permitting authority at least 18 
months (or such lesser time provided under the permitting authority's 
non-title V permits regulations for final action on a permit 
application) before the later of May 1, 2003 or the date on which the 
NOX Budget unit commences operation.
    (c) Duty to reapply. (1) For a NOX Budget source required 
to have a title V operating permit, the NOX authorized 
account representative shall submit a complete NOX Budget 
permit application under Sec. 96.22 for the NOX Budget 
source covering the NOX Budget units at the source in 
accordance with the permitting authority's title V operating permits 
regulations addressing operating permit renewal.
    (2) For a NOX Budget source required to have a non-title 
V permit, the NOX authorized account representative shall 
submit a complete NOX Budget permit application under Sec. 
96.22 for the NOX Budget source covering the NOX 
Budget units at the source in accordance with the permitting authority's 
non-title V permits regulations addressing permit renewal.



Sec. 96.22  Information requirements for NOX Budget permit applications.

    A complete NOX Budget permit application shall include 
the following elements concerning the NOX Budget source for 
which the application is submitted, in a format prescribed by the 
permitting authority:
    (a) Identification of the NOX Budget source, including 
plant name and the ORIS (Office of Regulatory Information Systems) or 
facility code assigned to the source by the Energy Information 
Administration, if applicable;
    (b) Identification of each NOX Budget unit at the 
NOX Budget source and whether it is a NOX Budget 
unit under Sec. 96.4 or under subpart I of this part;
    (c) The standard requirements under Sec. 96.6; and
    (d) For each NOX Budget opt-in unit at the NOX 
Budget source, the following certification statements by the 
NOX authorized account representative:
    (1) ``I certify that each unit for which this permit application is 
submitted under subpart I of this part is not a NOX Budget 
unit under 40 CFR 96.4 and is not covered by a retired unit exemption 
under 40 CFR 96.5 that is in effect.''
    (2) If the application is for an initial NOX Budget opt-
in permit, ``I certify that each unit for which this permit application 
is submitted under subpart I is currently operating, as that term is 
defined under 40 CFR 96.2.''



Sec. 96.23  NOX Budget permit contents.

    (a) Each NOX Budget permit (including any draft or 
proposed NOX Budget permit, if applicable) will contain, in a 
format prescribed by the permitting authority, all elements required for 
a

[[Page 23]]

complete NOX Budget permit application under Sec. 96.22 as 
approved or adjusted by the permitting authority.
    (b) Each NOX Budget permit is deemed to incorporate 
automatically the definitions of terms under Sec. 96.2 and, upon 
recordation by the Administrator under subparts F, G, or I of this part, 
every allocation, transfer, or deduction of a NOX allowance 
to or from the compliance accounts of the NOX Budget units 
covered by the permit or the overdraft account of the NOX 
Budget source covered by the permit.



Sec. 96.24  Effective date of initial NOX Budget permit.

    The initial NOX Budget permit covering a NOX 
Budget unit for which a complete NOX Budget permit 
application is timely submitted under Sec. 96.21(b) shall become 
effective by the later of:
    (a) May 1, 2003;
    (b) May 1 of the year in which the NOX Budget unit 
commences operation, if the unit commences operation on or before May 1 
of that year;
    (c) The date on which the NOX Budget unit commences 
operation, if the unit commences operation during a control period; or
    (d) May 1 of the year following the year in which the NOX 
Budget unit commences operation, if the unit commences operation on or 
after October 1 of the year.



Sec. 96.25  NOX Budget permit revisions.

    (a) For a NOX Budget source with a title V operating 
permit, except as provided in Sec. 96.23(b), the permitting authority 
will revise the NOX Budget permit, as necessary, in 
accordance with the permitting authority's title V operating permits 
regulations addressing permit revisions.
    (b) For a NOX Budget source with a non-title V permit, 
except as provided in Sec. 96.23(b), the permitting authority will 
revise the NOX Budget permit, as necessary, in accordance 
with the permitting authority's non-title V permits regulations 
addressing permit revisions.



                   Subpart D_Compliance Certification



Sec. 96.30  Compliance certification report.

    (a) Applicability and deadline. For each control period in which one 
or more NOX Budget units at a source are subject to the 
NOX Budget emissions limitation, the NOX 
authorized account representative of the source shall submit to the 
permitting authority and the Administrator by November 30 of that year, 
a compliance certification report for each source covering all such 
units.
    (b) Contents of report. The NOX authorized account 
representative shall include in the compliance certification report 
under paragraph (a) of this section the following elements, in a format 
prescribed by the Administrator, concerning each unit at the source and 
subject to the NOX Budget emissions limitation for the 
control period covered by the report:
    (1) Identification of each NOX Budget unit;
    (2) At the NOX authorized account representative's 
option, the serial numbers of the NOX allowances that are to 
be deducted from each unit's compliance account under Sec. 96.54 for 
the control period;
    (3) At the NOX authorized account representative's 
option, for units sharing a common stack and having NOX 
emissions that are not monitored separately or apportioned in accordance 
with subpart H of this part, the percentage of allowances that is to be 
deducted from each unit's compliance account under Sec. 96.54(e); and
    (4) The compliance certification under paragraph (c) of this 
section.
    (c) Compliance certification. In the compliance certification report 
under paragraph (a) of this section, the NOX authorized 
account representative shall certify, based on reasonable inquiry of 
those persons with primary responsibility for operating the source and 
the NOX Budget units at the source in compliance with the 
NOX Budget Trading Program, whether each NOX 
Budget unit for which the compliance certification is submitted was 
operated during the calendar year covered by

[[Page 24]]

the report in compliance with the requirements of the NOX 
Budget Trading Program applicable to the unit, including:
    (1) Whether the unit was operated in compliance with the 
NOX Budget emissions limitation;
    (2) Whether the monitoring plan that governs the unit has been 
maintained to reflect the actual operation and monitoring of the unit, 
and contains all information necessary to attribute NOX 
emissions to the unit, in accordance with subpart H of this part;
    (3) Whether all the NOX emissions from the unit, or a 
group of units (including the unit) using a common stack, were monitored 
or accounted for through the missing data procedures and reported in the 
quarterly monitoring reports, including whether conditional data were 
reported in the quarterly reports in accordance with subpart H of this 
part. If conditional data were reported, the owner or operator shall 
indicate whether the status of all conditional data has been resolved 
and all necessary quarterly report resubmissions has been made;
    (4) Whether the facts that form the basis for certification under 
subpart H of this part of each monitor at the unit or a group of units 
(including the unit) using a common stack, or for using an excepted 
monitoring method or alternative monitoring method approved under 
subpart H of this part, if any, has changed; and
    (5) If a change is required to be reported under paragraph (c)(4) of 
this section, specify the nature of the change, the reason for the 
change, when the change occurred, and how the unit's compliance status 
was determined subsequent to the change, including what method was used 
to determine emissions when a change mandated the need for monitor 
recertification.



Sec. 96.31  Permitting authority's and Administrator's action on 
compliance certifications.

    (a) The permitting authority or the Administrator may review and 
conduct independent audits concerning any compliance certification or 
any other submission under the NOX Budget Trading Program and 
make appropriate adjustments of the information in the compliance 
certifications or other submissions.
    (b) The Administrator may deduct NOX allowances from or 
transfer NOX allowances to a unit's compliance account or a 
source's overdraft account based on the information in the compliance 
certifications or other submissions, as adjusted under paragraph (a) of 
this section.



                   Subpart E_NOX Allowance Allocations



Sec. 96.40  State trading program budget.

    The State trading program budget allocated by the permitting 
authority under Sec. 96.42 for a control period will equal the total 
number of tons of NOX emissions apportioned to the 
NOX Budget units under Sec. 96.4 in the State for the 
control period, as determined by the applicable, approved State 
implementation plan.



Sec. 96.41  Timing requirements for NOX allowance allocations.

    (a) By September 30, 1999, the permitting authority will submit to 
the Administrator the NOX allowance allocations, in 
accordance with Sec. 96.42, for the control periods in 2003, 2004, and 
2005.
    (b) By April 1, 2003 and April 1 of each year thereafter, the 
permitting authority will submit to the Administrator the NOX 
allowance allocations, in accordance with Sec. 96.42, for the control 
period in the year that is three years after the year of the applicable 
deadline for submission under this paragraph (b). If the permitting 
authority fails to submit to the Administrator the NOX 
allowance allocations in accordance with this paragraph (b), the 
Administrator will allocate, for the applicable control period, the same 
number of NOX allowances as were allocated for the preceding 
control period.
    (c) By April 1, 2004 and April 1 of each year thereafter, the 
permitting authority will submit to the Administrator the NOX 
allowance allocations, in accordance with Sec. 96.42, for any 
NOX allowances remaining in the allocation set-aside for the 
prior control period.

[[Page 25]]



Sec. 96.42  NOX allowance allocations.

    (a)(1) The heat input (in mmBtu) used for calculating NOX 
allowance allocations for each NOX Budget unit under Sec. 
96.4 will be:
    (i) For a NOX allowance allocation under Sec. 96.41(a), 
the average of the two highest amounts of the unit's heat input for the 
control periods in 1995, 1996, and 1997 if the unit is under Sec. 
96.4(a)(1) or the control period in 1995 if the unit is under Sec. 
96.4(a)(2); and
    (ii) For a NOX allowance allocation under Sec. 96.41(b), 
the unit's heat input for the control period in the year that is four 
years before the year for which the NOX allocation is being 
calculated.
    (2) The unit's total heat input for the control period in each year 
specified under paragraph (a)(1) of this section will be determined in 
accordance with part 75 of this chapter if the NOX Budget 
unit was otherwise subject to the requirements of part 75 of this 
chapter for the year, or will be based on the best available data 
reported to the permitting authority for the unit if the unit was not 
otherwise subject to the requirements of part 75 of this chapter for the 
year.
    (b) For each control period under Sec. 96.41, the permitting 
authority will allocate to all NOX Budget units under Sec. 
96.4(a)(1) in the State that commenced operation before May 1 of the 
period used to calculate heat input under paragraph (a)(1) of this 
section, a total number of NOX allowances equal to 95 percent 
in 2003, 2004, and 2005, or 98 percent thereafter, of the tons of 
NOX emissions in the State trading program budget apportioned 
to electric generating units under Sec. 96.40 in accordance with the 
following procedures:
    (1) The permitting authority will allocate NOX allowances 
to each NOX Budget unit under Sec. 96.4(a)(1) in an amount 
equaling 0.15 lb/mmBtu multiplied by the heat input determined under 
paragraph (a) of this section, rounded to the nearest whole 
NOX allowance as appropriate.
    (2) If the initial total number of NOX allowances 
allocated to all NOX Budget units under Sec. 96.4(a)(1) in 
the State for a control period under paragraph (b)(1) of this section 
does not equal 95 percent in 2003, 2004, and 2005, or 98 percent 
thereafter, of the number of tons of NOX emissions in the 
State trading program budget apportioned to electric generating units, 
the permitting authority will adjust the total number of NOX 
allowances allocated to all such NOX Budget units for the 
control period under paragraph (b)(1) of this section so that the total 
number of NOX allowances allocated equals 95 percent in 2003, 
2004, and 2005, or 98 percent thereafter, of the number of tons of 
NOX emissions in the State trading program budget apportioned 
to electric generating units. This adjustment will be made by: 
multiplying each unit's allocation by 95 percent in 2003, 2004, and 
2005, or 98 percent thereafter, of the number of tons of NOX 
emissions in the State trading program budget apportioned to electric 
generating units divided by the total number of NOX 
allowances allocated under paragraph (b)(1) of this section, and 
rounding to the nearest whole NOX allowance as appropriate.
    (c) For each control period under Sec. 96.41, the permitting 
authority will allocate to all NOX Budget units under Sec. 
96.4(a)(2) in the State that commenced operation before May 1 of the 
period used to calculate heat input under paragraph (a)(1) of this 
section, a total number of NOX allowances equal to 95 percent 
in 2003, 2004, and 2005, or 98 percent thereafter, of the tons of 
NOX emissions in the State trading program budget apportioned 
to non-electric generating units under Sec. 96.40 in accordance with 
the following procedures:
    (1) The permitting authority will allocate NOX allowances 
to each NOX Budget unit under Sec. 96.4(a)(2) in an amount 
equaling 0.17 lb/mmBtu multiplied by the heat input determined under 
paragraph (a) of this section, rounded to the nearest whole 
NOX allowance as appropriate.
    (2) If the initial total number of NOX allowances 
allocated to all NOX Budget units under Sec. 96.4(a)(2) in 
the State for a control period under paragraph (c)(1) of this section 
does not equal 95 percent in 2003, 2004, and 2005, or 98 percent 
thereafter, of the number of tons of NOX emissions in the 
State trading program budget apportioned to non-electric generating 
units, the permitting authority will adjust the total number of 
NOX allowances allocated to

[[Page 26]]

all such NOX Budget units for the control period under 
paragraph (c)(1) of this section so that the total number of 
NOX allowances allocated equals 95 percent in 2003, 2004, and 
2005, or 98 percent thereafter, of the number of tons of NOX 
emissions in the State trading program budget apportioned to non-
electric generating units. This adjustment will be made by: multiplying 
each unit's allocation by 95 percent in 2003, 2004, and 2005, or 98 
percent thereafter, of the number of tons of NOX emissions in 
the State trading program budget apportioned to non-electric generating 
units divided by the total number of NOX allowances allocated 
under paragraph (c)(1) of this section, and rounding to the nearest 
whole NOX allowance as appropriate.
    (d) For each control period under Sec. 96.41, the permitting 
authority will allocate NOX allowances to NOX 
Budget units under Sec. 96.4 in the State that commenced operation, or 
is projected to commence operation, on or after May 1 of the period used 
to calculate heat input under paragraph (a)(1) of this section, in 
accordance with the following procedures:
    (1) The permitting authority will establish one allocation set-aside 
for each control period. Each allocation set-aside will be allocated 
NOX allowances equal to 5 percent in 2003, 2004, and 2005, or 
2 percent thereafter, of the tons of NOX emissions in the 
State trading program budget under Sec. 96.40, rounded to the nearest 
whole NOX allowance as appropriate.
    (2) The NOX authorized account representative of a 
NOX Budget unit under paragraph (d) of this section may 
submit to the permitting authority a request, in writing or in a format 
specified by the permitting authority, to be allocated NOX 
allowances for no more than five consecutive control periods under Sec. 
96.41, starting with the control period during which the NOX 
Budget unit commenced, or is projected to commence, operation and ending 
with the control period preceding the control period for which it will 
receive an allocation under paragraph (b) or (c) of this section. The 
NOX allowance allocation request must be submitted prior to 
May 1 of the first control period for which the NOX allowance 
allocation is requested and after the date on which the permitting 
authority issues a permit to construct the NOX Budget unit.
    (3) In a NOX allowance allocation request under paragraph 
(d)(2) of this section, the NOX authorized account 
representative for units under Sec. 96.4(a)(1) may request for a 
control period NOX allowances in an amount that does not 
exceed 0.15 lb/mmBtu multiplied by the NOX Budget unit's 
maximum design heat input (in mmBtu/hr) multiplied by the number of 
hours remaining in the control period starting with the first day in the 
control period on which the unit operated or is projected to operate.
    (4) In a NOX allowance allocation request under paragraph 
(d)(2) of this section, the NOX authorized account 
representative for units under Sec. 96.4(a)(2) may request for a 
control period NOX allowances in an amount that does not 
exceed 0.17 lb/mmBtu multiplied by the NOX Budget unit's 
maximum design heat input (in mmBtu/hr) multiplied by the number of 
hours remaining in the control period starting with the first day in the 
control period on which the unit operated or is projected to operate.
    (5) The permitting authority will review, and allocate 
NOX allowances pursuant to, each NOX allowance 
allocation request under paragraph (d)(2) of this section in the order 
that the request is received by the permitting authority.
    (i) Upon receipt of the NOX allowance allocation request, 
the permitting authority will determine whether, and will make any 
necessary adjustments to the request to ensure that, for units under 
Sec. 96.4(a)(1), the control period and the number of allowances 
specified are consistent with the requirements of paragraphs (d)(2) and 
(3) of this section and, for units under Sec. 96.4(a)(2), the control 
period and the number of allowances specified are consistent with the 
requirements of paragraphs (d)(2) and (4) of this section.
    (ii) If the allocation set-aside for the control period for which 
NOX allowances are requested has an amount of NOX 
allowances not less than the number requested (as adjusted under 
paragraph (d)(5)(i) of this section), the permitting authority will 
allocate the

[[Page 27]]

amount of the NOX allowances requested (as adjusted under 
paragraph (d)(5)(i) of this section) to the NOX Budget unit.
    (iii) If the allocation set-aside for the control period for which 
NOX allowances are requested has a smaller amount of 
NOX allowances than the number requested (as adjusted under 
paragraph (d)(5)(i) of this section), the permitting authority will deny 
in part the request and allocate only the remaining number of 
NOX allowances in the allocation set-aside to the 
NOX Budget unit.
    (iv) Once an allocation set-aside for a control period has been 
depleted of all NOX allowances, the permitting authority will 
deny, and will not allocate any NOX allowances pursuant to, 
any NOX allowance allocation request under which 
NOX allowances have not already been allocated for the 
control period.
    (6) Within 60 days of receipt of a NOX allowance 
allocation request, the permitting authority will take appropriate 
action under paragraph (d)(5) of this section and notify the 
NOX authorized account representative that submitted the 
request and the Administrator of the number of NOX allowances 
(if any) allocated for the control period to the NOX Budget 
unit.
    (e) For a NOX Budget unit that is allocated 
NOX allowances under paragraph (d) of this section for a 
control period, the Administrator will deduct NOX allowances 
under Sec. 96.54(b) or (e) to account for the actual utilization of the 
unit during the control period. The Administrator will calculate the 
number of NOX allowances to be deducted to account for the 
unit's actual utilization using the following formulas and rounding to 
the nearest whole NOX allowance as appropriate, provided that 
the number of NOX allowances to be deducted shall be zero if 
the number calculated is less than zero:

NOX allowances deducted for actual utilization for units 
    under Sec. 96.4(a)(1) = (Unit's NOX allowances allocated 
    for control period)-(Unit's actual control period utilization x 0.15 
    lb/mmBtu); and
NOX allowances deducted for actual utilization for units 
    under Sec. 96.4(a)(2) = (Unit's NOX allowances allocated 
    for control period)-(Unit's actual control period utilization x 0.17 
    lb/mmBtu)

Where:

``Unit's NOX allowances allocated for control period'' is the 
number of NOX allowances allocated to the unit for the 
control period under paragraph (d) of this section; and
``Unit's actual control period utilization'' is the utilization (in 
mmBtu), as defined in Sec. 96.2, of the unit during the control period.

    (f) After making the deductions for compliance under Sec. 96.54(b) 
or (e) for a control period, the Administrator will notify the 
permitting authority whether any NOX allowances remain in the 
allocation set-aside for the control period. The permitting authority 
will allocate any such NOX allowances to the NOX 
Budget units in the State using the following formula and rounding to 
the nearest whole NOX allowance as appropriate:

Unit's share of NOX allowances remaining in allocation set-
    aside = Total NOX allowances remaining in allocation set-
    aside x (Unit's NOX allowance allocation / State trading 
    program budget excluding allocation set-aside)

Where:

``Total NOX allowances remaining in allocation set-aside'' is 
the total number of NOX allowances remaining in the 
allocation set-aside for the control period to which the allocation set-
aside applies;
``Unit's NOX allowance allocation'' is the number of 
NOX allowances allocated under paragraph (b) or (c) of this 
section to the unit for the control period to which the allocation set-
aside applies; and
``State trading program budget excluding allocation set-aside'' is the 
State trading program budget under Sec. 96.40 for the control period to 
which the allocation set-aside applies multiplied by 95 percent if the 
control period is in 2003, 2004, or 2005 or 98 percent if the control 
period is in any year thereafter, rounded to the nearest whole 
NOX allowance as appropriate.

[63 FR 57514, Oct. 27, 1998, as amended at 63 FR 71225, Dec. 24, 1998]

[[Page 28]]



                 Subpart F_NOX Allowance Tracking System



Sec. 96.50  NOX Allowance Tracking System accounts.

    (a) Nature and function of compliance accounts and overdraft 
accounts. Consistent with Sec. 96.51(a), the Administrator will 
establish one compliance account for each NOX Budget unit and 
one overdraft account for each source with one or more NOX 
Budget units. Allocations of NOX allowances pursuant to 
subpart E of this part or Sec. 96.88 and deductions or transfers of 
NOX allowances pursuant to Sec. 96.31, Sec. 96.54, Sec. 
96.56, subpart G of this part, or subpart I of this part will be 
recorded in the compliance accounts or overdraft accounts in accordance 
with this subpart.
    (b) Nature and function of general accounts. Consistent with Sec. 
96.51(b), the Administrator will establish, upon request, a general 
account for any person. Transfers of allowances pursuant to subpart G of 
this part will be recorded in the general account in accordance with 
this subpart.



Sec. 96.51  Establishment of accounts.

    (a) Compliance accounts and overdraft accounts. Upon receipt of a 
complete account certificate of representation under Sec. 96.13, the 
Administrator will establish:
    (1) A compliance account for each NOX Budget unit for 
which the account certificate of representation was submitted; and
    (2) An overdraft account for each source for which the account 
certificate of representation was submitted and that has two or more 
NOX Budget units.
    (b) General accounts. (1) Any person may apply to open a general 
account for the purpose of holding and transferring allowances. A 
complete application for a general account shall be submitted to the 
Administrator and shall include the following elements in a format 
prescribed by the Administrator:
    (i) Name, mailing address, e-mail address (if any), telephone 
number, and facsimile transmission number (if any) of the NOX 
authorized account representative and any alternate NOX 
authorized account representative;
    (ii) At the option of the NOX authorized account 
representative, organization name and type of organization;
    (iii) A list of all persons subject to a binding agreement for the 
NOX authorized account representative or any alternate 
NOX authorized account representative to represent their 
ownership interest with respect to the allowances held in the general 
account;
    (iv) The following certification statement by the NOX 
authorized account representative and any alternate NOX 
authorized account representative: ``I certify that I was selected as 
the NOX authorized account representative or the 
NOX alternate authorized account representative, as 
applicable, by an agreement that is binding on all persons who have an 
ownership interest with respect to allowances held in the general 
account. I certify that I have all the necessary authority to carry out 
my duties and responsibilities under the NOX Budget Trading 
Program on behalf of such persons and that each such person shall be 
fully bound by my representations, actions, inactions, or submissions 
and by any order or decision issued to me by the Administrator or a 
court regarding the general account.''
    (v) The signature of the NOX authorized account 
representative and any alternate NOX authorized account 
representative and the dates signed.
    (vi) Unless otherwise required by the permitting authority or the 
Administrator, documents of agreement referred to in the account 
certificate of representation shall not be submitted to the permitting 
authority or the Administrator. Neither the permitting authority nor the 
Administrator shall be under any obligation to review or evaluate the 
sufficiency of such documents, if submitted.
    (2) Upon receipt by the Administrator of a complete application for 
a general account under paragraph (b)(1) of this section:
    (i) The Administrator will establish a general account for the 
person or persons for whom the application is submitted.
    (ii) The NOX authorized account representative and any 
alternate NOX authorized account representative for the 
general account shall represent and, by

[[Page 29]]

his or her representations, actions, inactions, or submissions, legally 
bind each person who has an ownership interest with respect to 
NOX allowances held in the general account in all matters 
pertaining to the NOX Budget Trading Program, not 
withstanding any agreement between the NOX authorized account 
representative or any alternate NOX authorized account 
representative and such person. Any such person shall be bound by any 
order or decision issued to the NOX authorized account 
representative or any alternate NOX authorized account 
representative by the Administrator or a court regarding the general 
account.
    (iii) Each submission concerning the general account shall be 
submitted, signed, and certified by the NOX authorized 
account representative or any alternate NOX authorized 
account representative for the persons having an ownership interest with 
respect to NOX allowances held in the general account. Each 
such submission shall include the following certification statement by 
the NOX authorized account representative or any alternate 
NOX authorized account representative any: ``I am authorized 
to make this submission on behalf of the persons having an ownership 
interest with respect to the NOX allowances held in the 
general account. I certify under penalty of law that I have personally 
examined, and am familiar with, the statements and information submitted 
in this document and all its attachments. Based on my inquiry of those 
individuals with primary responsibility for obtaining the information, I 
certify that the statements and information are to the best of my 
knowledge and belief true, accurate, and complete. I am aware that there 
are significant penalties for submitting false statements and 
information or omitting required statements and information, including 
the possibility of fine or imprisonment.''
    (iv) The Administrator will accept or act on a submission concerning 
the general account only if the submission has been made, signed, and 
certified in accordance with paragraph (b)(2)(iii) of this section.
    (3)(i) An application for a general account may designate one and 
only one NOX authorized account representative and one and 
only one alternate NOX authorized account representative who 
may act on behalf of the NOX authorized account 
representative. The agreement by which the alternate NOX 
authorized account representative is selected shall include a procedure 
for authorizing the alternate NOX authorized account 
representative to act in lieu of the NOX authorized account 
representative.
    (ii) Upon receipt by the Administrator of a complete application for 
a general account under paragraph (b)(1) of this section, any 
representation, action, inaction, or submission by any alternate 
NOX authorized account representative shall be deemed to be a 
representation, action, inaction, or submission by the NOX 
authorized account representative.
    (4)(i) The NOX authorized account representative for a 
general account may be changed at any time upon receipt by the 
Administrator of a superseding complete application for a general 
account under paragraph (b)(1) of this section. Notwithstanding any such 
change, all representations, actions, inactions, and submissions by the 
previous NOX authorized account representative prior to the 
time and date when the Administrator receives the superseding 
application for a general account shall be binding on the new 
NOX authorized account representative and the persons with an 
ownership interest with respect to the allowances in the general 
account.
    (ii) The alternate NOX authorized account representative 
for a general account may be changed at any time upon receipt by the 
Administrator of a superseding complete application for a general 
account under paragraph (b)(1) of this section. Notwithstanding any such 
change, all representations, actions, inactions, and submissions by the 
previous alternate NOX authorized account representative 
prior to the time and date when the Administrator receives the 
superseding application for a general account shall be binding on the 
new alternate NOX authorized account representative and the 
persons with an ownership interest with respect to the allowances in the 
general account.

[[Page 30]]

    (iii)(A) In the event a new person having an ownership interest with 
respect to NOX allowances in the general account is not 
included in the list of such persons in the account certificate of 
representation, such new person shall be deemed to be subject to and 
bound by the account certificate of representation, the representation, 
actions, inactions, and submissions of the NOX authorized 
account representative and any alternate NOX authorized 
account representative of the source or unit, and the decisions, orders, 
actions, and inactions of the Administrator, as if the new person were 
included in such list.
    (B) Within 30 days following any change in the persons having an 
ownership interest with respect to NOX allowances in the 
general account, including the addition of persons, the NOX 
authorized account representative or any alternate NOX 
authorized account representative shall submit a revision to the 
application for a general account amending the list of persons having an 
ownership interest with respect to the NOX allowances in the 
general account to include the change.
    (5)(i) Once a complete application for a general account under 
paragraph (b)(1) of this section has been submitted and received, the 
Administrator will rely on the application unless and until a 
superseding complete application for a general account under paragraph 
(b)(1) of this section is received by the Administrator.
    (ii) Except as provided in paragraph (b)(4) of this section, no 
objection or other communication submitted to the Administrator 
concerning the authorization, or any representation, action, inaction, 
or submission of the NOX authorized account representative or 
any alternate NOX authorized account representative for a 
general account shall affect any representation, action, inaction, or 
submission of the NOX authorized account representative or 
any alternate NOX authorized account representative or the 
finality of any decision or order by the Administrator under the 
NOX Budget Trading Program.
    (iii) The Administrator will not adjudicate any private legal 
dispute concerning the authorization or any representation, action, 
inaction, or submission of the NOX authorized account 
representative or any alternate NOX authorized account 
representative for a general account, including private legal disputes 
concerning the proceeds of NOX allowance transfers.
    (c) Account identification. The Administrator will assign a unique 
identifying number to each account established under paragraph (a) or 
(b) of this section.



Sec. 96.52  NOX Allowance Tracking System responsibilities of NOX 
authorized account representative.

    (a) Following the establishment of a NOX Allowance 
Tracking System account, all submissions to the Administrator pertaining 
to the account, including, but not limited to, submissions concerning 
the deduction or transfer of NOX allowances in the account, 
shall be made only by the NOX authorized account 
representative for the account.
    (b) Authorized account representative identification. The 
Administrator will assign a unique identifying number to each 
NOX authorized account representative.



Sec. 96.53  Recordation of NOX allowance allocations.

    (a) The Administrator will record the NOX allowances for 
2003 in the NOX Budget units' compliance accounts and the 
allocation set-asides, as allocated under subpart E of this part. The 
Administrator will also record the NOX allowances allocated 
under Sec. 96.88(a)(1) for each NOX Budget opt-in source in 
its compliance account.
    (b) Each year, after the Administrator has made all deductions from 
a NOX Budget unit's compliance account and the overdraft 
account pursuant to Sec. 96.54, the Administrator will record 
NOX allowances, as allocated to the unit under subpart E of 
this part or under Sec. 96.88(a)(2), in the compliance account for the 
year after the last year for which allowances were previously allocated 
to the compliance account. Each year, the Administrator will also record 
NOX allowances, as allocated under subpart E of this part, in 
the allocation set-aside for the year after the last year for which 
allowances were

[[Page 31]]

previously allocated to an allocation set-aside.
    (c) Serial numbers for allocated NOX allowances. When 
allocating NOX allowances to and recording them in an 
account, the Administrator will assign each NOX allowance a 
unique identification number that will include digits identifying the 
year for which the NOX allowance is allocated.



Sec. 96.54  Compliance.

    (a) NOX allowance transfer deadline. The NOX 
allowances are available to be deducted for compliance with a unit's 
NOX Budget emissions limitation for a control period in a 
given year only if the NOX allowances:
    (1) Were allocated for a control period in a prior year or the same 
year; and
    (2) Are held in the unit's compliance account, or the overdraft 
account of the source where the unit is located, as of the 
NOX allowance transfer deadline for that control period or 
are transferred into the compliance account or overdraft account by a 
NOX allowance transfer correctly submitted for recordation 
under Sec. 96.60 by the NOX allowance transfer deadline for 
that control period.
    (b) Deductions for compliance. (1) Following the recordation, in 
accordance with Sec. 96.61, of NOX allowance transfers 
submitted for recordation in the unit's compliance account or the 
overdraft account of the source where the unit is located by the 
NOX allowance transfer deadline for a control period, the 
Administrator will deduct NOX allowances available under 
paragraph (a) of this section to cover the unit's NOX 
emissions (as determined in accordance with subpart H of this part), or 
to account for actual utilization under Sec. 96.42(e), for the control 
period:
    (i) From the compliance account; and
    (ii) Only if no more NOX allowances available under 
paragraph (a) of this section remain in the compliance account, from the 
overdraft account. In deducting allowances for units at the source from 
the overdraft account, the Administrator will begin with the unit having 
the compliance account with the lowest NOX Allowance Tracking 
System account number and end with the unit having the compliance 
account with the highest NOX Allowance Tracking System 
account number (with account numbers sorted beginning with the left-most 
character and ending with the right-most character and the letter 
characters assigned values in alphabetical order and less than all 
numeric characters).
    (2) The Administrator will deduct NOX allowances first 
under paragraph (b)(1)(i) of this section and then under paragraph 
(b)(1)(ii) of this section:
    (i) Until the number of NOX allowances deducted for the 
control period equals the number of tons of NOX emissions, 
determined in accordance with subpart H of this part, from the unit for 
the control period for which compliance is being determined, plus the 
number of NOX allowances required for deduction to account 
for actual utilization under Sec. 96.42(e) for the control period; or
    (ii) Until no more NOX allowances available under 
paragraph (a) of this section remain in the respective account.
    (c)(1) Identification of NOX allowances by serial number. 
The NOX authorized account representative for each compliance 
account may identify by serial number the NOX allowances to 
be deducted from the unit's compliance account under paragraph (b), (d), 
or (e) of this section. Such identification shall be made in the 
compliance certification report submitted in accordance with Sec. 
96.30.
    (2) First-in, first-out. The Administrator will deduct 
NOX allowances for a control period from the compliance 
account, in the absence of an identification or in the case of a partial 
identification of NOX allowances by serial number under 
paragraph (c)(1) of this section, or the overdraft account on a first-
in, first-out (FIFO) accounting basis in the following order:
    (i) Those NOX allowances that were allocated for the 
control period to the unit under subpart E or I of this part;
    (ii) Those NOX allowances that were allocated for the 
control period to any unit and transferred and recorded in the account 
pursuant to subpart G of this part, in order of their date of 
recordation;
    (iii) Those NOX allowances that were allocated for a 
prior control period to

[[Page 32]]

the unit under subpart E or I of this part; and
    (iv) Those NOX allowances that were allocated for a prior 
control period to any unit and transferred and recorded in the account 
pursuant to subpart G of this part, in order of their date of 
recordation.
    (d) Deductions for excess emissions. (1) After making the deductions 
for compliance under paragraph (b) of this section, the Administrator 
will deduct from the unit's compliance account or the overdraft account 
of the source where the unit is located a number of NOX 
allowances, allocated for a control period after the control period in 
which the unit has excess emissions, equal to three times the number of 
the unit's excess emissions.
    (2) If the compliance account or overdraft account does not contain 
sufficient NOX allowances, the Administrator will deduct the 
required number of NOX allowances, regardless of the control 
period for which they were allocated, whenever NOX allowances 
are recorded in either account.
    (3) Any allowance deduction required under paragraph (d) of this 
section shall not affect the liability of the owners and operators of 
the NOX Budget unit for any fine, penalty, or assessment, or 
their obligation to comply with any other remedy, for the same 
violation, as ordered under the CAA or applicable State law. The 
following guidelines will be followed in assessing fines, penalties or 
other obligations:
    (i) For purposes of determining the number of days of violation, if 
a NOX Budget unit has excess emissions for a control period, 
each day in the control period (153 days) constitutes a day in violation 
unless the owners and operators of the unit demonstrate that a lesser 
number of days should be considered.
    (ii) Each ton of excess emissions is a separate violation.
    (e) Deductions for units sharing a common stack. In the case of 
units sharing a common stack and having emissions that are not 
separately monitored or apportioned in accordance with subpart H of this 
part:
    (1) The NOX authorized account representative of the 
units may identify the percentage of NOX allowances to be 
deducted from each such unit's compliance account to cover the unit's 
share of NOX emissions from the common stack for a control 
period. Such identification shall be made in the compliance 
certification report submitted in accordance with Sec. 96.30.
    (2) Notwithstanding paragraph (b)(2)(i) of this section, the 
Administrator will deduct NOX allowances for each such unit 
until the number of NOX allowances deducted equals the unit's 
identified percentage (under paragraph (e)(1) of this section) of the 
number of tons of NOX emissions, as determined in accordance 
with subpart H of this part, from the common stack for the control 
period for which compliance is being determined or, if no percentage is 
identified, an equal percentage for each such unit, plus the number of 
allowances required for deduction to account for actual utilization 
under Sec. 96.42(e) for the control period.
    (f) The Administrator will record in the appropriate compliance 
account or overdraft account all deductions from such an account 
pursuant to paragraphs (b), (d), or (e) of this section.



Sec. 96.55  Banking.

    (a) NOX allowances may be banked for future use or 
transfer in a compliance account, an overdraft account, or a general 
account, as follows:
    (1) Any NOX allowance that is held in a compliance 
account, an overdraft account, or a general account will remain in such 
account unless and until the NOX allowance is deducted or 
transferred under Sec. 96.31, Sec. 96.54, Sec. 96.56, subpart G of 
this part, or subpart I of this part.
    (2) The Administrator will designate, as a ``banked'' NOX 
allowance, any NOX allowance that remains in a compliance 
account, an overdraft account, or a general account after the 
Administrator has made all deductions for a given control period from 
the compliance account or overdraft account pursuant to Sec. 96.54.
    (b) Each year starting in 2004, after the Administrator has 
completed the designation of banked NOX allowances under 
paragraph (a)(2) of this section and before May 1 of the year, the 
Administrator will determine the extent to which banked NOX 
allowances may

[[Page 33]]

be used for compliance in the control period for the current year, as 
follows:
    (1) The Administrator will determine the total number of banked 
NOX allowances held in compliance accounts, overdraft 
accounts, or general accounts.
    (2) If the total number of banked NOX allowances 
determined, under paragraph (b)(1) of this section, to be held in 
compliance accounts, overdraft accounts, or general accounts is less 
than or equal to 10% of the sum of the State trading program budgets for 
the control period for the States in which NOX Budget units 
are located, any banked NOX allowance may be deducted for 
compliance in accordance with Sec. 96.54.
    (3) If the total number of banked NOX allowances 
determined, under paragraph (b)(1) of this section, to be held in 
compliance accounts, overdraft accounts, or general accounts exceeds 10% 
of the sum of the State trading program budgets for the control period 
for the States in which NOX Budget units are located, any 
banked allowance may be deducted for compliance in accordance with Sec. 
96.54, except as follows:
    (i) The Administrator will determine the following ratio: 0.10 
multiplied by the sum of the State trading program budgets for the 
control period for the States in which NOX Budget units are 
located and divided by the total number of banked NOX 
allowances determined, under paragraph (b)(1) of this section, to be 
held in compliance accounts, overdraft accounts, or general accounts.
    (ii) The Administrator will multiply the number of banked 
NOX allowances in each compliance account or overdraft 
account. The resulting product is the number of banked NOX 
allowances in the account that may be deducted for compliance in 
accordance with Sec. 96.54. Any banked NOX allowances in 
excess of the resulting product may be deducted for compliance in 
accordance with Sec. 96.54, except that, if such NOX 
allowances are used to make a deduction, two such NOX 
allowances must be deducted for each deduction of one NOX 
allowance required under Sec. 96.54.
    (c) Any NOX Budget unit may reduce its NOX 
emission rate in the 2001 or 2002 control period, the owner or operator 
of the unit may request early reduction credits, and the permitting 
authority may allocate NOX allowances in 2003 to the unit in 
accordance with the following requirements.
    (1) Each NOX Budget unit for which the owner or operator 
requests any early reduction credits under paragraph (c)(4) of this 
section shall monitor NOX emissions in accordance with 
subpart H of this part starting in the 2000 control period and for each 
control period for which such early reduction credits are requested. The 
unit's monitoring system availability shall be not less than 90 percent 
during the 2000 control period, and the unit must be in compliance with 
any applicable State or Federal emissions or emissions-related 
requirements.
    (2) NOX emission rate and heat input under paragraphs 
(c)(3) through (5) of this section shall be determined in accordance 
with subpart H of this part.
    (3) Each NOX Budget unit for which the owner or operator 
requests any early reduction credits under paragraph (c)(4) of this 
section shall reduce its NOX emission rate, for each control 
period for which early reduction credits are requested, to less than 
both 0.25 lb/mmBtu and 80 percent of the unit's NOX emission 
rate in the 2000 control period.
    (4) The NOX authorized account representative of a 
NOX Budget unit that meets the requirements of paragraphs 
(c)(1)and (3) of this section may submit to the permitting authority a 
request for early reduction credits for the unit based on NOX 
emission rate reductions made by the unit in the control period for 2001 
or 2002 in accordance with paragraph (c)(3) of this section.
    (i) In the early reduction credit request, the NOX 
authorized account may request early reduction credits for such control 
period in an amount equal to the unit's heat input for such control 
period multiplied by the difference between 0.25 lb/mmBtu and the unit's 
NOX emission rate for such control period, divided by 2000 
lb/ton, and rounded to the nearest ton.
    (ii) The early reduction credit request must be submitted, in a 
format specified by the permitting authority, by October 31 of the year 
in which the NOX emission rate reductions on which

[[Page 34]]

the request is based are made or such later date approved by the 
permitting authority.
    (5) The permitting authority will allocate NOX 
allowances, to NOX Budget units meeting the requirements of 
paragraphs (c)(1) and (3) of this section and covered by early reduction 
requests meeting the requirements of paragraph (c)(4)(ii) of this 
section, in accordance with the following procedures:
    (i) Upon receipt of each early reduction credit request, the 
permitting authority will accept the request only if the requirements of 
paragraphs (c)(1), (c)(3), and (c)(4)(ii) of this section are met and, 
if the request is accepted, will make any necessary adjustments to the 
request to ensure that the amount of the early reduction credits 
requested meets the requirement of paragraphs (c)(2) and (4) of this 
section.
    (ii) If the State's compliance supplement pool has an amount of 
NOX allowances not less than the number of early reduction 
credits in all accepted early reduction credit requests for 2001 and 
2002 (as adjusted under paragraph (c)(5)(i) of this section), the 
permitting authority will allocate to each NOX Budget unit 
covered by such accepted requests one allowance for each early reduction 
credit requested (as adjusted under paragraph (c)(5)(i) of this 
section).
    (iii) If the State's compliance supplement pool has a smaller amount 
of NOX allowances than the number of early reduction credits 
in all accepted early reduction credit requests for 2001 and 2002 (as 
adjusted under paragraph (c)(5)(i) of this section), the permitting 
authority will allocate NOX allowances to each NOX 
Budget unit covered by such accepted requests according to the following 
formula:

Unit's allocated early reduction credits = [(Unit's adjusted early 
    reduction credits) / (Total adjusted early reduction credits 
    requested by all units)]x(Available NOX allowances from 
    the State's compliance supplement pool)

where:

``Unit's adjusted early reduction credits'' is the number of early 
reduction credits for the unit for 2001 and 2002 in accepted early 
reduction credit requests, as adjusted under paragraph (c)(5)(i) of this 
section.
``Total adjusted early reduction credits requested by all units'' is the 
number of early reduction credits for all units for 2001 and 2002 in 
accepted early reduction credit requests, as adjusted under paragraph 
(c)(5)(i) of this section.
``Available NOX allowances from the State's compliance 
supplement pool'' is the number of NOX allowances in the 
State's compliance supplement pool and available for early reduction 
credits for 2001 and 2002.

    (6) By May 1, 2003, the permitting authority will submit to the 
Administrator the allocations of NOX allowances determined 
under paragraph (c)(5) of this section. The Administrator will record 
such allocations to the extent that they are consistent with the 
requirements of paragraphs (c)(1) through (5) of this section.
    (7) NOX allowances recorded under paragraph (c)(6) of 
this section may be deducted for compliance under Sec. 96.54 for the 
control periods in 2003 or 2004. Notwithstanding paragraph (a) of this 
section, the Administrator will deduct as retired any NOX 
allowance that is recorded under paragraph (c)(6) of this section and is 
not deducted for compliance in accordance with Sec. 96.54 for the 
control period in 2003 or 2004.
    (8) NOX allowances recorded under paragraph (c)(6) of 
this section are treated as banked allowances in 2004 for the purposes 
of paragraphs (a) and (b) of this section.



Sec. 96.56  Account error.

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



Sec. 96.57  Closing of general accounts.

    (a) The NOX authorized account representative of a 
general account may instruct the Administrator to close the account by 
submitting a statement requesting deletion of the account from the 
NOX Allowance Tracking System and by correctly submitting for 
recordation under Sec. 96.60 an allowance transfer of all 
NOX allowances in the

[[Page 35]]

account to one or more other NOX Allowance Tracking System 
accounts.
    (b) If a general account shows no activity for a period of a year or 
more and does not contain any NOX allowances, the 
Administrator may notify the NOX authorized account 
representative for the account that the account will be closed and 
deleted from the NOX Allowance Tracking System following 20 
business days after the notice is sent. The account will be closed after 
the 20-day period unless before the end of the 20-day period the 
Administrator receives a correctly submitted transfer of NOX 
allowances into the account under Sec. 96.60 or a statement submitted 
by the NOX authorized account representative demonstrating to 
the satisfaction of the Administrator good cause as to why the account 
should not be closed.



                    Subpart G_NOX Allowance Transfers



Sec. 96.60  Submission of NOX allowance transfers.

    The NOX authorized account representatives seeking 
recordation of a NOX allowance transfer shall submit the 
transfer to the Administrator. To be considered correctly submitted, the 
NOX allowance transfer shall include the following elements 
in a format specified by the Administrator:
    (a) The numbers identifying both the transferor and transferee 
accounts;
    (b) A specification by serial number of each NOX 
allowance to be transferred; and
    (c) The printed name and signature of the NOX authorized 
account representative of the transferor account and the date signed.



Sec. 96.61  EPA recordation.

    (a) Within 5 business days of receiving a NOX allowance 
transfer, except as provided in paragraph (b) of this section, the 
Administrator will record a NOX allowance transfer by moving 
each NOX allowance from the transferor account to the 
transferee account as specified by the request, provided that:
    (1) The transfer is correctly submitted under Sec. 96.60;
    (2) The transferor account includes each NOX allowance 
identified by serial number in the transfer; and
    (3) The transfer meets all other requirements of this part.
    (b) A NOX allowance transfer that is submitted for 
recordation following the NOX allowance transfer deadline and 
that includes any NOX allowances allocated for a control 
period prior to or the same as the control period to which the 
NOX allowance transfer deadline applies will not be recorded 
until after completion of the process of recordation of NOX 
allowance allocations in Sec. 96.53(b).
    (c) Where a NOX allowance transfer submitted for 
recordation fails to meet the requirements of paragraph (a) of this 
section, the Administrator will not record such transfer.



Sec. 96.62  Notification.

    (a) Notification of recordation. Within 5 business days of 
recordation of a NOX allowance transfer under Sec. 96.61, 
the Administrator will notify each party to the transfer. Notice will be 
given to the NOX authorized account representatives of both 
the transferror and transferee accounts.
    (b) Notification of non-recordation. Within 10 business days of 
receipt of a NOX allowance transfer that fails to meet the 
requirements of Sec. 96.61(a), the Administrator will notify the 
NOX authorized account representatives of both accounts 
subject to the transfer of:
    (1) A decision not to record the transfer, and (2) The reasons for 
such non-recordation.
    (c) Nothing in this section shall preclude the submission of a 
NOX allowance transfer for recordation following notification 
of non-recordation.



                   Subpart H_Monitoring and Reporting



Sec. 96.70  General requirements.

    The owners and operators, and to the extent applicable, the 
NOX authorized account representative of a NOX 
Budget unit, shall comply with the monitoring and reporting requirements 
as provided in this subpart and in subpart

[[Page 36]]

H of part 75 of this chapter. For purposes of complying with such 
requirements, the definitions in Sec. 96.2 and in Sec. 72.2 of this 
chapter shall apply, and the terms ``affected unit,'' ``designated 
representative,'' and ``continuous emission monitoring system'' (or 
``CEMS'') in part 75 of this chapter shall be replaced by the terms 
``NOX Budget unit,'' ``NOX authorized account 
representative,'' and ``continuous emission monitoring system'' (or 
``CEMS''), respectively, as defined in Sec. 96.2.
    (a) Requirements for installation, certification, and data 
accounting. The owner or operator of each NOX Budget unit 
must meet the following requirements. These provisions also apply to a 
unit for which an application for a NOX Budget opt-in permit 
is submitted and not denied or withdrawn, as provided in subpart I of 
this part:
    (1) Install all monitoring systems required under this subpart for 
monitoring NOX mass. This includes all systems required to 
monitor NOX emission rate, NOX concentration, heat 
input, and flow, in accordance with Sec. Sec. 75.72 and 75.76.
    (2) Install all monitoring systems for monitoring heat input, if 
required under Sec. 96.76 for developing NOX allowance 
allocations.
    (3) Successfully complete all certification tests required under 
Sec. 96.71 and meet all other provisions of this subpart and part 75 of 
this chapter applicable to the monitoring systems under paragraphs 
(a)(1) and (2) of this section.
    (4) Record, and report data from the monitoring systems under 
paragraphs (a)(1) and (2) of this section.
    (b) Compliance dates. The owner or operator must meet the 
requirements of paragraphs (a)(1) through (a)(3) of this section on or 
before the following dates and must record and report data on and after 
the following dates:
    (1) NOX Budget units for which the owner or operator 
intends to apply for early reduction credits under Sec. 96.55(d) must 
comply with the requirements of this subpart by May 1, 2000.
    (2) Except for NOX Budget units under paragraph (b)(1) of 
this section, NOX Budget units under Sec. 96.4 that commence 
operation before January 1, 2002, must comply with the requirements of 
this subpart by May 1, 2002.
    (3) NOX Budget units under Sec. 96.4 that commence 
operation on or after January 1, 2002 and that report on an annual basis 
under Sec. 96.74(d) must comply with the requirements of this subpart 
by the later of the following dates:
    (i) May 1, 2002; or
    (ii) The earlier of:
    (A) 180 days after the date on which the unit commences operation 
or, (B) For units under Sec. 96.4(a)(1), 90 days after the date on 
which the unit commences commercial operation.
    (4) NOX Budget units under Sec. 96.4 that commence 
operation on or after January 1, 2002 and that report on a control 
season basis under Sec. 96.74(d) must comply with the requirements of 
this subpart by the later of the following dates:
    (i) The earlier of:
    (A) 180 days after the date on which the unit commences operation 
or,
    (B) For units under Sec. 96.4(a)(1), 90 days after the date on 
which the unit commences commercial operation.
    (ii) However, if the applicable deadline under paragraph (b)(4)(i) 
section does not occur during a control period, May 1; immediately 
following the date determined in accordance with paragraph (b)(4)(i) of 
this section.
    (5) For a NOX Budget unit with a new stack or flue for 
which construction is completed after the applicable deadline under 
paragraph ( b)(1), (b)(2) or (b)(3) of this section or subpart I of this 
part:
    (i) 90 days after the date on which emissions first exit to the 
atmosphere through the new stack or flue;
    (ii) However, if the unit reports on a control season basis under 
Sec. 96.74(d) and the applicable deadline under paragraph (b)(5)(i) of 
this section does not occur during the control period, May 1 immediately 
following the applicable deadline in paragraph (b)(5)(i) of this 
section.
    (6) For a unit for which an application for a NOX Budget 
opt in permit is submitted and not denied or withdrawn, the compliance 
dates specified under subpart I of this part.
    (c) Reporting data prior to initial certification. (1) The owner or 
operator of a NOX Budget unit that misses the certification 
deadline under paragraph (b)(1) of this section is not eligible to apply 
for early reduction credits. The owner or operator of the unit becomes

[[Page 37]]

subject to the certification deadline under paragraph (b)(2) of this 
section.
    (2) The owner or operator of a NOX Budget under 
paragraphs (b)(3) or (b)(4) of this section must determine, record and 
report NOX mass, heat input (if required for purposes of 
allocations) and any other values required to determine NOX 
Mass (e.g. NOX emission rate and heat input or NOX 
concentration and stack flow) using the provisions of Sec. 75.70(g) of 
this chapter, from the date and hour that the unit starts operating 
until all required certification tests are successfully completed.
    (d) Prohibitions. (1) No owner or operator of a NOX 
Budget unit or a non-NOX Budget unit monitored under Sec. 
75.72(b)(2)(ii) shall use any alternative monitoring system, alternative 
reference method, or any other alternative for the required continuous 
emission monitoring system without having obtained prior written 
approval in accordance with Sec. 96.75.
    (2) No owner or operator of a NOX Budget unit or a non-
NOX Budget unit monitored under Sec. 75.72(b)(2)(ii) shall 
operate the unit so as to discharge, or allow to be discharged, 
NOX emissions to the atmosphere without accounting for all 
such emissions in accordance with the applicable provisions of this 
subpart and part 75 of this chapter except as provided for in Sec. 
75.74 of this chapter.
    (3) No owner or operator of a NOX Budget unit or a non-
NOX Budget unit monitored under Sec. 75.72(b)(2)(ii) shall 
disrupt the continuous emission monitoring system, any portion thereof, 
or any other approved emission monitoring method, and thereby avoid 
monitoring and recording NOX mass emissions discharged into 
the atmosphere, except for periods of recertification or periods when 
calibration, quality assurance testing, or maintenance is performed in 
accordance with the applicable provisions of this subpart and part 75 of 
this chapter except as provided for in Sec. 75.74 of this chapter.
    (4) No owner or operator of a NOX Budget unit or a non-
NOX Budget unit monitored under Sec. 75.72(b)(2)(ii) shall 
retire or permanently discontinue use of the continuous emission 
monitoring system, any component thereof, or any other approved emission 
monitoring system under this subpart, except under any one of the 
following circumstances:
    (i) During the period that the unit is covered by a retired unit 
exemption under Sec. 96.5 that is in effect;
    (ii) The owner or operator is monitoring emissions from the unit 
with another certified monitoring system approved, in accordance with 
the applicable provisions of this subpart and part 75 of this chapter, 
by the permitting authority for use at that unit that provides emission 
data for the same pollutant or parameter as the retired or discontinued 
monitoring system; or
    (iii) The NOX authorized account representative submits 
notification of the date of certification testing of a replacement 
monitoring system in accordance with Sec. 96.71(b)(2).



Sec. 96.71  Initial certification and recertification procedures

    (a) The owner or operator of a NOX Budget unit that is 
subject to an Acid Rain emissions limitation shall comply with the 
initial certification and recertification procedures of part 75 of this 
chapter, except that:
    (1) If, prior to January 1, 1998, the Administrator approved a 
petition under Sec. 75.17(a) or (b) of this chapter for apportioning 
the NOX emission rate measured in a common stack or a 
petition under Sec. 75.66 of this chapter for an alternative to a 
requirement in Sec. 75.17 of this chapter, the NOX 
authorized account representative shall resubmit the petition to the 
Administrator under Sec. 96.75(a) to determine if the approval applies 
under the NOX Budget Trading Program.
    (2) For any additional CEMS required under the common stack 
provisions in Sec. 75.72 of this chapter, or for any NOX 
concentration CEMS used under the provisions of Sec. 75.71(a)(2) of 
this chapter, the owner or operator shall meet the requirements of 
paragraph (b) of this section.
    (b) The owner or operator of a NOX Budget unit that is 
not subject to an Acid Rain emissions limitation shall comply with the 
following initial certification and recertification procedures, except 
that the owner or operator of a unit that qualifies to use the

[[Page 38]]

low mass emissions excepted monitoring methodology under Sec. 75.19 
shall also meet the requirements of paragraph (c) of this section and 
the owner or operator of a unit that qualifies to use an alternative 
monitoring system under subpart E of part 75 of this chapter shall also 
meet the requirements of paragraph (d) of this section. The owner or 
operator of a NOX Budget unit that is subject to an Acid Rain 
emissions limitation, but requires additional CEMS under the common 
stack provisions in Sec. 75.72 of this chapter, or that uses a 
NOX concentration CEMS under Sec. 75.71(a)(2) of this 
chapter also shall comply with the following initial certification and 
recertification procedures.
    (1) Requirements for initial certification. The owner or operator 
shall ensure that each monitoring system required by subpart H of part 
75 of this chapter (which includes the automated data acquisition and 
handling system) successfully completes all of the initial certification 
testing required under Sec. 75.20 of this chapter. The owner or 
operator shall ensure that all applicable certification tests are 
successfully completed by the deadlines specified in Sec. 96.70(b). In 
addition, whenever the owner or operator installs a monitoring system in 
order to meet the requirements of this part in a location where no such 
monitoring system was previously installed, initial certification 
according to Sec. 75.20 is required.
    (2) Requirements for recertification. Whenever the owner or operator 
makes a replacement, modification, or change in a certified monitoring 
system that the Administrator or the permitting authority determines 
significantly affects the ability of the system to accurately measure or 
record NOX mass emissions or heat input or to meet the 
requirements of Sec. 75.21 of this chapter or appendix B to part 75 of 
this chapter, the owner or operator shall recertify the monitoring 
system according to Sec. 75.20(b) of this chapter. Furthermore, 
whenever the owner or operator makes a replacement, modification, or 
change to the flue gas handling system or the unit's operation that the 
Administrator or the permitting authority determines to significantly 
change the flow or concentration profile, the owner or operator shall 
recertify the continuous emissions monitoring system according to Sec. 
75.20(b) of this chapter. Examples of changes which require 
recertification include: replacement of the analyzer, change in location 
or orientation of the sampling probe or site, or changing of flow rate 
monitor polynomial coefficients.
    (3) Certification approval process for initial certifications and 
recertification. (i) Notification of certification. The NOX 
authorized account representative shall submit to the permitting 
authority, the appropriate EPA Regional Office and the permitting 
authority a written notice of the dates of certification in accordance 
with Sec. 96.73.
    (ii) Certification application. The NOX authorized 
account representative shall submit to the permitting authority a 
certification application for each monitoring system required under 
subpart H of part 75 of this chapter. A complete certification 
application shall include the information specified in subpart H of part 
75 of this chapter.
    (iii) Except for units using the low mass emission excepted 
methodology under Sec. 75.19 of this chapter, the provisional 
certification date for a monitor shall be determined using the 
procedures set forth in Sec. 75.20(a)(3) of this chapter. A 
provisionally certified monitor may be used under the NOX 
Budget Trading Program for a period not to exceed 120 days after receipt 
by the permitting authority of the complete certification application 
for the monitoring system or component thereof under paragraph 
(b)(3)(ii) of this section. Data measured and recorded by the 
provisionally certified monitoring system or component thereof, in 
accordance with the requirements of part 75 of this chapter, will be 
considered valid quality-assured data (retroactive to the date and time 
of provisional certification), provided that the permitting authority 
does not invalidate the provisional certification by issuing a notice of 
disapproval within 120 days of receipt of the complete certification 
application by the permitting authority.

[[Page 39]]

    (iv) Certification application formal approval process. The 
permitting authority will issue a written notice of approval or 
disapproval of the certification application to the owner or operator 
within 120 days of receipt of the complete certification application 
under paragraph (b)(3)(ii) of this section. In the event the permitting 
authority does not issue such a notice within such 120-day period, each 
monitoring system which meets the applicable performance requirements of 
part 75 of this chapter and is included in the certification application 
will be deemed certified for use under the NOX Budget Trading 
Program.
    (A) Approval notice. If the certification application is complete 
and shows that each monitoring system meets the applicable performance 
requirements of part 75 of this chapter, then the permitting authority 
will issue a written notice of approval of the certification application 
within 120 days of receipt.
    (B) Incomplete application notice. A certification application will 
be considered complete when all of the applicable information required 
to be submitted under paragraph (b)(3)(ii) of this section has been 
received by the permitting authority. If the certification application 
is not complete, then the permitting authority will issue a written 
notice of incompleteness that sets a reasonable date by which the 
NOX authorized account representative must submit the 
additional information required to complete the certification 
application. If the NOX authorized account representative 
does not comply with the notice of incompleteness by the specified date, 
then the permitting authority may issue a notice of disapproval under 
paragraph (b)(3)(iv)(C) of this section.
    (C) Disapproval notice. If the certification application shows that 
any monitoring system or component thereof does not meet the performance 
requirements of this part, or if the certification application is 
incomplete and the requirement for disapproval under paragraph 
(b)(3)(iv)(B) of this section has been met, the permitting authority 
will issue a written notice of disapproval of the certification 
application. Upon issuance of such notice of disapproval, the 
provisional certification is invalidated by the permitting authority and 
the data measured and recorded by each uncertified monitoring system or 
component thereof shall not be considered valid quality-assured data 
beginning with the date and hour of provisional certification. The owner 
or operator shall follow the procedures for loss of certification in 
paragraph (b)(3)(v) of this section for each monitoring system or 
component thereof which is disapproved for initial certification.
    (D) Audit decertification. The permitting authority may issue a 
notice of disapproval of the certification status of a monitor in 
accordance with Sec. 96.72(b).
    (v) Procedures for loss of certification. If the permitting 
authority issues a notice of disapproval of a certification application 
under paragraph (b)(3)(iv)(C) of this section or a notice of disapproval 
of certification status under paragraph (b)(3)(iv)(D) of this section, 
then:
    (A) The owner or operator shall substitute the following values, for 
each hour of unit operation during the period of invalid data beginning 
with the date and hour of provisional certification and continuing until 
the time, date, and hour specified under Sec. 75.20(a)(5)(i) of this 
chapter:
    (1) For units using or intending to monitor for NOX 
emission rate and heat input or for units using the low mass emission 
excepted methodology under Sec. 75.19 of this chapter, the maximum 
potential NOX emission rate and the maximum potential hourly 
heat input of the unit.
    (2) For units intending to monitor for NOX mass emissions 
using a NOX pollutant concentration monitor and a flow 
monitor, the maximum potential concentration of NOX and the 
maximum potential flow rate of the unit under section 2.1 of appendix A 
of part 75 of this chapter;
    (B) The NOX authorized account representative shall 
submit a notification of certification retest dates and a new 
certification application in accordance with paragraphs (b)(3)(i) and 
(ii) of this section; and

[[Page 40]]

    (C) The owner or operator shall repeat all certification tests or 
other requirements that were failed by the monitoring system, as 
indicated in the permitting authority's notice of disapproval, no later 
than 30 unit operating days after the date of issuance of the notice of 
disapproval.
    (c) Initial certification and recertification procedures for low 
mass emission units using the excepted methodologies under Sec. 75.19 
of this chapter. The owner or operator of a gas-fired or oil-fired unit 
using the low mass emissions excepted methodology under Sec. 75.19 of 
this chapter shall meet the applicable general operating requirements of 
Sec. 75.10 of this chapter, the applicable requirements of Sec. 75.19 
of this chapter, and the applicable certification requirements of Sec. 
96.71 of this chapter, except that the excepted methodology shall be 
deemed provisionally certified for use under the NOX Budget 
Trading Program, as of the following dates:
    (1) For units that are reporting on an annual basis under Sec. 
96.74(d);
    (i) For a unit that has commences operation before its compliance 
deadline under Sec. 96.71(b), from January 1 of the year following 
submission of the certification application for approval to use the low 
mass emissions excepted methodology under Sec. 75.19 of this chapter 
until the completion of the period for the permitting authority review; 
or
    (ii) For a unit that commences operation after its compliance 
deadline under Sec. 96.71(b), the date of submission of the 
certification application for approval to use the low mass emissions 
excepted methodology under Sec. 75.19 of this chapter until the 
completion of the period for permitting authority review, or
    (2) For units that are reporting on a control period basis under 
Sec. 96.74(b)(3)(ii) of this part:
    (i) For a unit that commenced operation before its compliance 
deadline under Sec. 96.71(b), where the certification application is 
submitted before May 1, from May 1 of the year of the submission of the 
certification application for approval to use the low mass emissions 
excepted methodology under Sec. 75.19 of this chapter until the 
completion of the period for the permitting authority review; or
    (ii) For a unit that commenced operation before its compliance 
deadline under Sec. 96.71(b), where the certification application is 
submitted after May 1, from May 1 of the year following submission of 
the certification application for approval to use the low mass emissions 
excepted methodology under Sec. 75.19 of this chapter until the 
completion of the period for the permitting authority review; or
    (iii) For a unit that commences operation after its compliance 
deadline under Sec. 96.71(b), where the unit commences operation before 
May 1, from May 1 of the year that the unit commenced operation, until 
the completion of the period for the permitting authority's review.
    (iv) For a unit that has not operated after its compliance deadline 
under Sec. 96.71(b), where the certification application is submitted 
after May 1, but before October 1st, from the date of submission of a 
certification application for approval to use the low mass emissions 
excepted methodology under Sec. 75.19 of this chapter until the 
completion of the period for the permitting authority's review.
    (d) Certification/recertification procedures for alternative 
monitoring systems. The NOX authorized account representative 
representing the owner or operator of each unit applying to monitor 
using an alternative monitoring system approved by the Administrator 
and, if applicable, the permitting authority under subpart E of part 75 
of this chapter shall apply for certification to the permitting 
authority prior to use of the system under the NOX Trading 
Program. The NOX authorized account representative shall 
apply for recertification following a replacement, modification or 
change according to the procedures in paragraph (b) of this section. The 
owner or operator of an alternative monitoring system shall comply with 
the notification and application requirements for certification 
according to the procedures specified in paragraph (b)(3) of this 
section and Sec. 75.20(f) of this chapter .



Sec. 96.72  Out of control periods.

    (a) Whenever any monitoring system fails to meet the quality 
assurance requirements of appendix B of part 75 of

[[Page 41]]

this chapter, data shall be substituted using the applicable procedures 
in subpart D, appendix D, or appendix E of part 75 of this chapter.
    (b) Audit decertification. Whenever both an audit of a monitoring 
system and a review of the initial certification or recertification 
application reveal that any system or component should not have been 
certified or recertified because it did not meet a particular 
performance specification or other requirement under Sec. 96.71 or the 
applicable provisions of part 75 of this chapter, both at the time of 
the initial certification or recertification application submission and 
at the time of the audit, the permitting authority will issue a notice 
of disapproval of the certification status of such system or component. 
For the purposes of this paragraph, an audit shall be either a field 
audit or an audit of any information submitted to the permitting 
authority or the Administrator. By issuing the notice of disapproval, 
the permitting authority revokes prospectively the certification status 
of the system or component. The data measured and recorded by the system 
or component shall not be considered valid quality-assured data from the 
date of issuance of the notification of the revoked certification status 
until the date and time that the owner or operator completes 
subsequently approved initial certification or recertification tests. 
The owner or operator shall follow the initial certification or 
recertification procedures in Sec. 96.71 for each disapproved system.



Sec. 96.73  Notifications.

    The NOX authorized account representative for a 
NOX Budget unit shall submit written notice to the permitting 
authority and the Administrator in accordance with Sec. 75.61 of this 
chapter, 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.



Sec. 96.74  Recordkeeping and reporting.

    (a) General provisions. (1) The NOX authorized account 
representative shall comply with all recordkeeping and reporting 
requirements in this section and with the requirements of Sec. 
96.10(e).
    (2) If the NOX authorized account representative for a 
NOX Budget unit subject to an Acid Rain Emission limitation 
who signed and certified any submission that is made under subpart F or 
G of part 75 of this chapter and which includes data and information 
required under this subpart or subpart H of part 75 of this chapter is 
not the same person as the designated representative or the alternative 
designated representative for the unit under part 72 of this chapter, 
the submission must also be signed by the designated representative or 
the alternative designated representative.
    (b) Monitoring plans. (1) The owner or operator of a unit subject to 
an Acid Rain emissions limitation shall comply with requirements of 
Sec. 75.62 of this chapter, except that the monitoring plan shall also 
include all of the information required by subpart H of part 75 of this 
chapter.
    (2) The owner or operator of a unit that is not subject to an Acid 
Rain emissions limitation shall comply with requirements of Sec. 75.62 
of this chapter, except that the monitoring plan is only required to 
include the information required by subpart H of part 75 of this 
chapter.
    (c) Certification applications. The NOX authorized 
account representative shall submit an application to the permitting 
authority within 45 days after completing all initial certification or 
recertification tests required under Sec. 96.71 including the 
information required under subpart H of part 75 of this chapter.
    (d) Quarterly reports. The NOX authorized account 
representative shall submit quarterly reports, as follows:
    (1) If a unit is subject to an Acid Rain emission limitation or if 
the owner or operator of the NOX budget unit chooses to meet 
the annual reporting requirements of this subpart H, the NOX 
authorized account representative shall submit a quarterly report for 
each calendar quarter beginning with:
    (i) For units that elect to comply with the early reduction credit 
provisions under Sec. 96.55 of this part, the calender quarter that 
includes the date of initial provisional certification under Sec. 
96.71(b)(3)(iii). Data shall be reported from the date and hour 
corresponding

[[Page 42]]

to the date and hour of provisional certification; or
    (ii) For units commencing operation prior to May 1, 2002 that are 
not required to certify monitors by May 1, 2000 under Sec. 96.70(b)(1), 
the earlier of the calender quarter that includes the date of initial 
provisional certification under Sec. 96.71(b)(3)(iii) or, if the 
certification tests are not completed by May 1, 2002, the partial 
calender quarter from May 1, 2002 through June 30, 2002. Data shall be 
recorded and reported from the earlier of the date and hour 
corresponding to the date and hour of provisional certification or the 
first hour on May 1, 2002; or
    (iii) For a unit that commences operation after May 1, 2002, the 
calendar quarter in which the unit commences operation, Data shall be 
reported from the date and hour corresponding to when the unit commenced 
operation.
    (2) If a NOX budget unit is not subject to an Acid Rain 
emission limitation, then the NOX authorized account 
representative shall either:
    (i) Meet all of the requirements of part 75 related to monitoring 
and reporting NOX mass emissions during the entire year and 
meet the reporting deadlines specified in paragraph (d)(1) of this 
section; or
    (ii) Submit quarterly reports only for the periods from the earlier 
of May 1 or the date and hour that the owner or operator successfully 
completes all of the recertification tests required under Sec. 
75.74(d)(3) through September 30 of each year in accordance with the 
provisions of Sec. 75.74(b) of this chapter. The NOX 
authorized account representative shall submit a quarterly report for 
each calendar quarter, beginning with:
    (A) For units that elect to comply with the early reduction credit 
provisions under Sec. 96.55, the calender quarter that includes the 
date of initial provisional certification under Sec. 96.71(b)(3)(iii). 
Data shall be reported from the date and hour corresponding to the date 
and hour of provisional certification; or
    (B) For units commencing operation prior to May 1, 2002 that are not 
required to certify monitors by May 1, 2000 under Sec. 96.70(b)(1), the 
earlier of the calender quarter that includes the date of initial 
provisional certification under Sec. 96.71(b)(3)(iii), or if the 
certification tests are not completed by May 1, 2002, the partial 
calender quarter from May 1, 2002 through June 30, 2002. Data shall be 
reported from the earlier of the date and hour corresponding to the date 
and hour of provisional certification or the first hour of May 1, 2002; 
or
    (C) For units that commence operation after May 1, 2002 during the 
control period, the calender quarter in which the unit commences 
operation. Data shall be reported from the date and hour corresponding 
to when the unit commenced operation; or
    (D) For units that commence operation after May 1, 2002 and before 
May 1 of the year in which the unit commences operation, the earlier of 
the calender quarter that includes the date of initial provisional 
certification under Sec. 96.71(b)(3)(iii) or, if the certification 
tests are not completed by May 1 of the year in which the unit commences 
operation, May 1 of the year in which the unit commences operation. Data 
shall be reported from the earlier of the date and hour corresponding to 
the date and hour of provisional certification or the first hour of May 
1 of the year after the unit commences operation.
    (E) For units that commence operation after May 1, 2002 and after 
September 30 of the year in which the unit commences operation, the 
earlier of the calender quarter that includes the date of initial 
provisional certification under Sec. 96.71(b)(3)(iii) or, if the 
certification tests are not completed by May 1 of the year after the 
unit commences operation, May 1 of the year after the unit commences 
operation. Data shall be reported from the earlier of the date and hour 
corresponding to the date and hour of provisional certification or the 
first hour of May 1 of the year after the unit commences operation.
    (3) The NOX authorized account representative shall 
submit each quarterly report to the Administrator within 30 days 
following the end of the calendar quarter covered by the report. 
Quarterly reports shall be submitted in the manner specified in subpart 
H of part 75 of this chapter and Sec. 75.64 of this chapter.

[[Page 43]]

    (i) For units subject to an Acid Rain Emissions limitation, 
quarterly reports shall include all of the data and information required 
in subpart H of part 75 of this chapter for each NOX Budget 
unit (or group of units using a common stack) as well as information 
required in subpart G of part 75 of this chapter.
    (ii) For units not subject to an Acid Rain Emissions limitation, 
quarterly reports are only required to include all of the data and 
information required in subpart H of part 75 of this chapter for each 
NOX Budget unit (or group of units using a common stack).
    (4) Compliance certification. The NOX authorized account 
representative shall submit to the Administrator a compliance 
certification in support of each quarterly report based on reasonable 
inquiry of those persons with primary responsibility for ensuring that 
all of the unit's emissions are correctly and fully monitored. The 
certification shall state that:
    (i) The monitoring data submitted were recorded in accordance with 
the applicable requirements of this subpart and part 75 of this chapter, 
including the quality assurance procedures and specifications; and
    (ii) For a unit with add-on NOX emission controls and for 
all hours where data are substituted in accordance with Sec. 
75.34(a)(1) of this chapter, the add-on emission controls were operating 
within the range of parameters listed in the monitoring plan and the 
substitute values do not systematically underestimate NOX 
emissions; and
    (iii) For a unit that is reporting on a control period basis under 
Sec. 96.74(d) the NOX emission rate and NOX 
concentration values substituted for missing data under subpart D of 
part 75 of this chapter are calculated using only values from a control 
period and do not systematically underestimate NOX emissions.



Sec. 96.75  Petitions.

    (a) The NOX authorized account representative of a 
NOX Budget unit that is subject to an Acid Rain emissions 
limitation may submit a petition under Sec. 75.66 of this chapter to 
the Administrator requesting approval to apply an alternative to any 
requirement of this subpart.
    (1) Application of an alternative to any requirement of this subpart 
is in accordance with this subpart only to the extent that the petition 
is approved by the Administrator, in consultation with the permitting 
authority.
    (2) Notwithstanding paragraph (a)(1) of this section, if the 
petition requests approval to apply an alternative to a requirement 
concerning any additional CEMS required under the common stack 
provisions of Sec. 75.72 of this chapter, the petition is governed by 
paragraph (b) of this section.
    (b) The NOX authorized account representative of a 
NOX Budget unit that is not subject to an Acid Rain emissions 
limitation may submit a petition under Sec. 75.66 of this chapter to 
the permitting authority and the Administrator requesting approval to 
apply an alternative to any requirement of this subpart.
    (1) The NOX authorized account representative of a 
NOX Budget unit that is subject to an Acid Rain emissions 
limitation may submit a petition under Sec. 75.66 of this chapter to 
the permitting authority and the Administrator requesting approval to 
apply an alternative to a requirement concerning any additional CEMS 
required under the common stack provisions of Sec. 75.72 of this 
chapter or a NOX concentration CEMS used under 75.71(a)(2) of 
this chapter.
    (2) Application of an alternative to any requirement of this subpart 
is in accordance with this subpart only to the extent the petition under 
paragraph (b) of this section is approved by both the permitting 
authority and the Administrator.



Sec. 96.76  Additional requirements to provide heat input data for 
allocations purposes.

    (a) The owner or operator of a unit that elects to monitor and 
report NOX Mass emissions using a NOX 
concentration system and a flow system shall also monitor and report 
heat input at the unit level using the procedures set forth in part 75 
of this chapter for any source located in a state developing source 
allocations based upon heat input.

[[Page 44]]

    (b) The owner or operator of a unit that monitor and report 
NOX Mass emissions using a NOX concentration 
system and a flow system shall also monitor and report heat input at the 
unit level using the procedures set forth in part 75 of this chapter for 
any source that is applying for early reduction credits under Sec. 
96.55.



                    Subpart I_Individual Unit Opt-ins



Sec. 96.80  Applicability.

    A unit that is in the State, is not a NOX Budget unit 
under Sec. 96.4, vents all of its emissions to a stack, and is 
operating, may qualify, under this subpart, to become a NOX 
Budget opt-in source. A unit that is a NOX Budget unit, is 
covered by a retired unit exemption under Sec. 96.5 that is in effect, 
or is not operating is not eligible to become a NOX Budget 
opt-in source.



Sec. 96.81  General.

    Except otherwise as provided in this part, a NOX Budget 
opt-in source shall be treated as a NOX Budget unit for 
purposes of applying subparts A through H of this part.



Sec. 96.82  NOX authorized account representative.

    A unit for which an application for a NOX Budget opt-in 
permit is submitted and not denied or withdrawn, or a NOX 
Budget opt-in source, located at the same source as one or more 
NOX Budget units, shall have the same NOX 
authorized account representative as such NOX Budget units.



Sec. 96.83  Applying for NOX Budget opt-in permit.

    (a) Applying for initial NOX Budget opt-in permit. In 
order to apply for an initial NOX Budget opt-in permit, the 
NOX authorized account representative of a unit qualified 
under Sec. 96.80 may submit to the permitting authority at any time, 
except as provided under Sec. 96.86(g):
    (1) A complete NOX Budget permit application under Sec. 
96.22;
    (2) A monitoring plan submitted in accordance with subpart H of this 
part; and
    (3) A complete account certificate of representation under Sec. 
96.13, if no NOX authorized account representative has been 
previously designated for the unit.
    (b) Duty to reapply. The NOX authorized account 
representative of a NOX Budget opt-in source shall submit a 
complete NOX Budget permit application under Sec. 96.22 to 
renew the NOX Budget opt-in permit in accordance with Sec. 
96.21(c) and, if applicable, an updated monitoring plan in accordance 
with subpart H of this part.



Sec. 96.84  Opt-in process.

    The permitting authority will issue or deny a NOX Budget 
opt-in permit for a unit for which an initial application for a 
NOX Budget opt-in permit under Sec. 96.83 is submitted, in 
accordance with Sec. 96.20 and the following:
    (a) Interim review of monitoring plan. The permitting authority will 
determine, on an interim basis, the sufficiency of the monitoring plan 
accompanying the initial application for a NOX Budget opt-in 
permit under Sec. 96.83. A monitoring plan is sufficient, for purposes 
of interim review, if the plan appears to contain information 
demonstrating that the NOX emissions rate and heat input of 
the unit are monitored and reported in accordance with subpart H of this 
part. A determination of sufficiency shall not be construed as 
acceptance or approval of the unit's monitoring plan.
    (b) If the permitting authority determines that the unit's 
monitoring plan is sufficient under paragraph (a) of this section and 
after completion of monitoring system certification under subpart H of 
this part, the NOX emissions rate and the heat input of the 
unit shall be monitored and reported in accordance with subpart H of 
this part for one full control period during which monitoring system 
availability is not less than 90 percent and during which the unit is in 
full compliance with any applicable State or Federal emissions or 
emissions-related requirements. Solely for purposes of applying the 
requirements in the prior sentence, the unit shall be treated as a 
``NOX Budget unit'' prior to issuance of a NOX 
Budget opt-in permit covering the unit.
    (c) Based on the information monitored and reported under paragraph 
(b) of this section, the unit's baseline heat

[[Page 45]]

rate shall be calculated as the unit's total heat input (in mmBtu) for 
the control period and the unit's baseline NOX emissions rate 
shall be calculated as the unit's total NOX emissions (in lb) 
for the control period divided by the unit's baseline heat rate.
    (d) After calculating the baseline heat input and the baseline 
NOX emissions rate for the unit under paragraph (c) of this 
section, the permitting authority will serve a draft NOX 
Budget opt-in permit on the NOX authorized account 
representative of the unit.
    (e) Confirmation of intention to opt-in. Within 20 days after the 
issuance of the draft NOX Budget opt-in permit, the 
NOX authorized account representative of the unit must submit 
to the permitting authority a confirmation of the intention to opt in 
the unit or a withdrawal of the application for a NOX Budget 
opt-in permit under Sec. 96.83. The permitting authority will treat the 
failure to make a timely submission as a withdrawal of the 
NOX Budget opt-in permit application.
    (f) Issuance of draft NOX Budget opt-in permit. If the 
NOX authorized account representative confirms the intention 
to opt-in the unit under paragraph (e) of this section, the permitting 
authority will issue the draft NOX Budget opt-in permit in 
accordance with Sec. 96.20.
    (g) Notwithstanding paragraphs (a) through (f) of this section, if 
at any time before issuance of a draft NOX Budget opt-in 
permit for the unit, the permitting authority determines that the unit 
does not qualify as a NOX Budget opt-in source under Sec. 
96.80, the permitting authority will issue a draft denial of a 
NOX Budget opt-in permit for the unit in accordance with 
Sec. 96.20.
    (h) Withdrawal of application for NOX Budget opt-in 
permit. A NOX authorized account representative of a unit may 
withdraw its application for a NOX Budget opt-in permit under 
Sec. 96.83 at any time prior to the issuance of the final 
NOX Budget opt-in permit. Once the application for a 
NOX Budget opt-in permit is withdrawn, a NOX 
authorized account representative wanting to reapply must submit a new 
application for a NOX Budget permit under Sec. 96.83.
    (i) Effective date. The effective date of the initial NOX 
Budget opt-in permit shall be May 1 of the first control period starting 
after the issuance of the initial NOX Budget opt-in permit by 
the permitting authority. The unit shall be a NOX Budget opt-
in source and a NOX Budget unit as of the effective date of 
the initial NOX Budget opt-in permit.



Sec. 96.85  NOX Budget opt-in permit contents.

    (a) Each NOX Budget opt-in permit (including any draft or 
proposed NOX Budget opt-in permit, if applicable) will 
contain all elements required for a complete NOX Budget opt-
in permit application under Sec. 96.22 as approved or adjusted by the 
permitting authority.
    (b) Each NOX Budget opt-in permit is deemed to 
incorporate automatically the definitions of terms under Sec. 96.2 and, 
upon recordation by the Administrator under subpart F, G, or I of this 
part, every allocation, transfer, or deduction of NOX 
allowances to or from the compliance accounts of each NOX 
Budget opt-in source covered by the NOX Budget opt-in permit 
or the overdraft account of the NOX Budget source where the 
NOX Budget opt-in source is located.



Sec. 96.86  Withdrawal from NOX Budget Trading Program.

    (a) Requesting withdrawal. To withdraw from the NOX 
Budget Trading Program, the NOX authorized account 
representative of a NOX Budget opt-in source shall submit to 
the permitting authority a request to withdraw effective as of a 
specified date prior to May 1 or after September 30. The submission 
shall be made no later than 90 days prior to the requested effective 
date of withdrawal.
    (b) Conditions for withdrawal. Before a NOX Budget opt-in 
source covered by a request under paragraph (a) of this section may 
withdraw from the NOX Budget Trading Program and the 
NOX Budget opt-in permit may be terminated under paragraph 
(e) of this section, the following conditions must be met:
    (1) For the control period immediately before the withdrawal is to 
be effective, the NOX authorized account representative must 
submit or must have submitted to the permitting authority an annual 
compliance certification report in accordance with Sec. 96.30.

[[Page 46]]

    (2) If the NOX Budget opt-in source has excess emissions 
for the control period immediately before the withdrawal is to be 
effective, the Administrator will deduct or has deducted from the 
NOX Budget opt-in source's compliance account, or the 
overdraft account of the NOX Budget source where the 
NOX Budget opt-in source is located, the full amount required 
under Sec. 96.54(d) for the control period.
    (3) After the requirements for withdrawal under paragraphs (b)(1) 
and (2) of this section are met, the Administrator will deduct from the 
NOX Budget opt-in source's compliance account, or the 
overdraft account of the NOX Budget source where the 
NOX Budget opt-in source is located, NOX 
allowances equal in number to and allocated for the same or a prior 
control period as any NOX allowances allocated to that source 
under Sec. 96.88 for any control period for which the withdrawal is to 
be effective. The Administrator will close the NOX Budget 
opt-in source's compliance account and will establish, and transfer any 
remaining allowances to, a new general account for the owners and 
operators of the NOX Budget opt-in source. The NOX 
authorized account representative for the NOX Budget opt-in 
source shall become the NOX authorized account representative 
for the general account.
    (c) A NOX Budget opt-in source that withdraws from the 
NOX Budget Trading Program shall comply with all requirements 
under the NOX Budget Trading Program concerning all years for 
which such NOX Budget opt-in source was a NOX 
Budget opt-in source, even if such requirements arise or must be 
complied with after the withdrawal takes effect.
    (d) Notification. (1) After the requirements for withdrawal under 
paragraphs (a) and (b) of this section are met (including deduction of 
the full amount of NOX allowances required), the permitting 
authority will issue a notification to the NOX authorized 
account representative of the NOX Budget opt-in source of the 
acceptance of the withdrawal of the NOX Budget opt-in source 
as of a specified effective date that is after such requirements have 
been met and that is prior to May 1 or after September 30.
    (2) If the requirements for withdrawal under paragraphs (a) and (b) 
of this section are not met, the permitting authority will issue a 
notification to the NOX authorized account representative of 
the NOX Budget opt-in source that the NOX Budget 
opt-in source's request to withdraw is denied. If the NOX 
Budget opt-in source's request to withdraw is denied, the NOX 
Budget opt-in source shall remain subject to the requirements for a 
NOX Budget opt-in source.
    (e) Permit amendment. After the permitting authority issues a 
notification under paragraph (d)(1) of this section that the 
requirements for withdrawal have been met, the permitting authority will 
revise the NOX Budget permit covering the NOX 
Budget opt-in source to terminate the NOX Budget opt-in 
permit as of the effective date specified under paragraph (d)(1) of this 
section. A NOX Budget opt-in source shall continue to be a 
NOX Budget opt-in source until the effective date of the 
termination.
    (f) Reapplication upon failure to meet conditions of withdrawal. If 
the permitting authority denies the NOX Budget opt-in 
source's request to withdraw, the NOX authorized account 
representative may submit another request to withdraw in accordance with 
paragraphs (a) and (b) of this section.
    (g) Ability to return to the NOX Budget Trading Program. 
Once a NOX Budget opt-in source withdraws from the 
NOX Budget Trading Program and its NOX Budget opt-
in permit is terminated under this section, the NOX authority 
account representative may not submit another application for a 
NOX Budget opt-in permit under Sec. 96.83 for the unit prior 
to the date that is 4 years after the date on which the terminated 
NOX Budget opt-in permit became effective.



Sec. 96.87  Change in regulatory status.

    (a) Notification. When a NOX Budget opt-in source becomes 
a NOX Budget unit under Sec. 96.4, the NOX 
authorized account representative shall notify in writing the permitting 
authority and the Administrator of such change in the NOX 
Budget opt-in source's regulatory status, within 30 days of such change.

[[Page 47]]

    (b) Permitting authority's and Administrator's action. (1)(i) When 
the NOX Budget opt-in source becomes a NOX Budget 
unit under Sec. 96.4, the permitting authority will revise the 
NOX Budget opt-in source's NOX Budget opt-in 
permit to meet the requirements of a NOX Budget permit under 
Sec. 96.23 as of an effective date that is the date on which such 
NOX Budget opt-in source becomes a NOX Budget unit 
under Sec. 96.4.
    (ii)(A) The Administrator will deduct from the compliance account 
for the NOX Budget unit under paragraph (b)(1)(i) of this 
section, or the overdraft account of the NOX Budget source 
where the unit is located, NOX allowances equal in number to 
and allocated for the same or a prior control period as:
    (1) Any NOX allowances allocated to the NOX 
Budget unit (as a NOX Budget opt-in source) under Sec. 96.88 
for any control period after the last control period during which the 
unit's NOX Budget opt-in permit was effective; and
    (2) If the effective date of the NOX Budget permit 
revision under paragraph (b)(1)(i) of this section is during a control 
period, the NOX allowances allocated to the NOX 
Budget unit (as a NOX Budget opt-in source) under Sec. 96.88 
for the control period multiplied by the ratio of the number of days, in 
the control period, starting with the effective date of the permit 
revision under paragraph (b)(1)(i) of this section, divided by the total 
number of days in the control period.
    (B) The NOX authorized account representative shall 
ensure that the compliance account of the NOX Budget unit 
under paragraph (b)(1)(i) of this section, or the overdraft account of 
the NOX Budget source where the unit is located, includes the 
NOX allowances necessary for completion of the deduction 
under paragraph (b)(1)(ii)(A) of this section. If the compliance account 
or overdraft account does not contain sufficient NOX 
allowances, the Administrator will deduct the required number of 
NOX allowances, regardless of the control period for which 
they were allocated, whenever NOX allowances are recorded in 
either account.
    (iii)(A) For every control period during which the NOX 
Budget permit revised under paragraph (b)(1)(i) of this section is 
effective, the NOX Budget unit under paragraph (b)(1)(i) of 
this section will be treated, solely for purposes of NOX 
allowance allocations under Sec. 96.42, as a unit that commenced 
operation on the effective date of the NOX Budget permit 
revision under paragraph (b)(1)(i) of this section and will be allocated 
NOX allowances under Sec. 96.42.
    (B) Notwithstanding paragraph (b)(1)(iii)(A) of this section, if the 
effective date of the NOX Budget permit revision under 
paragraph (b)(1)(i) of this section is during a control period, the 
following number of NOX allowances will be allocated to the 
NOX Budget unit under paragraph (b)(1)(i) of this section 
under Sec. 96.42 for the control period: the number of NOX 
allowances otherwise allocated to the NOX Budget unit under 
Sec. 96.42 for the control period multiplied by the ratio of the number 
of days, in the control period, starting with the effective date of the 
permit revision under paragraph (b)(1)(i) of this section, divided by 
the total number of days in the control period.
    (2)(i) When the NOX authorized account representative of 
a NOX Budget opt-in source does not renew its NOX 
Budget opt-in permit under Sec. 96.83(b), the Administrator will deduct 
from the NOX Budget opt-in unit's compliance account, or the 
overdraft account of the NOX Budget source where the 
NOX Budget opt-in source is located, NOX 
allowances equal in number to and allocated for the same or a prior 
control period as any NOX allowances allocated to the 
NOX Budget opt-in source under Sec. 96.88 for any control 
period after the last control period for which the NOX Budget 
opt-in permit is effective. The NOX authorized account 
representative shall ensure that the NOX Budget opt-in 
source's compliance account or the overdraft account of the 
NOX Budget source where the NOX Budget opt-in 
source is located includes the NOX allowances necessary for 
completion of such deduction. If the compliance account or overdraft 
account does not contain sufficient NOX allowances, the 
Administrator will deduct the required number of NOX 
allowances, regardless of the control period for which they were 
allocated, whenever NOX allowances are recorded in either 
account.

[[Page 48]]

    (ii) After the deduction under paragraph (b)(2)(i) of this section 
is completed, the Administrator will close the NOX Budget 
opt-in source's compliance account. If any NOX allowances 
remain in the compliance account after completion of such deduction and 
any deduction under Sec. 96.54, the Administrator will close the 
NOX Budget opt-in source's compliance account and will 
establish, and transfer any remaining allowances to, a new general 
account for the owners and operators of the NOX Budget opt-in 
source. The NOX authorized account representative for the 
NOX Budget opt-in source shall become the NOX 
authorized account representative for the general account.



Sec. 96.88  NOX allowance allocations to opt-in units.

    (a) NOX allowance allocation. (1) By December 31 
immediately before the first control period for which the NOX 
Budget opt-in permit is effective, the permitting authority will 
allocate NOX allowances to the NOX Budget opt-in 
source and submit to the Administrator the allocation for the control 
period in accordance with paragraph (b) of this section.
    (2) By no later than December 31, after the first control period for 
which the NOX Budget opt-in permit is in effect, and December 
31 of each year thereafter, the permitting authority will allocate 
NOX allowances to the NOX Budget opt-in source, 
and submit to the Administrator allocations for the next control period, 
in accordance with paragraph (b) of this section.
    (b) For each control period for which the NOX Budget opt-
in source has an approved NOX Budget opt-in permit, the 
NOX Budget opt-in source will be allocated NOX 
allowances in accordance with the following procedures:
    (1) The heat input (in mmBtu) used for calculating NOX 
allowance allocations will be the lesser of:
    (i) The NOX Budget opt-in source's baseline heat input 
determined pursuant to Sec. 96.84(c); or
    (ii) The NOX Budget opt-in source's heat input, as 
determined in accordance with subpart H of this part, for the control 
period in the year prior to the year of the control period for which the 
NOX allocations are being calculated.
    (2) The permitting authority will allocate NOX allowances 
to the NOX Budget opt-in source in an amount equaling the 
heat input (in mmBtu) determined under paragraph (b)(1) of this section 
multiplied by the lesser of:
    (i) The NOX Budget opt-in source's baseline 
NOX emissions rate (in lb/mmBtu) determined pursuant to Sec. 
96.84(c); or
    (ii) The most stringent State or Federal NOX emissions 
limitation applicable to the NOX Budget opt-in source during 
the control period.

Subpart J--Mobile and Area Sources [Reserved]

Subparts K--Z [Reserved]



      Subpart AA_CAIR NOX Annual Trading Program General Provisions

    Source: 70 FR 25339, May 12, 2005, unless otherwise noted.



Sec. 96.101  Purpose.

    This subpart and subparts BB through II establish the model rule 
comprising general provisions and the designated representative, 
permitting, allowance, monitoring, and opt-in provisions for the State 
Clean Air Interstate Rule (CAIR) NOX Annual Trading Program, 
under section 110 of the Clean Air Act and Sec. 51.123 of this chapter, 
as a means of mitigating interstate transport of fine particulates and 
nitrogen oxides. The owner or operator of a unit or a source shall 
comply with the requirements of this subpart and subparts BB through II 
as a matter of federal law only if the State with jurisdiction over the 
unit and the source incorporates by reference such subparts or otherwise 
adopts the requirements of such subparts in accordance with Sec. 
51.123(o)(1) or (2) of this chapter, the State submits to the 
Administrator one or more revisions of the State implementation plan 
that include such adoption, and the Administrator approves such 
revisions. If the State adopts the requirements of such subparts in 
accordance with Sec. 51.123(o)(1) or

[[Page 49]]

(2) of this chapter, then the State authorizes the Administrator to 
assist the State in implementing the CAIR NOX Annual Trading 
Program by carrying out the functions set forth for the Administrator in 
such subparts.



Sec. 96.102  Definitions.

    The terms used in this subpart and subparts BB through II shall have 
the meanings set forth in this section as follows:
    Account number means the identification number given by the 
Administrator to each CAIR NOX Allowance Tracking System 
account.
    Acid Rain emissions limitation means a limitation on emissions of 
sulfur dioxide or nitrogen oxides under the Acid Rain Program.
    Acid Rain Program means a multi-state sulfur dioxide and nitrogen 
oxides air pollution control and emission reduction program established 
by the Administrator under title IV of the CAA and parts 72 through 78 
of this chapter.
    Administrator means the Administrator of the United States 
Environmental Protection Agency or the Administrator's duly authorized 
representative.
    Allocate or allocation means, with regard to CAIR NOX 
allowances, the determination by a permitting authority or the 
Administrator of the amount of such CAIR NOX allowances to be 
initially credited to a CAIR NOX 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 CAIR NOX 
allowance transfer must be submitted for recordation in a CAIR 
NOX source's compliance account in order to be used to meet 
the source's CAIR NOX emissions limitation for such control 
period in accordance with Sec. 96.154.
    Alternate CAIR designated representative means, for a CAIR 
NOX source and each CAIR NOX unit at the source, 
the natural person who is authorized by the owners and operators of the 
source and all such units at the source, in accordance with subparts BB 
and II of this part, to act on behalf of the CAIR designated 
representative in matters pertaining to the CAIR NOX Annual 
Trading Program. If the CAIR NOX source is also a CAIR 
SO2 source, then this natural person shall be the same person 
as the alternate CAIR designated representative under the CAIR 
SO2 Trading Program. If the CAIR NOX source is 
also a CAIR NOX Ozone Season source, then this natural person 
shall be the same person as the alternate CAIR designated representative 
under the CAIR NOX Ozone Season Trading Program. If the CAIR 
NOX source is also subject to the Acid Rain Program, then 
this natural person shall be the same person as the alternate designated 
representative under the Acid Rain Program. If the CAIR NOX 
source is also subject to the Hg Budget Trading Program, then this 
natural person shall be the same person as the alternate Hg designated 
representative under the Hg Budget Trading Program.
    Automated data acquisition and handling system or DAHS means that 
component of the continuous emission monitoring system, or other 
emissions monitoring system approved for use under subpart HH of this 
part, designed to interpret and convert individual output signals from 
pollutant concentration monitors, flow monitors, diluent gas monitors, 
and other component parts of the monitoring system to produce a 
continuous record of the measured parameters in the measurement units 
required by subpart HH of this part.
    Biomass means--
    (1) Any organic material grown for the purpose of being converted to 
energy;
    (2) Any organic byproduct of agriculture that can be converted into 
energy; or
    (3) Any material that can be converted into energy and is 
nonmerchantable for other purposes, that is segregated from other 
nonmerchantable material, and that is;
    (i) A forest-related organic resource, including mill residues, 
precommercial thinnings, slash, brush, or byproduct from conversion of 
trees to merchantable material; or
    (ii) A wood material, including pallets, crates, dunnage, 
manufacturing

[[Page 50]]

and construction materials (other than pressure-treated, chemically-
treated, or painted wood products), and landscape or right-of-way tree 
trimmings.
    Boiler means an enclosed fossil- or other-fuel-fired combustion 
device used to produce heat and to transfer heat to recirculating water, 
steam, or other medium.
    Bottoming-cycle cogeneration unit means a cogeneration unit in which 
the energy input to the unit is first used to produce useful thermal 
energy and at least some of the reject heat from the useful thermal 
energy application or process is then used for electricity production.
    CAIR authorized account representative means, with regard to a 
general account, a responsible natural person who is authorized, in 
accordance with subparts BB, FF, and II of this part, to transfer and 
otherwise dispose of CAIR NOX allowances held in the general 
account and, with regard to a compliance account, the CAIR designated 
representative of the source.
    CAIR designated representative means, for a CAIR NOX 
source and each CAIR NOX unit at the source, the natural 
person who is authorized by the owners and operators of the source and 
all such units at the source, in accordance with subparts BB and II of 
this part, to represent and legally bind each owner and operator in 
matters pertaining to the CAIR NOX Annual Trading Program. If 
the CAIR NOX source is also a CAIR SO2 source, 
then this natural person shall be the same person as the CAIR designated 
representative under the CAIR SO2 Trading Program. If the 
CAIR NOX source is also a CAIR NOX Ozone Season 
source, then this natural person shall be the same person as the CAIR 
designated representative under the CAIR NOX Ozone Season 
Trading Program. If the CAIR NOX source is also subject to 
the Acid Rain Program, then this natural person shall be the same person 
as the designated representative under the Acid Rain Program. If the 
CAIR NOX source is also subject to the Hg Budget Trading 
Program, then this natural person shall be the same person as the Hg 
designated representative under the Hg Budget Trading Program.
    CAIR NOX allowance means a limited authorization issued by a 
permitting authority or the Administrator under provisions of a State 
implementation plan that are approved under Sec. 51.123(o)(1) or (2) or 
(p) of this chapter, or under subpart EE of part 97 or Sec. 97.188 of 
this chapter, to emit one ton of nitrogen oxides during a control period 
of the specified calendar year for which the authorization is allocated 
or of any calendar year thereafter under the CAIR NOX 
Program. An authorization to emit nitrogen oxides that is not issued 
under provisions of a State implementation plan that are approved under 
Sec. 51.123(o)(1) or (2) or (p) of this chapter or subpart EE of part 
97 or Sec. 97.188 of this chapter shall not be a CAIR NOX 
allowance.
    CAIR NOX allowance deduction or deduct CAIR NOX allowances means the 
permanent withdrawal of CAIR NOX allowances by the 
Administrator from a compliance account, e.g., in order to account for a 
specified number of tons of total nitrogen oxides emissions from all 
CAIR NOX units at a CAIR NOX source for a control 
period, determined in accordance with subpart HH of this part, or to 
account for excess emissions.
    CAIR NOX Allowance Tracking System means the system by 
which the Administrator records allocations, deductions, and transfers 
of CAIR NOX allowances under the CAIR NOX Annual 
Trading Program. Such allowances will be allocated, held, deducted, or 
transferred only as whole allowances.
    CAIR NOX Allowance Tracking System account means an 
account in the CAIR NOX Allowance Tracking System established 
by the Administrator for purposes of recording the allocation, holding, 
transferring, or deducting of CAIR NOX allowances.
    CAIR NOX allowances held or hold CAIR NOX 
allowances means the CAIR NOX allowances recorded by the 
Administrator, or submitted to the Administrator for recordation, in 
accordance with subparts FF, GG, and II of this part, in a CAIR 
NOX Allowance Tracking System account.
    CAIR NOX Annual Trading Program means a multi-state 
nitrogen oxides air

[[Page 51]]

pollution control and emission reduction program approved and 
administered by the Administrator in accordance with subparts AA through 
II of this part 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 emissions limitation means, for a CAIR 
NOX source, the tonnage equivalent, in NOX 
emissions in a control period, of the CAIR NOX allowances 
available for deduction for the source under Sec. 96.154(a) and (b) for 
the control period.
    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 this part 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 includes one or more 
CAIR NOX units.
    CAIR NOX unit means a unit that is subject to the CAIR 
NOX Annual Trading Program under Sec. 96.104 and, except for 
purposes of Sec. 96.105 and subpart EE of this part, a CAIR 
NOX opt-in unit under subpart II of this part.
    CAIR permit means the legally binding and federally enforceable 
written document, or portion of such document, issued by the permitting 
authority under subpart CC of this part, including any permit revisions, 
specifying the CAIR NOX Annual Trading Program requirements 
applicable to a CAIR NOX source, to each CAIR NOX 
unit at the source, and to the owners and operators and the CAIR 
designated representative of the source and each such unit.
    CAIR SO2 source means a source that 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 this part 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.
    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.
    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:
    (1) Except for purposes of subpart EE of this part, combusting any 
amount of coal or coal-derived fuel, alone or in combination with any 
amount of any other fuel, during any year; or
    (2) For purposes of subpart EE of this part, combusting any amount 
of coal or coal-derived fuel, alone or in combination with any amount of 
any other fuel, during a specified year.
    Cogeneration unit means a stationary, fossil-fuel-fired boiler or 
stationary, fossil-fuel-fired combustion turbine:
    (1) Having equipment used to produce electricity and useful thermal 
energy for industrial, commercial, heating, or cooling purposes through 
the sequential use of energy; and
    (2) Producing during the 12-month period starting on the date the 
unit first produces electricity and during any calendar year after 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

[[Page 52]]

    (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;
    (3) Provided that the total energy input under paragraphs (2)(i)(B) 
and (2)(ii) of this definition shall equal the unit's total energy input 
from all fuel except biomass if the unit is a boiler.
    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. 96.105 and Sec. 96.184(h).
    (i) For a unit that is a CAIR NOX unit under Sec. 96.104 
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 CAIR NOX unit under Sec. 
96.104 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. 96.105, for a unit that is not a CAIR NOX 
unit under Sec. 96.104 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 CAIR 
NOX unit under Sec. 96.104.
    (i) For a unit with a date for commencement of commercial operation 
as defined in paragraph (2) of this definition and that subsequently 
undergoes a physical change (other than replacement of the unit by a 
unit at the same source), such date shall remain the 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, except as provided in Sec. 96.184(h).
    (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

[[Page 53]]

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, 
except as provided in Sec. 96.184(h).
    Compliance account means a CAIR NOX Allowance Tracking 
System account, established by the Administrator for a CAIR 
NOX source under subpart FF or II of this part, in which any 
CAIR NOX allowance allocations for the CAIR NOX 
units at the source are initially recorded and in which are held any 
CAIR NOX allowances available for use for a control period in 
order to meet the source's CAIR NOX emissions limitation in 
accordance with Sec. 96.154.
    Continuous emission monitoring system or CEMS means the equipment 
required under subpart HH of this part to sample, analyze, measure, and 
provide, by means of readings recorded at least once every 15 minutes 
(using an automated data acquisition and handling system (DAHS)), a 
permanent record of nitrogen oxides emissions, stack gas volumetric flow 
rate, stack gas moisture content, and oxygen or carbon dioxide 
concentration (as applicable), in a manner consistent with part 75 of 
this chapter. The following systems are the principal types of 
continuous emission monitoring systems required under subpart HH of this 
part:
    (1) A flow monitoring system, consisting of a stack flow rate 
monitor and an automated data acquisition and handling system and 
providing a permanent, continuous record of stack gas volumetric flow 
rate, in standard cubic feet per hour (scfh);
    (2) A nitrogen oxides concentration monitoring system, consisting of 
a NOX pollutant concentration monitor and an automated data 
acquisition and handling system and providing a permanent, continuous 
record of NOX emissions, in parts per million (ppm);
    (3) A nitrogen oxides emission rate (or NOX-diluent) 
monitoring system, consisting of a NOX pollutant 
concentration monitor, a diluent gas (CO2 or O2) 
monitor, and an automated data acquisition and handling system and 
providing a permanent, continuous record of NOX 
concentration, in parts per million (ppm), diluent gas concentration, in 
percent CO2 or O2; and NOX emission 
rate, in pounds per million British thermal units (lb/mmBtu);
    (4) A moisture monitoring system, as defined in Sec. 75.11(b)(2) of 
this chapter and providing a permanent, continuous record of the stack 
gas moisture content, in percent H2O;
    (5) A carbon dioxide monitoring system, consisting of a 
CO2 pollutant concentration monitor (or an oxygen monitor 
plus suitable mathematical equations from which the CO2 
concentration is derived) and an automated data acquisition and handling 
system and providing a permanent, continuous record of CO2 
emissions, in percent CO2; and
    (6) An oxygen monitoring system, consisting of an O2 
concentration monitor and an automated data acquisition and handling 
system and providing a permanent, continuous record of O2, in 
percent O2.
    Control period means the period beginning January 1 of a calendar 
year, except as provided in Sec. 96.106(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 CAIR designated representative and as determined by the 
Administrator in accordance with subpart HH of this part.
    Excess emissions means any ton of nitrogen oxides emitted by the 
CAIR NOX units at a CAIR NOX source during a 
control period that exceeds the CAIR NOX emissions limitation 
for the source.
    Fossil fuel means natural gas, petroleum, coal, or any form of 
solid, liquid, or gaseous fuel derived from such material.
    Fossil-fuel-fired means, with regard to a unit, combusting any 
amount of fossil fuel in any calendar year.
    Fuel oil means any petroleum-based fuel (including diesel fuel or 
petroleum derivatives such as oil tar) and any recycled or blended 
petroleum products or petroleum by-products used as a fuel whether in a 
liquid, solid, or gaseous state.

[[Page 54]]

    General account means a CAIR NOX Allowance Tracking 
System account, established under subpart FF of this part, that is not a 
compliance account.
    Generator means a device that produces electricity.
    Gross electrical output means, with regard to a cogeneration unit, 
electricity made available for use, including any such electricity used 
in the power production process (which process includes, but is not 
limited to, any on-site processing or treatment of fuel combusted at the 
unit and any on-site emission controls).
    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 CAIR designated 
representative and determined by the Administrator in accordance with 
subpart HH of this part and excluding the heat derived from preheated 
combustion air, recirculated flue gases, or exhaust from other sources.
    Heat input rate means the amount of heat input (in mmBtu) divided by 
unit operating time (in hr) or, with regard to a specific fuel, the 
amount of heat input attributed to the fuel (in mmBtu) divided by the 
unit operating time (in hr) during which the unit combusts the fuel.
    Hg Budget Trading Program means a multi-state Hg air pollution 
control and emission reduction program approved and administered by the 
Administrator in accordance subpart HHHH of part 60 of this chapter and 
Sec. 60.24(h)(6), or established by the Administrator under section 111 
of the Clean Air Act, as a means of reducing national Hg emissions.
    Life-of-the-unit, firm power contractual arrangement means a unit 
participation power sales agreement under which a utility or industrial 
customer reserves, or is entitled to receive, a specified amount or 
percentage of nameplate capacity and associated energy generated by any 
specified unit and pays its proportional amount of such unit's total 
costs, pursuant to a contract:
    (1) For the life of the unit;
    (2) For a cumulative term of no less than 30 years, including 
contracts that permit an election for early termination; or
    (3) For a period no less than 25 years or 70 percent of the economic 
useful life of the unit determined as of the time the unit is built, 
with option rights to purchase or release some portion of the nameplate 
capacity and associated energy generated by the unit at the end of the 
period.
    Maximum design heat input 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 subpart HH of this part, including a continuous 
emissions monitoring system, an alternative monitoring system, or an 
excepted monitoring system under part 75 of this chapter.
    Most stringent State or Federal NOX emissions limitation means, with 
regard to a unit, the lowest NOX emissions limitation (in 
terms of lb/mmBtu) that is applicable to the unit under State or Federal 
law, regardless of the averaging period to which the emissions 
limitation applies.
    Nameplate capacity means, 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.
    Oil-fired means, for purposes of subpart EE of this part, combusting 
fuel

[[Page 55]]

oil for more than 15.0 percent of the annual heat input in a specified 
year and not qualifying as coal-fired.
    Operator means any person who operates, controls, or supervises a 
CAIR NOX unit or a CAIR NOX source and shall 
include, but not be limited to, any holding company, utility system, or 
plant manager of such a unit or source.
    Owner means any of the following persons:
    (1) With regard to a CAIR NOX source or a CAIR 
NOX unit at a source, respectively:
    (i) Any holder of any portion of the legal or equitable title in a 
CAIR NOX unit at the source or the CAIR NOX unit;
    (ii) Any holder of a leasehold interest in a CAIR NOX 
unit at the source or the CAIR NOX unit; or
    (iii) Any purchaser of power from a CAIR NOX unit at the 
source or the CAIR NOX unit under a life-of-the-unit, firm 
power contractual arrangement; provided that, unless expressly provided 
for in a leasehold agreement, owner shall not include a passive lessor, 
or a person who has an equitable interest through such lessor, whose 
rental payments are not based (either directly or indirectly) on the 
revenues or income from such CAIR NOX unit; or
    (2) With regard to any general account, any person who has an 
ownership interest with respect to the CAIR NOX allowances 
held in the general account and who is subject to the binding agreement 
for the CAIR authorized account representative to represent the person's 
ownership interest with respect to CAIR NOX allowances.
    Permitting authority means the State air pollution control agency, 
local agency, other State agency, or other agency authorized by the 
Administrator to issue or revise permits to meet the requirements of the 
CAIR NOX Annual Trading Program 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 CAIR 
NOX allowances, the movement of CAIR NOX 
allowances by the Administrator into or between CAIR NOX 
Allowance Tracking System accounts, for purposes of allocation, 
transfer, or deduction.
    Reference method means any direct test method of sampling and 
analyzing for an air pollutant as specified in 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.
    Serial number means, for a CAIR NOX allowance, the unique 
identification

[[Page 56]]

number assigned to each CAIR NOX allowance by the 
Administrator.
    Sequential use of energy means:
    (1) For a topping-cycle cogeneration unit, the use of reject heat 
from electricity production in a useful thermal energy application or 
process; or
    (2) For a bottoming-cycle cogeneration unit, the use of reject heat 
from useful thermal energy application or process in electricity 
production.
    Solid waste incineration unit means a stationary, fossil-fuel-fired 
boiler or stationary, fossil-fuel-fired combustion turbine that is a 
``solid waste incineration unit'' as defined in section 129(g)(1) of the 
Clean Air Act.
    Source means all buildings, structures, or installations located in 
one or more contiguous or adjacent properties under common control of 
the same person or persons. For purposes of section 502(c) of the Clean 
Air Act, a ``source,'' including a ``source'' with multiple units, shall 
be considered a single ``facility.''
    State means one of the States or the District of Columbia that 
adopts the CAIR NOX Annual Trading Program pursuant to Sec. 
51.123(o)(1) or (2) of this chapter.
    Submit or serve means to send or transmit a document, information, 
or correspondence to the person specified in accordance with the 
applicable regulation:
    (1) In person;
    (2) By United States Postal Service; or
    (3) By other means of dispatch or transmission and delivery. 
Compliance with any ``submission'' or ``service'' deadline shall be 
determined by the date of dispatch, transmission, or mailing and not the 
date of receipt.
    Title V operating permit means a permit issued under title V of the 
Clean Air Act and part 70 or part 71 of this chapter.
    Title V operating permit regulations means the regulations that the 
Administrator has approved or issued as meeting the requirements of 
title V of the Clean Air Act and part 70 or 71 of this chapter.
    Ton means 2,000 pounds. For the purpose of determining compliance 
with the CAIR NOX emissions limitation, total tons of 
nitrogen oxides emissions for a control period shall be calculated as 
the sum of all recorded hourly emissions (or the mass equivalent of the 
recorded hourly emission rates) in accordance with subpart HH of this 
part, but with any remaining fraction of a ton equal to or greater than 
0.50 tons deemed to equal one ton and any remaining fraction of a ton 
less than 0.50 tons deemed to equal zero tons.
    Topping-cycle cogeneration unit means a cogeneration unit in which 
the energy input to the unit is first used to produce 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. Each form of energy supplied 
shall be measured by the lower heating value of that form of energy 
calculated as follows:

LHV = HHV - 10.55(W + 9H)

Where:

LHV = lower heating value of fuel in Btu/lb,
HHV = higher heating value of fuel in Btu/lb,
W = Weight % of moisture in fuel, and
H = Weight % of hydrogen in fuel.

    Total energy output means, with regard to a cogeneration unit, the 
sum of useful power and useful thermal energy produced by the 
cogeneration unit.
    Unit means a stationary, fossil-fuel-fired boiler or combustion 
turbine or other stationary, fossil-fuel-fired combustion device.
    Unit operating day means a calendar day in which a unit combusts any 
fuel.
    Unit operating hour or hour of unit operation means an hour in which 
a unit combusts any fuel.
    Useful power means, with regard to a cogeneration unit, electricity 
or mechanical energy made available for use, excluding any such energy 
used in the power production process (which process includes, but is not 
limited to, any on-site processing or treatment of fuel combusted at the 
unit and any on-site emission controls).
    Useful thermal energy means, with regard to a cogeneration unit, 
thermal energy that is:

[[Page 57]]

    (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.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25380, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006; 72 FR 59205, Oct. 19, 2007]



Sec. 96.103  Measurements, abbreviations, and acronyms.

    Measurements, abbreviations, and acronyms used in this subpart and 
subparts BB through II 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

[71 FR 25381, Apr. 28, 2006]



Sec. 96.104  Applicability.

    (a) Except as provided in paragraph (b) of this section:
    (1) The following units in a State shall be CAIR NOX 
units, and any source that includes one or more such units shall be a 
CAIR NOX source, subject to the requirements of this subpart 
and subparts BB through HH of this part: any stationary, fossil-fuel-
fired boiler or stationary, fossil-fuel-fired combustion turbine serving 
at any time, since the later of November 15, 1990 or the start-up of the 
unit's combustion chamber, a generator with nameplate capacity of more 
than 25 MWe producing electricity for sale.
    (2) If a stationary boiler or stationary combustion turbine that, 
under paragraph (a)(1) of this section, is not a CAIR NOX 
unit begins to combust fossil fuel or to serve a generator with 
nameplate capacity of more than 25 MWe producing electricity for sale, 
the unit shall become a CAIR NOX unit as provided in 
paragraph (a)(1) of this section on the first date on which it both 
combusts fossil fuel and serves such generator.
    (b) The units in a State that meet the requirements set forth in 
paragraph (b)(1)(i), (b)(2)(i), or (b)(2)(ii) of this section shall not 
be CAIR NOX units:
    (1)(i) Any unit that is a CAIR NOX 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 CAIR NOX unit starting 
on the earlier of January 1 after the first calendar year during which 
the unit first no longer qualifies as a cogeneration unit or January 1 
after the first calendar year during which the unit no longer meets the 
requirements of paragraph (b)(1)(i)(B) of this section.
    (2)(i) Any unit that is a CAIR NOX unit under paragraph 
(a)(1) or (2) of this section commencing operation before January 1, 
1985:
    (A) Qualifying as a solid waste incineration unit; and

[[Page 58]]

    (B) With an average annual fuel consumption of non-fossil fuel for 
1985-1987 exceeding 80 percent (on a Btu basis) and an average annual 
fuel consumption of non-fossil fuel for any 3 consecutive calendar years 
after 1990 exceeding 80 percent (on a Btu basis).
    (ii) Any unit that is a CAIR NOX unit under paragraph 
(a)(1) or (2) of this section commencing operation on or after January 
1, 1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for 
the first 3 calendar years of operation exceeding 80 percent (on a Btu 
basis) and an average annual fuel consumption of non-fossil fuel for any 
3 consecutive calendar years after 1990 exceeding 80 percent (on a Btu 
basis).
    (iii) If a unit qualifies as a solid waste incineration unit and 
meets the requirements of paragraph (b)(2)(i) or (ii) of this section 
for at least 3 consecutive calendar years, but subsequently no longer 
meets all such requirements, the unit shall become a CAIR NOX 
unit starting on the earlier of January 1 after the first calendar year 
during which the unit first no longer qualifies as a solid waste 
incineration unit or January 1 after the first 3 consecutive calendar 
years after 1990 for which the unit has an average annual fuel 
consumption of fossil fuel of 20 percent or more.

[71 FR 25382, Apr. 28, 2006]



Sec. 96.105  Retired unit exemption.

    (a)(1) Any CAIR NOX unit that is permanently retired and 
is not a CAIR NOX opt-in unit under subpart II of this part 
shall be exempt from the CAIR NOX Annual Trading Program, 
except for the provisions of this section, Sec. 96.102, Sec. 96.103, 
Sec. 96.104, Sec. 96.106(c)(4) through (7), Sec. 96.107, Sec. 
96.108, and subparts BB and EE through GG.
    (2) The exemption under paragraph (a)(1) of this section shall 
become effective the day on which the CAIR NOX unit is 
permanently retired. Within 30 days of the unit's permanent retirement, 
the CAIR designated representative shall submit a statement to the 
permitting authority otherwise responsible for administering any CAIR 
permit for the unit and shall submit a copy of the statement to the 
Administrator. The statement shall state, in a format prescribed by the 
permitting authority, that the unit was permanently retired on a 
specific date and will comply with the requirements of paragraph (b) of 
this section.
    (3) After receipt of the statement under paragraph (a)(2) of this 
section, the permitting authority will amend any permit under subpart CC 
of this part covering the source at which the unit is located to add the 
provisions and requirements of the exemption under paragraphs (a)(1) and 
(b) of this section.
    (b) Special provisions. (1) A unit exempt under paragraph (a) of 
this section shall not emit any nitrogen oxides, starting on the date 
that the exemption takes effect.
    (2) The permitting authority will allocate CAIR NOX 
allowances under subpart EE of this part to a unit exempt under 
paragraph (a) of this section.
    (3) For a period of 5 years from the date the records are created, 
the owners and operators of a unit exempt under paragraph (a) of this 
section shall retain, at the source that includes the unit, records 
demonstrating that the unit is permanently retired. The 5-year period 
for keeping records may be extended for cause, at any time before the 
end of the period, in writing by the permitting authority or the 
Administrator. The owners and operators bear the burden of proof that 
the unit is permanently retired.
    (4) The owners and operators and, to the extent applicable, the CAIR 
designated representative of a unit exempt under paragraph (a) of this 
section shall comply with the requirements of the CAIR NOX 
Annual Trading Program concerning all periods for which the exemption is 
not in effect, even if such requirements arise, or must be complied 
with, after the exemption takes effect.
    (5) A unit exempt under paragraph (a) of this section and located at 
a source that is required, or but for this exemption would be required, 
to have a title V operating permit shall not resume operation unless the 
CAIR designated representative of the source submits a complete CAIR 
permit application under Sec. 96.122 for the unit not less than

[[Page 59]]

18 months (or such lesser time provided by the permitting authority) 
before the later of January 1, 2009 or the date on which the unit 
resumes operation.
    (6) On the earlier of the following dates, a unit exempt under 
paragraph (a) of this section shall lose its exemption:
    (i) The date on which the CAIR designated representative submits a 
CAIR permit application for the unit under paragraph (b)(5) of this 
section;
    (ii) The date on which the CAIR designated representative is 
required under paragraph (b)(5) of this section to submit a CAIR permit 
application for the unit; or
    (iii) The date on which the unit resumes operation, if the CAIR 
designated representative is not required to submit a CAIR permit 
application for the unit.
    (7) For the purpose of applying monitoring, reporting, and 
recordkeeping requirements under subpart HH of this part, a unit 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.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25382, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



Sec. 96.106  Standard requirements.

    (a) Permit requirements. (1) The CAIR designated representative of 
each CAIR NOX source required to have a title V operating 
permit and each CAIR NOX unit required to have a title V 
operating permit at the source shall:
    (i) Submit to the permitting authority a complete CAIR permit 
application under Sec. 96.122 in accordance with the deadlines 
specified in Sec. 96.121; and
    (ii) Submit in a timely manner any supplemental information that the 
permitting authority determines is necessary in order to review a CAIR 
permit application and issue or deny a CAIR permit.
    (2) The owners and operators of each CAIR NOX source 
required to have a title V operating permit and each CAIR NOX 
unit required to have a title V operating permit at the source shall 
have a CAIR permit issued by the permitting authority under subpart CC 
of this part for the source and operate the source and the unit in 
compliance with such CAIR permit.
    (3) Except as provided in subpart II of this part, the owners and 
operators of a CAIR NOX source that is not otherwise required 
to have a title V operating permit and each CAIR NOX unit 
that is not otherwise required to have a title V operating permit are 
not required to submit a CAIR permit application, and to have a CAIR 
permit, under subpart CC of this part for such CAIR NOX 
source and such CAIR NOX unit.
    (b) Monitoring, reporting, and recordkeeping requirements. (1) The 
owners and operators, and the CAIR designated representative, of each 
CAIR NOX source and each CAIR NOX unit at the 
source shall comply with the monitoring, reporting, and recordkeeping 
requirements of subpart HH of this part.
    (2) The emissions measurements recorded and reported in accordance 
with subpart HH of this part shall be used to determine compliance by 
each CAIR NOX source with the CAIR NOX emissions 
limitation under paragraph (c) of this section.
    (c) Nitrogen oxides emission requirements. (1) As of the allowance 
transfer deadline for a control period, the owners and operators of each 
CAIR NOX source and each CAIR NOX unit at the 
source shall hold, in the source's compliance account, CAIR 
NOX allowances available for compliance deductions for the 
control period under Sec. 96.154(a) in an amount not less than the tons 
of total nitrogen oxides emissions for the control period from all CAIR 
NOX units at the source, as determined in accordance with 
subpart HH of this part.
    (2) A CAIR NOX unit shall be subject to the requirements 
under paragraph (c)(1) of this section for the control period starting 
on the later of January 1, 2009 or the deadline for meeting the unit's 
monitor certification requirements under Sec. 96.170(b)(1), (2), or (5) 
and for each control period thereafter.
    (3) A CAIR NOX allowance shall not be deducted, for 
compliance with the requirements under paragraph (c)(1) of this section, 
for a control period in a calendar year before the year for which the 
CAIR NOX allowance was allocated.

[[Page 60]]

    (4) CAIR NOX allowances shall be held in, deducted from, 
or transferred into or among CAIR NOX Allowance Tracking 
System accounts in accordance with subparts FF, GG, and II of this part.
    (5) A CAIR NOX allowance is a limited authorization to 
emit one ton of nitrogen oxides in accordance with the CAIR 
NOX Annual Trading Program. No provision of the CAIR 
NOX Annual Trading Program, the CAIR permit application, the 
CAIR permit, or an exemption under Sec. 96.105 and no provision of law 
shall be construed to limit the authority of the State or the United 
States to terminate or limit such authorization.
    (6) A CAIR NOX allowance does not constitute a property 
right.
    (7) Upon recordation by the Administrator under subpart EE, FF, GG, 
or II of this part, every allocation, transfer, or deduction of a CAIR 
NOX allowance to or from a CAIR NOX source's 
compliance account is incorporated automatically in any CAIR permit of 
the source.
    (d) Excess emissions requirements. If a CAIR NOX source 
emits nitrogen oxides during any control period in excess of the CAIR 
NOX emissions limitation, then:
    (1) The owners and operators of the source and each CAIR 
NOX unit at the source shall surrender the CAIR 
NOX allowances required for deduction under Sec. 
96.154(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 ton of such excess emissions and each day of such control 
period shall constitute a separate violation of this subpart, the Clean 
Air Act, and applicable State law.
    (e) Recordkeeping and reporting requirements. (1) Unless otherwise 
provided, the owners and operators of the CAIR NOX source and 
each CAIR NOX unit at the source shall keep on site at the 
source each of the following documents for a period of 5 years from the 
date the document is created. This period may be extended for cause, at 
any time before the end of 5 years, in writing by the permitting 
authority or the Administrator.
    (i) The certificate of representation under Sec. 96.113 for the 
CAIR designated representative for the source and each CAIR 
NOX unit at the source and all documents that demonstrate the 
truth of the statements in the certificate of representation; provided 
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. 96.113 changing the CAIR designated representative.
    (ii) All emissions monitoring information, in accordance with 
subpart HH of this part, provided that to the extent that subpart HH of 
this part provides for a 3-year period for recordkeeping, the 3-year 
period shall apply.
    (iii) Copies of all reports, compliance certifications, and other 
submissions and all records made or required under the CAIR 
NOX Annual Trading Program.
    (iv) Copies of all documents used to complete a CAIR permit 
application and any other submission under the CAIR NOX 
Annual Trading Program or to demonstrate compliance with the 
requirements of the CAIR NOX Annual Trading Program.
    (2) The CAIR designated representative of a CAIR NOX 
source and each CAIR NOX unit at the source shall submit the 
reports required under the CAIR NOX Annual Trading Program, 
including those under subpart HH of this part.
    (f) Liability. (1) Each CAIR NOX source and each CAIR 
NOX unit shall meet the requirements of the CAIR 
NOX Annual Trading Program.
    (2) Any provision of the CAIR NOX Annual Trading Program 
that applies to a CAIR NOX source or the CAIR designated 
representative of a CAIR NOX source shall also apply to the 
owners and operators of such source and of the CAIR NOX units 
at the source.
    (3) Any provision of the CAIR NOX Annual Trading Program 
that applies to a CAIR NOX unit or the CAIR designated 
representative of a CAIR NOX unit shall also apply to the 
owners and operators of such unit.
    (g) Effect on other authorities. No provision of the CAIR 
NOX Annual Trading Program, a CAIR permit application, a

[[Page 61]]

CAIR permit, or an exemption under Sec. 96.105 shall be construed as 
exempting or excluding the owners and operators, and the CAIR designated 
representative, of a CAIR NOX source or CAIR NOX 
unit from compliance with any other provision of the applicable, 
approved State implementation plan, a federally enforceable permit, or 
the Clean Air Act.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25382, Apr. 28, 2006]



Sec. 96.107  Computation of time.

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



Sec. 96.108  Appeal procedures.

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



     Subpart BB_CAIR Designated Representative for CAIR NOX Sources

    Source: 70 FR 25339, May 12, 2005, unless otherwise noted.



Sec. 96.110  Authorization and responsibilities of CAIR designated
representative.

    (a) Except as provided under Sec. 96.111, each CAIR NOX 
source, including all CAIR NOX units at the source, shall 
have one and only one CAIR designated representative, with regard to all 
matters under the CAIR NOX Annual Trading Program concerning 
the source or any CAIR NOX unit at the source.
    (b) The CAIR designated representative of the CAIR NOX 
source shall be selected by an agreement binding on the owners and 
operators of the source and all CAIR NOX units at the source 
and shall act in accordance with the certification statement in Sec. 
96.113(a)(4)(iv).
    (c) Upon receipt by the Administrator of a complete certificate of 
representation under Sec. 96.113, the CAIR designated representative of 
the source shall represent and, by his or her representations, actions, 
inactions, or submissions, legally bind each owner and operator of the 
CAIR NOX source represented and each CAIR NOX unit 
at the source in all matters pertaining to the CAIR NOX 
Annual Trading Program, notwithstanding any agreement between the CAIR 
designated representative and such owners and operators. The owners and 
operators shall be bound by any decision or order issued to the CAIR 
designated representative by the permitting authority, the 
Administrator, or a court regarding the source or unit.
    (d) No CAIR permit will be issued, no emissions data reports will be 
accepted, and no CAIR NOX Allowance Tracking System account 
will be established for a CAIR NOX unit at a source, until 
the Administrator has received a complete certificate of representation 
under Sec. 96.113 for a CAIR designated representative of the source 
and the CAIR NOX units at the source.
    (e)(1) Each submission under the CAIR NOX Annual Trading 
Program shall be submitted, signed, and certified by the CAIR designated 
representative for each CAIR NOX source on behalf of which 
the submission is made. Each such submission shall include the following 
certification statement by the CAIR designated representative: ``I am 
authorized to make this submission on behalf of the owners and operators 
of the source or units for which the submission is made. I certify under 
penalty of law that I have personally examined, and am familiar with, 
the statements and information submitted in this document and all its 
attachments. Based on my inquiry of those individuals with primary 
responsibility for obtaining the information, I

[[Page 62]]

certify that the statements and information are to the best of my 
knowledge and belief true, accurate, and complete. I am aware that there 
are significant penalties for submitting false statements and 
information or omitting required statements and information, including 
the possibility of fine or imprisonment.''
    (2) The permitting authority and the Administrator will accept or 
act on a submission made on behalf of owner or operators of a CAIR 
NOX source or a CAIR NOX unit only if the 
submission has been made, signed, and certified in accordance with 
paragraph (e)(1) of this section.



Sec. 96.111  Alternate CAIR designated representative.

    (a) A certificate of representation under Sec. 96.113 may designate 
one and only one alternate CAIR designated representative, who may act 
on behalf of the CAIR designated representative. The agreement by which 
the alternate CAIR designated representative is selected shall include a 
procedure for authorizing the alternate CAIR designated representative 
to act in lieu of the CAIR designated representative.
    (b) Upon receipt by the Administrator of a complete certificate of 
representation under Sec. 96.113, any representation, action, inaction, 
or submission by the alternate CAIR designated representative shall be 
deemed to be a representation, action, inaction, or submission by the 
CAIR designated representative.
    (c) Except in this section and Sec. Sec. 96.102, 96.110(a) and (d), 
96.112, 96.113, 96.115, 96.151, and 96.182, whenever the term ``CAIR 
designated representative'' is used in subparts AA through II of this 
part, the term shall be construed to include the CAIR designated 
representative or any alternate CAIR designated representative.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25382, Apr. 28, 2006]



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

    (a) Changing CAIR designated representative. The CAIR designated 
representative may be changed at any time upon receipt by the 
Administrator of a superseding complete certificate of representation 
under Sec. 96.113. Notwithstanding any such change, all 
representations, actions, inactions, and submissions by the previous 
CAIR designated representative before the time and date when the 
Administrator receives the superseding certificate of representation 
shall be binding on the new CAIR designated representative and the 
owners and operators of the CAIR NOX source and the CAIR 
NOX units at the source.
    (b) Changing alternate CAIR designated representative. The alternate 
CAIR designated representative may be changed at any time upon receipt 
by the Administrator of a superseding complete certificate of 
representation under Sec. 96.113. Notwithstanding any such change, all 
representations, actions, inactions, and submissions by the previous 
alternate CAIR designated representative before the time and date when 
the Administrator receives the superseding certificate of representation 
shall be binding on the new alternate CAIR designated representative and 
the owners and operators of the CAIR NOX source and the CAIR 
NOX units at the source.
    (c) Changes in owners and operators. (1) In the event an owner or 
operator of a CAIR NOX source or a CAIR NOX unit 
is not included in the list of owners and operators in the certificate 
of representation under Sec. 96.113, such owner or operator shall be 
deemed to be subject to and bound by the certificate of representation, 
the representations, actions, inactions, and submissions of the CAIR 
designated representative and any alternate CAIR designated 
representative of the source or unit, and the decisions and orders of 
the permitting authority, the Administrator, or a court, as if the owner 
or operator were included in such list.
    (2) Within 30 days following any change in the owners and operators 
of a CAIR NOX source or a CAIR NOX unit, including 
the addition of a new owner or operator, the CAIR designated 
representative or any alternate CAIR designated representative shall 
submit a revision to the certificate of representation under Sec. 
96.113 amending the list

[[Page 63]]

of owners and operators to include the change.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25382, Apr. 28, 2006]



Sec. 96.113  Certificate of representation.

    (a) A complete certificate of representation for a CAIR designated 
representative or an alternate CAIR designated representative shall 
include the following elements in a format prescribed by the 
Administrator:
    (1) Identification of the CAIR NOX source, and each CAIR 
NOX unit at the source, for which the certificate of 
representation is submitted, including identification and nameplate 
capacity of each generator served by each such unit.
    (2) The name, address, e-mail address (if any), telephone number, 
and facsimile transmission number (if any) of the CAIR designated 
representative and any alternate CAIR designated representative.
    (3) A list of the owners and operators of the CAIR NOX 
source and of each CAIR NOX unit at the source.
    (4) The following certification statements by the CAIR designated 
representative and any alternate CAIR designated representative--
    (i) ``I certify that I was selected as the CAIR designated 
representative or alternate CAIR designated representative, as 
applicable, by an agreement binding on the owners and operators of the 
source and each CAIR NOX unit at the source.''
    (ii) ``I certify that I have all the necessary authority to carry 
out my duties and responsibilities under the CAIR NOX Annual 
Trading Program on behalf of the owners and operators of the source and 
of each CAIR NOX unit at the source and that each such owner 
and operator shall be fully bound by my representations, actions, 
inactions, or submissions.''
    (iii) ``I certify that the owners and operators of the source and of 
each CAIR NOX unit at the source shall be bound by any order 
issued to me by the Administrator, the permitting authority, or a court 
regarding the source or unit.''
    (iv) ``Where there are multiple holders of a legal or equitable 
title to, or a leasehold interest in, a CAIR NOX unit, or 
where a utility or industrial customer purchases power from a CAIR 
NOX unit under a life-of-the-unit, firm power contractual 
arrangement, I certify that: I have given a written notice of my 
selection as the `CAIR designated representative' or `alternate CAIR 
designated representative', as applicable, and of the agreement by which 
I was selected to each owner and operator of the source and of each CAIR 
NOX unit at the source; and CAIR NOX allowances 
and proceeds of transactions involving CAIR NOX allowances 
will be deemed to be held or distributed in proportion to each holder's 
legal, equitable, leasehold, or contractual reservation or entitlement, 
except that, if such multiple holders have expressly provided for a 
different distribution of CAIR NOX allowances by contract, 
CAIR NOX allowances and proceeds of transactions involving 
CAIR NOX allowances will be deemed to be held or distributed 
in accordance with the contract.''
    (5) The signature of the CAIR designated representative and any 
alternate CAIR designated representative and the dates signed.
    (b) Unless otherwise required by the permitting authority or the 
Administrator, documents of agreement referred to in the certificate of 
representation shall not be submitted to the permitting authority or the 
Administrator. Neither the permitting authority nor the Administrator 
shall be under any obligation to review or evaluate the sufficiency of 
such documents, if submitted.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25382, Apr. 28, 2006]



Sec. 96.114  Objections concerning CAIR designated representative.

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

[[Page 64]]

    (b) Except as provided in Sec. 96.112(a) or (b), no objection or 
other communication submitted to the permitting authority or the 
Administrator concerning the authorization, or any representation, 
action, inaction, or submission, of the CAIR designated representative 
shall affect any representation, action, inaction, or submission of the 
CAIR designated representative or the finality of any decision or order 
by the permitting authority or the Administrator under the CAIR 
NOX Annual Trading Program.
    (c) Neither the permitting authority nor the Administrator will 
adjudicate any private legal dispute concerning the authorization or any 
representation, action, inaction, or submission of any CAIR designated 
representative, including private legal disputes concerning the proceeds 
of CAIR NOX allowance transfers.



Sec. 96.115  Delegation by CAIR designated representative and 
alternate CAIR designated representative.

    (a) A CAIR 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 part.
    (b) An alternate CAIR 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 
part.
    (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 CAIR designated representative or alternate CAIR 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 CAIR designated 
representative or alternate CAIR 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 CAIR designated 
representative or alternate CAIR 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 CAIR designated representative or alternate CAIR designated 
representative, as appropriate, and before this notice of delegation is 
superseded by another notice of delegation under 40 CFR 96.115(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 96.115(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 96.115 is terminated.''
    (d) A notice of delegation submitted under paragraph (c) of this 
section shall be effective, with regard to the CAIR designated 
representative or alternate CAIR 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 CAIR designated representative or alternate CAIR 
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 CAIR designated 
representative or alternate

[[Page 65]]

CAIR designated representative submitting such notice of delegation.

[71 FR 25382, Apr. 28, 2006, as amended at 71 FR 74794, Dec. 13, 2006]



                           Subpart CC_Permits

    Source: 70 FR 25339, May 12, 2005, unless otherwise noted.



Sec. 96.120  General CAIR NOX Annual Trading Program permit
requirements.

    (a) For each CAIR NOX source required to have a title V 
operating permit or required, under subpart II of this part, to have a 
title V operating permit or other federally enforceable permit, such 
permit shall include a CAIR permit administered by the permitting 
authority for the title V operating permit or the federally enforceable 
permit as applicable. The CAIR portion of the title V permit or other 
federally enforceable permit as applicable shall be administered in 
accordance with the permitting authority's title V operating permits 
regulations promulgated under part 70 or 71 of this chapter or the 
permitting authority's regulations for other federally enforceable 
permits as applicable, except as provided otherwise by Sec. 96.105, 
this subpart, and subpart II of this part.
    (b) Each CAIR permit shall contain, with regard to the CAIR 
NOX source and the CAIR NOX units at the source 
covered by the CAIR permit, all applicable CAIR NOX Annual 
Trading Program, CAIR NOX Ozone Season Trading Program, and 
CAIR SO2 Trading Program requirements and shall be a complete 
and separable portion of the title V operating permit or other federally 
enforceable permit under paragraph (a) of this section.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25383, Apr. 28, 2006]



Sec. 96.121  Submission of CAIR permit applications.

    (a) Duty to apply. The CAIR designated representative of any CAIR 
NOX source required to have a title V operating permit shall 
submit to the permitting authority a complete CAIR permit application 
under Sec. 96.122 for the source covering each CAIR NOX unit 
at the source at least 18 months (or such lesser time provided by the 
permitting authority) before the later of January 1, 2009 or the date on 
which the CAIR NOX unit commences commercial operation, 
except as provided in Sec. 96.183(a).
    (b) Duty to Reapply. For a CAIR NOX source required to 
have a title V operating permit, the CAIR designated representative 
shall submit a complete CAIR permit application under Sec. 96.122 for 
the source covering each CAIR NOX unit at the source to renew 
the CAIR permit in accordance with the permitting authority's title V 
operating permits regulations addressing permit renewal, except as 
provided in Sec. 96.183(b).

[70 FR 25339, May 12, 2005, as amended at 71 FR 25383, Apr. 28, 2006]



Sec. 96.122  Information requirements for CAIR permit applications.

    A complete CAIR permit application shall include the following 
elements concerning the CAIR NOX source for which the 
application is submitted, in a format prescribed by the permitting 
authority:
    (a) Identification of the CAIR NOX source;
    (b) Identification of each CAIR NOX unit at the CAIR 
NOX source; and
    (c) The standard requirements under Sec. 96.106.



Sec. 96.123  CAIR permit contents and term.

    (a) Each CAIR permit will contain, in a format prescribed by the 
permitting authority, all elements required for a complete CAIR permit 
application under Sec. 96.122.
    (b) Each CAIR permit is deemed to incorporate automatically the 
definitions of terms under Sec. 96.102 and, upon recordation by the 
Administrator under subpart EE, FF, GG, or II of this part, every 
allocation, transfer, or deduction of a CAIR NOX allowance to 
or from the compliance account of the CAIR NOX source covered 
by the permit.
    (c) The term of the CAIR permit will be set by the permitting 
authority, as necessary to facilitate coordination of the renewal of the 
CAIR permit with issuance, revision, or renewal of the CAIR 
NOX source's title V operating

[[Page 66]]

permit or other federally enforceable permit as applicable.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25383, Apr. 28, 2006]



Sec. 96.124  CAIR permit revisions.

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

Subpart DD [Reserved]



                Subpart EE_CAIR NOX Allowance Allocations

    Source: 70 FR 25339, May 12, 2005, unless otherwise noted.



Sec. 96.140  State trading budgets.

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

------------------------------------------------------------------------
                                                          State trading
                                        State trading    budget for 2015
                State                 budget for 2009-   and thereafter
                                         2014 (tons)         (tons)
------------------------------------------------------------------------
Alabama.............................            69,020            57,517
Delaware............................             4,166             3,472
District of Columbia................               144               120
Florida.............................            99,445            82,871
Georgia.............................            66,321            55,268
Illinois............................            76,230            63,525
Indiana.............................           108,935            90,779
Iowa................................            32,692            27,243
Kentucky............................            83,205            69,337
Louisiana...........................            35,512            29,593
Maryland............................            27,724            23,104
Michigan............................            65,304            54,420
Minnesota...........................            31,443            26,203
Mississippi.........................            17,807            14,839
Missouri............................            59,871            49,892
New Jersey..........................            12,670            10,558
New York............................            45,617            38,014
North Carolina......................            62,183            51,819
Ohio................................           108,667            90,556
Pennsylvania........................            99,049            82,541
South Carolina......................            32,662            27,219
Tennessee...........................            50,973            42,478
Texas...............................           181,014           150,845
Virginia............................            36,074            30,062
West Virginia.......................            74,220            61,850
Wisconsin...........................            40,759            33,966
------------------------------------------------------------------------


[70 FR 25339, May 12, 2005, as amended at 71 FR 25302, Apr. 28, 2006]



Sec. 96.141  Timing requirements for CAIR NOX allowance allocations.

    (a) By October 31, 2006, the permitting authority will submit to the 
Administrator the CAIR NOX allowance allocations, in a format 
prescribed by the Administrator and in accordance with Sec. 96.142(a) 
and (b), for the control periods in 2009, 2010, 2011, 2012, 2013, and 
2014.
    (b) By October 31, 2009 and October 31 of each year thereafter, the 
permitting authority will submit to the Administrator the CAIR 
NOX allowance allocations, in a format prescribed by the 
Administrator and in accordance with Sec. 96.142(a) and (b), for the 
control period in the sixth year after the year of the applicable 
deadline for submission under this paragraph.
    (c) By October 31, 2009 and October 31 of each year thereafter, the 
permitting authority will submit to the Administrator the CAIR 
NOX allowance allocations, in a format prescribed by the 
Administrator and in accordance with Sec. 96.142(a), (c), and (d), for 
the control period in the year of the applicable deadline for submission 
under this paragraph.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25383, Apr. 28, 2006]



Sec. 96.142  CAIR NOX allowance allocations.

    (a)(1) The baseline heat input (in mmBtu) used with respect to CAIR 
NOX allowance allocations under paragraph (b) of this section 
for each CAIR NOX unit will be:
    (i) For units commencing operation before January 1, 2001 the 
average of the 3 highest amounts of the unit's adjusted control period 
heat input for 2000 through 2004, with the adjusted control period heat 
input for each year calculated as follows:
    (A) If the unit is coal-fired during the year, the unit's control 
period heat input for such year is multiplied by 100 percent;
    (B) If the unit is oil-fired during the year, the unit's control 
period heat input for such year is multiplied by 60 percent; and
    (C) If the unit is not subject to paragraph (a)(1)(i)(A) or (B) of 
this section, the unit's control period heat input for such year is 
multiplied by 40 percent.

[[Page 67]]

    (ii) For units commencing operation on or after January 1, 2001 and 
operating each calendar year during a period of 5 or more consecutive 
calendar years, the average of the 3 highest amounts of the unit's total 
converted control period heat input over the first such 5 years.
    (2)(i) A unit's control period heat input, and a unit's status as 
coal-fired or oil-fired, for a calendar year under paragraph (a)(1)(i) 
of this section, and a unit's total tons of NOX emissions 
during a calendar year under paragraph (c)(3) of this section, will be 
determined in accordance with part 75 of this chapter, to the extent the 
unit was otherwise subject to the requirements of part 75 of this 
chapter for the year, or will be based on the best available data 
reported to the permitting authority for the unit, to the extent the 
unit was not otherwise subject to the requirements of part 75 of this 
chapter for the year.
    (ii) A unit's converted control period heat input for a calendar 
year specified under paragraph (a)(1)(ii) of this section equals:
    (A) Except as provided in paragraph (a)(2)(ii)(B) or (C) of this 
section, the control period gross electrical output of the generator or 
generators served by the unit multiplied by 7,900 Btu/kWh, if the unit 
is coal-fired for the year, or 6,675 Btu/kWh, if the unit is not coal-
fired for the year, and divided by 1,000,000 Btu/mmBtu, provided that if 
a generator is served by 2 or more units, then the gross electrical 
output of the generator will be attributed to each unit in proportion to 
the unit's share of the total control period heat input of such units 
for the year;
    (B) For a unit that is a boiler and has equipment used to produce 
electricity and useful thermal energy for industrial, commercial, 
heating, or cooling purposes through the sequential use of energy, the 
total heat energy (in Btu) of the steam produced by the boiler during 
the control period, divided by 0.8 and by 1,000,000 Btu/mmBtu; or
    (C) For a unit that is a combustion turbine and has equipment used 
to produce electricity and useful thermal energy for industrial, 
commercial, heating, or cooling purposes through the sequential use of 
energy, the control period gross electrical output of the enclosed 
device comprising the compressor, combustor, and turbine multiplied by 
3,413 Btu/kWh, plus the total heat energy (in Btu) of the steam produced 
by any associated heat recovery steam generator during the control 
period divided by 0.8, and with the sum divided by 1,000,000 Btu/mmBtu.
    (b)(1) For each control period in 2009 and thereafter, the 
permitting authority will allocate to all CAIR NOX units in 
the State that have a baseline heat input (as determined under paragraph 
(a) of this section) a total amount of CAIR NOX allowances 
equal to 95 percent for a control period during 2009 through 2014, and 
97 percent for a control period during 2015 and thereafter, of the tons 
of NOX emissions in the State trading budget under Sec. 
96.140 (except as provided in paragraph (d) of this section).
    (2) The permitting authority will allocate CAIR NOX 
allowances to each CAIR NOX unit under paragraph (b)(1) of 
this section in an amount determined by multiplying the total amount of 
CAIR NOX allowances allocated under paragraph (b)(1) of this 
section by the ratio of the baseline heat input of such CAIR 
NOX unit to the total amount of baseline heat input of all 
such CAIR NOX units in the State and rounding to the nearest 
whole allowance as appropriate.
    (c) For each control period in 2009 and thereafter, the permitting 
authority will allocate CAIR NOX allowances to CAIR 
NOX units in a State that are not allocated CAIR 
NOX 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 
CAIR NOX allowances available under paragraph (b) of this 
section for the control period are already allocated, in accordance with 
the following procedures:
    (1) The permitting authority will establish a separate new unit set-
aside for each control period. Each new unit set-aside will be allocated 
CAIR NOX allowances equal to 5 percent for a control period 
in 2009 through 2014, and 3 percent for a control period in 2015and 
thereafter, of the amount of tons of

[[Page 68]]

NOX emissions in the State trading budget under Sec. 96.140.
    (2) The CAIR designated representative of such a CAIR NOX 
unit may submit to the permitting authority a request, in a format 
specified by the permitting authority, to be allocated CAIR 
NOX allowances, starting with the later of the control period 
in 2009 or the first control period after the control period in which 
the CAIR NOX unit commences commercial operation and until 
the first control period for which the unit is allocated CAIR 
NOX allowances under paragraph (b) of this section. A 
separate CAIR NOX allowance allocation request for each 
control period for which CAIR NOX allowances are sought must 
be submitted on or before May 1 of such control period and after the 
date on which the CAIR NOX unit commences commercial 
operation.
    (3) In a CAIR NOX allowance allocation request under 
paragraph (c)(2) of this section, the CAIR designated representative may 
request for a control period CAIR NOX allowances in an amount 
not exceeding the CAIR NOX unit's total tons of 
NOX emissions during the calendar year immediately before 
such control period.
    (4) The permitting authority will review each CAIR NOX 
allowance allocation request under paragraph (c)(2) of this section and 
will allocate CAIR NOX allowances for each control period 
pursuant to such request as follows:
    (i) The permitting authority will accept an allowance allocation 
request only if the request meets, or is adjusted by the permitting 
authority as necessary to meet, the requirements of paragraphs (c)(2) 
and (3) of this section.
    (ii) On or after May 1 of the control period, the permitting 
authority will determine the sum of the CAIR NOX allowances 
requested (as adjusted under paragraph (c)(4)(i) of this section) in all 
allowance allocation requests accepted under paragraph (c)(4)(i) of this 
section for the control period.
    (iii) If the amount of CAIR NOX allowances in the new 
unit set-aside for the control period is greater than or equal to the 
sum under paragraph (c)(4)(ii) of this section, then the permitting 
authority will allocate the amount of CAIR NOX allowances 
requested (as adjusted under paragraph (c)(4)(i) of this section) to 
each CAIR NOX unit covered by an allowance allocation request 
accepted under paragraph (c)(4)(i) of this section.
    (iv) If the amount of CAIR NOX allowances in the new unit 
set-aside for the control period is less than the sum under paragraph 
(c)(4)(ii) of this section, then the permitting authority will allocate 
to each CAIR NOX unit covered by an allowance allocation 
request accepted under paragraph (c)(4)(i) of this section the amount of 
the CAIR NOX allowances requested (as adjusted under 
paragraph (c)(4)(i) of this section), multiplied by the amount of CAIR 
NOX allowances in the new unit set-aside for the control 
period, divided by the sum determined under paragraph (c)(4)(ii) of this 
section, and rounded to the nearest whole allowance as appropriate.
    (v) The permitting authority will notify each CAIR designated 
representative that submitted an allowance allocation request of the 
amount of CAIR NOX allowances (if any) allocated for the 
control period to the CAIR NOX unit covered by the request.
    (d) If, after completion of the procedures under paragraph (c)(4) of 
this section for a control period, any unallocated CAIR NOX 
allowances remain in the new unit set-aside for the control period, the 
permitting authority will allocate to each CAIR NOX unit that 
was allocated CAIR NOX allowances under paragraph (b) of this 
section an amount of CAIR NOX allowances equal to the total 
amount of such remaining unallocated CAIR NOX allowances, 
multiplied by the unit's allocation under paragraph (b) of this section, 
divided by 95 percent for a control period during 2009 through 2014, and 
97 percent for a control period during 2015 and thereafter, of the 
amount of tons of NOX emissions in the State trading budget 
under Sec. 96.140, and rounded to the nearest whole allowance as 
appropriate.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25383, Apr. 28, 2006]



Sec. 96.143  Compliance supplement pool.

    (a) In addition to the CAIR NOX allowances allocated 
under Sec. 96.142, the permitting authority may allocate for

[[Page 69]]

the control period in 2009 up to the following amount of CAIR 
NOX allowances to CAIR NOX units in the respective 
State:

------------------------------------------------------------------------
                                                              Compliance
                           State                              supplement
                                                                 pool
------------------------------------------------------------------------
Alabama....................................................       10,166
Delaware...................................................          843
District Of Columbia.......................................            0
Florida....................................................        8,335
Georgia....................................................       12,397
Illinois...................................................       11,299
Indiana....................................................       20,155
Iowa.......................................................        6,978
Kentucky...................................................       14,935
Louisiana..................................................        2,251
Maryland...................................................        4,670
Michigan...................................................        8,347
Minnesota..................................................        6,528
Mississippi................................................        3,066
Missouri...................................................        9,044
New Jersey.................................................          660
New York...................................................            0
North Carolina.............................................            0
Ohio.......................................................       25,037
Pennsylvania...............................................       16,009
South Carolina.............................................        2,600
Tennessee..................................................        8,944
Texas......................................................          772
Virginia...................................................        5,134
West Virginia..............................................       16,929
Wisconsin..................................................        4,898
------------------------------------------------------------------------

    (b) For any CAIR NOX unit in the State that achieves 
NOX emission reductions in 2007 and 2008 that are not 
necessary to comply with any State or federal emissions limitation 
applicable during such years, the CAIR designated representative of the 
unit may request early reduction credits, and allocation of CAIR 
NOX allowances from the compliance supplement pool under 
paragraph (a) of this section for such early reduction credits, in 
accordance with the following:
    (1) The owners and operators of such CAIR NOX unit shall 
monitor and report the NOX emissions rate and the heat input 
of the unit in accordance with subpart HH of this part in each control 
period for which early reduction credit is requested.
    (2) The CAIR designated representative of such CAIR NOX 
unit shall submit to the permitting authority by May 1, 2009 a request, 
in a format specified by the permitting authority, for allocation of an 
amount of CAIR NOX allowances from the compliance supplement 
pool not exceeding the sum of the amounts (in tons) of the unit's 
NOX emission reductions in 2007 and 2008 that are not 
necessary to comply with any State or federal emissions limitation 
applicable during such years, determined in accordance with subpart HH 
of this part.
    (c) For any CAIR NOX unit in the State whose compliance 
with the CAIR NOX emissions limitation for the control period 
in 2009 would create an undue risk to the reliability of electricity 
supply during such control period, the CAIR designated representative of 
the unit may request the allocation of CAIR NOX allowances 
from the compliance supplement pool under paragraph (a) of this section, 
in accordance with the following:
    (1) The CAIR designated representative of such CAIR NOX 
unit shall submit to the permitting authority by May 1, 2009 a request, 
in a format specified by the permitting authority, for allocation of an 
amount of CAIR NOX allowances from the compliance supplement 
pool not exceeding the minimum amount of CAIR NOX allowances 
necessary to remove such undue risk to the reliability of electricity 
supply.
    (2) In the request under paragraph (c)(1) of this section, the CAIR 
designated representative of such CAIR NOX unit shall 
demonstrate that, in the absence of allocation to the unit of the amount 
of CAIR NOX allowances requested, the unit's compliance with 
the CAIR NOX emissions limitation for the control period in 
2009 would create an undue risk to the reliability of electricity supply 
during such control period. This demonstration must include a showing 
that it would not be feasible for the owners and operators of the unit 
to:
    (i) Obtain a sufficient amount of electricity from other electricity 
generation facilities, during the installation of control technology at 
the unit for compliance with the CAIR NOX emissions 
limitation, to prevent such undue risk; or
    (ii) Obtain under paragraphs (b) and (d) of this section, or 
otherwise obtain, a sufficient amount of CAIR NOX allowances 
to prevent such undue risk.
    (d) The permitting authority will review each request under 
paragraph (b) or (c) of this section submitted by May 1, 2009 and will 
allocate CAIR NOX allowances for the control period in 2009

[[Page 70]]

to CAIR NOX units in the State and covered by such request as 
follows:
    (1) Upon receipt of each such request, the permitting authority will 
make any necessary adjustments to the request to ensure that the amount 
of the CAIR NOX allowances requested meets the requirements 
of paragraph (b) or (c) of this section.
    (2) If the State's compliance supplement pool under paragraph (a) of 
this section has an amount of CAIR NOX allowances not less 
than the total amount of CAIR NOX allowances in all such 
requests (as adjusted under paragraph (d)(1) of this section), the 
permitting authority will allocate to each CAIR NOX unit 
covered by such requests the amount of CAIR NOX allowances 
requested (as adjusted under paragraph (d)(1) of this section).
    (3) If the State's compliance supplement pool under paragraph (a) of 
this section has a smaller amount of CAIR NOX allowances than 
the total amount of CAIR NOX allowances in all such requests 
(as adjusted under paragraph (d)(1) of this section), the permitting 
authority will allocate CAIR NOX allowances to each CAIR 
NOX unit covered by such requests according to the following 
formula and rounding to the nearest whole allowance as appropriate:

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

Where:

    `Unit's allocation' is the amount of CAIR NOX allowances 
allocated to the unit from the State's compliance supplement pool. 
Unit's adjusted allocation'' is the amount of CAIR NOX 
allowances requested for the unit under paragraph (b) or (c) of this 
section, as adjusted under paragraph (d)(1) of this section. ``State's 
compliance supplement pool'' is the amount of CAIR NOX 
allowances in the State's compliance supplement pool. ``Total adjusted 
allocations for all units'' is the sum of the amounts of allocations 
requested for all units under paragraph (b) or (c) of this section, as 
adjusted under paragraph (d)(1) of this section.

    (4) By November 30, 2009, the permitting authority will determine, 
and submit to the Administrator, the allocations under paragraph (d)(2) 
or (3)of this section.
    (5) By January 1, 2010, the Administrator will record the 
allocations under paragraph (d)(4) of this section.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25302 and 25383, Apr. 
28, 2006; 71 FR 74794, Dec. 13, 2006]



              Subpart FF_CAIR NOX Allowance Tracking System

    Source: 70 FR 25339, May 12, 2005, unless otherwise noted.



Sec. 96.150  [Reserved]



Sec. 96.151  Establishment of accounts.

    (a) Compliance accounts. Except as provided in Sec. 96.184(e), upon 
receipt of a complete certificate of representation under Sec. 96.113, 
the Administrator will establish a compliance account for the CAIR 
NOX source for which the certificate of representation was 
submitted unless the source already has a compliance account.
    (b) General accounts--(1) Application for general account. (i) Any 
person may apply to open a general account for the purpose of holding 
and transferring CAIR NOX allowances. An application for a 
general account may designate one and only one CAIR authorized account 
representative and one and only one alternate CAIR authorized account 
representative who may act on behalf of the CAIR authorized account 
representative. The agreement by which the alternate CAIR authorized 
account representative is selected shall include a procedure for 
authorizing the alternate CAIR authorized account representative to act 
in lieu of the CAIR authorized account representative.
    (ii) A complete application for a general account shall be submitted 
to the Administrator and shall include the following elements in a 
format prescribed by the Administrator:
    (A) Name, mailing address, e-mail address (if any), telephone 
number, and facsimile transmission number (if any) of the CAIR 
authorized account representative and any alternate CAIR authorized 
account representative;
    (B) Organization name and type of organization, if applicable;
    (C) A list of all persons subject to a binding agreement for the 
CAIR authorized account representative and

[[Page 71]]

any alternate CAIR authorized account representative to represent their 
ownership interest with respect to the CAIR NOX allowances 
held in the general account;
    (D) The following certification statement by the CAIR authorized 
account representative and any alternate CAIR authorized account 
representative: ``I certify that I was selected as the CAIR authorized 
account representative or the alternate CAIR authorized account 
representative, as applicable, by an agreement that is binding on all 
persons who have an ownership interest with respect to CAIR 
NOX allowances held in the general account. I certify that I 
have all the necessary authority to carry out my duties and 
responsibilities under the CAIR NOX Annual Trading Program on 
behalf of such persons and that each such person shall be fully bound by 
my representations, actions, inactions, or submissions and by any order 
or decision issued to me by the Administrator or a court regarding the 
general account.''
    (E) The signature of the CAIR authorized account representative and 
any alternate CAIR authorized account representative and the dates 
signed.
    (iii) Unless otherwise required by the permitting authority or the 
Administrator, documents of agreement referred to in the application for 
a general account shall not be submitted to the permitting authority or 
the Administrator. Neither the permitting authority nor the 
Administrator shall be under any obligation to review or evaluate the 
sufficiency of such documents, if submitted.
    (2) Authorization of CAIR authorized account representative and 
alternate CAIR authorized account representative. (i) Upon receipt by 
the Administrator of a complete application for a general account under 
paragraph (b)(1) of this section:
    (A) The Administrator will establish a general account for the 
person or persons for whom the application is submitted.
    (B) The CAIR authorized account representative and any alternate 
CAIR authorized account representative for the general account shall 
represent and, by his or her representations, actions, inactions, or 
submissions, legally bind each person who has an ownership interest with 
respect to CAIR NOX allowances held in the general account in 
all matters pertaining to the CAIR NOX Annual Trading 
Program, notwithstanding any agreement between the CAIR authorized 
account representative or any alternate CAIR authorized account 
representative and such person. Any such person shall be bound by any 
order or decision issued to the CAIR authorized account representative 
or any alternate CAIR authorized account representative by the 
Administrator or a court regarding the general account.
    (C) Any representation, action, inaction, or submission by any 
alternate CAIR authorized account representative shall be deemed to be a 
representation, action, inaction, or submission by the CAIR authorized 
account representative.
    (ii) Each submission concerning the general account shall be 
submitted, signed, and certified by the CAIR authorized account 
representative or any alternate CAIR authorized account representative 
for the persons having an ownership interest with respect to CAIR 
NOX allowances held in the general account. Each such 
submission shall include the following certification statement by the 
CAIR authorized account representative or any alternate CAIR authorized 
account representative: ``I am authorized to make this submission on 
behalf of the persons having an ownership interest with respect to the 
CAIR NOX allowances held in the general account. I certify 
under penalty of law that I have personally examined, and am familiar 
with, the statements and information submitted in this document and all 
its attachments. Based on my inquiry of those individuals with primary 
responsibility for obtaining the information, I certify that the 
statements and information are to the best of my knowledge and belief 
true, accurate, and complete. I am aware that there are significant 
penalties for submitting false statements and information or omitting 
required statements and information, including the possibility of fine 
or imprisonment.''
    (iii) The Administrator will accept or act on a submission 
concerning the

[[Page 72]]

general account only if the submission has been made, signed, and 
certified in accordance with paragraph (b)(2)(ii) of this section.
    (3) Changing CAIR authorized account representative and alternate 
CAIR authorized account representative; changes in persons with 
ownership interest. (i) The CAIR authorized account representative for a 
general account may be changed at any time upon receipt by the 
Administrator of a superseding complete application for a general 
account under paragraph (b)(1) of this section. Notwithstanding any such 
change, all representations, actions, inactions, and submissions by the 
previous CAIR authorized account representative before the time and date 
when the Administrator receives the superseding application for a 
general account shall be binding on the new CAIR authorized account 
representative and the persons with an ownership interest with respect 
to the CAIR NOX allowances in the general account.
    (ii) The alternate CAIR authorized account representative for a 
general account may be changed at any time upon receipt by the 
Administrator of a superseding complete application for a general 
account under paragraph (b)(1) of this section. Notwithstanding any such 
change, all representations, actions, inactions, and submissions by the 
previous alternate CAIR authorized account representative before the 
time and date when the Administrator receives the superseding 
application for a general account shall be binding on the new alternate 
CAIR authorized account representative and the persons with an ownership 
interest with respect to the CAIR NOX allowances in the 
general account.
    (iii)(A) In the event a person having an ownership interest with 
respect to CAIR NOX allowances in the general account is not 
included in the list of such persons in the application for a general 
account, such person shall be deemed to be subject to and bound by the 
application for a general account, the representation, actions, 
inactions, and submissions of the CAIR authorized account representative 
and any alternate CAIR authorized account representative of the account, 
and the decisions and orders of the Administrator or a court, as if the 
person were included in such list.
    (B) Within 30 days following any change in the persons having an 
ownership interest with respect to CAIR NOX allowances in the 
general account, including the addition of a new person, the CAIR 
authorized account representative or any alternate CAIR authorized 
account representative shall submit a revision to the application for a 
general account amending the list of persons having an ownership 
interest with respect to the CAIR NOX allowances in the 
general account to include the change.
    (4) Objections concerning CAIR authorized account representative and 
alternate CAIR authorized account representative. (i) Once a complete 
application for a general account under paragraph (b)(1) of this section 
has been submitted and received, the Administrator will rely on the 
application unless and until a superseding complete application for a 
general account under paragraph (b)(1) of this section is received by 
the Administrator.
    (ii) Except as provided in paragraph (b)(3)(i) or (ii) of this 
section, no objection or other communication submitted to the 
Administrator concerning the authorization, or any representation, 
action, inaction, or submission of the CAIR authorized account 
representative or any alternate CAIR authorized account representative 
for a general account shall affect any representation, action, inaction, 
or submission of the CAIR authorized account representative or any 
alternate CAIR authorized account representative or the finality of any 
decision or order by the Administrator under the CAIR NOX 
Annual Trading Program.
    (iii) The Administrator will not adjudicate any private legal 
dispute concerning the authorization or any representation, action, 
inaction, or submission of the CAIR authorized account representative or 
any alternate CAIR authorized account representative for a general 
account, including private legal disputes concerning the proceeds of 
CAIR NOX allowance transfers.

[[Page 73]]

    (c) Account identification. The Administrator will assign a unique 
identifying number to each account established under paragraph (a) or 
(b) of this section.
    (5) Delegation by CAIR authorized account representative and 
alternate CAIR authorized account representative. (i) A CAIR 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 subparts FF and GG of this part.
    (ii) An alternate CAIR 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 subparts FF and GG of this part.
    (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 CAIR authorized account representative or 
alternate CAIR 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 CAIR authorized account 
representative or alternate CAIR 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 CAIR authorized 
account representative or alternate CAIR 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 CAIR authorized account 
representative or alternate CAIR authorized representative, as 
appropriate, and before this notice of delegation is superseded by 
another notice of delegation under 40 CFR 96.151(b)(5)(iv) shall be 
deemed to be an electronic submission by me.''; and
    (E) The following certification statement by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative: ``Until this notice of delegation is superseded by 
another notice of delegation under 40 CFR 96.151 (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 by 
me under 40 CFR 96.151 (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 CAIR authorized 
account representative or alternate CAIR 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 CAIR authorized 
account representative or alternate CAIR 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 CAIR 
designated representative or alternate CAIR designated representative 
submitting such notice of delegation.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25383, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



Sec. 96.152  Responsibilities of CAIR authorized account representative.

    Following the establishment of a CAIR NOX Allowance 
Tracking System account, all submissions to the Administrator pertaining 
to the account, including, but not limited to, submissions concerning 
the deduction or transfer of CAIR NOX allowances in the

[[Page 74]]

account, shall be made only by the CAIR authorized account 
representative for the account.



Sec. 96.153  Recordation of CAIR NOX allowance allocations.

    (a) By September 30, 2007, the Administrator will record in the CAIR 
NOX source's compliance account the CAIR NOX 
allowances allocated for the CAIR NOX units at the source, as 
submitted by the permitting authority in accordance with Sec. 
96.141(a), for the control periods in 2009, 2010, 2011, 2012, 2013, and 
2014.
    (b) By December 1, 2009, the Administrator will record in the CAIR 
NOX source's compliance account the CAIR NOX 
allowances allocated for the CAIR NOX units at the source, as 
submitted by the permitting authority in accordance with Sec. 
96.141(b), for the control period in 2015.
    (c) By December 1, 2009 and December 1 of each year thereafter, the 
Administrator will record in the CAIR NOX source's compliance 
account the CAIR NOX allowances allocated for the CAIR 
NOX units at the source, as submitted by the permitting 
authority in accordance with Sec. 96.141(b), for the control period in 
the sixth year after the year of the applicable deadline for recordation 
under this paragraph.
    (d) By December 1, 2009 and December 1 of each year thereafter, the 
Administrator will record in the CAIR NOX source's compliance 
account the CAIR NOX allowances allocated for the CAIR 
NOX units at the source, as submitted by the permitting 
authority or determined by the Administrator in accordance with Sec. 
96.141(c), for the control period in the year of the applicable deadline 
for recordation under this paragraph.
    (e) Serial numbers for allocated CAIR NOX allowances. When recording 
the allocation of CAIR NOX allowances for a CAIR 
NOX unit in a compliance account, the Administrator will 
assign each CAIR NOX allowance a unique identification number 
that will include digits identifying the year of the control period for 
which the CAIR NOX allowance is allocated.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25384, Apr. 28, 2006]

    Editorial Note: At 71 FR 25384, Apr. 28, 2006, Sec. 196.153 was 
amended; however, the amendment could not be incorporated due to 
inaccurate amendatory instruction.



Sec. 96.154  Compliance with CAIR NOX emissions limitation.

    (a) Allowance transfer deadline. The CAIR NOX allowances 
are available to be deducted for compliance with a source's CAIR 
NOX emissions limitation for a control period in a given 
calendar year only if the CAIR NOX allowances:
    (1) Were allocated for the control period in the year or a prior 
year; and
    (2) Are held in the compliance account as of the allowance transfer 
deadline for the control period or are transferred into the compliance 
account by a CAIR NOX allowance transfer correctly submitted 
for recordation under Sec. Sec. 96.160 and 96.161 by the allowance 
transfer deadline for the control period.
    (b) Deductions for compliance. Following the recordation, in 
accordance with Sec. 96.161, of CAIR NOX allowance transfers 
submitted for recordation in a source's compliance account by the 
allowance transfer deadline for a control period, the Administrator will 
deduct from the compliance account CAIR NOX allowances 
available under paragraph (a) of this section in order to determine 
whether the source meets the CAIR NOX emissions limitation 
for the control period, as follows:
    (1) Until the amount of CAIR NOX allowances deducted 
equals the number of tons of total nitrogen oxides emissions, determined 
in accordance with subpart HH of this part, from all CAIR NOX 
units at the source for the control period; or
    (2) If there are insufficient CAIR NOX allowances to 
complete the deductions in paragraph (b)(1) of this section, until no 
more CAIR NOX allowances available under paragraph (a) of 
this section remain in the compliance account.
    (c)(1) Identification of CAIR NOX allowances by serial number. The 
CAIR authorized account representative for a source's compliance account 
may request that specific CAIR NOX allowances, identified by 
serial number, in the compliance account be deducted for emissions or 
excess emissions for a control period in accordance with paragraph (b) 
or (d) of

[[Page 75]]

this section. Such request shall be submitted to the Administrator by 
the allowance transfer deadline for the control period and include, in a 
format prescribed by the Administrator, the identification of the CAIR 
NOX source and the appropriate serial numbers.
    (2) First-in, first-out. The Administrator will deduct CAIR 
NOX allowances under paragraph (b) or (d) of this section 
from the source's compliance account, in the absence of an 
identification or in the case of a partial identification of CAIR 
NOX allowances by serial number under paragraph (c)(1) of 
this section, on a first-in, first-out (FIFO) accounting basis in the 
following order:
    (i) Any CAIR NOX allowances that were allocated to the 
units at the source, in the order of recordation; and then
    (ii) Any CAIR NOX allowances that were allocated to any 
entity and transferred and recorded in the compliance account pursuant 
to subpart GG of this part, in the order of recordation.
    (d) Deductions for excess emissions. (1) After making the deductions 
for compliance under paragraph (b) of this section for a control period 
in a calendar year in which the CAIR NOX source has excess 
emissions, the Administrator will deduct from the source's compliance 
account an amount of CAIR NOX allowances, allocated for the 
control period in the immediately following calendar year, equal to 3 
times the number of tons of the source's excess emissions.
    (2) Any allowance deduction required under paragraph (d)(1) of this 
section shall not affect the liability of the owners and operators of 
the CAIR NOX source or the CAIR NOX units at the 
source for any fine, penalty, or assessment, or their obligation to 
comply with any other remedy, for the same violations, as ordered under 
the Clean Air Act or applicable State law.
    (e) Recordation of deductions. The Administrator will record in the 
appropriate compliance account all deductions from such an account under 
paragraphs (b) and (d) of this section and subpart II.
    (f) Administrator's action on submissions. (1) The Administrator may 
review and conduct independent audits concerning any submission under 
the CAIR NOX Annual Trading Program and make appropriate 
adjustments of the information in the submissions.
    (2) The Administrator may deduct CAIR NOX allowances from 
or transfer CAIR NOX allowances to a source's compliance 
account based on the information in the submissions, as adjusted under 
paragraph (f)(1) of this section, and record such deductions and 
transfers.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25384, Apr. 28, 2006]



Sec. 96.155  Banking.

    (a) CAIR NOX allowances may be banked for future use or 
transfer in a compliance account or a general account in accordance with 
paragraph (b) of this section.
    (b) Any CAIR NOX allowance that is held in a compliance 
account or a general account will remain in such account unless and 
until the CAIR NOX allowance is deducted or transferred under 
Sec. 96.154, Sec. 96.156, or subpart GG or II of this part.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25384, Apr. 28, 2006]



Sec. 96.156  Account error.

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



Sec. 96.157  Closing of general accounts.

    (a) The CAIR authorized account representative of a general account 
may submit to the Administrator a request to close the account, which 
shall include a correctly submitted allowance transfer under Sec. Sec. 
96.160 and 96.161 for any CAIR NOX allowances in the account 
to one or more other CAIR NOX Allowance Tracking System 
accounts.
    (b) If a general account has no allowance transfers in or out of the 
account for a 12-month period or longer and does not contain any CAIR 
NOX allowances, the Administrator may notify

[[Page 76]]

the CAIR authorized account representative for the account that the 
account will be closed following 20 business days after the notice is 
sent. The account will be closed after the 20-day period unless, before 
the end of the 20-day period, the Administrator receives a correctly 
submitted transfer of CAIR NOX allowances into the account 
under Sec. Sec. 96.160 and 96.161 or a statement submitted by the CAIR 
authorized account representative demonstrating to the satisfaction of 
the Administrator good cause as to why the account should not be closed.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25384, Apr. 28, 2006]



                 Subpart GG_CAIR NOX Allowance Transfers

    Source: 70 FR 25339, May 12, 2005, unless otherwise noted.



Sec. 96.160  Submission of CAIR NOX allowance transfers.

    A CAIR authorized account representative seeking recordation of a 
CAIR NOX allowance transfer shall submit the transfer to the 
Administrator. To be considered correctly submitted, the CAIR 
NOX allowance transfer shall include the following elements, 
in a format specified by the Administrator:
    (a) The account numbers for both the transferor and transferee 
accounts;
    (b) The serial number of each CAIR NOX allowance that is 
in the transferor account and is to be transferred; and
    (c) The name and signature of the CAIR authorized account 
representative of the transferor account and the date signed.



Sec. 96.161  EPA recordation.

    (a) Within 5 business days (except as provided in paragraph (b) of 
this section) of receiving a CAIR NOX allowance transfer, the 
Administrator will record a CAIR NOX allowance transfer by 
moving each CAIR NOX allowance from the transferor account to 
the transferee account as specified by the request, provided that:
    (1) The transfer is correctly submitted under Sec. 96.160; and
    (2) The transferor account includes each CAIR NOX 
allowance identified by serial number in the transfer.
    (b) A CAIR NOX allowance transfer that is submitted for 
recordation after the allowance transfer deadline for a control period 
and that includes any CAIR NOX allowances allocated for any 
control period before such allowance transfer deadline will not be 
recorded until after the Administrator completes the deductions under 
Sec. 96.154 for the control period immediately before such allowance 
transfer deadline.
    (c) Where a CAIR NOX allowance transfer submitted for 
recordation fails to meet the requirements of paragraph (a) of this 
section, the Administrator will not record such transfer.



Sec. 96.162  Notification.

    (a) Notification of recordation. Within 5 business days of 
recordation of a CAIR NOX allowance transfer under Sec. 
96.161, the Administrator will notify the CAIR authorized account 
representatives of both the transferor and transferee accounts.
    (b) Notification of non-recordation. Within 10 business days of 
receipt of a CAIR NOX allowance transfer that fails to meet 
the requirements of Sec. 96.161(a), the Administrator will notify the 
CAIR authorized account representatives of both accounts subject to the 
transfer of:
    (1) A decision not to record the transfer, and
    (2) The reasons for such non-recordation.
    (c) Nothing in this section shall preclude the submission of a CAIR 
NOX allowance transfer for recordation following notification 
of non-recordation.



                   Subpart HH_Monitoring and Reporting

    Source: 70 FR 25339, May 12, 2005, unless otherwise noted.



Sec. 96.170  General requirements.

    The owners and operators, and to the extent applicable, the CAIR 
designated representative, of a CAIR NOX unit, shall comply 
with the monitoring, recordkeeping, and reporting requirements as 
provided in this subpart and in subpart H of part 75 of this chapter.

[[Page 77]]

For purposes of complying with such requirements, the definitions in 
Sec. 96.102 and in Sec. 72.2 of this chapter shall apply, and the 
terms ``affected unit,'' ``designated representative,'' and ``continuous 
emission monitoring system'' (or ``CEMS'') in part 75 of this chapter 
shall be deemed to refer to the terms ``CAIR NOX unit,'' 
``CAIR designated representative,'' and ``continuous emission monitoring 
system'' (or ``CEMS'') respectively, as defined in Sec. 96.102. The 
owner or operator of a unit that is not a CAIR NOX unit but 
that is monitored under Sec. 75.72(b)(2)(ii) of this chapter shall 
comply with the same monitoring, recordkeeping, and reporting 
requirements as a CAIR NOX unit.
    (a) Requirements for installation, certification, and data 
accounting. The owner or operator of each CAIR NOX unit 
shall:
    (1) Install all monitoring systems required under this subpart for 
monitoring NOX mass emissions and individual unit heat input 
(including all systems required to monitor NOX emission rate, 
NOX concentration, stack gas moisture content, stack gas flow 
rate, CO2 or O2 concentration, and fuel flow rate, 
as applicable, in accordance with Sec. Sec. 75.71 and 75.72 of this 
chapter);
    (2) Successfully complete all certification tests required under 
Sec. 96.171 and meet all other requirements of this subpart and part 75 
of this chapter applicable to the monitoring systems under paragraph 
(a)(1) of this section; and
    (3) Record, report, and quality-assure the data from the monitoring 
systems under paragraph (a)(1) of this section.
    (b) Compliance deadlines. Except as provided in paragraph (e) of 
this section, the owner or operator shall meet the monitoring system 
certification and other requirements of paragraphs (a)(1) and (2) of 
this section on or before the following dates. The owner or operator 
shall record, report, and quality-assure the data from the monitoring 
systems under paragraph (a)(1) of this section on and after the 
following dates.
    (1) For the owner or operator of a CAIR NOX unit that 
commences commercial operation before July 1, 2007, by January 1, 2008.
    (2) For the owner or operator of a CAIR NOX unit that 
commences commercial operation on or after July 1, 2007, by the later of 
the following dates:
    (i) January 1, 2008; or
    (ii) 90 unit operating days or 180 calendar days, whichever occurs 
first, after the date on which the unit commences commercial operation.
    (3) For the owner or operator of a CAIR NOX unit for 
which construction of a new stack or flue or installation of add-on 
NOX emission controls is completed after the applicable 
deadline under paragraph (b)(1), (2), (4), or (5) of this section, by 90 
unit operating days or 180 calendar days, whichever occurs first, after 
the date on which emissions first exit to the atmosphere through the new 
stack or flue or add-on NOX emissions controls.
    (4) Notwithstanding the dates in paragraphs (b)(1) and (2) of this 
section, for the owner or operator of a unit for which a CAIR opt-in 
permit application is submitted and not withdrawn and a CAIR opt-in 
permit is not yet issued or denied under subpart II of this part, by the 
date specified in Sec. 96.184(b).
    (5) Notwithstanding the dates in paragraphs (b)(1) and (2) of this 
section, for the owner or operator of a CAIR NOX opt-in unit 
under subpart II of this part, by the date on which the CAIR 
NOX opt-in unit enters the CAIR NOX Annual Trading 
Program as provided in Sec. 96.184(g).
    (c) Reporting data. The owner or operator of a CAIR NOX 
unit that does not meet the applicable compliance date set forth in 
paragraph (b) of this section for any monitoring system under paragraph 
(a)(1) of this section shall, for each such monitoring system, 
determine, record, and report maximum potential (or, as appropriate, 
minimum potential) values for NOX concentration, 
NOX emission rate, stack gas flow rate, stack gas moisture 
content, fuel flow rate, and any other parameters required to determine 
NOX mass emissions and heat input in accordance with Sec. 
75.31(b)(2) or (c)(3) of this chapter, section 2.4 of appendix D to part 
75 of this chapter, or section 2.5 of appendix E to part 75 of this 
chapter, as applicable.

[[Page 78]]

    (d) Prohibitions. (1) No owner or operator of a CAIR NOX 
unit shall use any alternative monitoring system, alternative reference 
method, or any other alternative to any requirement of this subpart 
without having obtained prior written approval in accordance with Sec. 
96.175.
    (2) No owner or operator of a CAIR NOX unit shall operate 
the unit so as to discharge, or allow to be discharged, NOX 
emissions to the atmosphere without accounting for all such emissions in 
accordance with the applicable provisions of this subpart and part 75 of 
this chapter.
    (3) No owner or operator of a CAIR NOX unit shall disrupt 
the continuous emission monitoring system, any portion thereof, or any 
other approved emission monitoring method, and thereby avoid monitoring 
and recording NOX mass emissions discharged into the 
atmosphere or heat input, except for periods of recertification or 
periods when calibration, quality assurance testing, or maintenance is 
performed in accordance with the applicable provisions of this subpart 
and part 75 of this chapter.
    (4) No owner or operator of a CAIR NOX unit shall retire 
or permanently discontinue use of the continuous emission monitoring 
system, any component thereof, or any other approved monitoring system 
under this subpart, except under any one of the following circumstances:
    (i) During the period that the unit is covered by an exemption under 
Sec. 96.105 that is in effect;
    (ii) The owner or operator is monitoring emissions from the unit 
with another certified monitoring system approved, in accordance with 
the applicable provisions of this subpart and part 75 of this chapter, 
by the permitting authority for use at that unit that provides emission 
data for the same pollutant or parameter as the retired or discontinued 
monitoring system; or
    (iii) The CAIR designated representative submits notification of the 
date of certification testing of a replacement monitoring system for the 
retired or discontinued monitoring system in accordance with Sec. 
96.171(d)(3)(i).
    (e) Long-term cold storage. The owner or operator of a CAIR 
NOX unit is subject to the applicable provisions of part 75 
of this chapter concerning units in long-term cold storage.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25384, Apr. 28, 2006]



Sec. 96.171  Initial certification and recertification procedures.

    (a) The owner or operator of a CAIR NOX unit shall be 
exempt from the initial certification requirements of this section for a 
monitoring system under Sec. 96.170(a)(1) if the following conditions 
are met:
    (1) The monitoring system has been previously certified in 
accordance with part 75 of this chapter; and
    (2) The applicable quality-assurance and quality-control 
requirements of Sec. 75.21 of this chapter and appendix B, appendix D, 
and appendix E to part 75 of this chapter are fully met for the 
certified monitoring system described in paragraph (a)(1) of this 
section.
    (b) The recertification provisions of this section shall apply to a 
monitoring system under Sec. 96.170(a)(1) exempt from initial 
certification requirements under paragraph (a) of this section.
    (c) If the Administrator has previously approved a petition under 
Sec. 75.17(a) or (b) of this chapter for apportioning the 
NOX emission rate measured in a common stack or a petition 
under Sec. 75.66 of this chapter for an alternative to a requirement in 
Sec. 75.12 or Sec. 75.17 of this chapter, the CAIR designated 
representative shall resubmit the petition to the Administrator under 
Sec. 96.175(a) to determine whether the approval applies under the CAIR 
NOX Annual Trading Program.
    (d) Except as provided in paragraph (a) of this section, the owner 
or operator of a CAIR NOX unit shall comply with the 
following initial certification and recertification procedures for a 
continuous monitoring system (i.e., a continuous emission monitoring 
system and an excepted monitoring system under appendices D and E to 
part 75 of this chapter) under Sec. 96.170(a)(1). The owner or operator 
of a unit that qualifies to use the low mass emissions excepted 
monitoring methodology under Sec. 75.19 of this chapter or that 
qualifies to use an alternative monitoring system under subpart E of 
part

[[Page 79]]

75 of this chapter shall comply with the procedures in paragraph (e) or 
(f) of this section respectively.
    (1) Requirements for initial certification. The owner or operator 
shall ensure that each continuous monitoring system under Sec. 
96.170(a)(1)(including the automated data acquisition and handling 
system) successfully completes all of the initial certification testing 
required under Sec. 75.20 of this chapter by the applicable deadline in 
Sec. 96.170(b). In addition, whenever the owner or operator installs a 
monitoring system to meet the requirements of this subpart in a location 
where no such monitoring system was previously installed, initial 
certification in accordance with Sec. 75.20 of this chapter is 
required.
    (2) Requirements for recertification. Whenever the owner or operator 
makes a replacement, modification, or change in any certified continuous 
emission monitoring system under Sec. 96.170(a)(1) that may 
significantly affect the ability of the system to accurately measure or 
record NOX mass emissions or heat input rate or to meet the 
quality-assurance and quality-control requirements of Sec. 75.21 of 
this chapter or appendix B to part 75 of this chapter, the owner or 
operator shall recertify the monitoring system in accordance with Sec. 
75.20(b) of this chapter. Furthermore, whenever the owner or operator 
makes a replacement, modification, or change to the flue gas handling 
system or the unit's operation that may significantly change the stack 
flow or concentration profile, the owner or operator shall recertify 
each continuous emission monitoring system whose accuracy is potentially 
affected by the change, in accordance with Sec. 75.20(b) of this 
chapter. Examples of changes to a continuous emission monitoring system 
that require recertification include replacement of the analyzer, 
complete replacement of an existing continuous emission monitoring 
system, or change in location or orientation of the sampling probe or 
site. Any fuel flowmeter system, and any excepted NOX 
monitoring system under appendix E to part 75 of this chapter, under 
Sec. 96.170(a)(1) are subject to the recertification requirements in 
Sec. 75.20(g)(6) of this chapter.
    (3) Approval process for initial certification and recertification. 
Paragraphs (d)(3)(i) through (iv) of this section apply to both initial 
certification and recertification of a continuous monitoring system 
under Sec. 96.170(a)(1). For recertifications, replace the words 
``certification'' and ``initial certification'' with the word 
``recertification'', replace the word ``certified'' with the word 
``recertified,'' and follow the procedures in Sec. Sec. 75.20(b)(5) and 
(g)(7) of this chapter in lieu of the procedures in paragraph (d)(3)(v) 
of this section.
    (i) Notification of certification. The CAIR designated 
representative shall submit to the permitting authority, the appropriate 
EPA Regional Office, and the Administrator written notice of the dates 
of certification testing, in accordance with Sec. 96.173.
    (ii) Certification application. The CAIR designated representative 
shall submit to the permitting authority a certification application for 
each monitoring system. A complete certification application shall 
include the information specified in Sec. 75.63 of this chapter.
    (iii) Provisional certification date. The provisional certification 
date for a monitoring system shall be determined in accordance with 
Sec. 75.20(a)(3) of this chapter. A provisionally certified monitoring 
system may be used under the CAIR NOX Annual Trading Program 
for a period not to exceed 120 days after receipt by the permitting 
authority of the complete certification application for the monitoring 
system under paragraph (d)(3)(ii) of this section. Data measured and 
recorded by the provisionally certified monitoring system, in accordance 
with the requirements of part 75 of this chapter, will be considered 
valid quality-assured data (retroactive to the date and time of 
provisional certification), provided that the permitting authority does 
not invalidate the provisional certification by issuing a notice of 
disapproval within 120 days of the date of receipt of the complete 
certification application by the permitting authority.
    (iv) Certification application approval process. The permitting 
authority will issue a written notice of approval or disapproval of the 
certification application to the owner or operator within

[[Page 80]]

120 days of receipt of the complete certification application under 
paragraph (d)(3)(ii) of this section. In the event the permitting 
authority does not issue such a notice within such 120-day period, each 
monitoring system that meets the applicable performance requirements of 
part 75 of this chapter and is included in the certification application 
will be deemed certified for use under the CAIR NOX Annual 
Trading Program.
    (A) Approval notice. If the certification application is complete 
and shows that each monitoring system meets the applicable performance 
requirements of part 75 of this chapter, then the permitting authority 
will issue a written notice of approval of the certification application 
within 120 days of receipt.
    (B) Incomplete application notice. If the certification application 
is not complete, then the permitting authority will issue a written 
notice of incompleteness that sets a reasonable date by which the CAIR 
designated representative must submit the additional information 
required to complete the certification application. If the CAIR 
designated representative does not comply with the notice of 
incompleteness by the specified date, then the permitting authority may 
issue a notice of disapproval under paragraph (d)(3)(iv)(C) of this 
section. The 120-day review period shall not begin before receipt of a 
complete certification application.
    (C) Disapproval notice. If the certification application shows that 
any monitoring system does not meet the performance requirements of part 
75 of this chapter or if the certification application is incomplete and 
the requirement for disapproval under paragraph (d)(3)(iv)(B) of this 
section is met, then the permitting authority will issue a written 
notice of disapproval of the certification application. Upon issuance of 
such notice of disapproval, the provisional certification is invalidated 
by the permitting authority and the data measured and recorded by each 
uncertified monitoring system shall not be considered valid quality-
assured data beginning with the date and hour of provisional 
certification (as defined under Sec. 75.20(a)(3) of this chapter). The 
owner or operator shall follow the procedures for loss of certification 
in paragraph (d)(3)(v) of this section for each monitoring system that 
is disapproved for initial certification.
    (D) Audit decertification. The permitting authority or, for a CAIR 
NOX opt-in unit or a unit for which a CAIR opt-in permit 
application is submitted and not withdrawn and a CAIR opt-in permit is 
not yet issued or denied under subpart II of this part, the 
Administrator may issue a notice of disapproval of the certification 
status of a monitor in accordance with Sec. 96.172(b).
    (v) Procedures for loss of certification. If the permitting 
authority or the Administrator issues a notice of disapproval of a 
certification application under paragraph (d)(3)(iv)(C) of this section 
or a notice of disapproval of certification status under paragraph 
(d)(3)(iv)(D) of this section, then:
    (A) The owner or operator shall substitute the following values, for 
each disapproved monitoring system, for each hour of unit operation 
during the period of invalid data specified under Sec. 
75.20(a)(4)(iii), Sec. 75.20(g)(7), or Sec. 75.21(e) of this chapter 
and continuing until the applicable date and hour specified under Sec. 
75.20(a)(5)(i) or (g)(7) of this chapter:
    (1) For a disapproved NOX emission rate (i.e., 
NOX-diluent) system, the maximum potential NOX 
emission rate, as defined in Sec. 72.2 of this chapter.
    (2) For a disapproved NOX pollutant concentration monitor 
and disapproved flow monitor, respectively, the maximum potential 
concentration of NOX and the maximum potential flow rate, as 
defined in sections 2.1.2.1 and 2.1.4.1 of appendix A to part 75 of this 
chapter.
    (3) For a disapproved moisture monitoring system and disapproved 
diluent gas monitoring system, respectively, the minimum potential 
moisture percentage and either the maximum potential CO2 
concentration or the minimum potential O2 concentration (as 
applicable), as defined in sections 2.1.5, 2.1.3.1, and 2.1.3.2 of 
appendix A to part 75 of this chapter.
    (4) For a disapproved fuel flowmeter system, the maximum potential 
fuel flow rate, as defined in section 2.4.2.1 of appendix D to part 75 
of this chapter.

[[Page 81]]

    (5) For a disapproved excepted NOX monitoring system 
under appendix E to part 75 of this chapter, the fuel-specific maximum 
potential NOX emission rate, as defined in Sec. 72.2 of this 
chapter.
    (B) The CAIR designated representative shall submit a notification 
of certification retest dates and a new certification application in 
accordance with paragraphs (d)(3)(i) and (ii) of this section.
    (C) The owner or operator shall repeat all certification tests or 
other requirements that were failed by the monitoring system, as 
indicated in the permitting authority's or the Administrator's notice of 
disapproval, no later than 30 unit operating days after the date of 
issuance of the notice of disapproval.
    (e) Initial certification and recertification procedures for units 
using the low mass emission excepted methodology under Sec. 75.19 of 
this chapter. The owner or operator of a unit qualified to use the low 
mass emissions (LME) excepted methodology under Sec. 75.19 of this 
chapter shall meet the applicable certification and recertification 
requirements in Sec. Sec. 75.19(a)(2) and 75.20(h) of this chapter. If 
the owner or operator of such a unit elects to certify a fuel flowmeter 
system for heat input determination, the owner or operator shall also 
meet the certification and recertification requirements in Sec. 
75.20(g) of this chapter.
    (f) Certification/recertification procedures for alternative 
monitoring systems. The CAIR designated representative of each unit for 
which the owner or operator intends to use an alternative monitoring 
system approved by the Administrator and, if applicable, the permitting 
authority under subpart E of part 75 of this chapter shall comply with 
the applicable notification and application procedures of Sec. 75.20(f) 
of this chapter.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25385, Apr. 28, 2006]



Sec. 96.172  Out of control periods.

    (a) Whenever any monitoring system fails to meet the quality-
assurance and quality-control requirements or data validation 
requirements of part 75 of this chapter, data shall be substituted using 
the applicable missing data procedures in subpart D or subpart H of, or 
appendix D or appendix E to, part 75 of this chapter.
    (b) Audit decertification. Whenever both an audit of a monitoring 
system and a review of the initial certification or recertification 
application reveal that any monitoring system should not have been 
certified or recertified because it did not meet a particular 
performance specification or other requirement under Sec. 96.171 or the 
applicable provisions of part 75 of this chapter, both at the time of 
the initial certification or recertification application submission and 
at the time of the audit, the permitting authority or, for a CAIR 
NOX opt-in unit or a unit for which a CAIR opt-in permit 
application is submitted and not withdrawn and a CAIR opt-in permit is 
not yet issued or denied under subpart II of this part, the 
Administrator will issue a notice of disapproval of the certification 
status of such monitoring system. For the purposes of this paragraph, an 
audit shall be either a field audit or an audit of any information 
submitted to the permitting authority or the Administrator. By issuing 
the notice of disapproval, the permitting authority or the Administrator 
revokes prospectively the certification status of the monitoring system. 
The data measured and recorded by the monitoring system shall not be 
considered valid quality-assured data from the date of issuance of the 
notification of the revoked certification status until the date and time 
that the owner or operator completes subsequently approved initial 
certification or recertification tests for the monitoring system. The 
owner or operator shall follow the applicable initial certification or 
recertification procedures in Sec. 96.171 for each disapproved 
monitoring system.



Sec. 96.173  Notifications.

    The CAIR designated representative for a CAIR NOX unit 
shall submit written notice to the permitting authority and the 
Administrator in accordance with Sec. 75.61 of this chapter.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25385, Apr. 28, 2006]



Sec. 96.174  Recordkeeping and reporting.

    (a) General provisions. The CAIR designated representative shall 
comply

[[Page 82]]

with all recordkeeping and reporting requirements in this section, the 
applicable recordkeeping and reporting requirements under Sec. 75.73 of 
this chapter, and the requirements of Sec. 96.110(e)(1).
    (b) Monitoring Plans. The owner or operator of a CAIR NOX 
unit shall comply with requirements of Sec. 75.73(c) and (e) of this 
chapter and, for a unit for which a CAIR opt-in permit application is 
submitted and not withdrawn and a CAIR opt-in permit is not yet issued 
or denied under subpart II of this part, Sec. Sec. 96.183 and 
96.184(a).
    (c) Certification Applications. The CAIR designated representative 
shall submit an application to the permitting authority within 45 days 
after completing all initial certification or recertification tests 
required under Sec. 96.171, including the information required under 
Sec. 75.63 of this chapter.
    (d) Quarterly reports. The CAIR designated representative shall 
submit quarterly reports, as follows:
    (1) The CAIR designated representative shall report the 
NOX mass emissions data and heat input data for the CAIR 
NOX unit, in an electronic quarterly report in a format 
prescribed by the Administrator, for each calendar quarter beginning 
with:
    (i) For a unit that commences commercial operation before July 1, 
2007, the calendar quarter covering January 1, 2008 through March 31, 
2008;
    (ii) For a unit that commences commercial operation on or after July 
1, 2007, the calendar quarter corresponding to the earlier of the date 
of provisional certification or the applicable deadline for initial 
certification under Sec. 96.170(b), unless that quarter is the third or 
fourth quarter of 2007, in which case reporting shall commence in the 
quarter covering January 1, 2008 through March 31, 2008;
    (iii) Notwithstanding paragraphs (d)(1)(i) and (ii) of this section, 
for a unit for which a CAIR opt-in permit application is submitted and 
not withdrawn and a CAIR opt-in permit is not yet issued or denied under 
subpart II of this part, the calendar quarter corresponding to the date 
specified in Sec. 96.184(b); and
    (iv) Notwithstanding paragraphs (d)(1)(i) and (ii) of this section, 
for a CAIR NOX opt-in unit under subpart II of this part, the 
calendar quarter corresponding to the date on which the CAIR 
NOX opt-in unit enters the CAIR NOX Annual Trading 
Program as provided in Sec. 96.184(g).
    (2) The CAIR designated representative shall submit each quarterly 
report to the Administrator within 30 days following the end of the 
calendar quarter covered by the report. Quarterly reports shall be 
submitted in the manner specified in Sec. 75.73(f) of this chapter.
    (3) For CAIR NOX units that are also subject to an Acid 
Rain emissions limitation or the CAIR NOX Ozone Season 
Trading Program, CAIR SO2 Trading Program, or Hg Budget 
Trading Program, quarterly reports shall include the applicable data and 
information required by subparts F through I of part 75 of this chapter 
as applicable, in addition to the NOX mass emission data, 
heat input data, and other information required by this subpart.
    (e) Compliance certification. The CAIR designated representative 
shall submit to the Administrator a compliance certification (in a 
format prescribed by the Administrator) in support of each quarterly 
report based on reasonable inquiry of those persons with primary 
responsibility for ensuring that all of the unit's emissions are 
correctly and fully monitored. The certification shall state that:
    (1) The monitoring data submitted were recorded in accordance with 
the applicable requirements of this subpart and part 75 of this chapter, 
including the quality assurance procedures and specifications; and
    (2) For a unit with add-on NOX emission controls and for 
all hours where NOX data are substituted in accordance with 
Sec. 75.34(a)(1) of this chapter, the add-on emission controls were 
operating within the range of parameters listed in the quality 
assurance/quality control program under appendix B to part 75 of this 
chapter and the substitute data values do not systematically 
underestimate NOX emissions.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25385, Apr. 28, 2006]

[[Page 83]]



Sec. 96.175  Petitions.

    (a) Except as provided in paragraph (b)(2) of this section, the CAIR 
designated representative of a CAIR NOX unit that is subject 
to an Acid Rain emissions limitation may submit a petition under Sec. 
75.66 of this chapter to the Administrator requesting approval to apply 
an alternative to any requirement of this subpart. Application of an 
alternative to any requirement of this subpart is in accordance with 
this subpart only to the extent that the petition is approved in writing 
by the Administrator, in consultation with the permitting authority.
    (b)(1) The CAIR designated representative of a CAIR NOX 
unit that is not subject to an Acid Rain emissions limitation may submit 
a petition under Sec. 75.66 of this chapter to the permitting authority 
and the Administrator requesting approval to apply an alternative to any 
requirement of this subpart. Application of an alternative to any 
requirement of this subpart is in accordance with this subpart only to 
the extent that the petition is approved in writing by both the 
permitting authority and the Administrator.
    (2) The CAIR designated representative of a CAIR NOX unit 
that is subject to an Acid Rain emissions limitation may submit a 
petition under Sec. 75.66 of this chapter to the permitting authority 
and the Administrator requesting approval to apply an alternative to a 
requirement concerning any additional continuous emission monitoring 
system required under Sec. 75.72 of this chapter. Application of an 
alternative to any such requirement is in accordance with this subpart 
only to the extent that the petition is approved in writing by both the 
permitting authority and the Administrator.



                    Subpart II_CAIR NOX Opt-in Units

    Source: 70 FR 25339, May 12, 2005, unless otherwise noted.



Sec. 96.180  Applicability.

    A CAIR NOX opt-in unit must be a unit that:
    (a) Is located in the State;
    (b) Is not a CAIR NOX unit under Sec. 96.104 and is not 
covered by a retired unit exemption under Sec. 96.105 that is in 
effect;
    (c) Is not covered by a retired unit exemption under Sec. 72.8 of 
this chapter that is in effect;
    (d) Has or is required or qualified to have a title V operating 
permit or other federally enforceable permit; and
    (e) Vents all of its emissions to a stack and can meet the 
monitoring, recordkeeping, and reporting requirements of subpart HH of 
this part.



Sec. 96.181  General.

    (a) Except as otherwise provided in Sec. Sec. 96.101 through 
96.104, Sec. Sec. 96.106 through 96.108, and subparts BB and CC and 
subparts FF through HH of this part, a CAIR NOX opt-in unit 
shall be treated as a CAIR NOX unit for purposes of applying 
such sections and subparts of this part.
    (b) Solely for purposes of applying, as provided in this subpart, 
the requirements of subpart HH of this part to a unit for which a CAIR 
opt-in permit application is submitted and not withdrawn and a CAIR opt-
in permit is not yet issued or denied under this subpart, such unit 
shall be treated as a CAIR NOX unit before issuance of a CAIR 
opt-in permit for such unit.



Sec. 96.182  CAIR designated representative.

    Any CAIR NOX opt-in unit, and any unit for which a CAIR 
opt-in permit application is submitted and not withdrawn and a CAIR opt-
in permit is not yet issued or denied under this subpart, located at the 
same source as one or more CAIR NOX units shall have the same 
CAIR designated representative and alternate CAIR designated 
representative as such CAIR NOX units.



Sec. 96.183  Applying for CAIR opt-in permit.

    (a) Applying for initial CAIR opt-in permit. The CAIR designated 
representative of a unit meeting the requirements for a CAIR 
NOX opt-in unit in Sec. 96.180 may apply for an initial CAIR 
opt-in permit at any time, except as provided under Sec. 96.186(f) and 
(g), and, in order to apply, must submit the following:
    (1) A complete CAIR permit application under Sec. 96.122;

[[Page 84]]

    (2) A certification, in a format specified by the permitting 
authority, that the unit:
    (i) Is not a CAIR NOX unit under Sec. 96.104 and is not 
covered by a retired unit exemption under Sec. 96.105 that is in 
effect;
    (ii) Is not covered by a retired unit exemption under Sec. 72.8 of 
this chapter that is in effect;
    (iii) Vents all of its emissions to a stack, and
    (iv) Has documented heat input for more than 876 hours during the 6 
months immediately preceding submission of the CAIR permit application 
under Sec. 96.122;
    (3) A monitoring plan in accordance with subpart HH of this part;
    (4) A complete certificate of representation under Sec. 96.113 
consistent with Sec. 96.182, if no CAIR designated representative has 
been previously designated for the source that includes the unit; and
    (5) A statement, in a format specified by the permitting authority, 
whether the CAIR designated representative requests that the unit be 
allocated CAIR NOX allowances under Sec. 96.188(b) or Sec. 
96.188(c) (subject to the conditions in Sec. Sec. 96.184(h) and 
96.186(g)). If allocation under Sec. 96.188(c) is requested, this 
statement shall include a statement that the owners and operators of the 
unit intend to repower the unit before January 1, 2015 and that they 
will provide, upon request, documentation demonstrating such intent.
    (b) Duty to reapply. (1) The CAIR designated representative of a 
CAIR NOX opt-in unit shall submit a complete CAIR permit 
application under Sec. 96.122 to renew the CAIR opt-in unit permit in 
accordance with the permitting authority's regulations for title V 
operating permits, or the permitting authority's regulations for other 
federally enforceable permits if applicable, addressing permit renewal.
    (2) Unless the permitting authority issues a notification of 
acceptance of withdrawal of the CAIR NOX opt-in unit from the 
CAIR NOX Annual Trading Program in accordance with Sec. 
96.186 or the unit becomes a CAIR NOX unit under Sec. 
96.104, the CAIR NOX opt-in unit shall remain subject to the 
requirements for a CAIR NOX opt-in unit, even if the CAIR 
designated representative for the CAIR NOX opt-in unit fails 
to submit a CAIR permit application that is required for renewal of the 
CAIR opt-in permit under paragraph (b)(1) of this section.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25385, Apr. 28, 2006]



Sec. 96.184  Opt-in process.

    The permitting authority will issue or deny a CAIR opt-in permit for 
a unit for which an initial application for a CAIR opt-in permit under 
Sec. 96.183 is submitted in accordance with the following:
    (a) Interim review of monitoring plan. The permitting authority and 
the Administrator will determine, on an interim basis, the sufficiency 
of the monitoring plan accompanying the initial application for a CAIR 
opt-in permit under Sec. 96.183. A monitoring plan is sufficient, for 
purposes of interim review, if the plan appears to contain information 
demonstrating that the NOX emissions rate and heat input of 
the unit and all other applicable parameters are monitored and reported 
in accordance with subpart HH of this part. A determination of 
sufficiency shall not be construed as acceptance or approval of the 
monitoring plan.
    (b) Monitoring and reporting. (1)(i) If the permitting authority and 
the Administrator determine that the monitoring plan is sufficient under 
paragraph (a) of this section, the owner or operator shall monitor and 
report the NOX emissions rate and the heat input of the unit 
and all other applicable parameters, in accordance with subpart HH of 
this part, starting on the date of certification of the appropriate 
monitoring systems under subpart HH of this part and continuing until a 
CAIR opt-in permit is denied under Sec. 96.184(f) or, if a CAIR opt-in 
permit is issued, the date and time when the unit is withdrawn from the 
CAIR NOX Annual Trading Program in accordance with Sec. 
96.186.
    (ii) The monitoring and reporting under paragraph (b)(1)(i) of this 
section shall include the entire control period immediately before the 
date on which the unit enters the CAIR NOX Annual Trading 
Program under Sec. 96.184(g), during which period monitoring system

[[Page 85]]

availability must not be less than 90 percent under subpart HH of this 
part and the unit must be in full compliance with any applicable State 
or Federal emissions or emissions-related requirements.
    (2) To the extent the NOX emissions rate and the heat 
input of the unit are monitored and reported in accordance with subpart 
HH of this part for one or more control periods, in addition to the 
control period under paragraph (b)(1)(ii) of this section, during which 
control periods monitoring system availability is not less than 90 
percent under subpart HH of this part and the unit is in full compliance 
with any applicable State or Federal emissions or emissions-related 
requirements and which control periods begin not more than 3 years 
before the unit enters the CAIR NOX Annual Trading Program 
under Sec. 96.184(g), such information shall be used as provided in 
paragraphs (c) and (d) of this section.
    (c) Baseline heat input. The unit's baseline heat input shall equal:
    (1) If the unit's NOX emissions rate and heat input are 
monitored and reported for only one control period, in accordance with 
paragraph (b)(1) of this section, the unit's total heat input (in mmBtu) 
for the control period; or
    (2) If the unit's NOX emissions rate and heat input are 
monitored and reported for more than one control period, in accordance 
with paragraphs (b)(1) and (2) of this section, the average of the 
amounts of the unit's total heat input (in mmBtu) for the control 
periods under paragraphs (b)(1)(ii) and (2) of this section.
    (d) Baseline NOX emission rate. The unit's baseline 
NOX emission rate shall equal:
    (1) If the unit's NOX emissions rate and heat input are 
monitored and reported for only one control period, in accordance with 
paragraph (b)(1) of this section, the unit's NOX emissions 
rate (in lb/mmBtu) for the control period;
    (2) If the unit's NOX emissions rate and heat input are 
monitored and reported for more than one control period, in accordance 
with paragraphs (b)(1) and (2) of this section, and the unit does not 
have add-on NOX emission controls during any such control 
periods, the average of the amounts of the unit's NOX 
emissions rate (in lb/mmBtu) for the control periods under paragraphs 
(b)(1)(ii) and (2) of this section; or
    (3) If the unit's NOX emissions rate and heat input are 
monitored and reported for more than one control period, in accordance 
with paragraphs (b)(1) and (2) of this section, and the unit has add-on 
NOX emission controls during any such control periods, the 
average of the amounts of the unit's NOX emissions rate (in 
lb/mmBtu) for such control periods during which the unit has add-on 
NOX emission controls.
    (e) Issuance of CAIR opt-in permit. After calculating the baseline 
heat input and the baseline NOX emissions rate for the unit 
under paragraphs (c) and (d) of this section and if the permitting 
authority determines that the CAIR designated representative shows that 
the unit meets the requirements for a CAIR NOX opt-in unit in 
Sec. 96.180 and meets the elements certified in Sec. 96.183(a)(2), the 
permitting authority will issue a CAIR opt-in permit. The permitting 
authority will provide a copy of the CAIR opt-in permit to the 
Administrator, who will then establish a compliance account for the 
source that includes the CAIR NOX opt-in unit unless the 
source already has a compliance account.
    (f) Issuance of denial of CAIR opt-in permit. Notwithstanding 
paragraphs (a) through (e) of this section, if at any time before 
issuance of a CAIR opt-in permit for the unit, the permitting authority 
determines that the CAIR designated representative fails to show that 
the unit meets the requirements for a CAIR NOX opt-in unit in 
Sec. 96.180 or meets the elements certified in Sec. 96.183(a)(2), the 
permitting authority will issue a denial of a CAIR opt-in permit for the 
unit.
    (g) Date of entry into CAIR NOX Annual Trading Program. A 
unit for which an initial CAIR opt-in permit is issued by the permitting 
authority shall become a CAIR NOX opt-in unit, and a CAIR 
NOX unit, as of the later of January 1, 2009 or January 1 of 
the first control period during which such CAIR opt-in permit is issued.
    (h) Repowered CAIR NOX opt-in unit. (1) If CAIR 
designated representative

[[Page 86]]

requests, and the permitting authority issues a CAIR opt-in permit 
providing for, allocation to a CAIR NOX opt-in unit of CAIR 
NOX allowances under Sec. 96.188(c) and such unit is 
repowered after its date of entry into the CAIR NOX Annual 
Trading Program under paragraph (g) of this section, the repowered unit 
shall be treated as a CAIR NOX opt-in unit replacing the 
original CAIR NOX opt-in unit, as of the date of start-up of 
the repowered unit's combustion chamber.
    (2) Notwithstanding paragraphs (c) and (d) of this section, as of 
the date of start-up under paragraph (h)(1) of this section, the 
repowered unit shall be deemed to have the same date of commencement of 
operation, date of commencement of commercial operation, baseline heat 
input, and baseline NOX emission rate as the original CAIR 
NOX opt-in unit, and the original CAIR NOX opt-in 
unit shall no longer be treated as a CAIR NOX opt-in unit or 
a CAIR NOX unit.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25385, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



Sec. 96.185  CAIR opt-in permit contents.

    (a) Each CAIR opt-in permit will contain:
    (1) All elements required for a complete CAIR permit application 
under Sec. 96.122;
    (2) The certification in Sec. 96.183(a)(2);
    (3) The unit's baseline heat input under Sec. 96.184(c);
    (4) The unit's baseline NOX emission rate under Sec. 
96.184(d);
    (5) A statement whether the unit is to be allocated CAIR 
NOX allowances Sec. 96.188(b) or Sec. 96.188(c) (subject to 
the conditions in Sec. Sec. 96.184(h) and 96.186(g));
    (6) A statement that the unit may withdraw from the CAIR 
NOX Annual Trading Program only in accordance with Sec. 
96.186; and
    (7) A statement that the unit is subject to, and the owners and 
operators of the unit must comply with, the requirements of Sec. 
96.187.
    (b) Each CAIR opt-in permit is deemed to incorporate automatically 
the definitions of terms under Sec. 96.102 and, upon recordation by the 
Administrator under subpart FF or GG of this part or this subpart, every 
allocation, transfer, or deduction of CAIR NOX allowances to 
or from the compliance account of the source that includes a CAIR 
NOX opt-in unit covered by the CAIR opt-in permit.
    (c) The CAIR opt-in permit shall be included, in a format specified 
by the permitting authority, in the CAIR permit for the source where the 
CAIR NOX opt-in unit is located and in a title V operating 
permit or other federally enforceable permit for the source.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25385, Apr. 28, 2006]



Sec. 96.186  Withdrawal from CAIR NOX Annual Trading Program.

    Except as provided under paragraph (g) of this section, a CAIR 
NOX opt-in unit may withdraw from the CAIR NOX 
Annual Trading Program, but only if the permitting authority issues a 
notification to the CAIR designated representative of the CAIR 
NOX opt-in unit of the acceptance of the withdrawal of the 
CAIR NOX opt-in unit in accordance with paragraph (d) of this 
section.
    (a) Requesting withdrawal. In order to withdraw a CAIR CAIR 
NOX opt-in unit from the CAIR NOX Annual Trading 
Program, the CAIR designated representative of the CAIR NOX 
opt-in unit shall submit to the permitting authority a request to 
withdraw effective as of midnight of December 31 of a specified calendar 
year, which date must be at least 4 years after December 31 of the year 
of entry into the CAIR NOX Annual Trading Program under Sec. 
96.184(g). The request must be submitted no later than 90 days before 
the requested effective date of withdrawal.
    (b) Conditions for withdrawal. Before a CAIR NOX opt-in 
unit covered by a request under paragraph (a) of this section may 
withdraw from the CAIR NOX Annual Trading Program and the 
CAIR opt-in permit may be terminated under paragraph (e) of this 
section, the following conditions must be met:
    (1) For the control period ending on the date on which the 
withdrawal is to be effective, the source that includes the CAIR 
NOX opt-in unit must meet the requirement to hold CAIR 
NOX allowances under Sec. 96.106(c) and cannot have any 
excess emissions.

[[Page 87]]

    (2) After the requirement for withdrawal under paragraph (b)(1) of 
this section is met, the Administrator will deduct from the compliance 
account of the source that includes the CAIR NOX opt-in unit 
CAIR NOX allowances equal in amount to and allocated for the 
same or a prior control period as any CAIR NOX allowances 
allocated to the CAIR NOX opt-in unit under Sec. 96.188 for 
any control period for which the withdrawal is to be effective. If there 
are no remaining CAIR NOX units at the source, the 
Administrator will close the compliance account, and the owners and 
operators of the CAIR NOX opt-in unit may submit a CAIR 
NOX allowance transfer for any remaining CAIR NOX 
allowances to another CAIR NOX Allowance Tracking System in 
accordance with subpart GG of this part.
    (c) Notification. (1) After the requirements for withdrawal under 
paragraphs (a) and (b) of this section are met (including deduction of 
the full amount of CAIR NOX allowances required), the 
permitting authority will issue a notification to the CAIR designated 
representative of the CAIR NOX opt-in unit of the acceptance 
of the withdrawal of the CAIR NOX opt-in unit as of midnight 
on December 31 of the calendar year for which the withdrawal was 
requested.
    (2) If the requirements for withdrawal under paragraphs (a) and (b) 
of this section are not met, the permitting authority will issue a 
notification to the CAIR designated representative of the CAIR 
NOX opt-in unit that the CAIR NOX opt-in unit's 
request to withdraw is denied. Such CAIR NOX opt-in unit 
shall continue to be a CAIR NOX opt-in unit.
    (d) Permit amendment. After the permitting authority issues a 
notification under paragraph (c)(1) of this section that the 
requirements for withdrawal have been met, the permitting authority will 
revise the CAIR permit covering the CAIR NOX opt-in unit to 
terminate the CAIR opt-in permit for such unit as of the effective date 
specified under paragraph (c)(1) of this section. The unit shall 
continue to be a CAIR NOX opt-in unit until the effective 
date of the termination and shall comply with all requirements under the 
CAIR NOX Annual Trading Program concerning any control 
periods for which the unit is a CAIR NOX opt-in unit, even if 
such requirements arise or must be complied with after the withdrawal 
takes effect.
    (e) Reapplication upon failure to meet conditions of withdrawal. If 
the permitting authority denies the CAIR NOX opt-in unit's 
request to withdraw, the CAIR designated representative may submit 
another request to withdraw in accordance with paragraphs (a) and (b) of 
this section.
    (f) Ability to reapply to the CAIR NOX Annual Trading 
Program. Once a CAIR NOX opt-in unit withdraws from the CAIR 
NOX Annual Trading Program and its CAIR opt-in permit is 
terminated under this section, the CAIR designated representative may 
not submit another application for a CAIR opt-in permit under Sec. 
96.183 for such CAIR NOX opt-in unit before the date that is 
4 years after the date on which the withdrawal became effective. Such 
new application for a CAIR opt-in permit will be treated as an initial 
application for a CAIR opt-in permit under Sec. 96.184.
    (g) Inability to withdraw. Notwithstanding paragraphs (a) through 
(f) of this section, a CAIR NOX opt-in unit shall not be 
eligible to withdraw from the CAIR NOX Annual Trading Program 
if the CAIR designated representative of the CAIR NOX opt-in 
unit requests, and the permitting authority issues a CAIR NOX 
opt-in permit providing for, allocation to the CAIR NOX opt-
in unit of CAIR NOX allowances under Sec. 96.188(c).

[70 FR 25339, May 12, 2005, as amended at 71 FR 25385, Apr. 28, 2006]



Sec. 96.187  Change in regulatory status.

    (a) Notification. If a CAIR NOX opt-in unit becomes a 
CAIR NOX unit under Sec. 96.104, then the CAIR designated 
representative shall notify in writing the permitting authority and the 
Administrator of such change in the CAIR NOX opt-in unit's 
regulatory status, within 30 days of such change.
    (b) Permitting authority's and Administrator's actions. (1) If a 
CAIR NOX opt-in unit becomes a CAIR NOX unit under 
Sec. 96.104, the permitting authority will revise the CAIR 
NOX opt-in unit's CAIR opt-in permit to meet the requirements

[[Page 88]]

of a CAIR permit under Sec. 96.123, and remove the CAIR opt-in permit 
provisions, as of the date on which the CAIR NOX opt-in unit 
becomes a CAIR NOX unit under Sec. 96.104.
    (2)(i) The Administrator will deduct from the compliance account of 
the source that includes the CAIR NOX opt-in unit that 
becomes a CAIR NOX unit under Sec. 96.104, CAIR 
NOX allowances equal in amount to and allocated for the same 
or a prior control period as:
    (A) Any CAIR NOX allowances allocated to the CAIR 
NOX opt-in unit under Sec. 96.188 for any control period 
after the date on which the CAIR NOX opt-in unit becomes a 
CAIR NOX unit under Sec. 96.104; and
    (B) If the date on which the CAIR NOX opt-in unit becomes 
a CAIR NOX unit under Sec. 96.104 is not December 31, the 
CAIR NOX allowances allocated to the CAIR NOX opt-
in unit under Sec. 96.188 for the control period that includes the date 
on which the CAIR NOX opt-in unit becomes a CAIR 
NOX unit under Sec. 96.104, multiplied by the ratio of the 
number of days, in the control period, starting with the date on which 
the CAIR NOX opt-in unit becomes a CAIR NOX unit 
under Sec. 96.104 divided by the total number of days in the control 
period and rounded to the nearest whole allowance as appropriate.
    (ii) The CAIR designated representative shall ensure that the 
compliance account of the source that includes the CAIR NOX 
opt-in unit that becomes a CAIR NOX unit under Sec. 96.104 
contains the CAIR NOX allowances necessary for completion of 
the deduction under paragraph (b)(2)(i) of this section.
    (3)(i) For every control period after the date on which the CAIR 
NOX opt-in unit becomes a CAIR NOX unit under 
Sec. 96.104, the CAIR NOX opt-in unit will be allocated CAIR 
NOX allowances under Sec. 96.142.
    (ii) If the date on which the CAIR NOX opt-in unit 
becomes a CAIR NOX unit under Sec. 96.104 is not December 
31, the following amount of CAIR NOX allowances will be 
allocated to the CAIR NOX opt-in unit (as a CAIR 
NOX unit) under Sec. 96.142 for the control period that 
includes the date on which the CAIR NOX opt-in unit becomes a 
CAIR NOX unit under Sec. 96.104:
    (A) The amount of CAIR NOX allowances otherwise allocated 
to the CAIR NOX opt-in unit (as a CAIR NOX unit) 
under Sec. 96.142 for the control period multiplied by;
    (B) The ratio of the number of days, in the control period, starting 
with the date on which the CAIR NOX opt-in unit becomes a 
CAIR NOX unit under Sec. 96.104, divided by the total number 
of days in the control period; and
    (C) Rounded to the nearest whole allowance as appropriate.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25385, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



Sec. 96.188  CAIR NOX allowance allocations to CAIR NOX
opt-in units.

    (a) Timing requirements. (1) When the CAIR opt-in permit is issued 
under Sec. 96.184(e), the permitting authority will allocate CAIR 
NOX allowances to the CAIR NOX opt-in unit, and 
submit to the Administrator the allocation for the control period in 
which a CAIR NOX opt-in unit enters the CAIR NOX 
Annual Trading Program under Sec. 96.184(g), in accordance with 
paragraph (b) or (c) of this section.
    (2) By no later than October 31 of the control period after the 
control period in which a CAIR NOX opt-in unit enters the 
CAIR NOX Annual Trading Program under Sec. 96.184(g) and 
October 31 of each year thereafter, the permitting authority will 
allocate CAIR NOX allowances to the CAIR NOX opt-
in unit, and submit to the Administrator the allocation for the control 
period that includes such submission deadline and in which the unit is a 
CAIR NOX opt-in unit, in accordance with paragraph (b) or (c) 
of this section.
    (b) Calculation of allocation. For each control period for which a 
CAIR NOX opt-in unit is to be allocated CAIR NOX 
allowances, the permitting authority will allocate in accordance with 
the following procedures:
    (1) The heat input (in mmBtu) used for calculating the CAIR 
NOX allowance allocation will be the lesser of:
    (i) The CAIR NOX opt-in unit's baseline heat input 
determined under Sec. 96.184(c); or
    (ii) The CAIR NOX opt-in unit's heat input, as determined 
in accordance with subpart HH of this part, for the

[[Page 89]]

immediately prior control period, except when the allocation is being 
calculated for the control period in which the CAIR NOX opt-
in unit enters the CAIR NOX Annual Trading Program under 
Sec. 96.184(g).
    (2) The NOX emission rate (in lb/mmBtu) used for 
calculating CAIR NOX allowance allocations will be the lesser 
of:
    (i) The CAIR NOX opt-in unit's baseline NOX 
emissions rate (in lb/mmBtu) determined under Sec. 96.184(d) and 
multiplied by 70 percent; or
    (ii) The most stringent State or Federal NOX emissions 
limitation applicable to the CAIR NOX opt-in unit at any time 
during the control period for which CAIR NOX allowances are 
to be allocated.
    (3) The permitting authority will allocate CAIR NOX 
allowances to the CAIR NOX opt-in unit in an amount equaling 
the heat input under paragraph (b)(1) of this section, multiplied by the 
NOX emission rate under paragraph (b)(2) of this section, 
divided by 2,000 lb/ton, and rounded to the nearest whole allowance as 
appropriate.
    (c) Notwithstanding paragraph (b) of this section and if the CAIR 
designated representative requests, and the permitting authority issues 
a CAIR opt-in permit (based on a demonstration of the intent to repower 
stated under Sec. 96.183(a)(5)) providing for, allocation to a CAIR 
NOX opt-in unit of CAIR NOX allowances under this 
paragraph (subject to the conditions in Sec. Sec. 96.184(h) and 
96.186(g)), the permitting authority will allocate to the CAIR 
NOX opt-in unit as follows:
    (1) For each control period in 2009 through 2014 for which the CAIR 
NOX opt-in unit is to be allocated CAIR NOX 
allowances,
    (i) The heat input (in mmBtu) used for calculating CAIR 
NOX allowance allocations will be determined as described in 
paragraph (b)(1) of this section.
    (ii) The NOX emission rate (in lb/mmBtu) used for 
calculating CAIR NOX allowance allocations will be the lesser 
of:
    (A) The CAIR NOX opt-in unit's baseline NOX 
emissions rate (in lb/mmBtu) determined under Sec. 96.184(d); or
    (B) The most stringent State or Federal NOX emissions 
limitation applicable to the CAIR NOX opt-in unit at any time 
during the control period in which the CAIR NOX opt-in unit 
enters the CAIR NOX Annual Trading Program under Sec. 
96.184(g).
    (iii) The permitting authority will allocate CAIR NOX 
allowances to the CAIR NOX opt-in unit in an amount equaling 
the heat input under paragraph (c)(1)(i) of this section, multiplied by 
the NOX emission rate under paragraph (c)(1)(ii) of this 
section, divided by 2,000 lb/ton, and rounded to the nearest whole 
allowance as appropriate.
    (2) For each control period in 2015 and thereafter for which the 
CAIR NOX opt-in unit is to be allocated CAIR NOX 
allowances,
    (i) The heat input (in mmBtu) used for calculating the CAIR 
NOX allowance allocations will be determined as described in 
paragraph (b)(1) of this section.
    (ii) The NOX emission rate (in lb/mmBtu) used for 
calculating the CAIR NOX allowance allocation will be the 
lesser of:
    (A) 0.15 lb/mmBtu;
    (B) The CAIR NOX opt-in unit's baseline NOX 
emissions rate (in lb/mmBtu) determined under Sec. 96.184(d); or
    (C) The most stringent State or Federal NOX emissions 
limitation applicable to the CAIR NOX opt-in unit at any time 
during the control period for which CAIR NOX allowances are 
to be allocated.
    (iii) The permitting authority will allocate CAIR NOX 
allowances to the CAIR NOX opt-in unit in an amount equaling 
the heat input under paragraph (c)(2)(i) of this section, multiplied by 
the NOX emission rate under paragraph (c)(2)(ii) of this 
section, divided by 2,000 lb/ton, and rounded to the nearest whole 
allowance as appropriate.
    (d) Recordation. (1) The Administrator will record, in the 
compliance account of the source that includes the CAIR NOX 
opt-in unit, the CAIR NOX allowances allocated by the 
permitting authority to the CAIR NOX opt-in unit under 
paragraph (a)(1) of this section.
    (2) By December 1 of the control period in which a CAIR 
NOX opt-in unit

[[Page 90]]

enters the CAIR NOX Annual Trading Program under Sec. 
96.184(g) and December 1 of each year thereafter, the Administrator will 
record, in the compliance account of the source that includes the CAIR 
NOX opt-in unit, the CAIR NOX allowances allocated 
by the permitting authority to the CAIR NOX opt-in unit under 
paragraph (a)(2) of this section.

[70 FR 25339, May 12, 2005, as amended at 71 FR 25385, Apr. 28, 2006]

Subparts JJ-ZZ [Reserved]



      Subpart AAA_CAIR SO[bdi2] Trading Program General Provisions

    Source: 70 FR 25362, May 12, 2005, unless otherwise noted.



Sec. 96.201  Purpose.

    This subpart and subparts BBB through III establish the model rule 
comprising general provisions and the designated representative, 
permitting, allowance, monitoring, and opt-in provisions for the State 
Clean Air Interstate Rule (CAIR) SO2 Trading Program, under 
section 110 of the Clean Air Act and Sec. 51.124 of this chapter, as a 
means of mitigating interstate transport of fine particulates and sulfur 
dioxide. The owner or operator of a unit or a source shall comply with 
the requirements of this subpart and subparts BBB through III as a 
matter of federal law only if the State with jurisdiction over the unit 
and the source incorporates by reference such subparts or otherwise 
adopts the requirements of such subparts in accordance with Sec. 
51.124(o)(1) or (2) of this chapter, the State submits to the 
Administrator one or more revisions of the State implementation plan 
that include such adoption, and the Administrator approves such 
revisions. If the State adopts the requirements of such subparts in 
accordance with Sec. 51.124(o)(1) or (2) of this chapter, then the 
State authorizes the Administrator to assist the State in implementing 
the CAIR SO2 Trading Program by carrying out the functions 
set forth for the Administrator in such subparts.



Sec. 96.202  Definitions.

    The terms used in this subpart and subparts BBB through III shall 
have the meanings set forth in this section as follows:
    Account number means the identification number given by the 
Administrator to each CAIR SO2 Allowance Tracking System 
account.
    Acid Rain emissions limitation means a limitation on emissions of 
sulfur dioxide or nitrogen oxides under the Acid Rain Program.
    Acid Rain Program means a multi-state sulfur dioxide and nitrogen 
oxides air pollution control and emission reduction program established 
by the Administrator under title IV of the CAA and parts 72 through 78 
of this chapter.
    Administrator means the Administrator of the United States 
Environmental Protection Agency or the Administrator's duly authorized 
representative.
    Allocate or allocation means, with regard to CAIR SO2 
allowances issued under the Acid Rain Program, the determination by the 
Administrator of the amount of such CAIR SO2 allowances to be 
initially credited to a CAIR SO2 unit or other entity and, 
with regard to CAIR SO2 allowances issued under provisions of 
a State implementation plan that are approved under Sec. 51.124(o)(1) 
or (2) or (r) of this chapter or Sec. 97.288 of this chapter, the 
determination by a permitting authority of the amount of such CAIR 
SO2 allowances to be initially credited to a CAIR 
SO2 unit 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 CAIR SO2 
allowance transfer must be submitted for recordation in a CAIR 
SO2 source's compliance account in order to be used to meet 
the source's CAIR SO2 emissions limitation for such control 
period in accordance with Sec. 96.254.
    Alternate CAIR designated representative means, for a CAIR 
SO2 source and each CAIR SO2 unit at the source, 
the natural person who is authorized by the owners and operators of the 
source

[[Page 91]]

and all such units at the source, in accordance with subparts BBB and 
III of this part, to act on behalf of the CAIR designated representative 
in matters pertaining to the CAIR SO2 Trading Program. If the 
CAIR SO2 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 CAIR SO2 source is also a CAIR NOX 
Ozone Season source, then this natural person shall be the same person 
as the alternate CAIR designated representative under the CAIR 
NOX Ozone Season Trading Program. If the CAIR SO2 
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. If the CAIR SO2 
source is also subject to the Hg Budget Trading Program, then this 
natural person shall be the same person as the alternate Hg designated 
representative under the Hg Budget Trading Program.
    Automated data acquisition and handling system or DAHS means that 
component of the continuous emission monitoring system, or other 
emissions monitoring system approved for use under subpart HHH of this 
part, designed to interpret and convert individual output signals from 
pollutant concentration monitors, flow monitors, diluent gas monitors, 
and other component parts of the monitoring system to produce a 
continuous record of the measured parameters in the measurement units 
required by subpart HHH of this part.
    Biomass means--
    (1) Any organic material grown for the purpose of being converted to 
energy;
    (2) Any organic byproduct of agriculture that can be converted into 
energy; or
    (3) Any material that can be converted into energy and is 
nonmerchantable for other purposes, that is segregated from other 
nonmerchantable material, and that is;
    (i) A forest-related organic resource, including mill residues, 
precommercial thinnings, slash, brush, or byproduct from conversion of 
trees to merchantable material; or
    (ii) A wood material, including pallets, crates, dunnage, 
manufacturing and construction materials (other than pressure-treated, 
chemically-treated, or painted wood products), and landscape or right-
of-way tree trimmings.
    Boiler means an enclosed fossil- or other-fuel-fired combustion 
device used to produce heat and to transfer heat to recirculating water, 
steam, or other medium.
    Bottoming-cycle cogeneration unit means a cogeneration unit in which 
the energy input to the unit is first used to produce useful thermal 
energy and at least some of the reject heat from the useful thermal 
energy application or process is then used for electricity production.
    CAIR authorized account representative means, with regard to a 
general account, a responsible natural person who is authorized, in 
accordance with subparts BBB, FFF, and III of this part, to transfer and 
otherwise dispose of CAIR SO2 allowances held in the general 
account and, with regard to a compliance account, the CAIR designated 
representative of the source.
    CAIR designated representative means, for a CAIR SO2 
source and each CAIR SO2 unit at the source, the natural 
person who is authorized by the owners and operators of the source and 
all such units at the source, in accordance with subparts BBB and III of 
this part, to represent and legally bind each owner and operator in 
matters pertaining to the CAIR SO2 Trading Program. If the 
CAIR SO2 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 CAIR SO2 source is also a CAIR NOX Ozone 
Season source, then this natural person shall be the same person as the 
CAIR designated representative under the CAIR NOX Ozone 
Season Trading Program. If the CAIR SO2 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. If the CAIR SO2 source is also subject to the Hg 
Budget Trading Program, then this natural person

[[Page 92]]

shall be the same person as the Hg designated representative under the 
Hg Budget Trading Program.
    CAIR NO X 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 this part 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 includes one or 
more CAIR NOX Ozone Season units.
    CAIR NOX Ozone Season Trading Program means a multi-state nitrogen 
oxides air pollution control and emission reduction program approved and 
administered by the Administrator in accordance with subparts AAAA 
through IIII of this part and 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 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 ozone and nitrogen oxides.
    CAIR NOX source means a source that is subject to the CAIR 
NOX Ozone Season Trading Program.
    CAIR permit means the legally binding and federally enforceable 
written document, or portion of such document, issued by the permitting 
authority under subpart CCC of this part, including any permit 
revisions, specifying the CAIR SO2 Trading Program 
requirements applicable to a CAIR SO2 source, to each CAIR 
SO2 unit at the source, and to the owners and operators and 
the CAIR designated representative of the source and each such unit.
    CAIR SO2 allowance means a limited authorization issued by the 
Administrator under the Acid Rain Program, or by a permitting authority 
under provisions of a State implementation plan that are approved under 
Sec. 51.124(o)(1) or (2) or (r) of this chapter or Sec. 97.288 of this 
chapter,'', by designating the last sentence of the definition as 
paragraph (4), and by revising in paragraph (4) the words ``(Program or 
under the provisions of a State implementation plan that is approved 
under Sec. 51.124(o)(1) or (2) of this chapter'' to read ``(Program, 
provisions of a State implementation plan that are approved under Sec. 
51.124(o)(1) or (2) or (r) of this chapter, or Sec. 97.288 of this 
chapter, to emit sulfur dioxide during the control period of the 
specified calendar year for which the authorization is allocated or of 
any calendar year thereafter under the CAIR SO2 Trading 
Program as follows:
    (1) For one CAIR SO2 allowance allocated for a control 
period in a year before 2010, one ton of sulfur dioxide, except as 
provided in Sec. 96.254(b);
    (2) For one CAIR SO2 allowance allocated for a control 
period in 2010 through 2014, 0.50 ton of sulfur dioxide, except as 
provided in Sec. 96.254(b); and
    (3) For one CAIR SO2 allowance allocated for a control 
period in 2015 or later, 0.35 ton of sulfur dioxide, except as provided 
in Sec. 96.254(b).
    An authorization to emit sulfur dioxide that is not issued under the 
Acid Rain Program or under the provisions of a State implementation plan 
that is approved under Sec. 51.124(o)(1) or (2) of this chapter shall 
not be a CAIR SO2 allowance.
    CAIR SO2 allowance deduction or deduct CAIR SO2 allowances means the 
permanent withdrawal of CAIR SO2 allowances by the 
Administrator from a compliance account, e.g., in order to account for a 
specified number of tons of total sulfur dioxide emissions from all CAIR 
SO2 units at a CAIR SO2 source for a control 
period, determined in accordance with subpart HHH of this part, or to 
account for excess emissions.
    CAIR SO2 Allowance Tracking System means the system by which the 
Administrator records allocations, deductions, and transfers of CAIR 
SO2 allowances under the CAIR SO2 Trading Program. 
This is the same system as the Allowance Tracking System under Sec. 
72.2 of this chapter by which the Administrator records allocations, 
deduction, and transfers of Acid Rain SO2 allowances under 
the Acid Rain Program.
    CAIR SO2 Allowance Tracking System account means an account in the 
CAIR

[[Page 93]]

SO2 Allowance Tracking System established by the 
Administrator for purposes of recording the allocation, holding, 
transferring, or deducting of CAIR SO2 allowances. Such 
allowances will be allocated, held, deducted, or transferred only as 
whole allowances.
    CAIR SO2 allowances held or hold CAIR SO2 allowances means the CAIR 
SO2 allowances recorded by the Administrator, or submitted to 
the Administrator for recordation, in accordance with subparts FFF, GGG, 
and III of this part or part 73 of this chapter, in a CAIR 
SO2 Allowance Tracking System account.
    CAIR SO2 emissions limitation means, for a CAIR SO2 
source, the tonnage equivalent, in SO2 emissions in a control 
period, of the CAIR SO2 allowances available for deduction 
for the source under Sec. 96.254(a) and (b) for the control period.
    CAIR SO2 source means a source that includes one or more CAIR 
SO2 units.
    CAIR SO2 Trading Program means a multi-state sulfur dioxide air 
pollution control and emission reduction program approved and 
administered by the Administrator in accordance with subparts AAA 
through III of this part and 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.
    CAIR SO2 unit means a unit that is subject to the CAIR 
SO2 Trading Program under Sec. 96.204 and, except for 
purposes of Sec. 96.205, a CAIR SO2 opt-in unit under 
subpart III of this part.
    Clean Air Act or CAA means the Clean Air Act, 42 U.S.C. 7401, et 
seq.
    Coal means any solid fuel classified as anthracite, bituminous, 
subbituminous, or lignite.
    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.
    Cogeneration unit means a stationary, fossil-fuel-fired boiler or 
stationary, fossil-fuel-fired combustion turbine:
    (1) Having equipment used to produce electricity and useful thermal 
energy for industrial, commercial, heating, or cooling purposes through 
the sequential use of energy; and
    (2) Producing during the 12-month period starting on the date the 
unit first produces electricity and during any calendar year after 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;
    (3) Provided that the total energy input under paragraphs (2)(i)(B) 
and (2)(ii) of this definition shall equal the unit's total energy input 
from all fuel except biomass if the unit is a boiler.
    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. 96.205 and Sec. 96.284(h).
    (i) For a unit that is a CAIR SO2 unit under Sec. 96.204 
on the later of November 15, 1990 or the date the unit commences 
commercial operation as defined in

[[Page 94]]

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 CAIR SO2 unit under Sec. 
96.204 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. 96.205, for a unit that is not a CAIR SO2 
unit under Sec. 96.204 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 CAIR 
SO2 unit under Sec. 96.204.
    (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, except as provided in Sec. 96.284(h).
    (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, except as provided in (96.284(h).
    Compliance account means a CAIR SO2 Allowance Tracking 
System account, established by the Administrator for a CAIR 
SO2 source subject to an Acid Rain emissions limitations 
under Sec. 73.31(a) or (b) of this chapter or for any other CAIR 
SO2 source under subpart FFF or III of this part, in which 
any CAIR SO2 allowance allocations for the CAIR 
SO2 units at the source are initially recorded and in which 
are held any CAIR SO2 allowances available for use for a 
control period in order to meet the source's CAIR SO2 
emissions limitation in accordance with Sec. 96.254.
    Continuous emission monitoring system or CEMS means the equipment 
required under subpart HHH of this part to sample, analyze, measure, and 
provide, by means of readings recorded at least once every 15 minutes 
(using an automated data acquisition and handling system (DAHS)), a 
permanent record of sulfur dioxide emissions, stack gas volumetric flow 
rate, stack gas moisture content, and oxygen or carbon dioxide 
concentration (as applicable), in a manner consistent with part 75 of 
this chapter. The following systems are the principal types of 
continuous emission monitoring systems required under subpart HHH of 
this part:

[[Page 95]]

    (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 sulfur dioxide monitoring system, consisting of a 
SO2 pollutant concentration monitor and an automated data 
acquisition handling system and providing a permanent, continuous record 
of SO2 emissions, in parts per million (ppm);
    (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 pollutant 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. 96.206(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 CAIR designated representative and as determined by the 
Administrator in accordance with subpart HHH of this part.
    Excess emissions means any ton, or portion of a ton, of sulfur 
dioxide emitted by the CAIR SO2 units at a CAIR 
SO2 source during a control period that exceeds the CAIR 
SO2 emissions limitation for the source, provided that any 
portion of a ton of excess emissions shall be treated as one ton of 
excess emissions.
    Fossil fuel means natural gas, petroleum, coal, or any form of 
solid, liquid, or gaseous fuel derived from such material.
    Fossil-fuel-fired means, with regard to a unit, combusting any 
amount of fossil fuel in any calendar year.
    General account means a CAIR SO2 Allowance Tracking 
System account, established under subpart FFF of this part, that is not 
a compliance account.
    Generator means a device that produces electricity.
    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 CAIR designated 
representative and determined by the Administrator in accordance with 
subpart HHH of this part and excluding the heat derived from preheated 
combustion air, recirculated flue gases, or exhaust from other sources.
    Heat input rate means the amount of heat input (in mmBtu) divided by 
unit operating time (in hr) or, with regard to a specific fuel, the 
amount of heat input attributed to the fuel (in mmBtu) divided by the 
unit operating time (in hr) during which the unit combusts the fuel.
    Hg Budget Trading Program means a multi-state Hg air pollution 
control and emission reduction program approved and administered by the 
Administrator in accordance subpart HHHH of part 60 of this chapter and 
Sec. 60.24(h)(6), or established by the Administrator under section 111 
of the Clean Air Act, as a means of reducing national Hg emissions.
    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

[[Page 96]]

    (3) For a period no less than 25 years or 70 percent of the economic 
useful life of the unit determined as of the time the unit is built, 
with option rights to purchase or release some portion of the nameplate 
capacity and associated energy generated by the unit at the end of the 
period.
    Maximum design heat input 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 subpart HHH of this part, including a continuous 
emissions monitoring system, an alternative monitoring system, or an 
excepted monitoring system under part 75 of this chapter.
    Most stringent State or Federal SO2 emissions limitation 
means, with regard to a unit, the lowest SO2 emissions 
limitation (in terms of lb/mmBtu) that is applicable to the unit under 
State or Federal law, regardless of the averaging period to which the 
emissions limitation applies.
    Nameplate capacity means, 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 
CAIR SO2 unit or a CAIR SO2 source and shall 
include, but not be limited to, any holding company, utility system, or 
plant manager of such a unit or source.
    Owner means any of the following persons:
    (1) With regard to a CAIR SO2 source or a CAIR 
SO2 unit at a source, respectively:
    (i) Any holder of any portion of the legal or equitable title in a 
CAIR SO2 unit at the source or the CAIR SO2 unit;
    (ii) Any holder of a leasehold interest in a CAIR SO2 
unit at the source or the CAIR SO2 unit; or
    (iii) Any purchaser of power from a CAIR SO2 unit at the 
source or the CAIR SO2 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 CAIR SO2 unit; or
    (2) With regard to any general account, any person who has an 
ownership interest with respect to the CAIR SO2 allowances 
held in the general account and who is subject to the binding agreement 
for the CAIR authorized account representative to represent the person's 
ownership interest with respect to CAIR SO2 allowances.
    Permitting authority means the State air pollution control agency, 
local agency, other State agency, or other agency authorized by the 
Administrator to issue or revise permits to meet the requirements of the 
CAIR SO2 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,

[[Page 97]]

by the permitting authority or the Administrator in the regular course 
of business.
    Recordation, record, or recorded means, with regard to CAIR 
SO2 allowances, the movement of CAIR SO2 
allowances by the Administrator into or between CAIR SO2 
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.
    Serial number means, for a CAIR SO2 allowance, the unique 
identification number assigned to each CAIR SO2 allowance by 
the Administrator.
    Sequential use of energy means:
    (1) For a topping-cycle cogeneration unit, the use of reject heat 
from electricity production in a useful thermal energy application or 
process; or
    (2) For a bottoming-cycle cogeneration unit, the use of reject heat 
from useful thermal energy application or process in electricity 
production.
    Solid waste incineration unit means a stationary, fossil-fuel-fired 
boiler or stationary, fossil-fuel-fired combustion turbine that is a 
``solid waste incineration unit'' as defined in section 129(g)(1) of the 
Clean Air Act.
    Source means all buildings, structures, or installations located in 
one or more contiguous or adjacent properties under common control of 
the same person or persons. For purposes of section 502(c) of the Clean 
Air Act, a ``source,'' including a ``source'' with multiple units, shall 
be considered a single ``facility.''
    State means one of the States or the District of Columbia that 
adopts the CAIR SO2 Trading Program pursuant to Sec. 51.124 
(o)(1) or (2) of this chapter.
    Submit or serve means to send or transmit a document, information, 
or correspondence to the person specified in accordance with the 
applicable regulation:
    (1) In person;
    (2) By United States Postal Service; or
    (3) By other means of dispatch or transmission and delivery. 
Compliance with any ``submission'' or ``service'' deadline shall be 
determined by the date of dispatch, transmission, or mailing and not the 
date of receipt.
    Title V operating permit means a permit issued under title V of the 
Clean Air Act and part 70 or part 71 of this chapter.
    Title V operating permit regulations means the regulations that the 
Administrator has approved or issued as meeting the requirements of 
title V of the Clean Air Act and part 70 or 71 of this chapter.
    Ton means 2,000 pounds. For the purpose of determining compliance 
with the CAIR SO2 emissions limitation, total tons of sulfur 
dioxide emissions for a control period shall be calculated as the sum of 
all recorded hourly emissions (or the mass equivalent of the recorded 
hourly emission rates) in accordance with subpart HHH of this part, but 
with any remaining fraction of a ton equal to or greater than 0.50 tons 
deemed to equal one ton and any

[[Page 98]]

remaining fraction of a ton less than 0.50 tons deemed to equal zero 
tons.
    Topping-cycle cogeneration unit means a cogeneration unit in which 
the energy input to the unit is first used to produce 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. Each form of energy supplied 
shall be measured by the lower heating value of that form of energy 
calculated as follows:


LHV = HHV-10.55(W + 9H)

Where:

LHV = lower heating value of fuel in Btu/lb,
HHV = higher heating value of fuel in Btu/lb,
W = Weight % of moisture in fuel, and
H = Weight % of hydrogen in fuel.

    Total energy output means, with regard to a cogeneration unit, the 
sum of useful power and useful thermal energy produced by the 
cogeneration unit.
    Unit means a stationary, fossil-fuel-fired boiler or combustion 
turbine or other stationary, fossil-fuel-fired combustion device.
    Unit operating day means a calendar day in which a unit combusts any 
fuel.
    Unit operating hour or hour of unit operation means an hour in which 
a unit combusts any fuel.
    Useful power means, with regard to a cogeneration unit, electricity 
or mechanical energy made available for use, excluding any such energy 
used in the power production process (which process includes, but is not 
limited to, any on-site processing or treatment of fuel combusted at the 
unit and any 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.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25385, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006; 72 FR 59206, Oct. 19, 2007]

    Editorial Notes: 1. At 71 FR 25386, Apr. 28, 2006, Sec. 96.202 was 
amended in the definition of ``CAIR NOX Ozone Season 
source'', by revising the words ``includes one or more CAIR 
NOX Ozone Season unit'' to read ``is subject to the CAIR 
NOX Ozone Season Trading Program''; however, those words do 
not exist in this section and the amendment could not be incorporated.

    2. At 71 FR 74794, Dec. 13, 2006, Sec. 96.202 was amended in the 
definition of ``CAIR SO2 allowance'' in paragraph (4), by 
revising the words ``(Program, provisions'' to read ``Program, 
provisions''; however, paragraph (4) does not exist in this section and 
the amendment could not be incorporated.



Sec. 96.203  Measurements, abbreviations, and acronyms.

    Measurements, abbreviations, and acronyms used in this subpart and 
subparts BBB through III 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

[71 FR 25387, Apr. 28, 2006]



Sec. 96.204  Applicability.

    (a) Except as provided in paragraph (b) of this section:
    (1) The following units in a State shall be CAIR SO2 
units, and any source that includes one or more such units shall be a 
CAIR SO2 source, subject to the requirements of this subpart

[[Page 99]]

and subparts BBB through HHH of this part: any stationary, fossil-fuel-
fired boiler or stationary, fossil-fuel-fired combustion turbine serving 
at any time, since the later of November 15, 1990 or the start-up of the 
unit's combustion chamber, a generator with nameplate capacity of more 
than 25 MWe producing electricity for sale.
    (2) If a stationary boiler or stationary combustion turbine that, 
under paragraph (a)(1) of this section, is not a CAIR SO2 
unit begins to combust fossil fuel or to serve a generator with 
nameplate capacity of more than 25 MWe producing electricity for sale, 
the unit shall become a CAIR SO2 unit as provided in 
paragraph (a)(1) of this section on the first date on which it both 
combusts fossil fuel and serves such generator.
    (b) The units in a State that meet the requirements set forth in 
paragraph (b)(1)(i), (b)(2)(i), or (b)(2)(ii) of this section shall not 
be CAIR SO2 units:
    (1)(i) Any unit that is a CAIR SO2 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 CAIR SO2 unit starting 
on the earlier of January 1 after the first calendar year during which 
the unit first no longer qualifies as a cogeneration unit or January 1 
after the first calendar year during which the unit no longer meets the 
requirements of paragraph (b)(1)(i)(B) of this section.
    (2)(i) Any unit that is a CAIR SO2 unit under paragraph 
(a)(1) or (2) of this section commencing operation before January 1, 
1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for 
1985-1987 exceeding 80 percent (on a Btu basis) and an average annual 
fuel consumption of non-fossil fuel for any 3 consecutive calendar years 
after 1990 exceeding 80 percent (on a Btu basis).
    (ii) Any unit that is a CAIR SO2 unit under paragraph 
(a)(1) or (2) of this section commencing operation on or after January 
1, 1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for 
the first 3 calendar years of operation exceeding 80 percent (on a Btu 
basis) and an average annual fuel consumption of non-fossil fuel for any 
3 consecutive calendar years after 1990 exceeding 80 percent (on a Btu 
basis).
    (iii) If a unit qualifies as a solid waste incineration unit and 
meets the requirements of paragraph (b)(2)(i) or (ii) of this section 
for at least 3 consecutive calendar years, but subsequently no longer 
meets all such requirements, the unit shall become a CAIR SO2 
unit starting on the earlier of January 1 after the first calendar year 
during which the unit first no longer qualifies as a solid waste 
incineration unit or January 1 after the first 3 consecutive calendar 
years after 1990 for which the unit has an average annual fuel 
consumption of fossil fuel of 20 percent or more.

[71 FR 25387, Apr. 28, 2006]



Sec. 96.205  Retired unit exemption.

    (a)(1) Any CAIR SO2 unit that is permanently retired and 
is not a CAIR SO2 opt-in unit under subpart III of this part 
shall be exempt from the CAIR SO2 Trading Program, except for 
the provisions of this section, Sec. 96.202, Sec. 96.203, Sec. 
96.204, Sec. 96.206(c)(4) through (7), Sec. 96.207, Sec. 96.208, and 
subparts BBB, FFF, and GGG of this part.

[[Page 100]]

    (2) The exemption under paragraph (a)(1) of this section shall 
become effective the day on which the CAIR SO2 unit is 
permanently retired. Within 30 days of the unit's permanent retirement, 
the CAIR designated representative shall submit a statement to the 
permitting authority otherwise responsible for administering any CAIR 
permit for the unit and shall submit a copy of the statement to the 
Administrator. The statement shall state, in a format prescribed by the 
permitting authority, that the unit was permanently retired on a 
specific date and will comply with the requirements of paragraph (b) of 
this section.
    (3) After receipt of the statement under paragraph (a)(2) of this 
section, the permitting authority will amend any permit under subpart 
CCC of this part covering the source at which the unit is located to add 
the provisions and requirements of the exemption under paragraphs (a)(1) 
and (b) of this section.
    (b) Special provisions. (1) A unit exempt under paragraph (a) of 
this section shall not emit any sulfur dioxide, starting on the date 
that the exemption takes effect.
    (2) For a period of 5 years from the date the records are created, 
the owners and operators of a unit exempt under paragraph (a) of this 
section shall retain, at the source that includes the unit, records 
demonstrating that the unit is permanently retired. The 5-year period 
for keeping records may be extended for cause, at any time before the 
end of the period, in writing by the permitting authority or the 
Administrator. The owners and operators bear the burden of proof that 
the unit is permanently retired.
    (3) The owners and operators and, to the extent applicable, the CAIR 
designated representative of a unit exempt under paragraph (a) of this 
section shall comply with the requirements of the CAIR SO2 
Trading Program concerning all periods for which the exemption is not in 
effect, even if such requirements arise, or must be complied with, after 
the exemption takes effect.
    (4) A unit exempt under paragraph (a) of this section and located at 
a source that is required, or but for this exemption would be required, 
to have a title V operating permit shall not resume operation unless the 
CAIR designated representative of the source submits a complete CAIR 
permit application under Sec. 96.222 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.
    (5) On the earlier of the following dates, a unit exempt under 
paragraph (a) of this section shall lose its exemption:
    (i) The date on which the CAIR designated representative submits a 
CAIR permit application for the unit under paragraph (b)(4) of this 
section;
    (ii) The date on which the CAIR designated representative is 
required under paragraph (b)(4) of this section to submit a CAIR permit 
application for the unit; or
    (iii) The date on which the unit resumes operation, if the CAIR 
designated representative is not required to submit a CAIR permit 
application for the unit.
    (6) For the purpose of applying monitoring, reporting, and 
recordkeeping requirements under subpart HHH of this part, 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.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25388, Apr. 28, 2006]



Sec. 96.206  Standard requirements.

    (a) Permit requirements. (1) The CAIR designated representative of 
each CAIR SO2 source required to have a title V operating 
permit and each CAIR SO2 unit required to have a title V 
operating permit at the source shall:
    (i) Submit to the permitting authority a complete CAIR permit 
application under Sec. 96.222 in accordance with the deadlines 
specified in Sec. 96.221; and
    (ii) Submit in a timely manner any supplemental information that the 
permitting authority determines is necessary in order to review a CAIR 
permit application and issue or deny a CAIR permit.
    (2) The owners and operators of each CAIR SO2 source 
required to have a

[[Page 101]]

title V operating permit and each CAIR SO2 unit required to 
have a title V operating permit at the source shall have a CAIR permit 
issued by the permitting authority under subpart CCC of this part for 
the source and operate the source and the unit in compliance with such 
CAIR permit.
    (3) Except as provided in subpart III of this part, the owners and 
operators of a CAIR SO2 source that is not otherwise required 
to have a title V operating permit and each CAIR SO2 unit 
that is not otherwise required to have a title V operating permit are 
not required to submit a CAIR permit application, and to have a CAIR 
permit, under subpart CCC of this part for such CAIR SO2 
source and such CAIR SO2 unit.
    (b) Monitoring, reporting, and recordkeeping requirements. (1) The 
owners and operators, and the CAIR designated representative, of each 
CAIR SO2 source and each CAIR SO2 unit at the 
source shall comply with the monitoring, reporting, and recordkeeping 
requirements of subpart HHH of this part.
    (2) The emissions measurements recorded and reported in accordance 
with subpart HHH of this part shall be used to determine compliance by 
each CAIR SO2 source with the CAIR SO2 emissions 
limitation under paragraph (c) of this section.
    (c) Sulfur dioxide emission requirements. (1) As of the allowance 
transfer deadline for a control period, the owners and operators of each 
CAIR SO2 source and each CAIR SO2 unit at the 
source shall hold, in the source's compliance account, a tonnage 
equivalent in CAIR SO2 allowances available for compliance 
deductions for the control period, as determined in accordance with 
Sec. 96.254(a) and (b), not less than the tons of total sulfur dioxide 
emissions for the control period from all CAIR SO2 units at 
the source, as determined in accordance with subpart HHH of this part.
    (2) A CAIR SO2 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. 96.270(b)(1), (2), or (5) 
and for each control period thereafter.
    (3) A CAIR SO2 allowance shall not be deducted, for 
compliance with the requirements under paragraph (c)(1) of this section, 
for a control period in a calendar year before the year for which the 
CAIR SO2 allowance was allocated.
    (4) CAIR SO2 allowances shall be held in, deducted from, 
or transferred into or among CAIR SO2 Allowance Tracking 
System accounts in accordance with subparts FFF, GGG, and III of this 
part.
    (5) A CAIR SO2 allowance is a limited authorization to 
emit sulfur dioxide in accordance with the CAIR SO2 Trading 
Program. No provision of the CAIR SO2 Trading Program, the 
CAIR permit application, the CAIR permit, or an exemption under Sec. 
96.205 and no provision of law shall be construed to limit the authority 
of the State or the United States to terminate or limit such 
authorization.
    (6) A CAIR SO2 allowance does not constitute a property 
right.
    (7) Upon recordation by the Administrator under subpart FFF, GGG, or 
III of this part, every allocation, transfer, or deduction of a CAIR 
SO2 allowance to or from a CAIR SO2 source's 
compliance account is incorporated automatically in any CAIR permit of 
the source.
    (d) Excess emissions requirements-- If a CAIR SO2 source 
emits sulfur dioxide during any control period in excess of the CAIR 
SO2 emissions limitation, then:
    (1) The owners and operators of the source and each CAIR 
SO2 unit at the source shall surrender the CAIR 
SO2 allowances required for deduction under Sec. 
96.254(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 ton of such excess emissions and each day of such control 
period shall constitute a separate violation of this subpart, the Clean 
Air Act, and applicable State law.
    (e) Recordkeeping and reporting requirements. (1) Unless otherwise 
provided, the owners and operators of the CAIR SO2 source and 
each CAIR SO2 unit at the source shall keep on site at

[[Page 102]]

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. 96.213 for the 
CAIR designated representative for the source and each CAIR 
SO2 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. 96.213 changing the CAIR designated representative.
    (ii) All emissions monitoring information, in accordance with 
subpart HHH of this part, provided that to the extent that subpart HHH 
of this part provides for a 3-year period for recordkeeping, the 3-year 
period shall apply.
    (iii) Copies of all reports, compliance certifications, and other 
submissions and all records made or required under the CAIR 
SO2 Trading Program.
    (iv) Copies of all documents used to complete a CAIR permit 
application and any other submission under the CAIR SO2 
Trading Program or to demonstrate compliance with the requirements of 
the CAIR SO2 Trading Program.
    (2) The CAIR designated representative of a CAIR SO2 
source and each CAIR SO2 unit at the source shall submit the 
reports required under the CAIR SO2 Trading Program, 
including those under subpart HHH of this part.
    (f) Liability. (1) Each CAIR SO2 source and each CAIR 
SO2 unit shall meet the requirements of the CAIR 
SO2 Trading Program.
    (2) Any provision of the CAIR SO2 Trading Program that 
applies to a CAIR SO2 source or the CAIR designated 
representative of a CAIR SO2 source shall also apply to the 
owners and operators of such source and of the CAIR SO2 units 
at the source.
    (3) Any provision of the CAIR SO2 Trading Program that 
applies to a CAIR SO2 unit or the CAIR designated 
representative of a CAIR SO2 unit shall also apply to the 
owners and operators of such unit.
    (g) Effect on other authorities. No provision of the CAIR 
SO2 Trading Program, a CAIR permit application, a CAIR 
permit, or an exemption under Sec. 96.205 shall be construed as 
exempting or excluding the owners and operators, and the CAIR designated 
representative, of a CAIR SO2 source or CAIR SO2 
unit from compliance with any other provision of the applicable, 
approved State implementation plan, a federally enforceable permit, or 
the Clean Air Act.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25388, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



Sec. 96.207  Computation of time.

    (a) Unless otherwise stated, any time period scheduled, under the 
CAIR SO2 Trading Program, to begin on the occurrence of an 
act or event shall begin on the day the act or event occurs.
    (b) Unless otherwise stated, any time period scheduled, under the 
CAIR SO2 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 CAIR SO2 Trading Program, falls on a weekend or a 
State or Federal holiday, the time period shall be extended to the next 
business day.



Sec. 96.208  Appeal procedures.

    The appeal procedures for decisions of the Administrator under the 
CAIR SO2 Trading Program are set forth in part 78 of this 
chapter.



     Subpart BBB_CAIR Designated Representative for CAIR SO2 Sources

    Source: 70 FR 25362, May 12, 2005, unless otherwise noted.



Sec. 96.210  Authorization and responsibilities of CAIR designated
representative.

    (a) Except as provided under Sec. 96.211, each CAIR SO2 
source, including all CAIR SO2 units at the source, shall 
have one and only one CAIR designated

[[Page 103]]

representative, with regard to all matters under the CAIR SO2 
Trading Program concerning the source or any CAIR SO2 unit at 
the source.
    (b) The CAIR designated representative of the CAIR SO2 
source shall be selected by an agreement binding on the owners and 
operators of the source and all CAIR SO2 units at the source 
and shall act in accordance with the certification statement in Sec. 
96.213(a)(4)(iv).
    (c) Upon receipt by the Administrator of a complete certificate of 
representation under Sec. 96.213, the CAIR designated representative of 
the source shall represent and, by his or her representations, actions, 
inactions, or submissions, legally bind each owner and operator of the 
CAIR SO2 source represented and each CAIR SO2 unit 
at the source in all matters pertaining to the CAIR SO2 
Trading Program, notwithstanding any agreement between the CAIR 
designated representative and such owners and operators. The owners and 
operators shall be bound by any decision or order issued to the CAIR 
designated representative by the permitting authority, the 
Administrator, or a court regarding the source or unit.
    (d) No CAIR permit will be issued, no emissions data reports will be 
accepted, and no CAIR SO2 Allowance Tracking System account 
will be established for a CAIR SO2 unit at a source, until 
the Administrator has received a complete certificate of representation 
under Sec. 96.213 for a CAIR designated representative of the source 
and the CAIR SO2 units at the source.
    (e)(1) Each submission under the CAIR SO2 Trading Program 
shall be submitted, signed, and certified by the CAIR designated 
representative for each CAIR SO2 source on behalf of which 
the submission is made. Each such submission shall include the following 
certification statement by the CAIR designated representative: ``I am 
authorized to make this submission on behalf of the owners and operators 
of the source or units for which the submission is made. I certify under 
penalty of law that I have personally examined, and am familiar with, 
the statements and information submitted in this document and all its 
attachments. Based on my inquiry of those individuals with primary 
responsibility for obtaining the information, I certify that the 
statements and information are to the best of my knowledge and belief 
true, accurate, and complete. I am aware that there are significant 
penalties for submitting false statements and information or omitting 
required statements and information, including the possibility of fine 
or imprisonment.''
    (2) The permitting authority and the Administrator will accept or 
act on a submission made on behalf of owner or operators of a CAIR 
SO2 source or a CAIR SO2 unit only if the 
submission has been made, signed, and certified in accordance with 
paragraph (e)(1) of this section.



Sec. 96.211  Alternate CAIR designated representative.

    (a) A certificate of representation under Sec. 96.213 may designate 
one and only one alternate CAIR designated representative, who may act 
on behalf of the CAIR designated representative. The agreement by which 
the alternate CAIR designated representative is selected shall include a 
procedure for authorizing the alternate CAIR designated representative 
to act in lieu of the CAIR designated representative.
    (b) Upon receipt by the Administrator of a complete certificate of 
representation under Sec. 96.213, any representation, action, inaction, 
or submission by the alternate CAIR designated representative shall be 
deemed to be a representation, action, inaction, or submission by the 
CAIR designated representative.
    (c) Except in this section and Sec. Sec. 96.202, 96.210(a) and (d), 
96.212, 96.213, 96.215, 96.251, and 96.282, whenever the term ``CAIR 
designated representative'' is used in subparts AAA through III of this 
part, the term shall be construed to include the CAIR designated 
representative or any alternate CAIR designated representative.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25388, Apr. 28, 2006]

[[Page 104]]



Sec. 96.212  Changing CAIR designated representative and alternate
CAIR designated representative; changes in owners and operators.

    (a) Changing CAIR designated representative. The CAIR designated 
representative may be changed at any time upon receipt by the 
Administrator of a superseding complete certificate of representation 
under Sec. 96.213. Notwithstanding any such change, all 
representations, actions, inactions, and submissions by the previous 
CAIR designated representative before the time and date when the 
Administrator receives the superseding certificate of representation 
shall be binding on the new CAIR designated representative and the 
owners and operators of the CAIR SO2 source and the CAIR 
SO2 units at the source.
    (b) Changing alternate CAIR designated representative. The alternate 
CAIR designated representative may be changed at any time upon receipt 
by the Administrator of a superseding complete certificate of 
representation under Sec. 96.213. Notwithstanding any such change, all 
representations, actions, inactions, and submissions by the previous 
alternate CAIR designated representative before the time and date when 
the Administrator receives the superseding certificate of representation 
shall be binding on the new alternate CAIR designated representative and 
the owners and operators of the CAIR SO2 source and the CAIR 
SO2 units at the source.
    (c) Changes in owners and operators. (1) In the event an owner or 
operator of a CAIR SO2 source or a CAIR SO2 unit 
is not included in the list of owners and operators in the certificate 
of representation under Sec. 96.213, such owner or operator shall be 
deemed to be subject to and bound by the certificate of representation, 
the representations, actions, inactions, and submissions of the CAIR 
designated representative and any alternate CAIR designated 
representative of the source or unit, and the decisions and orders of 
the permitting authority, the Administrator, or a court, as if the owner 
or operator were included in such list.
    (2) Within 30 days following any change in the owners and operators 
of a CAIR SO2 source or a CAIR SO2 unit, including 
the addition of a new owner or operator, the CAIR designated 
representative or any alternate CAIR designated representative shall 
submit a revision to the certificate of representation under Sec. 
96.213 amending the list of owners and operators to include the change.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25388, Apr. 28, 2006]



Sec. 96.213  Certificate of representation.

    (a) A complete certificate of representation for a CAIR designated 
representative or an alternate CAIR designated representative shall 
include the following elements in a format prescribed by the 
Administrator:
    (1) Identification of the CAIR SO2 source, and each CAIR 
SO2 unit at the source, for which the certificate of 
representation is submitted, including identification and nameplate 
capacity of each generator served by each such unit.
    (2) The name, address, e-mail address (if any), telephone number, 
and facsimile transmission number (if any) of the CAIR designated 
representative and any alternate CAIR designated representative.
    (3) A list of the owners and operators of the CAIR SO2 
source and of each CAIR SO2 unit at the source.
    (4) The following certification statements by the CAIR designated 
representative and any alternate CAIR designated representative--
    (i) ``I certify that I was selected as the CAIR designated 
representative or alternate CAIR designated representative, as 
applicable, by an agreement binding on the owners and operators of the 
source and each CAIR SO2 unit at the source.''
    (ii) ``I certify that I have all the necessary authority to carry 
out my duties and responsibilities under the CAIR SO2 Trading 
Program on behalf of the owners and operators of the source and of each 
CAIR SO2 unit at the source and that each such owner and 
operator shall be fully bound by my representations, actions, inactions, 
or submissions.''
    (iii) ``I certify that the owners and operators of the source and of 
each CAIR SO2 unit at the source shall be bound by any order 
issued to me by the

[[Page 105]]

Administrator, the permitting authority, or a court regarding the source 
or unit.''
    (iv) ``Where there are multiple holders of a legal or equitable 
title to, or a leasehold interest in, a CAIR SO2 unit, or 
where a utility or industrial customer purchases power from a CAIR 
SO2 unit under a life-of-the-unit, firm power contractual 
arrangement, I certify that: I have given a written notice of my 
selection as the `CAIR designated representative' or `alternate CAIR 
designated representative', as applicable, and of the agreement by which 
I was selected to each owner and operator of the source and of each CAIR 
SO2 unit at the source; and CAIR SO2 allowances 
and proceeds of transactions involving CAIR SO2 allowances 
will be deemed to be held or distributed in proportion to each holder's 
legal, equitable, leasehold, or contractual reservation or entitlement, 
except that, if such multiple holders have expressly provided for a 
different distribution of CAIR SO2 allowances by contract, 
CAIR SO2 allowances and proceeds of transactions involving 
CAIR SO2 allowances will be deemed to be held or distributed 
in accordance with the contract.''
    (5) The signature of the CAIR designated representative and any 
alternate CAIR designated representative and the dates signed.
    (b) Unless otherwise required by the permitting authority or the 
Administrator, documents of agreement referred to in the certificate of 
representation shall not be submitted to the permitting authority or the 
Administrator. Neither the permitting authority nor the Administrator 
shall be under any obligation to review or evaluate the sufficiency of 
such documents, if submitted.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25388, Apr. 28, 2006]



Sec. 96.214  Objections concerning CAIR designated representative.

    (a) Once a complete certificate of representation under Sec. 96.213 
has been submitted and received, the permitting authority and the 
Administrator will rely on the certificate of representation unless and 
until a superseding complete certificate of representation under Sec. 
96.213 is received by the Administrator.
    (b) Except as provided in Sec. 96.212(a) or (b), no objection or 
other communication submitted to the permitting authority or the 
Administrator concerning the authorization, or any representation, 
action, inaction, or submission, of the CAIR designated representative 
shall affect any representation, action, inaction, or submission of the 
CAIR designated representative or the finality of any decision or order 
by the permitting authority or the Administrator under the CAIR 
SO2 Trading Program.
    (c) Neither the permitting authority nor the Administrator will 
adjudicate any private legal dispute concerning the authorization or any 
representation, action, inaction, or submission of any CAIR designated 
representative, including private legal disputes concerning the proceeds 
of CAIR SO2 allowance transfers.



Sec. 96.215  Delegation by CAIR designated representative and 
alternate CAIR designated representative.

    (a) A CAIR 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 part.
    (b) An alternate CAIR 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 
part.
    (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 CAIR designated representative or alternate CAIR 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 CAIR designated 
representative or alternate CAIR designated representative;

[[Page 106]]

    (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 CAIR designated 
representative or alternate CAIR 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 CAIR designated representative or alternate CAIR designated 
representative, as appropriate, and before this notice of delegation is 
superseded by another notice of delegation under 40 CFR 96.215(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 96.215(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 96.215 is terminated.''.
    (d) A notice of delegation submitted under paragraph (c) of this 
section shall be effective, with regard to the CAIR designated 
representative or alternate CAIR 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 CAIR designated representative or alternate CAIR 
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 CAIR designated 
representative or alternate CAIR designated representative submitting 
such notice of delegation.

[71 FR 25388, Apr. 28, 2006, as amended at 71 FR 74794, Dec. 13, 2006]



                           Subpart CCC_Permits

    Source: 70 FR 25362, May 12, 2005, unless otherwise noted.



Sec. 96.220  General CAIR SO[bdi2] Trading Program permit requirements.

    (a) For each CAIR SO2 source required to have a title V 
operating permit or required, under subpart III of this part, to have a 
title V operating permit or other federally enforceable permit, such 
permit shall include a CAIR permit administered by the permitting 
authority for the title V operating permit or the federally enforceable 
permit as applicable. The CAIR portion of the title V permit or other 
federally enforceable permit as applicable shall be administered in 
accordance with the permitting authority's title V operating permits 
regulations promulgated under part 70 or 71 of this chapter or the 
permitting authority's regulations for other federally enforceable 
permits as applicable, except as provided otherwise by Sec. 96.205, 
this subpart, and subpart III of this part.
    (b) Each CAIR permit shall contain, with regard to the CAIR 
SO2 source and the CAIR SO2 units at the source 
covered by the CAIR permit, all applicable CAIR SO2 Trading 
Program, CAIR NOX Annual Trading Program, and CAIR 
NOX Ozone Season Trading Program requirements and shall be a 
complete and separable portion of the title V operating permit or other 
federally enforceable permit under paragraph (a) of this section.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25388, Apr. 28, 2006]



Sec. 96.221  Submission of CAIR permit applications.

    (a) Duty to apply. The CAIR designated representative of any CAIR 
SO2 source required to have a title V operating permit shall 
submit to the permitting authority a complete CAIR permit application 
under Sec. 96.222 for the source covering each CAIR SO2 unit 
at

[[Page 107]]

the source at least 18 months (or such lesser time provided by the 
permitting authority) before the later of January 1, 2010 or the date on 
which the CAIR SO2 unit commences commercial operation, 
except as provided in Sec. 96.283(a).
    (b) Duty to Reapply. For a CAIR SO2 source required to 
have a title V operating permit, the CAIR designated representative 
shall submit a complete CAIR permit application under Sec. 96.222 for 
the source covering each CAIR SO2 unit at the source to renew 
the CAIR permit in accordance with the permitting authority's title V 
operating permits regulations addressing permit renewal, except as 
provided in Sec. 96.283(b).

[70 FR 25362, May 12, 2005, as amended at 71 FR 25388, Apr. 28, 2006]



Sec. 96.222  Information requirements for CAIR permit applications.

    A complete CAIR permit application shall include the following 
elements concerning the CAIR SO2 source for which the 
application is submitted, in a format prescribed by the permitting 
authority:
    (a) Identification of the CAIR SO2 source;
    (b) Identification of each CAIR SO2 unit at the CAIR 
SO2 source; and
    (c) The standard requirements under Sec. 96.206.



Sec. 96.223  CAIR permit contents and term.

    (a) Each CAIR permit will contain, in a format prescribed by the 
permitting authority, all elements required for a complete CAIR permit 
application under Sec. 96.222.
    (b) Each CAIR permit is deemed to incorporate automatically the 
definitions of terms under Sec. 96.202 and, upon recordation by the 
Administrator under subpart FFF, GGG, or III of this part, every 
allocation, transfer, or deduction of a CAIR SO2 allowance to 
or from the compliance account of the CAIR SO2 source covered 
by the permit.
    (c) The term of the CAIR permit will be set by the permitting 
authority, as necessary to facilitate coordination of the renewal of the 
CAIR permit with issuance, revision, or renewal of the CAIR 
SO2 source's title V operating permit or other federally 
enforceable permit as applicable.



Sec. 96.224  CAIR permit revisions.

    Except as provided in Sec. 96.223(b), the permitting authority will 
revise the CAIR permit, as necessary, in accordance with the permitting 
authority's title V operating permits regulations or the permitting 
authority's regulations for other federally enforceable permits as 
applicable addressing permit revisions.

Subparts DDD--EEE [Reserved]



             Subpart FFF_CAIR SO2 Allowance Tracking System

    Source: 70 FR 25362, May 12, 2005, unless otherwise noted.



Sec. 96.250  [Reserved]



Sec. 96.251  Establishment of accounts.

    (a) Compliance accounts. Except as provided in Sec. 96.284(e), upon 
receipt of a complete certificate of representation under Sec. 96.213, 
the Administrator will establish a compliance account for the CAIR 
SO2 source for which the certificate of representation was 
submitted, unless the source already has a compliance account.
    (b) General accounts--(1) Application for general account. (i) Any 
person may apply to open a general account for the purpose of holding 
and transferring CAIR SO2 allowances. An application for a 
general account may designate one and only one CAIR authorized account 
representative and one and only one alternate CAIR authorized account 
representative who may act on behalf of the CAIR authorized account 
representative. The agreement by which the alternate CAIR authorized 
account representative is selected shall include a procedure for 
authorizing the alternate CAIR authorized account representative to act 
in lieu of the CAIR authorized account representative.
    (ii) A complete application for a general account shall be submitted 
to the Administrator and shall include the following elements in a 
format prescribed by the Administrator:
    (A) Name, mailing address, e-mail address (if any), telephone 
number, and

[[Page 108]]

facsimile transmission number (if any) of the CAIR authorized account 
representative and any alternate CAIR authorized account representative;
    (B) Organization name and type of organization, if applicable;
    (C) A list of all persons subject to a binding agreement for the 
CAIR authorized account representative and any alternate CAIR authorized 
account representative to represent their ownership interest with 
respect to the CAIR SO2 allowances held in the general 
account;
    (D) The following certification statement by the CAIR authorized 
account representative and any alternate CAIR authorized account 
representative: ``I certify that I was selected as the CAIR authorized 
account representative or the alternate CAIR authorized account 
representative, as applicable, by an agreement that is binding on all 
persons who have an ownership interest with respect to CAIR 
SO2 allowances held in the general account. I certify that I 
have all the necessary authority to carry out my duties and 
responsibilities under the CAIR SO2 Trading Program on behalf 
of such persons and that each such person shall be fully bound by my 
representations, actions, inactions, or submissions and by any order or 
decision issued to me by the Administrator or a court regarding the 
general account.''
    (E) The signature of the CAIR authorized account representative and 
any alternate CAIR authorized account representative and the dates 
signed.
    (iii) Unless otherwise required by the permitting authority or the 
Administrator, documents of agreement referred to in the application for 
a general account shall not be submitted to the permitting authority or 
the Administrator. Neither the permitting authority nor the 
Administrator shall be under any obligation to review or evaluate the 
sufficiency of such documents, if submitted.
    (2) Authorization of CAIR authorized account representative and 
alternate CAIR authorized account representative. (i) Upon receipt by 
the Administrator of a complete application for a general account under 
paragraph (b)(1) of this section:
    (A) The Administrator will establish a general account for the 
person or persons for whom the application is submitted.
    (B) The CAIR authorized account representative and any alternate 
CAIR authorized account representative for the general account shall 
represent and, by his or her representations, actions, inactions, or 
submissions, legally bind each person who has an ownership interest with 
respect to CAIR SO2 allowances held in the general account in 
all matters pertaining to the CAIR SO2 Trading Program, 
notwithstanding any agreement between the CAIR authorized account 
representative or any alternate CAIR authorized account representative 
and such person. Any such person shall be bound by any order or decision 
issued to the CAIR authorized account representative or any alternate 
CAIR authorized account representative by the Administrator or a court 
regarding the general account.
    (C) Any representation, action, inaction, or submission by any 
alternate CAIR authorized account representative shall be deemed to be a 
representation, action, inaction, or submission by the CAIR authorized 
account representative.
    (ii) Each submission concerning the general account shall be 
submitted, signed, and certified by the CAIR authorized account 
representative or any alternate CAIR authorized account representative 
for the persons having an ownership interest with respect to CAIR 
SO2 allowances held in the general account. Each such 
submission shall include the following certification statement by the 
CAIR authorized account representative or any alternate CAIR authorized 
account representative: ``I am authorized to make this submission on 
behalf of the persons having an ownership interest with respect to the 
CAIR SO2 allowances held in the general account. I certify 
under penalty of law that I have personally examined, and am familiar 
with, the statements and information submitted in this document and all 
its attachments. Based on my inquiry of those individuals with primary 
responsibility for obtaining the information, I

[[Page 109]]

certify that the statements and information are to the best of my 
knowledge and belief true, accurate, and complete. I am aware that there 
are significant penalties for submitting false statements and 
information or omitting required statements and information, including 
the possibility of fine or imprisonment.''
    (iii) The Administrator will accept or act on a submission 
concerning the general account only if the submission has been made, 
signed, and certified in accordance with paragraph (b)(2)(ii) of this 
section.
    (3) Changing CAIR authorized account representative and alternate 
CAIR authorized account representative; changes in persons with 
ownership interest. (i) The CAIR authorized account representative for a 
general account may be changed at any time upon receipt by the 
Administrator of a superseding complete application for a general 
account under paragraph (b)(1) of this section. Notwithstanding any such 
change, all representations, actions, inactions, and submissions by the 
previous CAIR authorized account representative before the time and date 
when the Administrator receives the superseding application for a 
general account shall be binding on the new CAIR authorized account 
representative and the persons with an ownership interest with respect 
to the CAIR SO2 allowances in the general account.
    (ii) The alternate CAIR authorized account representative for a 
general account may be changed at any time upon receipt by the 
Administrator of a superseding complete application for a general 
account under paragraph (b)(1) of this section. Notwithstanding any such 
change, all representations, actions, inactions, and submissions by the 
previous alternate CAIR authorized account representative before the 
time and date when the Administrator receives the superseding 
application for a general account shall be binding on the new alternate 
CAIR authorized account representative and the persons with an ownership 
interest with respect to the CAIR SO2 allowances in the 
general account.
    (iii)(A) In the event a person having an ownership interest with 
respect to CAIR SO2 allowances in the general account is not 
included in the list of such persons in the application for a general 
account, such person shall be deemed to be subject to and bound by the 
application for a general account, the representation, actions, 
inactions, and submissions of the CAIR authorized account representative 
and any alternate CAIR authorized account representative of the account, 
and the decisions and orders of the Administrator or a court, as if the 
person were included in such list.
    (B) Within 30 days following any change in the persons having an 
ownership interest with respect to CAIR SO2 allowances in the 
general account, including the addition of a new person, the CAIR 
authorized account representative or any alternate CAIR authorized 
account representative shall submit a revision to the application for a 
general account amending the list of persons having an ownership 
interest with respect to the CAIR SO2 allowances in the 
general account to include the change.
    (4) Objections concerning CAIR authorized account representative and 
alternate CAIR authorized account representative. (i) Once a complete 
application for a general account under paragraph (b)(1) of this section 
has been submitted and received, the Administrator will rely on the 
application unless and until a superseding complete application for a 
general account under paragraph (b)(1) of this section is received by 
the Administrator.
    (ii) Except as provided in paragraph (b)(3)(i) or (ii) of this 
section, no objection or other communication submitted to the 
Administrator concerning the authorization, or any representation, 
action, inaction, or submission of the CAIR authorized account 
representative or any alternate CAIR authorized account representative 
for a general account shall affect any representation, action, inaction, 
or submission of the CAIR authorized account representative or any 
alternate CAIR authorized account representative or the finality of any 
decision or order by the Administrator under the CAIR SO2 
Trading Program.

[[Page 110]]

    (iii) The Administrator will not adjudicate any private legal 
dispute concerning the authorization or any representation, action, 
inaction, or submission of the CAIR authorized account representative or 
any alternate CAIR authorized account representative for a general 
account, including private legal disputes concerning the proceeds of 
CAIR SO2 allowance transfers.
    (5) Delegation by CAIR authorized account representative and 
alternate CAIR authorized account representative. (i) A CAIR 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 subparts FFF and GGG of this part.
    (ii) An alternate CAIR 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 subparts FFF and GGG of this part.
    (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 CAIR authorized account representative or 
alternate CAIR 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 CAIR authorized account 
representative or alternate CAIR 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 CAIR authorized 
account representative or alternate CAIR 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 CAIR authorized account 
representative or alternate CAIR authorized representative, as 
appropriate, and before this notice of delegation is superseded by 
another notice of delegation under 40 CFR 96.251(b)(5)(iv) shall be 
deemed to be an electronic submission by me.''; and
    (E) The following certification statement by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative: ``Until this notice of delegation is superseded by 
another notice of delegation under 40 CFR 96.251 (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 by 
me under 40 CFR 96.251 (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 CAIR authorized 
account representative or alternate CAIR 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 CAIR authorized 
account representative or alternate CAIR 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 CAIR 
designated representative or alternate CAIR designated representative 
submitting such notice of delegation.

[[Page 111]]

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

[70 FR 25362, May 12, 2005, as amended at 71 FR 25388, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



Sec. 96.252  Responsibilities of CAIR authorized account representative.

    Following the establishment of a CAIR SO2 Allowance 
Tracking System account, all submissions to the Administrator pertaining 
to the account, including, but not limited to, submissions concerning 
the deduction or transfer of CAIR SO2 allowances in the 
account, shall be made only by the CAIR authorized account 
representative for the account.



Sec. 96.253  Recordation of CAIR SO[bdi2] allowances.

    (a)(1) After a compliance account is established under Sec. 
96.251(a) or Sec. 73.31(a) or (b) of this chapter, the Administrator 
will record in the compliance account any CAIR SO2 allowance 
allocated to any CAIR SO2 unit at the source for each of the 
30 years starting the later of 2010 or the year in which the compliance 
account is established and any CAIR SO2 allowance allocated 
for each of the 30 years starting the later of 2010 or the year in which 
the compliance account is established and transferred to the source in 
accordance with subpart GGG of this part or subpart D of part 73 of this 
chapter.
    (2) In 2011 and each year thereafter, after Administrator has 
completed all deductions under Sec. 96.254(b), the Administrator will 
record in the compliance account any CAIR SO2 allowance 
allocated to any CAIR SO2 unit at the source for the new 30th 
year (i.e., the year that is 30 years after the calendar year for which 
such deductions are or could be made) and any CAIR SO2 
allowance allocated for the new 30th year and transferred to the source 
in accordance with subpart GGG of this part or subpart D of part 73 of 
this chapter.
    (b)(1) After a general account is established under Sec. 96.251(b) 
or Sec. 73.31(c) of this chapter, the Administrator will record in the 
general account any CAIR SO2 allowance allocated for each of 
the 30 years starting the later of 2010 or the year in which the general 
account is established and transferred to the general account in 
accordance with subpart GGG of this part or subpart D of part 73 of this 
chapter.
    (2) In 2011 and each year thereafter, after Administrator has 
completed all deductions under Sec. 96.254(b), the Administrator will 
record in the general account any CAIR SO2 allowance 
allocated for the new 30th year (i.e., the year that is 30 years after 
the calendar year for which such deductions are or could be made) and 
transferred to the general account in accordance with subpart GGG of 
this part or subpart D of part 73 of this chapter.
    (c) Serial numbers for allocated CAIR SO2 allowances. 
When recording the allocation of CAIR SO2 allowances issued 
by a permitting authority under Sec. 96.288, the Administrator will 
assign each such CAIR SO2 allowance a unique identification 
number that will include digits identifying the year of the control 
period for which the CAIR SO2 allowance is allocated.



Sec. 96.254  Compliance with CAIR SO[bdi2] emissions limitation.

    (a) Allowance transfer deadline. The CAIR SO2 allowances 
are available to be deducted for compliance with a source's CAIR 
SO2 emissions limitation for a control period in a given 
calendar year only if the CAIR SO2 allowances:
    (1) Were allocated for the control period in the year or a prior 
year; and
    (2) Are held in the compliance account as of the allowance transfer 
deadline for the control period or are transferred into the compliance 
account by a CAIR SO2 allowance transfer correctly submitted 
for recordation under Sec. Sec. 96.260 and 96.261 by the allowance 
transfer deadline for the control period.
    (b) Deductions for compliance. Following the recordation, in 
accordance with Sec. 96.261, of CAIR SO2 allowance transfers 
submitted for recordation in a source's compliance account by the 
allowance transfer deadline for a control period, the Administrator will 
deduct from the compliance account CAIR SO2 allowances 
available under paragraph (a) of this section in order to determine 
whether the source meets

[[Page 112]]

the CAIR SO2 emissions limitation for the control period as 
follows:
    (1) For a CAIR SO2 source subject to an Acid Rain 
emissions limitation, the Administrator will, in the following order:
    (i) Deduct the amount of CAIR SO2 allowances, available 
under paragraph (a) of this section and not issued by a permitting 
authority under Sec. 96.288, that is required under Sec. Sec. 73.35(b) 
and (c) of this part. If there are sufficient CAIR SO2 
allowances to complete this deduction, the deduction will be treated as 
satisfying the requirements of Sec. Sec. 73.35(b) and (c) of this 
chapter.
    (ii) Deduct the amount of CAIR SO2 allowances, not issued 
by a permitting authority under Sec. 96.288, that is required under 
Sec. Sec. 73.35(d) and 77.5 of this part. If there are sufficient CAIR 
SO2 allowances to complete this deduction, the deduction will 
be treated as satisfying the requirements of Sec. Sec. 73.35(d) and 
77.5 of this chapter.
    (iii) Treating the CAIR SO2 allowances deducted under 
paragraph (b)(1)(i) of this section as also being deducted under this 
paragraph (b)(1)(iii), deduct CAIR SO2 allowances available 
under paragraph (a) of this section (including any issued by a 
permitting authority under Sec. 96.288) in order to determine whether 
the source meets the CAIR SO2 emissions limitation for the 
control period, as follows:
    (A) Until the tonnage equivalent of the CAIR SO2 
allowances deducted equals, or exceeds in accordance with paragraphs 
(c)(1) and (2) of this section, the number of tons of total sulfur 
dioxide emissions, determined in accordance with subpart HHH of this 
part, from all CAIR SO2 units at the source for the control 
period; or
    (B) If there are insufficient CAIR SO2 allowances to 
complete the deductions in paragraph (b)(1)(iii)(A) of this section, 
until no more CAIR SO2 allowances available under paragraph 
(a) of this section (including any issued by a permitting authority 
under Sec. 96.288) remain in the compliance account.
    (2) For a CAIR SO2 source not subject to an Acid Rain 
emissions limitation, the Administrator will deduct CAIR SO2 
allowances available under paragraph (a) of this section (including any 
issued by a permitting authority under Sec. 96.288) in order to 
determine whether the source meets the CAIR SO2 emissions 
limitation for the control period, as follows:
    (i) Until the tonnage equivalent of the CAIR SO2 
allowances deducted equals, or exceeds in accordance with paragraphs 
(c)(1) and (2) of this section, the number of tons of total sulfur 
dioxide emissions, determined in accordance with subpart HHH of this 
part, from all CAIR SO2 units at the source for the control 
period; or
    (ii) If there are insufficient CAIR SO2 allowances to 
complete the deductions in paragraph (b)(2)(i) of this section, until no 
more CAIR SO2 allowances available under paragraph (a) of 
this section (including any issued by a permitting authority under Sec. 
96.288) remain in the compliance account.
    (c)(1) Identification of CAIR SO2 allowances by serial 
number. The CAIR authorized account representative for a source's 
compliance account may request that specific CAIR SO2 
allowances, identified by serial number, in the compliance account be 
deducted for emissions or excess emissions for a control period in 
accordance with paragraph (b) or (d) of this section. Such request shall 
be submitted to the Administrator by the allowance transfer deadline for 
the control period and include, in a format prescribed by the 
Administrator, the identification of the CAIR SO2 source and 
the appropriate serial numbers.
    (2) First-in, first-out. The Administrator will deduct CAIR 
SO2 allowances under paragraph (b) or (d) of this section 
from the source's compliance account, in the absence of an 
identification or in the case of a partial identification of CAIR 
SO2 allowances by serial number under paragraph (c)(1) of 
this section, on a first-in, first-out (FIFO) accounting basis in the 
following order:
    (i) Any CAIR SO2 allowances that were allocated to the 
units at the source for a control period before 2010, in the order of 
recordation;
    (ii) Any CAIR SO2 allowances that were allocated to any 
entity for a control period before 2010 and transferred and recorded in 
the compliance account pursuant to subpart GGG of this

[[Page 113]]

part or subpart D of part 73 of this chapter, in the order of 
recordation;
    (iii) Any CAIR SO2 allowances that were allocated to the 
units at the source for a control period during 2010 through 2014, in 
the order of recordation;
    (iv) Any CAIR SO2 allowances that were allocated to any 
entity for a control period during 2010 through 2014 and transferred and 
recorded in the compliance account pursuant to subpart GGG of this part 
or subpart D of part 73 of this chapter, in the order of recordation;
    (v) Any CAIR SO2 allowances that were allocated to the 
units at the source for a control period in 2015 or later, in the order 
of recordation; and
    (vi) Any CAIR SO2 allowances that were allocated to any 
entity for a control period in 2015 or later and transferred and 
recorded in the compliance account pursuant to subpart GGG of this part 
or subpart D of part 73 of this chapter, in the order of recordation.
    (d) Deductions for excess emissions. (1) After making the deductions 
for compliance under paragraph (b) of this section for a control period 
in a calendar year in which the CAIR SO2 source has excess 
emissions, the Administrator will deduct from the source's compliance 
account the tonnage equivalent in CAIR SO2 allowances, 
allocated for the control period in the immediately following calendar 
year (including any issued by a permitting authority under Sec. 
96.288), equal to, or exceeding in accordance with paragraphs (c)(1) and 
(2) of this section, 3 times the following amount: the number of tons of 
the source's excess emissions minus, if the source is subject to an Acid 
Rain emissions limitation, the amount of the CAIR SO2 
allowances required to be deducted under paragraph (b)(1)(ii) of this 
section.
    (2) Any allowance deduction required under paragraph (d)(1) of this 
section shall not affect the liability of the owners and operators of 
the CAIR SO2 source or the CAIR SO2 units at the 
source for any fine, penalty, or assessment, or their obligation to 
comply with any other remedy, for the same violations, as ordered under 
the Clean Air Act or applicable State law.
    (e) Recordation of deductions. The Administrator will record in the 
appropriate compliance account all deductions from such an account under 
paragraphs (b) and (d) of this section and subpart III.
    (f) Administrator's action on submissions. (1) The Administrator may 
review and conduct independent audits concerning any submission under 
the CAIR SO2 Trading Program and make appropriate adjustments 
of the information in the submissions.
    (2) The Administrator may deduct CAIR SO2 allowances from 
or transfer CAIR SO2 allowances to a source's compliance 
account based on the information in the submissions, as adjusted under 
paragraph (f)(1) of this section, and record such deductions and 
transfers.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25389, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



Sec. 96.255  Banking.

    (a) CAIR SO2 allowances may be banked for future use or 
transfer in a compliance account or a general account in accordance with 
paragraph (b) of this section.
    (b) Any CAIR SO2 allowance that is held in a compliance 
account or a general account will remain in such account unless and 
until the CAIR SO2 allowance is deducted or transferred under 
Sec. 96.254, Sec. 96.256, or subpart GGG or III of this part.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25389, Apr. 28, 2006]



Sec. 96.256  Account error.

    The Administrator may, at his or her sole discretion and on his or 
her own motion, correct any error in any CAIR SO2 Allowance 
Tracking System account. Within 10 business days of making such 
correction, the Administrator will notify the CAIR authorized account 
representative for the account.



Sec. 96.257  Closing of general accounts.

    (a) The CAIR authorized account representative of a general account 
may submit to the Administrator a request to close the account, which 
shall include a correctly submitted allowance transfer under Sec. Sec. 
96.260 and 96.261 for

[[Page 114]]

any CAIR SO2 allowances in the account to one or more other 
CAIR SO2 Allowance Tracking System accounts.
    (b) If a general account has no allowance transfers in or out of the 
account for a 12-month period or longer and does not contain any CAIR 
SO2 allowances, the Administrator may notify the CAIR 
authorized account representative for the account that the account will 
be closed following 20 business days after the notice is sent. The 
account will be closed after the 20-day period unless, before the end of 
the 20-day period, the Administrator receives a correctly submitted 
transfer of CAIR SO2 allowances into the account under 
Sec. Sec. 96.260 and 96.261 or a statement submitted by the CAIR 
authorized account representative demonstrating to the satisfaction of 
the Administrator good cause as to why the account should not be closed.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25389, Apr. 28, 2006]



                Subpart GGG_CAIR SO2 Allowance Transfers

    Source: 70 FR 25362, May 12, 2005, unless otherwise noted.



Sec. 96.260  Submission of CAIR SO[bdi2] allowance transfers.

    (a) A CAIR authorized account representative seeking recordation of 
a CAIR SO2 allowance transfer shall submit the transfer to 
the Administrator. To be considered correctly submitted, the CAIR 
SO2 allowance transfer shall include the following elements, 
in a format specified by the Administrator:
    (1) The account numbers of both the transferor and transferee 
accounts;
    (2) The serial number of each CAIR SO2 allowance that is 
in the transferor account and is to be transferred; and
    (3) The name and signature of the CAIR authorized account 
representatives of the transferor and transferee accounts and the dates 
signed.
    (b)(1) The CAIR authorized account representative for the transferee 
account can meet the requirements in paragraph (a)(3) of this section by 
submitting, in a format prescribed by the Administrator, a statement 
signed by the CAIR authorized account representative and identifying 
each account into which any transfer of allowances, submitted on or 
after the date on which the Administrator receives such statement, is 
authorized. Such authorization shall be binding on any CAIR authorized 
account representative for such account and shall apply to all transfers 
into the account that are submitted on or after such date of receipt, 
unless and until the Administrator receives a statement signed by the 
CAIR authorized account representative retracting the authorization for 
the account.
    (2) The statement under paragraph (b)(1) of this section shall 
include the following: ``By this signature I authorize any transfer of 
allowances into each account listed herein, except that I do not waive 
any remedies under State or Federal law to obtain correction of any 
erroneous transfers into such accounts. This authorization shall be 
binding on any CAIR authorized account representative for such account 
unless and until a statement signed by the CAIR authorized account 
representative retracting this authorization for the account is received 
by the Administrator.''



Sec. 96.261  EPA recordation.

    (a) Within 5 business days (except as necessary to perform a 
transfer in perpetuity of CAIR SO2 allowances allocated to a 
CAIR SO2 unit or as provided in paragraph (b) of this 
section) of receiving a CAIR SO2 allowance transfer, the 
Administrator will record a CAIR SO2 allowance transfer by 
moving each CAIR SO2 allowance from the transferor account to 
the transferee account as specified by the request, provided that:
    (1) The transfer is correctly submitted under Sec. 96.260;
    (2) The transferor account includes each CAIR SO2 
allowance identified by serial number in the transfer; and
    (3) The transfer is in accordance with the limitation on transfer 
under Sec. 74.42 of this chapter and Sec. 74.47(c) of this chapter, as 
applicable.
    (b) A CAIR SO2 allowance transfer that is submitted for 
recordation after the allowance transfer deadline for a control period 
and that includes any CAIR SO2 allowances allocated for any

[[Page 115]]

control period before such allowance transfer deadline will not be 
recorded until after the Administrator completes the deductions under 
Sec. 96.254 for the control period immediately before such allowance 
transfer deadline.
    (c) Where a CAIR SO2 allowance transfer submitted for 
recordation fails to meet the requirements of paragraph (a) of this 
section, the Administrator will not record such transfer.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25389, Apr. 28, 2006]



Sec. 96.262  Notification.

    (a) Notification of recordation. Within 5 business days of 
recordation of a CAIR SO2 allowance transfer under Sec. 
96.261, the Administrator will notify the CAIR authorized account 
representatives of both the transferor and transferee accounts.
    (b) Notification of non-recordation. Within 10 business days of 
receipt of a CAIR SO2 allowance transfer that fails to meet 
the requirements of Sec. 96.261(a), the Administrator will notify the 
CAIR authorized account representatives of both accounts subject to the 
transfer of:
    (1) A decision not to record the transfer, and
    (2) The reasons for such non-recordation.
    (c) Nothing in this section shall preclude the submission of a CAIR 
SO2 allowance transfer for recordation following notification 
of non-recordation.



                  Subpart HHH_Monitoring and Reporting

    Source: 70 FR 25362, May 12, 2005, unless otherwise noted.



Sec. 96.270  General requirements.

    The owners and operators, and to the extent applicable, the CAIR 
designated representative, of a CAIR SO2 unit, shall comply 
with the monitoring, recordkeeping, and reporting requirements as 
provided in this subpart and in subparts F and G of part 75 of this 
chapter. For purposes of complying with such requirements, the 
definitions in Sec. 96.202 and in Sec. 72.2 of this chapter shall 
apply, and the terms ``affected unit,'' ``designated representative,'' 
and ``continuous emission monitoring system'' (or ``CEMS'') in part 75 
of this chapter shall be deemed to refer to the terms ``CAIR 
SO2 unit,'' ``CAIR designated representative,'' and 
``continuous emission monitoring system'' (or ``CEMS'') respectively, as 
defined in Sec. 96.202. The owner or operator of a unit that is not a 
CAIR SO2 unit but that is monitored under Sec. 75.16(b)(2) 
of this chapter shall comply with the same monitoring, recordkeeping, 
and reporting requirements as a CAIR SO2 unit.
    (a) Requirements for installation, certification, and data 
accounting. The owner or operator of each CAIR SO2 unit 
shall:
    (1) Install all monitoring systems required under this subpart for 
monitoring SO2 mass emissions and individual unit heat input 
(including all systems required to monitor SO2 concentration, 
stack gas moisture content, stack gas flow rate, CO2 or 
O2 concentration, and fuel flow rate, as applicable, in 
accordance with Sec. Sec. 75.11 and 75.16 of this chapter);
    (2) Successfully complete all certification tests required under 
Sec. 96.271 and meet all other requirements of this subpart and part 75 
of this chapter applicable to the monitoring systems under paragraph 
(a)(1) of this section; and
    (3) Record, report, and quality-assure the data from the monitoring 
systems under paragraph (a)(1) of this section.
    (b) Compliance deadlines. Except as provided in paragraph (e) of 
this section, the owner or operator shall meet the monitoring system 
certification and other requirements of paragraphs (a)(1) and (2) of 
this section on or before the following dates. The owner or operator 
shall record, report, and quality-assure the data from the monitoring 
systems under paragraph (a)(1) of this section on and after the 
following dates.
    (1) For the owner or operator of a CAIR SO2 unit that 
commences commercial operation before July 1, 2008, by January 1, 2009.
    (2) For the owner or operator of a CAIR SO2 unit that 
commences commercial operation on or after July 1, 2008, by the later of 
the following dates:
    (i) January 1, 2009; or

[[Page 116]]

    (ii) 90 unit operating days or 180 calendar days, whichever occurs 
first, after the date on which the unit commences commercial operation.
    (3) For the owner or operator of a CAIR SO2 unit for 
which construction of a new stack or flue or installation of add-on 
SO2 emission controls is completed after the applicable 
deadline under paragraph (b)(1), (2), (4), or (5) of this section, by 90 
unit operating days or 180 calendar days, whichever occurs first, after 
the date on which emissions first exit to the atmosphere through the new 
stack or flue or add-on SO2 emissions controls.
    (4) Notwithstanding the dates in paragraphs (b)(1) and (2) of this 
section, for the owner or operator of a unit for which a CAIR opt-in 
permit application is submitted and not withdrawn and a CAIR opt-in 
permit is not yet issued or denied under subpart III of this part, by 
the date specified in Sec. 96.284(b).
    (5) Notwithstanding the dates in paragraphs (b)(1) and (2) of this 
section, for the owner or operator of a CAIR SO2 opt-in unit 
under subpart III of this part, by the date on which the CAIR 
SO2 opt-in unit enters the CAIR SO2 Trading 
Program as provided in Sec. 96.284(g).
    (c) Reporting data. The owner or operator of a CAIR SO2 
unit that does not meet the applicable compliance date set forth in 
paragraph (b) of this section for any monitoring system under paragraph 
(a)(1) of this section shall, for each such monitoring system, 
determine, record, and report maximum potential (or, as appropriate, 
minimum potential) values for SO2 concentration, stack gas 
flow rate, stack gas moisture content, fuel flow rate, and any other 
parameters required to determine SO2 mass emissions and heat 
input in accordance with Sec. 75.31(b)(2) or (c)(3) of this chapter or 
section 2.4 of appendix D to part 75 of this chapter, as applicable.
    (d) Prohibitions. (1) No owner or operator of a CAIR SO2 
unit shall use any alternative monitoring system, alternative reference 
method, or any other alternative to any requirement of this subpart 
without having obtained prior written approval in accordance with Sec. 
96.275.
    (2) No owner or operator of a CAIR SO2 unit shall operate 
the unit so as to discharge, or allow to be discharged, SO2 
emissions to the atmosphere without accounting for all such emissions in 
accordance with the applicable provisions of this subpart and part 75 of 
this chapter.
    (3) No owner or operator of a CAIR SO2 unit shall disrupt 
the continuous emission monitoring system, any portion thereof, or any 
other approved emission monitoring method, and thereby avoid monitoring 
and recording SO2 mass emissions discharged into the 
atmosphere or heat input, except for periods of recertification or 
periods when calibration, quality assurance testing, or maintenance is 
performed in accordance with the applicable provisions of this subpart 
and part 75 of this chapter.
    (4) No owner or operator of a CAIR SO2 unit shall retire 
or permanently discontinue use of the continuous emission monitoring 
system, any component thereof, or any other approved monitoring system 
under this subpart, except under any one of the following circumstances:
    (i) During the period that the unit is covered by an exemption under 
Sec. 96.205 that is in effect;
    (ii) The owner or operator is monitoring emissions from the unit 
with another certified monitoring system approved, in accordance with 
the applicable provisions of this subpart and part 75 of this chapter, 
by the permitting authority for use at that unit that provides emission 
data for the same pollutant or parameter as the retired or discontinued 
monitoring system; or
    (iii) The CAIR designated representative submits notification of the 
date of certification testing of a replacement monitoring system for the 
retired or discontinued monitoring system in accordance with Sec. 
96.271(d)(3)(i).
    (e) Long-term cold storage. The owner or operator of a CAIR 
SO2 unit is subject to the applicable provisions of part 75 
of this chapter concerning units in long-term cold storage.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25389, Apr. 28, 2006]

[[Page 117]]



Sec. 96.271  Initial certification and recertification procedures.

    (a) The owner or operator of a CAIR SO2 unit shall be 
exempt from the initial certification requirements of this section for a 
monitoring system under Sec. 96.270(a)(1) if the following conditions 
are met:
    (1) The monitoring system has been previously certified in 
accordance with part 75 of this chapter; and
    (2) The applicable quality-assurance and quality-control 
requirements of Sec. 75.21 of this chapter and appendix B and appendix 
D to part 75 of this chapter are fully met for the certified monitoring 
system described in paragraph (a)(1) of this section.
    (b) The recertification provisions of this section shall apply to a 
monitoring system under Sec. 96.270(a)(1) exempt from initial 
certification requirements under paragraph (a) of this section.
    (c) [Reserved]
    (d) Except as provided in paragraph (a) of this section, the owner 
or operator of a CAIR SO2 unit shall comply with the 
following initial certification and recertification procedures, for a 
continuous monitoring system (i.e., a continuous emission monitoring 
system and an excepted monitoring system under appendix D to part 75 of 
this chapter) under Sec. 96.270(a)(1). The owner or operator of a unit 
that qualifies to use the low mass emissions excepted monitoring 
methodology under Sec. 75.19 of this chapter or that qualifies to use 
an alternative monitoring system under subpart E of part 75 of this 
chapter shall comply with the procedures in paragraph (e) or (f) of this 
section respectively.
    (1) Requirements for initial certification. The owner or operator 
shall ensure that each continuous monitoring system under Sec. 
96.270(a)(1) (including the automated data acquisition and handling 
system) successfully completes all of the initial certification testing 
required under Sec. 75.20 of this chapter by the applicable deadline in 
Sec. 96.270(b). In addition, whenever the owner or operator installs a 
monitoring system to meet the requirements of this subpart in a location 
where no such monitoring system was previously installed, initial 
certification in accordance with Sec. 75.20 of this chapter is 
required.
    (2) Requirements for recertification. Whenever the owner or operator 
makes a replacement, modification, or change in any certified continuous 
emission monitoring system under Sec. 96.270(a)(1) that may 
significantly affect the ability of the system to accurately measure or 
record SO2 mass emissions or heat input rate or to meet the 
quality-assurance and quality-control requirements of Sec. 75.21 of 
this chapter or appendix B to part 75 of this chapter, the owner or 
operator shall recertify the monitoring system in accordance with Sec. 
75.20(b) of this chapter. Furthermore, whenever the owner or operator 
makes a replacement, modification, or change to the flue gas handling 
system or the unit's operation that may significantly change the stack 
flow or concentration profile, the owner or operator shall recertify 
each continuous emission monitoring system whose accuracy is potentially 
affected by the change, in accordance with Sec. 75.20(b) of this 
chapter. Examples of changes to a continuous emission monitoring system 
that require recertification include: replacement of the analyzer, 
complete replacement of an existing continuous emission monitoring 
system, or change in location or orientation of the sampling probe or 
site. Any fuel flowmeter system under Sec. 96.270(a)(1) is subject to 
the recertification requirements in Sec. 75.20(g)(6) of this chapter.
    (3) Approval process for initial certification and recertification. 
Paragraphs (d)(3)(i) through (iv) of this section apply to both initial 
certification and recertification of a continuous monitoring system 
under Sec. 96.270(a)(1). For recertifications, replace the words 
``certification'' and ``initial certification'' with the word 
``recertification'', replace the word ``certified'' with the word 
``recertified,'' and follow the procedures in Sec. Sec. 75.20(b)(5) and 
(g)(7) of this chapter in lieu of the procedures in paragraph (d)(3)(v) 
of this section.
    (i) Notification of certification. The CAIR designated 
representative shall submit to the permitting authority, the appropriate 
EPA Regional Office, and the Administrator written notice of the dates 
of certification testing, in accordance with Sec. 96.273.

[[Page 118]]

    (ii) Certification application. The CAIR designated representative 
shall submit to the permitting authority a certification application for 
each monitoring system. A complete certification application shall 
include the information specified in Sec. 75.63 of this chapter.
    (iii) Provisional certification date. The provisional certification 
date for a monitoring system shall be determined in accordance with 
Sec. 75.20(a)(3) of this chapter. A provisionally certified monitoring 
system may be used under the CAIR SO2 Trading Program for a 
period not to exceed 120 days after receipt by the permitting authority 
of the complete certification application for the monitoring system 
under paragraph (d)(3)(ii) of this section. Data measured and recorded 
by the provisionally certified monitoring system, in accordance with the 
requirements of part 75 of this chapter, will be considered valid 
quality-assured data (retroactive to the date and time of provisional 
certification), provided that the permitting authority does not 
invalidate the provisional certification by issuing a notice of 
disapproval within 120 days of the date of receipt of the complete 
certification application by the permitting authority.
    (iv) Certification application approval process. The permitting 
authority will issue a written notice of approval or disapproval of the 
certification application to the owner or operator within 120 days of 
receipt of the complete certification application under paragraph 
(d)(3)(ii) of this section. In the event the permitting authority does 
not issue such a notice within such 120-day period, each monitoring 
system that meets the applicable performance requirements of part 75 of 
this chapter and is included in the certification application will be 
deemed certified for use under the CAIR SO2 Trading Program.
    (A) Approval notice. If the certification application is complete 
and shows that each monitoring system meets the applicable performance 
requirements of part 75 of this chapter, then the permitting authority 
will issue a written notice of approval of the certification application 
within 120 days of receipt.
    (B) Incomplete application notice. If the certification application 
is not complete, then the permitting authority will issue a written 
notice of incompleteness that sets a reasonable date by which the CAIR 
designated representative must submit the additional information 
required to complete the certification application. If the CAIR 
designated representative does not comply with the notice of 
incompleteness by the specified date, then the permitting authority may 
issue a notice of disapproval under paragraph (d)(3)(iv)(C) of this 
section. The 120-day review period shall not begin before receipt of a 
complete certification application.
    (C) Disapproval notice. If the certification application shows that 
any monitoring system does not meet the performance requirements of part 
75 of this chapter or if the certification application is incomplete and 
the requirement for disapproval under paragraph (d)(3)(iv)(B) of this 
section is met, then the permitting authority will issue a written 
notice of disapproval of the certification application. Upon issuance of 
such notice of disapproval, the provisional certification is invalidated 
by the permitting authority and the data measured and recorded by each 
uncertified monitoring system shall not be considered valid quality-
assured data beginning with the date and hour of provisional 
certification (as defined under Sec. 75.20(a)(3) of this chapter). The 
owner or operator shall follow the procedures for loss of certification 
in paragraph (d)(3)(v) of this section for each monitoring system that 
is disapproved for initial certification.
    (D) Audit decertification. The permitting authority or, for a CAIR 
SO2 opt-in unit or a unit for which a CAIR opt-in permit 
application is submitted and not withdrawn and a CAIR opt-in permit is 
not yet issued or denied under subpart III of this part, the 
Administrator may issue a notice of disapproval of the certification 
status of a monitor in accordance with Sec. 96.272(b).
    (v) Procedures for loss of certification. If the permitting 
authority or the Administrator issues a notice of disapproval of a 
certification application under paragraph (d)(3)(iv)(C) of this

[[Page 119]]

section or a notice of disapproval of certification status under 
paragraph (d)(3)(iv)(D) of this section, then:
    (A) The owner or operator shall substitute the following values, for 
each disapproved monitoring system, for each hour of unit operation 
during the period of invalid data specified under Sec. 
75.20(a)(4)(iii), Sec. 75.20(g)(7), or Sec. 75.21(e) of this chapter 
and continuing until the applicable date and hour specified under Sec. 
75.20(a)(5)(i) or (g)(7) of this chapter:
    (1) For a disapproved SO2 pollutant concentration monitor 
and disapproved flow monitor, respectively, the maximum potential 
concentration of SO2 and the maximum potential flow rate, as 
defined in sections 2.1.1.1 and 2.1.4.1 of appendix A to part 75 of this 
chapter.
    (2) For a disapproved moisture monitoring system and disapproved 
diluent gas monitoring system, respectively, the minimum potential 
moisture percentage and either the maximum potential CO2 
concentration or the minimum potential O2 concentration (as 
applicable), as defined in sections 2.1.5, 2.1.3.1, and 2.1.3.2 of 
appendix A to part 75 of this chapter.
    (3) For a disapproved fuel flowmeter system, the maximum potential 
fuel flow rate, as defined in section 2.4.2.1 of appendix D to part 75 
of this chapter.
    (B) The CAIR designated representative shall submit a notification 
of certification retest dates and a new certification application in 
accordance with paragraphs (d)(3)(i) and (ii) of this section.
    (C) The owner or operator shall repeat all certification tests or 
other requirements that were failed by the monitoring system, as 
indicated in the permitting authority's or the Administrator's notice of 
disapproval, no later than 30 unit operating days after the date of 
issuance of the notice of disapproval.
    (e) Initial certification and recertification procedures for units 
using the low mass emission excepted methodology under Sec. 75.19 of 
this chapter. The owner or operator of a unit qualified to use the low 
mass emissions (LME) excepted methodology under Sec. 75.19 of this 
chapter shall meet the applicable certification and recertification 
requirements in Sec. Sec. 75.19(a)(2) and 75.20(h) of this chapter. If 
the owner or operator of such a unit elects to certify a fuel flowmeter 
system for heat input determination, the owner or operator shall also 
meet the certification and recertification requirements in Sec. 
75.20(g) of this chapter.
    (f) Certification/recertification procedures for alternative 
monitoring systems. The CAIR designated representative of each unit for 
which the owner or operator intends to use an alternative monitoring 
system approved by the Administrator and, if applicable, the permitting 
authority under subpart E of part 75 of this chapter shall comply with 
the applicable notification and application procedures of Sec. 75.20(f) 
of this chapter.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25390, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



Sec. 96.272  Out of control periods.

    (a) Whenever any monitoring system fails to meet the quality-
assurance and quality-control requirements or data validation 
requirements of part 75 of this chapter, data shall be substituted using 
the applicable missing data procedures in subpart D of or appendix D to 
part 75 of this chapter.
    (b) Audit decertification. Whenever both an audit of a monitoring 
system and a review of the initial certification or recertification 
application reveal that any monitoring system should not have been 
certified or recertified because it did not meet a particular 
performance specification or other requirement under Sec. 96.271 or the 
applicable provisions of part 75 of this chapter, both at the time of 
the initial certification or recertification application submission and 
at the time of the audit, the permitting authority or, for a CAIR 
SO2 opt-in unit or a unit for which a CAIR opt-in permit 
application is submitted and not withdrawn and a CAIR opt-in permit is 
not yet issued or denied under subpart III of this part, the 
Administrator will issue a notice of disapproval of the certification 
status of such monitoring system. For the purposes of this paragraph, an 
audit shall be either a field audit or an audit of any information 
submitted to the permitting authority or the Administrator. By issuing 
the notice of disapproval, the permitting authority or

[[Page 120]]

the Administrator revokes prospectively the certification status of the 
monitoring system. The data measured and recorded by the monitoring 
system shall not be considered valid quality-assured data from the date 
of issuance of the notification of the revoked certification status 
until the date and time that the owner or operator completes 
subsequently approved initial certification or recertification tests for 
the monitoring system. The owner or operator shall follow the applicable 
initial certification or recertification procedures in Sec. 96.271 for 
each disapproved monitoring system.



Sec. 96.273  Notifications.

    The CAIR designated representative for a CAIR SO2 unit 
shall submit written notice to the permitting authority and the 
Administrator in accordance with Sec. 75.61 of this chapter.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25390, Apr. 28, 2006]



Sec. 96.274  Recordkeeping and reporting.

    (a) General provisions. The CAIR designated representative shall 
comply with all recordkeeping and reporting requirements in this 
section, the applicable recordkeeping and reporting requirements in 
subparts F and G of part 75 of this chapter, and the requirements of 
Sec. 96.210(e)(1).
    (b) Monitoring plans. The owner or operator of a CAIR SO2 
unit shall comply with requirements of Sec. 75.62 of this chapter and, 
for a unit for which a CAIR opt-in permit application is submitted and 
not withdrawn and a CAIR opt-in permit is not yet issued or denied under 
subpart III of this part, Sec. Sec. 96.283 and 96.284(a).
    (c) Certification applications. The CAIR designated representative 
shall submit an application to the permitting authority within 45 days 
after completing all initial certification or recertification tests 
required under Sec. 96.271, including the information required under 
Sec. 75.63 of this chapter.
    (d) Quarterly reports. The CAIR designated representative shall 
submit quarterly reports, as follows:
    (1) The CAIR designated representative shall report the 
SO2 mass emissions data and heat input data for the CAIR 
SO2 unit, in an electronic quarterly report in a format 
prescribed by the Administrator, for each calendar quarter beginning 
with:
    (i) For a unit that commences commercial operation before July 1, 
2008, the calendar quarter covering January 1, 2009 through March 31, 
2009;
    (ii) For a unit that commences commercial operation on or after July 
1, 2008, the calendar quarter corresponding to the earlier of the date 
of provisional certification or the applicable deadline for initial 
certification under Sec. 96.270(b), unless that quarter is the third or 
fourth quarter of 2008, in which case reporting shall commence in the 
quarter covering January 1, 2009 through March 31, 2009;
    (iii) Notwithstanding paragraphs (d)(1)(i) and (ii) of this section, 
for a unit for which a CAIR opt-in permit application is submitted and 
not withdrawn and a CAIR opt-in permit is not yet issued or denied under 
subpart III of this part, the calendar quarter corresponding to the date 
specified in Sec. 96.284(b); and
    (iv) Notwithstanding paragraphs (d)(1)(i) and (ii) of this section, 
for a CAIR SO2 opt-in unit under subpart III of this part, 
the calendar quarter corresponding to the date on which the CAIR 
SO2 opt-in unit enters the CAIR SO2 Trading 
Program as provided in Sec. 96.284(g).
    (2) The CAIR designated representative shall submit each quarterly 
report to the Administrator within 30 days following the end of the 
calendar quarter covered by the report. Quarterly reports shall be 
submitted in the manner specified in Sec. 75.64 of this chapter.
    (3) For CAIR SO2 units that are also subject to an Acid 
Rain emissions limitation or the CAIR NOX Annual Trading 
Program CAIR NOX Ozone Season Trading Program, or Hg Budget 
Trading Porgram, quarterly reports shall include the applicable data and 
information required by subparts F through I of part 75 of this chapter 
as applicable, in addition to the SO2 mass emission data, 
heat input data, and other information required by this subpart.
    (e) Compliance certification. The CAIR designated representative 
shall submit to the Administrator a compliance certification (in a 
format prescribed by the Administrator) in support of each

[[Page 121]]

quarterly report based on reasonable inquiry of those persons with 
primary responsibility for ensuring that all of the unit's emissions are 
correctly and fully monitored. The certification shall state that:
    (1) The monitoring data submitted were recorded in accordance with 
the applicable requirements of this subpart and part 75 of this chapter, 
including the quality assurance procedures and specifications; and
    (2) For a unit with add-on SO2 emission controls and for 
all hours where SO2 data are substituted in accordance with 
Sec. 75.34(a)(1) of this chapter, the add-on emission controls were 
operating within the range of parameters listed in the quality 
assurance/quality control program under appendix B to part 75 of this 
chapter and the substitute data values do not systematically 
underestimate SO2 emissions.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25390, Apr. 28, 2006]



Sec. 96.275  Petitions.

    (a) The CAIR designated representative of a CAIR SO2 unit 
that is subject to an Acid Rain emissions limitation may submit a 
petition under Sec. 75.66 of this chapter to the Administrator 
requesting approval to apply an alternative to any requirement of this 
subpart. Application of an alternative to any requirement of this 
subpart is in accordance with this subpart only to the extent that the 
petition is approved in writing by the Administrator, in consultation 
with the permitting authority.
    (b) The CAIR designated representative of a CAIR SO2 unit 
that is not subject to an Acid Rain emissions limitation may submit a 
petition under Sec. 75.66 of this chapter to the permitting authority 
and the Administrator requesting approval to apply an alternative to any 
requirement of this subpart. Application of an alternative to any 
requirement of this subpart is in accordance with this subpart only to 
the extent that the petition is approved in writing by both the 
permitting authority and the Administrator.



                 Subpart III_CAIR SO[bdi2] Opt-in Units

    Source: 70 FR 25362, May 12, 2005, unless otherwise noted.



Sec. 96.280  Applicability.

    A CAIR SO2 opt-in unit must be a unit that:
    (a) Is located in the State;
    (b) Is not a CAIR SO2 unit under Sec. 96.204 and is not 
covered by a retired unit exemption under Sec. 96.205 that is in 
effect;
    (c) Is not covered by a retired unit exemption under Sec. 72.8 of 
this chapter that is in effect and is not an opt-in source under part 74 
of this chapter;
    (d) Has or is required or qualified to have a title V operating 
permit or other federally enforceable permit; and
    (e) Vents all of its emissions to a stack and can meet the 
monitoring, recordkeeping, and reporting requirements of subpart HHH of 
this part.



Sec. 96.281  General.

    (a) Except as otherwise provided in Sec. Sec. 96.201 through 
96.204, Sec. Sec. 96.206 through 96.208, and subparts BBB and CCC and 
subparts FFF through HHH of this part, a CAIR SO2 opt-in unit 
shall be treated as a CAIR SO2 unit for purposes of applying 
such sections and subparts of this part.
    (b) Solely for purposes of applying, as provided in this subpart, 
the requirements of subpart HHH of this part to a unit for which a CAIR 
opt-in permit application is submitted and not withdrawn and a CAIR opt-
in permit is not yet issued or denied under this subpart, such unit 
shall be treated as a CAIR SO2 unit before issuance of a CAIR 
opt-in permit for such unit.



Sec. 96.282  CAIR designated representative.

    Any CAIR SO2 opt-in unit, and any unit for which a CAIR 
opt-in permit application is submitted and not withdrawn and a CAIR opt-
in permit is not yet issued or denied under this subpart, located at the 
same source as one or more CAIR SO2 units shall have the same 
CAIR designated representative and alternate CAIR designated 
representative as such CAIR SO2 units.

[[Page 122]]



Sec. 96.283  Applying for CAIR opt-in permit.

    (a) Applying for initial CAIR opt-in permit. The CAIR designated 
representative of a unit meeting the requirements for a CAIR 
SO2 opt-in unit in Sec. 96.280 may apply for an initial CAIR 
opt-in permit at any time, except as provided under Sec. 96.286(f) and 
(g), and, in order to apply, must submit the following:
    (1) A complete CAIR permit application under Sec. 96.222;
    (2) A certification, in a format specified by the permitting 
authority, that the unit:
    (i) Is not a CAIR SO2 unit under Sec. 96.204 and is not 
covered by a retired unit exemption under Sec. 96.205 that is in 
effect;
    (ii) Is not covered by a retired unit exemption under Sec. 72.8 of 
this chapter that is in effect;
    (iii) Is not and, so long as the unit is a CAIR SO2 opt-
in unit, will not become, an opt-in source under part 74 of this 
chapter;
    (iv) Vents all of its emissions to a stack; and
    (v) Has documented heat input for more than 876 hours during the 6 
months immediately preceding submission of the CAIR permit application 
under Sec. 96.222;
    (3) A monitoring plan in accordance with subpart HHH of this part;
    (4) A complete certificate of representation under Sec. 96.213 
consistent with Sec. 96.282, if no CAIR designated representative has 
been previously designated for the source that includes the unit; and
    (5) A statement, in a format specified by the permitting authority, 
whether the CAIR designated representative requests that the unit be 
allocated CAIR SO2 allowances under Sec. 96.288(b) or Sec. 
96.288(c) (subject to the conditions in Sec. Sec. 96.284(h) and 
96.286(g)). If allocation under Sec. 96.288(c) is requested, this 
statement shall include a statement that the owners and operators of the 
unit intend to repower the unit before January 1, 2015 and that they 
will provide, upon request, documentation demonstrating such intent.
    (b) Duty to reapply. (1) The CAIR designated representative of a 
CAIR SO2 opt-in unit shall submit a complete CAIR permit 
application under Sec. 96.222 to renew the CAIR opt-in unit permit in 
accordance with the permitting authority's regulations for title V 
operating permits, or the permitting authority's regulations for other 
federally enforceable permits if applicable, addressing permit renewal.
    (2) Unless the permitting authority issues a notification of 
acceptance of withdrawal of the CAIR SO2 opt-in unit from the 
CAIR SO2 Trading Program in accordance with Sec. 96.286 or 
the unit becomes a CAIR SO2 unit under Sec. 96.204, the CAIR 
SO2 opt-in unit shall remain subject to the requirements for 
a CAIR SO2 opt-in unit, even if the CAIR designated 
representative for the CAIR SO2 opt-in unit fails to submit a 
CAIR permit application that is required for renewal of the CAIR opt-in 
permit under paragraph (b)(1) of this section.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25390, Apr. 28, 2006]



Sec. 96.284  Opt-in process.

    The permitting authority will issue or deny a CAIR opt-in permit for 
a unit for which an initial application for a CAIR opt-in permit under 
Sec. 96.283 is submitted in accordance with the following:
    (a) Interim review of monitoring plan. The permitting authority and 
the Administrator will determine, on an interim basis, the sufficiency 
of the monitoring plan accompanying the initial application for a CAIR 
opt-in permit under Sec. 96.283. A monitoring plan is sufficient, for 
purposes of interim review, if the plan appears to contain information 
demonstrating that the SO2 emissions rate and heat input of 
the unit and all other applicable parameters are monitored and reported 
in accordance with subpart HHH of this part. A determination of 
sufficiency shall not be construed as acceptance or approval of the 
monitoring plan.
    (b) Monitoring and reporting. (1)(i) If the permitting authority and 
the Administrator determine that the monitoring plan is sufficient under 
paragraph (a) of this section, the owner or operator shall monitor and 
report the SO2 emissions rate and the heat input of the unit 
and all other applicable parameters, in accordance with subpart HHH of 
this part, starting on the date

[[Page 123]]

of certification of the appropriate monitoring systems under subpart HHH 
of this part and continuing until a CAIR opt-in permit is denied under 
Sec. 96.284(f) or, if a CAIR opt-in permit is issued, the date and time 
when the unit is withdrawn from the CAIR SO2 Trading Program 
in accordance with Sec. 96.286.
    (ii) The monitoring and reporting under paragraph (b)(1)(i) of this 
section shall include the entire control period immediately before the 
date on which the unit enters the CAIR SO2 Trading Program 
under Sec. 96.284(g), during which period monitoring system 
availability must not be less than 90 percent under subpart HHH of this 
part and the unit must be in full compliance with any applicable State 
or Federal emissions or emissions-related requirements.
    (2) To the extent the SO2 emissions rate and the heat 
input of the unit are monitored and reported in accordance with subpart 
HHH of this part for one or more control periods, in addition to the 
control period under paragraph (b)(1)(ii) of this section, during which 
control periods monitoring system availability is not less than 90 
percent under subpart HHH of this part and the unit is in full 
compliance with any applicable State or Federal emissions or emissions-
related requirements and which control periods begin not more than 3 
years before the unit enters the CAIR SO2 Trading Program 
under Sec. 96.284(g), such information shall be used as provided in 
paragraphs (c) and (d) of this section.
    (c) Baseline heat input. The unit's baseline heat input shall equal:
    (1) If the unit's SO2 emissions rate and heat input are 
monitored and reported for only one control period, in accordance with 
paragraph (b)(1) of this section, the unit's total heat input (in mmBtu) 
for the control period; or
    (2) If the unit's SO2 emissions rate and heat input are 
monitored and reported for more than one control period, in accordance 
with paragraphs (b)(1) and (2) of this section, the average of the 
amounts of the unit's total heat input (in mmBtu) for the control 
periods under paragraphs (b)(1)(ii) and (2) of this section and the 
control periods under paragraph (b)(2) of this section.
    (d) Baseline SO2 emission rate. The unit's baseline 
SO2 emission rate shall equal:
    (1) If the unit's SO2 emissions rate and heat input are 
monitored and reported for only one control period, in accordance with 
paragraph (b)(1) of this section, the unit's SO2 emissions 
rate (in lb/mmBtu) for the control period;
    (2) If the unit's SO2 emissions rate and heat input are 
monitored and reported for more than one control period, in accordance 
with paragraphs (b)(1) and (2) of this section, and the unit does not 
have add-on SO2 emission controls during any such control 
periods, the average of the amounts of the unit's SO2 
emissions rate (in lb/mmBtu) for the control periods under paragraphs 
(b)(1)(ii) and (2) of this section; or
    (3) If the unit's SO2 emissions rate and heat input are 
monitored and reported for more than one control period, in accordance 
with paragraphs (b)(1) and (2) of this section, and the unit has add-on 
SO2 emission controls during any such control periods, the 
average of the amounts of the unit's SO2 emissions rate (in 
lb/mmBtu) for such control periods during which the unit has add-on 
SO2 emission controls.
    (e) Issuance of CAIR opt-in permit. After calculating the baseline 
heat input and the baseline SO2 emissions rate for the unit 
under paragraphs (c) and (d) of this section and if the permitting 
authority determines that the CAIR designated representative shows that 
the unit meets the requirements for a CAIR SO2 opt-in unit in 
Sec. 96.280 and meets the elements certified in Sec. 96.283(a)(2), the 
permitting authority will issue a CAIR opt-in permit. The permitting 
authority will provide a copy of the CAIR opt-in permit to the 
Administrator, who will then establish a compliance account for the 
source that includes the CAIR SO2 opt-in unit unless the 
source already has a compliance account.
    (f) Issuance of denial of CAIR opt-in permit. Notwithstanding 
paragraphs (a) through (e) of this section, if at any time before 
issuance of a CAIR opt-in permit for the unit, the permitting authority 
determines that the CAIR designated representative fails to show

[[Page 124]]

that the unit meets the requirements for a CAIR SO2 opt-in 
unit in Sec. 96.280 or meets the elements certified in Sec. 
96.283(a)(2), the permitting authority will issue a denial of a CAIR 
opt-in permit for the unit.
    (g) Date of entry into CAIR SO2 Trading Program. A unit 
for which an initial CAIR opt-in permit is issued by the permitting 
authority shall become a CAIR SO2 opt-in unit, and a CAIR 
SO2 unit, as of the later of January 1, 2010 or January 1 of 
the first control period during which such CAIR opt-in permit is issued.
    (h) Repowered CAIR SO2 opt-in unit. (1) If CAIR 
designated representative requests, and the permitting authority issues 
a CAIR opt-in permit providing for, allocation to a CAIR SO2 
opt-in unit of CAIR SO2 allowances under Sec. 96.288(c) and 
such unit is repowered after its date of entry into the CAIR 
SO2 Trading Program under paragraph (g) of this section, the 
repowered unit shall be treated as a CAIR SO2 opt-in unit 
replacing the original CAIR SO2 opt-in unit, as of the date 
of start-up of the repowered unit's combustion chamber.
    (2) Notwithstanding paragraphs (c) and (d) of this section, as of 
the date of start-up under paragraph (h)(1) of this section, the 
repowered unit shall be deemed to have the same date of commencement of 
operation, date of commencement of commercial operation, baseline heat 
input, and baseline SO2 emission rate as the original CAIR 
SO2 opt-in unit, and the original CAIR SO2 opt-in 
unit shall no longer be treated as a CAIR SO2 opt-in unit or 
a CAIR SO2 unit.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25390, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



Sec. 96.285  CAIR opt-in permit contents.

    (a) Each CAIR opt-in permit will contain:
    (1) All elements required for a complete CAIR permit application 
under Sec. 96.222;
    (2) The certification in Sec. 96.283(a)(2);
    (3) The unit's baseline heat input under Sec. 96.284(c);
    (4) The unit's baseline SO2 emission rate under Sec. 
96.284(d);
    (5) A statement whether the unit is to be allocated CAIR 
SO2 allowances Sec. 96.288(b) or Sec. 96.288(c) (subject to 
the conditions in Sec. Sec. 96.284(h) and 96.286(g));
    (6) A statement that the unit may withdraw from the CAIR 
SO2 Trading Program only in accordance with Sec. 96.286; and
    (7) A statement that the unit is subject to, and the owners and 
operators of the unit must comply with, the requirements of Sec. 
96.287.
    (b) Each CAIR opt-in permit is deemed to incorporate automatically 
the definitions of terms under Sec. 96.202 and, upon recordation by the 
Administrator under subpart FFF or GGG of this part or this subpart, 
every allocation, transfer, or deduction of CAIR SO2 
allowances to or from the compliance account of the source that includes 
a CAIR SO2 opt-in unit covered by the CAIR opt-in permit.
    (c) The CAIR opt-in permit shall be included, in a format specified 
by the permitting authority, in the CAIR permit for the source where the 
CAIR SO2 opt-in unit is located and in a title V operating 
permit or other federally enforceable permit for the source.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25390, Apr. 28, 2006]



Sec. 96.286  Withdrawal from CAIR SO[bdi2] Trading Program.

    Except as provided under paragraph (g) of this section, a CAIR 
SO2 opt-in unit may withdraw from the CAIR SO2 
Trading Program, but only if the permitting authority issues a 
notification to the CAIR designated representative of the CAIR 
SO2 opt-in unit of the acceptance of the withdrawal of the 
CAIR SO2 opt-in unit in accordance with paragraph (d) of this 
section.
    (a) Requesting withdrawal. In order to withdraw a CAIR 
SO2 opt-in unit from the CAIR SO2 Trading Program, 
the CAIR designated representative of the CAIR SO2 opt-in 
unit shall submit to the permitting authority a request to withdraw 
effective as of midnight of December 31 of a specified calendar year, 
which date must be at least 4 years after December 31 of the year of 
entry into the CAIR SO2 Trading Program under Sec. 
96.284(g). The request must be submitted no later than 90

[[Page 125]]

days before the requested effective date of withdrawal.
    (b) Conditions for withdrawal. Before a CAIR SO2 opt-in 
unit covered by a request under paragraph (a) of this section may 
withdraw from the CAIR SO2 Trading Program and the CAIR opt-
in permit may be terminated under paragraph (e) of this section, the 
following conditions must be met:
    (1) For the control period ending on the date on which the 
withdrawal is to be effective, the source that includes the CAIR 
SO2 opt-in unit must meet the requirement to hold CAIR 
SO2 allowances under Sec. 96.206(c) and cannot have any 
excess emissions.
    (2) After the requirement for withdrawal under paragraph (b)(1) of 
this section is met, the Administrator will deduct from the compliance 
account of the source that includes the CAIR SO2 opt-in unit 
CAIR SO2 allowances equal in amount to and allocated for the 
same or a prior control period as any CAIR SO2 allowances 
allocated to the CAIR SO2 opt-in unit under Sec. 96.288 for 
any control period for which the withdrawal is to be effective. If there 
are no remaining CAIR SO2 units at the source, the 
Administrator will close the compliance account, and the owners and 
operators of the CAIR SO2 opt-in unit may submit a CAIR 
SO2 allowance transfer for any remaining CAIR SO2 
allowances to another CAIR SO2 Allowance Tracking System in 
accordance with subpart GGG of this part.
    (c) Notification. (1) After the requirements for withdrawal under 
paragraphs (a) and (b) of this section are met (including deduction of 
the full amount of CAIR SO2 allowances required), the 
permitting authority will issue a notification to the CAIR designated 
representative of the CAIR SO2 opt-in unit of the acceptance 
of the withdrawal of the CAIR SO2 opt-in unit as of midnight 
on December 31 of the calendar year for which the withdrawal was 
requested.
    (2) If the requirements for withdrawal under paragraphs (a) and (b) 
of this section are not met, the permitting authority will issue a 
notification to the CAIR designated representative of the CAIR 
SO2 opt-in unit that the CAIR SO2 opt-in unit's 
request to withdraw is denied. Such CAIR SO2 opt-in unit 
shall continue to be a CAIR SO2 opt-in unit.
    (d) Permit amendment. After the permitting authority issues a 
notification under paragraph (c)(1) of this section that the 
requirements for withdrawal have been met, the permitting authority will 
revise the CAIR permit covering the CAIR SO2 opt-in unit to 
terminate the CAIR opt-in permit for such unit as of the effective date 
specified under paragraph (c)(1) of this section. The unit shall 
continue to be a CAIR SO2 opt-in unit until the effective 
date of the termination and shall comply with all requirements under the 
CAIR SO2 Trading Program concerning any control periods for 
which the unit is a CAIR SO2 opt-in unit, even if such 
requirements arise or must be complied with after the withdrawal takes 
effect.
    (e) Reapplication upon failure to meet conditions of withdrawal. If 
the permitting authority denies the CAIR SO2 opt-in unit's 
request to withdraw, the CAIR designated representative may submit 
another request to withdraw in accordance with paragraphs (a) and (b) of 
this section.
    (f) Ability to reapply to the CAIR SO2 Trading Program. 
Once a CAIR SO2 opt-in unit withdraws from the CAIR 
SO2 Trading Program and its CAIR opt-in permit is terminated 
under this section, the CAIR designated representative may not submit 
another application for a CAIR opt-in permit under Sec. 96.283 for such 
CAIR SO2 opt-in unit before the date that is 4 years after 
the date on which the withdrawal became effective. Such new application 
for a CAIR opt-in permit will be treated as an initial application for a 
CAIR opt-in permit under Sec. 96.284.
    (g) Inability to withdraw. Notwithstanding paragraphs (a) through 
(f) of this section, a CAIR SO2 opt-in unit shall not be 
eligible to withdraw from the CAIR SO2 Trading Program if the 
CAIR designated representative of the CAIR SO2 opt-in unit 
requests, and the permitting authority issues a CAIR opt-in permit 
providing for, allocation to the CAIR SO2 opt-in unit of CAIR 
SO2 allowances under Sec. 96.288(c).

[70 FR 25362, May 12, 2005, as amended at 71 FR 25390, Apr. 28, 2006]

[[Page 126]]



Sec. 96.287  Change in regulatory status.

    (a) Notification. If a CAIR SO2 opt-in unit becomes a 
CAIR SO2 unit under Sec. 96.204, then the CAIR designated 
representative shall notify in writing the permitting authority and the 
Administrator of such change in the CAIR SO2 opt-in unit's 
regulatory status, within 30 days of such change.
    (b) Permitting authority's and Administrator's actions. (1) If a 
CAIR SO2 opt-in unit becomes a CAIR SO2 unit under 
Sec. 96.204, the permitting authority will revise the CAIR 
SO2 opt-in unit's CAIR opt-in permit to meet the requirements 
of a CAIR permit under Sec. 96.223, and remove the CAIR opt-in permit 
provisions, as of the date on which the CAIR SO2 opt-in unit 
becomes a CAIR SO2 unit under Sec. 96.204.
    (2)(i) The Administrator will deduct from the compliance account of 
the source that includes a CAIR SO2 opt-in unit that becomes 
a CAIR SO2 unit under Sec. 96.204, CAIR SO2 
allowances equal in amount to and allocated for the same or a prior 
control period as:
    (A) Any CAIR SO2 allowances allocated to the CAIR 
SO2 opt-in unit under Sec. 96.288 for any control period 
after the date on which the CAIR SO2 opt-in unit becomes a 
CAIR SO2 unit under Sec. 96.204; and
    (B) If the date on which the CAIR SO2 opt-in unit becomes 
a CAIR SO2 unit under Sec. 96.204 is not December 31, the 
CAIR SO2 allowances allocated to the CAIR SO2 opt-
in unit under Sec. 96.288 for the control period that includes the date 
on which the CAIR SO2 opt-in unit becomes a CAIR 
SO2 unit under Sec. 96.204, multiplied by the ratio of the 
number of days, in the control period, starting with the date on which 
the CAIR SO2 opt-in unit becomes a CAIR SO2 unit 
under Sec. 96.204 divided by the total number of days in the control 
period and rounded to the nearest whole allowance as appropriate.
    (ii) The CAIR designated representative shall ensure that the 
compliance account of the source that includes the CAIR SO2 
opt-in unit that becomes a CAIR SO2 unit under Sec. 96.204 
contains the CAIR SO2 allowances necessary for completion of 
the deduction under paragraph (b)(2)(i) of this section.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25390, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



Sec. 96.288  CAIR SO[bdi2] allowance allocations to CAIR SO[bdi2] 
opt-in units.

    (a) Timing requirements. (1) When the CAIR opt-in permit is issued 
under Sec. 96.284(e), the permitting authority will allocate CAIR 
SO2 allowances to the CAIR SO2 opt-in unit, and 
submit to the Administrator the allocation for the control period in 
which a CAIR SO2 opt-in unit enters the CAIR SO2 
Trading Program under Sec. 96.284(g), in accordance with paragraph (b) 
or (c) of this section.
    (2) By no later than October 31 of the control period after the 
control period in which a CAIR SO2 opt-in unit enters the 
CAIR SO2 Trading Program under Sec. 96.284(g) and October 31 
of each year thereafter, the permitting authority will allocate CAIR 
SO2 allowances to the CAIR SO2 opt-in unit, and 
submit to the Administrator the allocation for the control period that 
includes such submission deadline and in which the unit is a CAIR 
SO2 opt-in unit, in accordance with paragraph (b) or (c) of 
this section.
    (b) Calculation of allocation. For each control period for which a 
CAIR SO2 opt-in unit is to be allocated CAIR SO2 
allowances, the permitting authority will allocate in accordance with 
the following procedures:
    (1) The heat input (in mmBtu) used for calculating the CAIR 
SO2 allowance allocation will be the lesser of:
    (i) The CAIR SO2 opt-in unit's baseline heat input 
determined under Sec. 96.284(c); or
    (ii) The CAIR SO2 opt-in unit's heat input, as determined 
in accordance with subpart HHH of this part, for the immediately prior 
control period, except when the allocation is being calculated for the 
control period in which the CAIR SO2 opt-in unit enters the 
CAIR SO2 Trading Program under Sec. 96.284(g).
    (2) The SO2 emission rate (in lb/mmBtu) used for 
calculating CAIR SO2 allowance allocations will be the lesser 
of:

[[Page 127]]

    (i) The CAIR SO2 opt-in unit's baseline SO2 
emissions rate (in lb/mmBtu) determined under Sec. 96.284(d) and 
multiplied by 70 percent; or
    (ii) The most stringent State or Federal SO2 emissions 
limitation applicable to the CAIR SO2 opt-in unit at any time 
during the control period for which CAIR SO2 allowances are 
to be allocated.
    (3) The permitting authority will allocate CAIR SO2 
allowances to the CAIR SO2 opt-in unit with a tonnage 
equivalent equal to, or less than by the smallest possible amount, the 
heat input under paragraph (b)(1) of this section, multiplied by the 
SO2 emission rate under paragraph (b)(2) of this section, and 
divided by 2,000 lb/ton.
    (c) Notwithstanding paragraph (b) of this section and if the CAIR 
designated representative requests, and the permitting authority issues 
a CAIR opt-in permit (based on a demonstration of the intent to repower 
stated under Sec. 96.283(a)(5)) providing for, allocation to a CAIR 
SO2 opt-in unit of CAIR SO2 allowances under this 
paragraph (subject to the conditions in Sec. Sec. 96.284(h) and 
96.286(g)), the permitting authority will allocate to the CAIR 
SO2 opt-in unit as follows:
    (1) For each control period in 2010 through 2014 for which the CAIR 
SO2 opt-in unit is to be allocated CAIR SO2 
allowances,
    (i) The heat input (in mmBtu) used for calculating CAIR 
SO2 allowance allocations will be determined as described in 
paragraph (b)(1) of this section.
    (ii) The SO2 emission rate (in lb/mmBtu) used for 
calculating CAIR SO2 allowance allocations will be the lesser 
of:
    (A) The CAIR SO2 opt-in unit's baseline SO2 
emissions rate (in lb/mmBtu) determined under Sec. 96.284(d); or
    (B) The most stringent State or Federal SO2 emissions 
limitation applicable to the CAIR SO2 opt-in unit at any time 
during the control period in which the CAIR SO2 opt-in unit 
enters the CAIR SO2 Trading Program under Sec. 96.284(g).
    (iii) The permitting authority will allocate CAIR SO2 
allowances to the CAIR SO2 opt-in unit with a tonnage 
equivalent equal to, or less than by the smallest possible amount, the 
heat input under paragraph (c)(1)(i) of this section, multiplied by the 
SO2 emission rate under paragraph (c)(1)(ii) of this section, 
and divided by 2,000 lb/ton.
    (2) For each control period in 2015 and thereafter for which the 
CAIR SO2 opt-in unit is to be allocated CAIR SO2 
allowances,
    (i) The heat input (in mmBtu) used for calculating the CAIR 
SO2 allowance allocations will be determined as described in 
paragraph (b)(1) of this section.
    (ii) The SO2 emission rate (in lb/mmBtu) used for 
calculating the CAIR SO2 allowance allocation will be the 
lesser of:
    (A) The CAIR SO2 opt-in unit's baseline SO2 
emissions rate (in lb/mmBtu) determined under Sec. 96.284(d) multiplied 
by 10 percent; or
    (B) The most stringent State or Federal SO2 emissions 
limitation applicable to the CAIR SO2 opt-in unit at any time 
during the control period for which CAIR SO2 allowances are 
to be allocated.
    (iii) The permitting authority will allocate CAIR SO2 
allowances to the CAIR SO2 opt-in unit with a tonnage 
equivalent equal to, or less than by the smallest possible amount, the 
heat input under paragraph (c)(2)(i) of this section, multiplied by the 
SO2 emission rate under paragraph (c)(2)(ii) of this section, 
and divided by 2,000 lb/ton.
    (d) Recordation. (1) The Administrator will record, in the 
compliance account of the source that includes the CAIR SO2 
opt-in unit, the CAIR SO2 allowances allocated by the 
permitting authority to the CAIR SO2 opt-in unit under 
paragraph (a)(1) of this section.
    (2) By December 1 of the control period in which a CAIR 
SO2 opt-in unit enters the CAIR SO2 Trading 
Program under Sec. 96.284(g), and December 1 of each year thereafter, 
the Administrator will record, in the compliance account of the source 
that includes the CAIR SO2 opt-in unit, the CAIR 
SO2 allowances allocated by the permitting authority to the 
CAIR SO2 opt-in unit under paragraph (a)(2) of this section.

[70 FR 25362, May 12, 2005, as amended at 71 FR 25390, Apr. 28, 2006]

Subparts JJJ--ZZZ [Reserved]

[[Page 128]]



  Subpart AAAA_CAIR NOX Ozone Season Trading Program General Provisions

    Source: 70 FR 25382, May 12, 2005, unless otherwise noted.



Sec. 96.301  Purpose.

    This subpart and subparts BBBB through IIII establish the model rule 
comprising general provisions and the designated representative, 
permitting, allowance, monitoring, and opt-in provisions for the State 
Clean Air Interstate Rule (CAIR) NOX Ozone Season Trading 
Program, under section 110 of the Clean Air Act and Sec. 51.123 of this 
chapter, as a means of mitigating interstate transport of ozone and 
nitrogen oxides. The owner or operator of a unit or a source shall 
comply with the requirements of this subpart and subparts BBBB through 
IIII as a matter of federal law only if the State with jurisdiction over 
the unit and the source incorporates by reference such subparts or 
otherwise adopts the requirements of such subparts in accordance with 
Sec. 51.123(aa)(1) or (2), of this chapter, the State submits to the 
Administrator one or more revisions of the State implementation plan 
that include such adoption, and the Administrator approves such 
revisions. If the State adopts the requirements of such subparts in 
accordance with Sec. 51.123(aa)(1) or (2), (bb), or (dd) of this 
chapter, then the State authorizes the Administrator to assist the State 
in implementing the CAIR NOX Ozone Season Trading Program by 
carrying out the functions set forth for the Administrator in such 
subparts.



Sec. 96.302  Definitions.

    The terms used in this subpart and subparts BBBB through IIII shall 
have the meanings set forth in this section as follows:
    Account number means the identification number given by the 
Administrator to each CAIR NOX Ozone Season Allowance 
Tracking System account.
    Acid Rain emissions limitation means a limitation on emissions of 
sulfur dioxide or nitrogen oxides under the Acid Rain Program.
    Acid Rain Program means a multi-state sulfur dioxide and nitrogen 
oxides air pollution control and emission reduction program established 
by the Administrator under title IV of the CAA and parts 72 through 78 
of this chapter.
    Administrator means the Administrator of the United States 
Environmental Protection Agency or the Administrator's duly authorized 
representative.
    Allocate or allocation means, with regard to CAIR NOX 
Ozone Season allowances, the determination by a permitting authority or 
the Administrator of the amount of such CAIR NOX Ozone Season 
allowances to be initially credited to a CAIR NOX Ozone 
Season unit, a new unit set-aside, or other entity.
    Allowance transfer deadline means, for a control period, midnight of 
November 30 (if it is a business day), or midnight of the first business 
day thereafter (if November 30 is not a business day), immediately 
following the control period and is the deadline by which a CAIR 
NOX Ozone Season allowance transfer must be submitted for 
recordation in a CAIR NOX Ozone Season source's compliance 
account in order to be used to meet the source's CAIR NOX 
Ozone Season emissions limitation for such control period in accordance 
with Sec. 96.354.
    Alternate CAIR designated representative means, for a CAIR 
NOX Ozone Season source and each CAIR NOX Ozone 
Season unit at the source, the natural person who is authorized by the 
owners and operators of the source and all such units at the source, in 
accordance with subparts BBBB and IIII of this part, to act on behalf of 
the CAIR designated representative in matters pertaining to the CAIR 
NOX Ozone Season Trading Program. If the CAIR NOX 
Ozone Season 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 CAIR NOX Ozone Season source is also a CAIR 
SO2 source, then this natural person shall be the same person 
as the alternate CAIR designated representative under the CAIR 
SO2 Trading Program. If the CAIR NOX Ozone Season 
source is also subject to

[[Page 129]]

the Acid Rain Program, then this natural person shall be the same person 
as the alternate designated representative under the Acid Rain Program. 
If the CAIR NOX Ozone Season source is also subject to the Hg 
Budget Trading Program, then this natural person shall be the same 
person as the alternate Hg designated representative under the Hg Budget 
Trading Program.
    Automated data acquisition and handling system or DAHS means that 
component of the continuous emission monitoring system, or other 
emissions monitoring system approved for use under subpart HHHH of this 
part, designed to interpret and convert individual output signals from 
pollutant concentration monitors, flow monitors, diluent gas monitors, 
and other component parts of the monitoring system to produce a 
continuous record of the measured parameters in the measurement units 
required by subpart HHHH of this part.
    Biomass means--
    (1) Any organic material grown for the purpose of being converted to 
energy;
    (2) Any organic byproduct of agriculture that can be converted into 
energy; or
    (3) Any material that can be converted into energy and is 
nonmerchantable for other purposes, that is segregated from other 
nonmerchantable material, and that is;
    (i) A forest-related organic resource, including mill residues, 
precommercial thinnings, slash, brush, or byproduct from conversion of 
trees to merchantable material; or
    (ii) A wood material, including pallets, crates, dunnage, 
manufacturing and construction materials (other than pressure-treated, 
chemically-treated, or painted wood products), and landscape or right-
of-way tree trimmings.
    Boiler means an enclosed fossil- or other-fuel-fired combustion 
device used to produce heat and to transfer heat to recirculating water, 
steam, or other medium.
    Bottoming-cycle cogeneration unit means a cogeneration unit in which 
the energy input to the unit is first used to produce useful thermal 
energy and at least some of the reject heat from the useful thermal 
energy application or process is then used for electricity production.
    CAIR authorized account representative means, with regard to a 
general account, a responsible natural person who is authorized, in 
accordance with subparts BBBB, FFFF, and IIII of this part, to transfer 
and otherwise dispose of CAIR NOX Ozone Season allowances 
held in the general account and, with regard to a compliance account, 
the CAIR designated representative of the source.
    CAIR designated representative means, for a CAIR NOX 
Ozone Season source and each CAIR NOX Ozone Season unit at 
the source, the natural person who is authorized by the owners and 
operators of the source and all such units at the source, in accordance 
with subparts BBBB and IIII of this part, to represent and legally bind 
each owner and operator in matters pertaining to the CAIR NOX 
Ozone Season Trading Program. If the CAIR NOX Ozone Season 
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 CAIR NOX 
Ozone Season source is also a CAIR SO2 source, then this 
natural person shall be the same person as the CAIR designated 
representative under the CAIR SO2 Trading Program. If the 
CAIR NOX Ozone Season 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. If the CAIR 
NOX Ozone Season source is also subject to the Hg Budget 
Trading Program, then this natural person shall be the same person as 
the Hg designated representative under the Hg Budget Trading Program.
    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 this part 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

[[Page 130]]

a means of mitigating interstate transport of fine particulates and 
nitrogen oxides.
    CAIR NOX Ozone Season allowance means a limited authorization issued 
by a permitting authority or the Administrator under provisions of a 
State implementation plan that are approved under Sec. 51.123(aa)(1) or 
(2) (and (bb)(1)), (bb)(2), (dd), or (ee) of this chapter, or under 
subpart EEEE of part 97 or Sec. 97.388 of this chapter, to emit one ton 
of nitrogen oxides during a control period of the specified calendar 
year for which the authorization is allocated or of any calendar year 
thereafter under the CAIR NOX Ozone Season Trading Program or 
a limited authorization issued by a permitting authority for a control 
period during 2003 through 2008 under the NOX Budget Trading 
Program in accordance with Sec. 51.121(p) of this chapter to emit one 
ton of nitrogen oxides during a control period, provided that the 
provision in Sec. 51.121(b)(2)(ii)(E) of this chapter shall not be used 
in applying this definition and the limited authorization shall not have 
been used to meet the allowance-holding requirement under the 
NOX Budget Trading Program. An authorization to emit nitrogen 
oxides that is not issued under provisions of a State implementation 
plan approved under Sec. 51.123(aa)(1) or (2) (and (bb)(1)), (bb)(2), 
(dd), or (ee) of this chapter or subpart EEEE of part 97 or Sec. 97.388 
of this chapter or under the NOX Budget Trading Program as 
described in the prior sentence shall not be a CAIR NOX Ozone 
Season allowance.
    CAIR NOX Ozone Season allowance deduction or deduct CAIR NOX Ozone 
Season allowances means the permanent withdrawal of CAIR NOX 
Ozone Season allowances by the Administrator from a compliance account, 
e.g., in order to account for a specified number of tons of total 
nitrogen oxides emissions from all CAIR NOX Ozone Season 
units at a CAIR NOX Ozone Season source for a control period, 
determined in accordance with subpart HHHH of this part, or to account 
for excess emissions.
    CAIR NOX Ozone Season Allowance Tracking System means the system by 
which the Administrator records allocations, deductions, and transfers 
of CAIR NOX Ozone Season allowances under the CAIR 
NOX Ozone Season Trading Program. Such allowances will be 
allocated, held, deducted, or transferred only as whole allowances.
    CAIR NOX Ozone Season Allowance Tracking System account means an 
account in the CAIR NOX Ozone Season Allowance Tracking 
System established by the Administrator for purposes of recording the 
allocation, holding, transferring, or deducting of CAIR NOX 
Ozone Season allowances.
    CAIR NOX Ozone Season allowances held or hold CAIR NOX Ozone Season 
allowances means the CAIR NOX Ozone Season allowances 
recorded by the Administrator, or submitted to the Administrator for 
recordation, in accordance with subparts FFFF, GGGG, and IIII of this 
part, in a CAIR NOX Ozone Season Allowance Tracking System 
account.
    CAIR NOX Ozone Season emissions limitation means, for a CAIR 
NOX Ozone Season source, the tonnage equivalent, in 
NOX emissions in a control period, of the CAIR NOX 
Ozone Season allowances available for deduction for the source under 
Sec. 96.354(a) and (b) for the control period.
    CAIR NOX Ozone Season Trading Program means a multi-state nitrogen 
oxides air pollution control and emission reduction program approved and 
administered by the Administrator in accordance with subparts AAAA 
through IIII of this part and 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 Ozone Season source means a source that includes one or 
more CAIR NOX Ozone Season units.
    CAIR NOX Ozone Season unit means a unit that is subject to the CAIR 
NOX Ozone Season Trading Program under Sec. 96.304 and, 
except for purposes of Sec. 96.305 and subpart EEEE of this part, a 
CAIR NOX Ozone Season opt-in unit under subpart IIII of this 
part.
    CAIR NOX source means a source that is subject to the CAIR 
NOX Annual Trading Program.

[[Page 131]]

    CAIR permit means the legally binding and federally enforceable 
written document, or portion of such document, issued by the permitting 
authority under subpart CCCC of this part, including any permit 
revisions, specifying the CAIR NOX Ozone Season Trading 
Program requirements applicable to a CAIR NOX Ozone Season 
source, to each CAIR NOX Ozone Season unit at the source, and 
to the owners and operators and the CAIR designated representative of 
the source and each such unit.
    CAIR SO2 source means a source that 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 this part 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.
    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.
    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:
    (1) Except for purposes of subpart EEEE of this part, combusting any 
amount of coal or coal-derived fuel, alone or in combination with any 
amount of any other fuel, during any year; or
    (2) For purposes of subpart EEEE of this part, combusting any amount 
of coal or coal-derived fuel, alone or in combination with any amount of 
any other fuel, during a specified year.
    Cogeneration unit means a stationary, fossil-fuel-fired boiler or 
stationary, fossil-fuel-fired combustion turbine:
    (1) Having equipment used to produce electricity and useful thermal 
energy for industrial, commercial, heating, or cooling purposes through 
the sequential use of energy; and
    (2) Producing during the 12-month period starting on the date the 
unit first produces electricity and during any calendar year after 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;
    (3) Provided that the total energy input under paragraphs (2)(i)(B) 
and (2)(ii) of this definition shall equal the unit's total energy input 
from all fuel except biomass if the unit is a boiler.
    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. 96.305 and Sec. 96.384(h).
    (i) For a unit that is a CAIR NOX Ozone Season unit under 
Sec. 96.304 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

[[Page 132]]

commercial operation of the unit, which shall continue to be treated as 
the same unit.
    (ii) For a unit that is a CAIR NOX Ozone Season unit 
under Sec. 96.304 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. 96.305, for a unit that is not a CAIR NOX 
Ozone Season unit under Sec. 96.304 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 CAIR 
NOX Ozone Season unit under Sec. 96.304.
    (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, except as provided in Sec. 96.384(h).
    (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, except as provided in Sec. 96.384(h).
    Common stack means a single flue through which emissions from 2 or 
more units are exhausted.
    Compliance account means a CAIR NOX Ozone Season 
Allowance Tracking System account, established by the Administrator for 
a CAIR NOX Ozone Season source under subpart FFFF or IIII of 
this part, in which any CAIR NOX Ozone Season allowance 
allocations for the CAIR NOX Ozone Season units at the source 
are initially recorded and in which are held any CAIR NOX 
Ozone Season allowances available for use for a control period in order 
to meet the source's CAIR NOX Ozone Season emissions 
limitation in accordance with Sec. 96.354.
    Continuous emission monitoring system or CEMS means the equipment 
required under subpart HHHH of this part to sample, analyze, measure, 
and provide, by means of readings recorded at least once every 15 
minutes (using an automated data acquisition and handling system 
(DAHS)), a permanent record of nitrogen oxides emissions, stack gas 
volumetric flow rate, stack gas moisture content, and oxygen or carbon 
dioxide concentration (as applicable), in a manner consistent with part 
75 of this chapter. The following systems are the principal types of 
continuous emission monitoring systems required under subpart HHHH of 
this part:

[[Page 133]]

    (1) A flow monitoring system, consisting of a stack flow rate 
monitor and an automated data acquisition and handling system and 
providing a permanent, continuous record of stack gas volumetric flow 
rate, in standard cubic feet per hour (scfh);
    (2) A nitrogen oxides concentration monitoring system, consisting of 
a NOX pollutant concentration monitor and an automated data 
acquisition and handling system and providing a permanent, continuous 
record of NOX emissions, in parts per million (ppm);
    (3) A nitrogen oxides emission rate (or NOX-diluent) 
monitoring system, consisting of a NOX pollutant 
concentration monitor, a diluent gas (CO2 or O2) 
monitor, and an automated data acquisition and handling system and 
providing a permanent, continuous record of NOX 
concentration, in parts per million (ppm), diluent gas concentration, in 
percent CO2 or O2, and NOX emission 
rate, in pounds per million British thermal units (lb/mmBtu);
    (4) A moisture monitoring system, as defined in Sec. 75.11(b)(2) of 
this chapter and providing a permanent, continuous record of the stack 
gas moisture content, in percent H2O;
    (5) A carbon dioxide monitoring system, consisting of a 
CO2 pollutant concentration monitor (or an oxygen monitor 
plus suitable mathematical equations from which the CO2 
concentration is derived) and an automated data acquisition and handling 
system and providing a permanent, continuous record of CO2 
emissions, in percent CO2; and
    (6) An oxygen monitoring system, consisting of an O2 
concentration monitor and an automated data acquisition and handling 
system and providing a permanent, continuous record of O2 in 
percent O2.
    Control period or ozone season means the period beginning May 1 of a 
calendar year, except as provided in Sec. 96.306(c)(2), and ending on 
September 30 of the same year, inclusive.
    Emissions means air pollutants exhausted from a unit or source into 
the atmosphere, as measured, recorded, and reported to the Administrator 
by the CAIR designated representative and as determined by the 
Administrator in accordance with subpart HHHH of this part.
    Excess emissions means any ton of nitrogen oxides emitted by the 
CAIR NOX Ozone Season units at a CAIR NOX Ozone 
Season source during a control period that exceeds the CAIR 
NOX Ozone Season emissions limitation for the source.
    Fossil fuel means natural gas, petroleum, coal, or any form of 
solid, liquid, or gaseous fuel derived from such material.
    Fossil-fuel-fired means, with regard to a unit, combusting any 
amount of fossil fuel in any calendar year.
    Fuel oil means any petroleum-based fuel (including diesel fuel or 
petroleum derivatives such as oil tar) and any recycled or blended 
petroleum products or petroleum by-products used as a fuel whether in a 
liquid, solid, or gaseous state.
    General account means a CAIR NOX Ozone Season Allowance 
Tracking System account, established under subpart FFFF of this part, 
that is not a compliance account.
    Generator means a device that produces electricity.
    Gross electrical output means, with regard to a cogeneration unit, 
electricity made available for use, including any such electricity used 
in the power production process (which process includes, but is not 
limited to, any on-site processing or treatment of fuel combusted at the 
unit and any on-site emission controls).
    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 CAIR designated 
representative and determined by the Administrator in accordance with 
subpart HHHH of this part and excluding the heat derived from preheated 
combustion air, recirculated flue gases, or exhaust from other sources.
    Heat input rate means the amount of heat input (in mmBtu) divided by 
unit operating time (in hr) or, with regard to a specific fuel, the 
amount of heat input attributed to the fuel (in mmBtu)

[[Page 134]]

divided by the unit operating time (in hr) during which the unit 
combusts the fuel.
    Life-of-the-unit, firm power contractual arrangement means a unit 
participation power sales agreement under which a utility or industrial 
customer reserves, or is entitled to receive, a specified amount or 
percentage of nameplate capacity and associated energy generated by any 
specified unit and pays its proportional amount of such unit's total 
costs, pursuant to a contract:
    (1) For the life of the unit;
    (2) For a cumulative term of no less than 30 years, including 
contracts that permit an election for early termination; or
    (3) For a period no less than 25 years or 70 percent of the economic 
useful life of the unit determined as of the time the unit is built, 
with option rights to purchase or release some portion of the nameplate 
capacity and associated energy generated by the unit at the end of the 
period.
    Maximum design heat input 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 subpart HHHH of this part, including a continuous 
emissions monitoring system, an alternative monitoring system, or an 
excepted monitoring system under part 75 of this chapter.
    Most stringent State or Federal NOX emissions limitation 
means, with regard to a unit, the lowest NOX emissions 
limitation (in terms of lb/mmBtu) that is applicable to the unit under 
State or Federal law, regardless of the averaging period to which the 
emissions limitation applies.
    Nameplate capacity means, 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.
    Oil-fired means, for purposes of subpart EEEE of this part, 
combusting fuel oil for more than 15.0 percent of the annual heat input 
in a specified year and not qualifying as coal-fired.
    Operator means any person who operates, controls, or supervises a 
CAIR NOX Ozone Season unit or a CAIR NOX Ozone 
Season source and shall include, but not be limited to, any holding 
company, utility system, or plant manager of such a unit or source.
    Owner means any of the following persons:
    (1) With regard to a CAIR NOX Ozone Season source or a 
CAIR NOX Ozone Season unit at a source, respectively:
    (i) Any holder of any portion of the legal or equitable title in a 
CAIR NOX Ozone Season unit at the source or the CAIR 
NOX Ozone Season unit;
    (ii) Any holder of a leasehold interest in a CAIR NOX 
Ozone Season unit at the source or the CAIR NOX Ozone Season 
unit; or
    (iii) Any purchaser of power from a CAIR NOX Ozone Season 
unit at the source or the CAIR NOX Ozone Season 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 CAIR 
NOX Ozone Season unit; or
    (2) With regard to any general account, any person who has an 
ownership interest with respect to the CAIR NOX Ozone Season 
allowances held in the general account and who is subject to the binding 
agreement for the CAIR authorized account representative to

[[Page 135]]

represent the person's ownership interest with respect to CAIR 
NOX Ozone Season allowances.
    Permitting authority means the State air pollution control agency, 
local agency, other State agency, or other agency authorized by the 
Administrator to issue or revise permits to meet the requirements of the 
CAIR NOX Ozone Season 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 CAIR 
NOX Ozone Season allowances, the movement of CAIR 
NOX Ozone Season allowances by the Administrator into or 
between CAIR NOX Ozone Season 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.
    Serial number means, for a CAIR NOX Ozone Season 
allowance, the unique identification number assigned to each CAIR 
NOX Ozone Season allowance by the Administrator.
    Sequential use of energy means:
    (1) For a topping-cycle cogeneration unit, the use of reject heat 
from electricity production in a useful thermal energy application or 
process; or
    (2) For a bottoming-cycle cogeneration unit, the use of reject heat 
from useful thermal energy application or process in electricity 
production.
    Solid waste incineration unit means a stationary, fossil-fuel-fired 
boiler or stationary, fossil-fuel-fired combustion turbine that is a 
``solid waste incineration unit'' as defined in section 129(g)(1) of the 
Clean Air Act.
    Source means all buildings, structures, or installations located in 
one or more contiguous or adjacent properties under common control of 
the same person or persons. For purposes of section 502(c) of the Clean 
Air Act, a ``source,'' including a ``source'' with multiple units, shall 
be considered a single ``facility.''
    State means one of the States or the District of Columbia that 
adopts the CAIR NOX Ozone Season Trading Program pursuant to 
Sec. 51.123(aa)(1) or (2), (bb), or (dd) of this chapter.
    Submit or serve means to send or transmit a document, information, 
or correspondence to the person specified in accordance with the 
applicable regulation:
    (1) In person;

[[Page 136]]

    (2) By United States Postal Service; or
    (3) By other means of dispatch or transmission and delivery. 
Compliance with any ``submission'' or ``service'' deadline shall be 
determined by the date of dispatch, transmission, or mailing and not the 
date of receipt.
    Title V operating permit means a permit issued under title V of the 
Clean Air Act and part 70 or part 71 of this chapter.
    Title V operating permit regulations means the regulations that the 
Administrator has approved or issued as meeting the requirements of 
title V of the Clean Air Act and part 70 or 71 of this chapter.
    Ton means 2,000 pounds. For the purpose of determining compliance 
with the CAIR NOX Ozone Season emissions limitation, total 
tons of nitrogen oxides emissions for a control period shall be 
calculated as the sum of all recorded hourly emissions (or the mass 
equivalent of the recorded hourly emission rates) in accordance with 
subpart HHHH of this part, but with any remaining fraction of a ton 
equal to or greater than 0.50 tons deemed to equal one ton and any 
remaining fraction of a ton less than 0.50 tons deemed to equal zero 
tons.
    Topping-cycle cogeneration unit means a cogeneration unit in which 
the energy input to the unit is first used to produce 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. Each form of energy supplied 
shall be measured by the lower heating value of that form of energy 
calculated as follows:

LHV = HHV-10.55(W + 9H)

Where:

LHV = lower heating value of fuel in Btu/lb,
HHV = higher heating value of fuel in Btu/lb,
W = Weight % of moisture in fuel, and
H = Weight % of hydrogen in fuel.

    Total energy output means, with regard to a cogeneration unit, the 
sum of useful power and useful thermal energy produced by the 
cogeneration unit.
    Unit means a stationary, fossil-fuel-fired boiler or combustion 
turbine or other stationary, fossil-fuel-fired combustion device.
    Unit operating day means a calendar day in which a unit combusts any 
fuel.
    Unit operating hour or hour of unit operation means an hour in which 
a unit combusts any fuel.
    Useful power means, with regard to a cogeneration unit, electricity 
or mechanical energy made available for use, excluding any such energy 
used in the power production process (which process includes, but is not 
limited to, any on-site processing or treatment of fuel combusted at the 
unit and any 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.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25390, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006; 72 FR 59206, Oct. 19, 2007]



Sec. 96.303  Measurements, abbreviations, and acronyms.

    Measurements, abbreviations, and acronyms used in this subpart and 
subparts BBBB through IIII 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

[[Page 137]]

NOX--nitrogen oxides
O2--oxygen
ppm--parts per million
scfh--standard cubic feet per hour
SO2--sulfur dioxide
yr--year

[71 FR 25392, Apr. 28, 2006]



Sec. 96.304  Applicability.

    (a) Except as provided in paragraph (b) of this section:
    (1) The following units in a State shall be CAIR NOX 
Ozone Season units, and any source that includes one or more such units 
shall be a CAIR NOX Ozone Season source, subject to the 
requirements of this subpart and subparts BBBB through HHHH of this 
part: any stationary, fossil-fuel-fired boiler or stationary, fossil-
fuel-fired combustion turbine serving at any time, since the later of 
November 15, 1990 or the start-up of the unit's combustion chamber, a 
generator with nameplate capacity of more than 25 MWe producing 
electricity for sale.
    (2) If a stationary boiler or stationary combustion turbine that, 
under paragraph (a)(1) of this section, is not a CAIR NOX 
Ozone Season unit begins to combust fossil fuel or to serve a generator 
with nameplate capacity of more than 25 MWe producing electricity for 
sale, the unit shall become a CAIR NOX Ozone Season unit as 
provided in paragraph (a)(1) of this section on the first date on which 
it both combusts fossil fuel and serves such generator.
    (b) The units in a State that meet the requirements set forth in 
paragraph (b)(1)(i), (b)(2)(i), or (b)(2)(ii) of this section shall not 
be CAIR NOX Ozone Season units:
    (1)(i) Any unit that is a CAIR NOX Ozone Season 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 CAIR NOX Ozone Season 
unit starting on the earlier of January 1 after the first calendar year 
during which the unit first no longer qualifies as a cogeneration unit 
or January 1 after the first calendar year during which the unit no 
longer meets the requirements of paragraph (b)(1)(i)(B) of this section.
    (2)(i) Any unit that is a CAIR NOX Ozone Season unit 
under paragraph (a)(1) or (2) of this section commencing operation 
before January 1, 1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for 
1985-1987 exceeding 80 percent (on a Btu basis) and an average annual 
fuel consumption of non-fossil fuel for any 3 consecutive calendar years 
after 1990 exceeding 80 percent (on a Btu basis).
    (ii) Any unit that is a CAIR NOX Ozone Season unit under 
paragraph (a)(1) or (2) of this section commencing operation on or after 
January 1, 1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for 
the first 3 calendar years of operation exceeding 80 percent (on a Btu 
basis) and an average annual fuel consumption of non-fossil fuel for any 
3 consecutive calendar years after 1990 exceeding 80 percent (on a Btu 
basis).
    (iii) If a unit qualifies as a solid waste incineration unit and 
meets the requirements of paragraph (b)(2)(i) or (ii) of this section 
for at least 3 consecutive calendar years, but subsequently no longer 
meets all such requirements, the unit shall become a CAIR NOX 
Ozone Season unit starting on the earlier of January 1 after the first 
calendar year during which the unit first no longer qualifies as a solid 
waste incineration unit or January 1 after the first 3 consecutive 
calendar

[[Page 138]]

years after 1990 for which the unit has an average annual fuel 
consumption of fossil fuel of 20 percent or more.

[71 FR 25392, Apr. 28, 2006 as amended at 71 FR 74794, Dec. 13, 2006]



Sec. 96.305  Retired unit exemption.

    (a)(1) Any CAIR NOX Ozone Season unit that is permanently 
retired and is not a CAIR NOX Ozone Season opt-in unit under 
subpart IIII of this part shall be exempt from the CAIR NOX 
Ozone Season Trading Program, except for the provisions of this section, 
Sec. 96.302, Sec. 96.303, Sec. 96.304, Sec. 96.306(c)(4) through 
(7), Sec. 96.307, Sec. 96.308, and subparts BBBB and EEEE through GGGG 
of this part.
    (2) The exemption under paragraph (a)(1) of this section shall 
become effective the day on which the CAIR NOX Ozone Season 
unit is permanently retired. Within 30 days of the unit's permanent 
retirement, the CAIR designated representative shall submit a statement 
to the permitting authority otherwise responsible for administering any 
CAIR permit for the unit and shall submit a copy of the statement to the 
Administrator. The statement shall state, in a format prescribed by the 
permitting authority, that the unit was permanently retired on a 
specific date and will comply with the requirements of paragraph (b) of 
this section.
    (3) After receipt of the statement under paragraph (a)(2) of this 
section, the permitting authority will amend any permit under subpart 
CCCC of this part covering the source at which the unit is located to 
add the provisions and requirements of the exemption under paragraphs 
(a)(1) and (b) of this section.
    (b) Special provisions. (1) A unit exempt under paragraph (a) of 
this section shall not emit any nitrogen oxides, starting on the date 
that the exemption takes effect.
    (2) The permitting authority will allocate CAIR NOX Ozone 
Season allowances under subpart EEEE of this part to a unit exempt under 
paragraph (a) of this section.
    (3) For a period of 5 years from the date the records are created, 
the owners and operators of a unit exempt under paragraph (a) of this 
section shall retain, at the source that includes the unit, records 
demonstrating that the unit is permanently retired. The 5-year period 
for keeping records may be extended for cause, at any time before the 
end of the period, in writing by the permitting authority or the 
Administrator. The owners and operators bear the burden of proof that 
the unit is permanently retired.
    (4) The owners and operators and, to the extent applicable, the CAIR 
designated representative of a unit exempt under paragraph (a) of this 
section shall comply with the requirements of the CAIR NOX 
Ozone Season 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 
CAIR designated representative of the source submits a complete CAIR 
permit application under Sec. 96.322 for the unit not less than 18 
months (or such lesser time provided by the permitting authority) before 
the later of January 1, 2009 or the date on which the unit resumes 
operation.
    (6) On the earlier of the following dates, a unit exempt under 
paragraph (a) of this section shall lose its exemption:
    (i) The date on which the CAIR designated representative submits a 
CAIR permit application for the unit under paragraph (b)(5) of this 
section;
    (ii) The date on which the CAIR designated representative is 
required under paragraph (b)(5) of this section to submit a CAIR permit 
application for the unit; or
    (iii) The date on which the unit resumes operation, if the CAIR 
designated representative is not required to submit a CAIR permit 
application for the unit.
    (7) For the purpose of applying monitoring, reporting, and 
recordkeeping requirements under subpart HHHH of this part, a unit that 
loses its exemption under paragraph (a) of this section shall be treated 
as a unit that commences commercial operation on the

[[Page 139]]

first date on which the unit resumes operation.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25393, Apr. 28, 2006]



Sec. 96.306  Standard requirements.

    (a) Permit requirements. (1) The CAIR designated representative of 
each CAIR NOX Ozone Season source required to have a title V 
operating permit and each CAIR NOX Ozone Season unit required 
to have a title V operating permit at the source shall:
    (i) Submit to the permitting authority a complete CAIR permit 
application under Sec. 96.322 in accordance with the deadlines 
specified in Sec. 96.321; and
    (ii) Submit in a timely manner any supplemental information that the 
permitting authority determines is necessary in order to review a CAIR 
permit application and issue or deny a CAIR permit.
    (2) The owners and operators of each CAIR NOX Ozone 
Season source required to have a title V operating permit and each CAIR 
NOX Ozone Season unit required to have a title V operating 
permit at the source shall have a CAIR permit issued by the permitting 
authority under subpart CCCC of this part for the source and operate the 
source and the unit in compliance with such CAIR permit.
    (3) Except as provided in subpart IIII of this part, the owners and 
operators of a CAIR NOX Ozone Season source that is not 
otherwise required to have a title V operating permit and each CAIR 
NOX Ozone Season unit that is not otherwise required to have 
a title V operating permit are not required to submit a CAIR permit 
application, and to have a CAIR permit, under subpart CCCC of this part 
for such CAIR NOX Ozone Season source and such CAIR 
NOX Ozone Season unit.
    (b) Monitoring, reporting, and recordkeeping requirements. (1) The 
owners and operators, and the CAIR designated representative, of each 
CAIR NOX Ozone Season source and each CAIR NOX 
Ozone Season unit at the source shall comply with the monitoring, 
reporting, and recordkeeping requirements of subpart HHHH of this part.
    (2) The emissions measurements recorded and reported in accordance 
with subpart HHHH of this part shall be used to determine compliance by 
each CAIR NOX Ozone Season source with the CAIR 
NOX Ozone Season emissions limitation under paragraph (c) of 
this section.
    (c) Nitrogen oxides ozone season emission requirements. (1) As of 
the allowance transfer deadline for a control period, the owners and 
operators of each CAIR NOX Ozone Season source and each CAIR 
NOX Ozone Season unit at the source shall hold, in the 
source's compliance account, CAIR NOX Ozone Season allowances 
available for compliance deductions for the control period under Sec. 
96.354(a) in an amount not less than the tons of total nitrogen oxides 
emissions for the control period from all CAIR NOX Ozone 
Season units at the source, as determined in accordance with subpart 
HHHH of this part.
    (2) A CAIR NOX Ozone Season unit shall be subject to the 
requirements under paragraph (c)(1) of this section for the control 
period starting on the later of May 1, 2009 or the deadline for meeting 
the unit's monitor certification requirements under Sec. 96.370(b)(1), 
(2), (3), or (7) and for each control period thereafter.
    (3) A CAIR NOX Ozone Season allowance shall not be 
deducted, for compliance with the requirements under paragraph (c)(1) of 
this section, for a control period in a calendar year before the year 
for which the CAIR NOX Ozone Season allowance was allocated.
    (4) CAIR NOX Ozone Season allowances shall be held in, 
deducted from, or transferred into or among CAIR NOX Ozone 
Season Allowance Tracking System accounts in accordance with subparts 
FFFF, GGGG, and IIII of this part.
    (5) A CAIR NOX Ozone Season allowance is a limited 
authorization to emit one ton of nitrogen oxides in accordance with the 
CAIR NOX Ozone Season Trading Program. No provision of the 
CAIR NOX Ozone Season Trading Program, the CAIR permit 
application, the CAIR permit, or an exemption under Sec. 96.305 and no 
provision of law shall be construed to limit the authority of the State 
or the United States to terminate or limit such authorization.
    (6) A CAIR NOX Ozone Season allowance does not constitute 
a property right.

[[Page 140]]

    (7) Upon recordation by the Administrator under subpart FFFF, GGGG, 
or IIII of this part, every allocation, transfer, or deduction of a CAIR 
NOX Ozone Season allowance to or from a CAIR NOX 
Ozone Season source's compliance account is incorporated automatically 
in any CAIR permit of the source.
    (d) Excess emissions requirements. If a CAIR NOX Ozone 
Season source emits nitrogen oxides during any control period in excess 
of the CAIR NOX Ozone Season emissions limitation, then:
    (1) The owners and operators of the source and each CAIR 
NOX Ozone Season unit at the source shall surrender the CAIR 
NOX Ozone Season allowances required for deduction under 
Sec. 96.354(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 ton of such excess emissions and each day of such control 
period shall constitute a separate violation of this subpart, the Clean 
Air Act, and applicable State law.
    (e) Recordkeeping and reporting requirements. (1) Unless otherwise 
provided, the owners and operators of the CAIR NOX Ozone 
Season source and each CAIR NOX Ozone Season 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. 96.313 for the 
CAIR designated representative for the source and each CAIR 
NOX Ozone Season 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. 96.313 changing the CAIR designated 
representative.
    (ii) All emissions monitoring information, in accordance with 
subpart HHHH of this part, provided that to the extent that subpart HHHH 
of this part provides for a 3-year period for recordkeeping, the 3-year 
period shall apply.
    (iii) Copies of all reports, compliance certifications, and other 
submissions and all records made or required under the CAIR 
NOX Ozone Season Trading Program.
    (iv) Copies of all documents used to complete a CAIR permit 
application and any other submission under the CAIR NOX Ozone 
Season Trading Program or to demonstrate compliance with the 
requirements of the CAIR NOX Ozone Season Trading Program.
    (2) The CAIR designated representative of a CAIR NOX 
Ozone Season source and each CAIR NOX Ozone Season unit at 
the source shall submit the reports required under the CAIR 
NOX Ozone Season Trading Program, including those under 
subpart HHHH of this part.
    (f) Liability. (1) Each CAIR NOX Ozone Season source and 
each CAIR NOX Ozone Season unit shall meet the requirements 
of the CAIR NOX Ozone Season Trading Program.
    (2) Any provision of the CAIR NOX Ozone Season Trading 
Program that applies to a CAIR NOX Ozone Season source or the 
CAIR designated representative of a CAIR NOX Ozone Season 
source shall also apply to the owners and operators of such source and 
of the CAIR NOX Ozone Season units at the source.
    (3) Any provision of the CAIR NOX Ozone Season Trading 
Program that applies to a CAIR NOX Ozone Season unit or the 
CAIR designated representative of a CAIR NOX Ozone Season 
unit shall also apply to the owners and operators of such unit.
    (g) Effect on other authorities. No provision of the CAIR 
NOX Ozone Season Trading Program, a CAIR permit application, 
a CAIR permit, or an exemption under Sec. 96.305 shall be construed as 
exempting or excluding the owners and operators, and the CAIR designated 
representative, of a CAIR NOX Ozone Season source or CAIR 
NOX Ozone Season unit from compliance with any other 
provision of the applicable, approved State implementation plan, a

[[Page 141]]

federally enforceable permit, or the Clean Air Act.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25393, Apr. 28, 2006]



Sec. 96.307  Computation of time.

    (a) Unless otherwise stated, any time period scheduled, under the 
CAIR NOX Ozone Season Trading Program, to begin on the 
occurrence of an act or event shall begin on the day the act or event 
occurs.
    (b) Unless otherwise stated, any time period scheduled, under the 
CAIR NOX Ozone Season 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 CAIR NOX Ozone Season Trading Program, falls on a 
weekend or a State or Federal holiday, the time period shall be extended 
to the next business day.



Sec. 96.308  Appeal procedures.

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



 Subpart BBBB_CAIR Designated Representative for CAIR NOX Ozone Season 
                                 Sources

    Source: 70 FR 25382, May 12, 2005, unless otherwise noted.



Sec. 96.310  Authorization and responsibilities of CAIR designated
representative.

    (a) Except as provided under Sec. 96.311, each CAIR NOX 
Ozone Season source, including all CAIR NOX Ozone Season 
units at the source, shall have one and only one CAIR designated 
representative, with regard to all matters under the CAIR NOX 
Ozone Season Trading Program concerning the source or any CAIR 
NOX Ozone Season unit at the source.
    (b) The CAIR designated representative of the CAIR NOX 
Ozone Season source shall be selected by an agreement binding on the 
owners and operators of the source and all CAIR NOX Ozone 
Season units at the source and shall act in accordance with the 
certification statement in Sec. 96.313(a)(4)(iv).
    (c) Upon receipt by the Administrator of a complete certificate of 
representation under Sec. 96.313, the CAIR designated representative of 
the source shall represent and, by his or her representations, actions, 
inactions, or submissions, legally bind each owner and operator of the 
CAIR NOX Ozone Season source represented and each CAIR 
NOX Ozone Season unit at the source in all matters pertaining 
to the CAIR NOX Ozone Season Trading Program, notwithstanding 
any agreement between the CAIR designated representative and such owners 
and operators. The owners and operators shall be bound by any decision 
or order issued to the CAIR designated representative by the permitting 
authority, the Administrator, or a court regarding the source or unit.
    (d) No CAIR permit will be issued, no emissions data reports will be 
accepted, and no CAIR NOX Ozone Season Allowance Tracking 
System account will be established for a CAIR NOX Ozone 
Season unit at a source, until the Administrator has received a complete 
certificate of representation under Sec. 96.313 for a CAIR designated 
representative of the source and the CAIR NOX Ozone Season 
units at the source.
    (e)(1) Each submission under the CAIR NOX Ozone Season 
Trading Program shall be submitted, signed, and certified by the CAIR 
designated representative for each CAIR NOX Ozone Season 
source on behalf of which the submission is made. Each such submission 
shall include the following certification statement by the CAIR 
designated representative: ``I am authorized to make this submission on 
behalf of the owners and operators of the source or units for which the 
submission is made. I certify under penalty of law that I have 
personally examined, and am familiar with, the statements and 
information submitted in this document and all its attachments. Based on 
my inquiry of those individuals with primary responsibility for 
obtaining the information, I certify that the statements and information 
are to the best of my knowledge and belief true, accurate, and complete. 
I am aware that there are significant penalties for

[[Page 142]]

submitting false statements and information or omitting required 
statements and information, including the possibility of fine or 
imprisonment.''
    (2) The permitting authority and the Administrator will accept or 
act on a submission made on behalf of owner or operators of a CAIR 
NOX Ozone Season source or a CAIR NOX Ozone Season 
unit only if the submission has been made, signed, and certified in 
accordance with paragraph (e)(1) of this section.



Sec. 96.311  Alternate CAIR designated representative.

    (a) A certificate of representation under Sec. 96.313 may designate 
one and only one alternate CAIR designated representative, who may act 
on behalf of the CAIR designated representative. The agreement by which 
the alternate CAIR designated representative is selected shall include a 
procedure for authorizing the alternate CAIR designated representative 
to act in lieu of the CAIR designated representative.
    (b) Upon receipt by the Administrator of a complete certificate of 
representation under Sec. 96.313, any representation, action, inaction, 
or submission by the alternate CAIR designated representative shall be 
deemed to be a representation, action, inaction, or submission by the 
CAIR designated representative.
    (c) Except in this section and Sec. Sec. 96.302, 96.310(a) and (d), 
96.312, 96.313, 96.315, 96.351, and 96.382 whenever the term ``CAIR 
designated representative'' is used in subparts AAAA through IIII of 
this part, the term shall be construed to include the CAIR designated 
representative or any alternate CAIR designated representative.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25393, Apr. 28, 2006]



Sec. 96.312  Changing CAIR designated representative and alternate
CAIR designated representative; changes in owners and operators.

    (a) Changing CAIR designated representative. The CAIR designated 
representative may be changed at any time upon receipt by the 
Administrator of a superseding complete certificate of representation 
under Sec. 96.313. Notwithstanding any such change, all 
representations, actions, inactions, and submissions by the previous 
CAIR designated representative before the time and date when the 
Administrator receives the superseding certificate of representation 
shall be binding on the new CAIR designated representative and the 
owners and operators of the CAIR NOX Ozone Season source and 
the CAIR NOX Ozone Season units at the source.
    (b) Changing alternate CAIR designated representative. The alternate 
CAIR designated representative may be changed at any time upon receipt 
by the Administrator of a superseding complete certificate of 
representation under Sec. 96.313. Notwithstanding any such change, all 
representations, actions, inactions, and submissions by the previous 
alternate CAIR designated representative before the time and date when 
the Administrator receives the superseding certificate of representation 
shall be binding on the new alternate CAIR designated representative and 
the owners and operators of the CAIR NOX Ozone Season source 
and the CAIR NOX Ozone Season units at the source.
    (c) Changes in owners and operators. (1) In the event an owner or 
operator of a CAIR NOX Ozone Season source or a CAIR 
NOX Ozone Season unit is not included in the list of owners 
and operators in the certificate of representation under Sec. 96.313, 
such owner or operator shall be deemed to be subject to and bound by the 
certificate of representation, the representations, actions, inactions, 
and submissions of the CAIR designated representative and any alternate 
CAIR designated representative of the source or unit, and the decisions 
and orders of the permitting authority, the Administrator, or a court, 
as if the owner or operator were included in such list.
    (2) Within 30 days following any change in the owners and operators 
of a CAIR NOX Ozone Season source or a CAIR NOX 
Ozone Season unit, including the addition of a new owner or operator, 
the CAIR designated representative or any alternate CAIR designated 
representative shall submit a revision to the certificate of 
representation

[[Page 143]]

under Sec. 96.313 amending the list of owners and operators to include 
the change.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25393, Apr. 28, 2006]



Sec. 96.313  Certificate of representation.

    (a) A complete certificate of representation for a CAIR designated 
representative or an alternate CAIR designated representative shall 
include the following elements in a format prescribed by the 
Administrator:
    (1) Identification of the CAIR NOX Ozone Season source, 
and each CAIR NOX Ozone Season unit at the source, for which 
the certificate of representation is submitted, including identification 
and nameplate capacity of each generator served by each such unit.
    (2) The name, address, e-mail address (if any), telephone number, 
and facsimile transmission number (if any) of the CAIR designated 
representative and any alternate CAIR designated representative.
    (3) A list of the owners and operators of the CAIR NOX 
Ozone Season source and of each CAIR NOX Ozone Season unit at 
the source.
    (4) The following certification statements by the CAIR designated 
representative and any alternate CAIR designated representative--
    (i) ``I certify that I was selected as the CAIR designated 
representative or alternate CAIR designated representative, as 
applicable, by an agreement binding on the owners and operators of the 
source and each CAIR NOX Ozone Season unit at the source.''
    (ii) ``I certify that I have all the necessary authority to carry 
out my duties and responsibilities under the CAIR NOX Ozone 
Season Trading Program on behalf of the owners and operators of the 
source and of each CAIR NOX Ozone Season unit at the source 
and that each such owner and operator shall be fully bound by my 
representations, actions, inactions, or submissions.''
    (iii) ``I certify that the owners and operators of the source and of 
each CAIR NOX Ozone Season unit at the source shall be bound 
by any order issued to me by the Administrator, the permitting 
authority, or a court regarding the source or unit.''
    (iv) ``Where there are multiple holders of a legal or equitable 
title to, or a leasehold interest in, a CAIR NOX Ozone Season 
unit, or where a utility or industrial customer purchases power from a 
CAIR NOX Ozone Season unit under a life-of-the-unit, firm 
power contractual arrangement, I certify that: I have given a written 
notice of my selection as the `CAIR designated representative' or 
`alternate CAIR designated representative', as applicable, and of the 
agreement by which I was selected to each owner and operator of the 
source and of each CAIR NOX Ozone Season unit at the source; 
and CAIR NOX Ozone Season allowances and proceeds of 
transactions involving CAIR NOX Ozone Season allowances will 
be deemed to be held or distributed in proportion to each holder's 
legal, equitable, leasehold, or contractual reservation or entitlement, 
except that, if such multiple holders have expressly provided for a 
different distribution of CAIR NOX Ozone Season allowances by 
contract, CAIR NOX Ozone Season allowances and proceeds of 
transactions involving CAIR NOX Ozone Season allowances will 
be deemed to be held or distributed in accordance with the contract.''
    (5) The signature of the CAIR designated representative and any 
alternate CAIR designated representative and the dates signed.
    (b) Unless otherwise required by the permitting authority or the 
Administrator, documents of agreement referred to in the certificate of 
representation shall not be submitted to the permitting authority or the 
Administrator. Neither the permitting authority nor the Administrator 
shall be under any obligation to review or evaluate the sufficiency of 
such documents, if submitted.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25393, Apr. 28, 2006]



Sec. 96.314  Objections concerning CAIR designated representative.

    (a) Once a complete certificate of representation under Sec. 96.313 
has been submitted and received, the permitting authority and the 
Administrator will rely on the certificate of representation unless and 
until a superseding complete certificate of representation

[[Page 144]]

under Sec. 96.313 is received by the Administrator.
    (b) Except as provided in Sec. 96.312(a) or (b), no objection or 
other communication submitted to the permitting authority or the 
Administrator concerning the authorization, or any representation, 
action, inaction, or submission, of the CAIR designated representative 
shall affect any representation, action, inaction, or submission of the 
CAIR designated representative or the finality of any decision or order 
by the permitting authority or the Administrator under the CAIR 
NOX Ozone Season Trading Program.
    (c) Neither the permitting authority nor the Administrator will 
adjudicate any private legal dispute concerning the authorization or any 
representation, action, inaction, or submission of any CAIR designated 
representative, including private legal disputes concerning the proceeds 
of CAIR NOX Ozone Season allowance transfers.



Sec. 96.315  Delegation by CAIR designated representative and alternate
CAIR designated representative.

    (a) A CAIR 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 part.
    (b) An alternate CAIR 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 
part.
    (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 CAIR designated representative or alternate CAIR 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 CAIR designated 
representative or alternate CAIR 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 CAIR designated 
representative or alternate CAIR 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 CAIR designated representative or alternate CAIR designated 
representative, as appropriate, and before this notice of delegation is 
superseded by another notice of delegation under 40 CFR 96.315(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 96.315(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 96.315 is terminated.''.
    (d) A notice of delegation submitted under paragraph (c) of this 
section shall be effective, with regard to the CAIR designated 
representative or alternate CAIR 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 CAIR designated representative or alternate CAIR 
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

[[Page 145]]

(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 CAIR designated representative or 
alternate CAIR designated representative submitting such notice of 
delegation.

[71 FR 25393, Apr. 28, 2006]



                          Subpart CCCC_Permits

    Source: 70 FR 25382, May 12, 2005, unless otherwise noted.



Sec. 96.320  General CAIR NOX Ozone Season Trading Program permit
requirements.

    (a) For each CAIR NOX Ozone Season source required to 
have a title V operating permit or required, under subpart IIII of this 
part, to have a title V operating permit or other federally enforceable 
permit, such permit shall include a CAIR permit administered by the 
permitting authority for the title V operating permit or the federally 
enforceable permit as applicable. The CAIR portion of the title V permit 
or other federally enforceable permit as applicable shall be 
administered in accordance with the permitting authority's title V 
operating permits regulations promulgated under part 70 or 71 of this 
chapter or the permitting authority's regulations for other federally 
enforceable permits as applicable, except as provided otherwise by Sec. 
96.305, this subpart and subpart IIII of this part.
    (b) Each CAIR permit shall contain, with regard to the CAIR 
NOX Ozone Season source and the CAIR NOX Ozone 
Season units at the source covered by the CAIR permit, all applicable 
CAIR NOX Ozone Season Trading Program, CAIR NOX 
Annual Trading Program, and CAIR SO2 Trading Program 
requirements and shall be a complete and separable portion of the title 
V operating permit or other federally enforceable permit under paragraph 
(a) of this section.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25394, Apr. 28, 2006]



Sec. 96.321  Submission of CAIR permit applications.

    (a) Duty to apply. The CAIR designated representative of any CAIR 
NOX Ozone Season source required to have a title V operating 
permit shall submit to the permitting authority a complete CAIR permit 
application under Sec. 96.322 for the source covering each CAIR 
NOX Ozone Season unit at the source at least 18 months (or 
such lesser time provided by the permitting authority) before the later 
of January 1, 2009 or the date on which the CAIR NOX Ozone 
Season unit commences commercial operation, except as provided in Sec. 
96.383(a).
    (b) Duty to Reapply. For a CAIR NOX Ozone Season source 
required to have a title V operating permit, the CAIR designated 
representative shall submit a complete CAIR permit application under 
Sec. 96.322 for the source covering each CAIR NOX Ozone 
Season unit at the source to renew the CAIR permit in accordance with 
the permitting authority's title V operating permits regulations 
addressing permit renewal, except as provided in Sec. 96.383(b).

[70 FR 25382, May 12, 2005, as amended at 71 FR 25394, Apr. 28, 2006]



Sec. 96.322  Information requirements for CAIR permit applications.

    A complete CAIR permit application shall include the following 
elements concerning the CAIR NOX Ozone Season source for 
which the application is submitted, in a format prescribed by the 
permitting authority:
    (a) Identification of the CAIR NOX Ozone Season source;
    (b) Identification of each CAIR NOX Ozone Season unit at 
the CAIR NOX Ozone Season source; and
    (c) The standard requirements under Sec. 96.306.



Sec. 96.323  CAIR permit contents and term.

    (a) Each CAIR permit will contain, in a format prescribed by the 
permitting authority, all elements required for a complete CAIR permit 
application under Sec. 96.322.
    (b) Each CAIR permit is deemed to incorporate automatically the 
definitions of terms under Sec. 96.302 and, upon recordation by the 
Administrator

[[Page 146]]

under subpart FFFF, GGGG, or IIII of this part, every allocation, 
transfer, or deduction of a CAIR NOX Ozone Season allowance 
to or from the compliance account of the CAIR NOX Ozone 
Season source covered by the permit.
    (c) The term of the CAIR permit will be set by the permitting 
authority, as necessary to facilitate coordination of the renewal of the 
CAIR permit with issuance, revision, or renewal of the CAIR 
NOX Ozone Season source's title V operating permit or other 
federally enforceable permit as applicable.



Sec. 96.324  CAIR permit revisions.

    Except as provided in Sec. 96.323(b), the permitting authority will 
revise the CAIR permit, as necessary, in accordance with the permitting 
authority's title V operating permits regulations or the permitting 
authority's regulations for other federally enforceable permits as 
applicable addressing permit revisions.

Subpart DDDD [Reserved]



        Subpart EEEE_CAIR NOX Ozone Season Allowance Allocations

    Source: 70 FR 25382, May 12, 2005, unless otherwise noted.



Sec. 96.340  State trading budgets.

    (a) Except as provided in paragraph (b) of this section, the State 
trading budgets for annual allocations of CAIR NOX Ozone 
Season allowances for the control periods in 2009 through 2014 and in 
2015 and thereafter are respectively as follows:

------------------------------------------------------------------------
                                                          State trading
                                        State trading    budget for 2015
                State                 budget for 2009-   and thereafter
                                         2014 (tons)         (tons)
------------------------------------------------------------------------
Alabama.............................            32,182            26,818
Arkansas............................            11,515             9,596
Connecticut.........................             2,559             2,559
Delaware............................             2,226             1,855
District of Columbia................               112                94
Florida.............................            47,912            39,926
Illinois............................            30,701            28,981
Indiana.............................            45,952            39,273
Iowa................................            14,263            11,886
Kentucky............................            36,045            30,587
Louisiana...........................            17,085            14,238
Maryland............................            12,834            10,695
Massachusetts.......................             7,551             6,293
Michigan............................            28,971            24,142
Mississippi.........................             8,714             7,262
Missouri............................            26,678            22,231
New Jersey..........................             6,654             5,545
New York............................            20,632            17,193
North Carolina......................            28,392            23,660
Ohio................................            45,664            39,945
Pennsylvania........................            42,171            35,143
South Carolina......................            15,249            12,707
Tennessee...........................            22,842            19,035
Virginia............................            15,994            13,328
West Virginia.......................            26,859            26,525
Wisconsin...........................            17,987            14,989
------------------------------------------------------------------------

    (b) If a permitting authority issues additional CAIR NOX 
Ozone Season allowance allocations under Sec. 51.123(aa)(2)(iii)(A) of 
this chapter, the amount in the State trading budget for a control 
period in a calendar year will be the sum of the amount set forth for 
the State and for the year in paragraph (a) of this section and the 
amount of additional CAIR NOX Ozone Season allowance 
allocations issued under Sec. 51.123(aa)(2)(iii)(A) of this chapter for 
the year.



Sec. 96.341  Timing requirements for CAIR NOX Ozone Season allowance
allocations.

    (a) By October 31, 2006, the permitting authority will submit to the 
Administrator the CAIR NOX Ozone Season allowance 
allocations, in a format prescribed by the Administrator and in 
accordance with Sec. 96.342(a) and (b), for the control periods in 
2009, 2010, 2011, 2012, 2013, and 2014.
    (b) By October 31, 2009 and October 31 of each year thereafter, the 
permitting authority will submit to the Administrator the CAIR 
NOX Ozone Season allowance allocations, in a format 
prescribed by the Administrator and in accordance with Sec. 96.342(a) 
and (b), for the control period in the sixth year after the year of the 
applicable deadline for submission under this paragraph.
    (c) By July 31, 2009 and July 31 of each year thereafter, the 
permitting authority will submit to the Administrator the CAIR 
NOX Ozone Season allowance allocations, in a format 
prescribed by the Administrator and in accordance with Sec. 96.342(c), 
(a), and (d), for the control period in the year of the applicable 
deadline for submission under this paragraph.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25394, Apr. 28, 2006]

[[Page 147]]



Sec. 96.342  CAIR NOX Ozone Season allowance allocations.

    (a)(1) The baseline heat input (in mmBtu) used with respect to CAIR 
NOX Ozone Season allowance allocations under paragraph (b) of 
this section for each CAIR NOX Ozone Season unit will be:
    (i) For units commencing operation before January 1, 2001 the 
average of the 3 highest amounts of the unit's adjusted control period 
heat input for 2000 through 2004, with the adjusted control period heat 
input for each year calculated as follows:
    (A) If the unit is coal-fired during the year, the unit's control 
period heat input for such year is multiplied by 100 percent;
    (B) If the unit is oil-fired during the year, the unit's control 
period heat input for such year is multiplied by 60 percent; and
    (C) If the unit is not subject to paragraph (a)(1)(i)(A) or (B) of 
this section, the unit's control period heat input for such year is 
multiplied by 40 percent.
    (ii) For units commencing operation on or after January 1, 2001 and 
operating each calendar year during a period of 5 or more consecutive 
calendar years, the average of the 3 highest amounts of the unit's total 
converted control period heat input over the first such 5 years.
    (2)(i) A unit's control period heat input, and a unit's status as 
coal-fired or oil-fired, for a calendar year under paragraph (a)(1)(i) 
of this section, and a unit's total tons of NOX emissions 
during a control period in a calendar year under paragraph (c)(3) of 
this section, will be determined in accordance with part 75 of this 
chapter, to the extent the unit was otherwise subject to the 
requirements of part 75 of this chapter for the year, or will be based 
on the best available data reported to the permitting authority for the 
unit, to the extent the unit was not otherwise subject to the 
requirements of part 75 of this chapter for the year.
    (ii) A unit's converted control period heat input for a calendar 
year specified under paragraph (a)(1)(ii) of this section equals:
    (A) Except as provided in paragraph (a)(2)(ii)(B) or (C) of this 
section, the control period gross electrical output of the generator or 
generators served by the unit multiplied by 7,900 Btu/kWh, if the unit 
is coal-fired for the year, or 6,675 Btu/kWh, if the unit is not coal-
fired for the year, and divided by 1,000,000 Btu/mmBtu, provided that if 
a generator is served by 2 or more units, then the gross electrical 
output of the generator will be attributed to each unit in proportion to 
the unit's share of the total control period heat input of such units 
for the year;
    (B) For a unit that is a boiler and has equipment used to produce 
electricity and useful thermal energy for industrial, commercial, 
heating, or cooling purposes through the sequential use of energy, the 
total heat energy (in Btu) of the steam produced by the boiler during 
the control period, divided by 0.8 and by 1,000,000 Btu/mmBtu; or
    (C) For a unit that is a combustion turbine and has equipment used 
to produce electricity and useful thermal energy for industrial, 
commercial, heating, or cooling purposes through the sequential use of 
energy, the control period gross electrical output of the enclosed 
device comprising the compressor, combustor, and turbine multiplied by 
3,413 Btu/kWh, plus the total heat energy (in Btu) of the steam produced 
by any associated heat recovery steam generator during the control 
period divided by 0.8, and with the sum divided by 1,000,000 Btu/mmBtu.
    (b)(1) For each control period in 2009 and thereafter, the 
permitting authority will allocate to all CAIR NOX Ozone 
Season units in the State that have a baseline heat input (as determined 
under paragraph (a) of this section) a total amount of CAIR 
NOX Ozone Season allowances equal to 95 percent for a control 
period during 2009 through 2014, and 97 percent for a control period 
during 2015 and thereafter, of the tons of NOX emissions in 
the State trading budget under Sec. 96.340 (except as provided in 
paragraph (d) of this section).
    (2) The permitting authority will allocate CAIR NOX Ozone 
Season allowances to each CAIR NOX Ozone Season unit under 
paragraph (b)(1) of this section in an amount determined by multiplying 
the total amount of CAIR NOX Ozone Season allowances 
allocated under paragraph (b)(1) of this section by the ratio of the 
baseline heat input

[[Page 148]]

of such CAIR NOX Ozone Season unit to the total amount of 
baseline heat input of all such CAIR NOX Ozone Season units 
in the State and rounding to the nearest whole allowance as appropriate.
    (c) For each control period in 2009 and thereafter, the permitting 
authority will allocate CAIR NOX Ozone Season allowances to 
CAIR NOX Ozone Season units in a State that are not allocated 
CAIR NOX Ozone Season 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 CAIR NOX Ozone Season allowances available 
under paragraph (b) of this section for the control period are already 
allocated, in accordance with the following procedures:
    (1) The permitting authority will establish a separate new unit set-
aside for each control period. Each new unit set-aside will be allocated 
CAIR NOX Ozone Season allowances equal to 5 percent for a 
control period in2009 through 2014, and 3 percent for a control period 
in 2015 and thereafter, of the amount of tons of NOX 
emissions in the State trading budget under Sec. 96.340.
    (2) The CAIR designated representative of such a CAIR NOX 
Ozone Season unit may submit to the permitting authority a request, in a 
format specified by the permitting authority, to be allocated CAIR 
NOX Ozone Season allowances, starting with the later of the 
control period in 2009 or the first control period after the control 
period in which the CAIR NOX Ozone Season unit commences 
commercial operation and until the first control period for which the 
unit is allocated CAIR NOX Ozone Season allowances under 
paragraph (b) of this section. A separate CAIR NOX Ozone 
Season allowance allocation request for each control period for which 
CAIR NOX Ozone Season allowances are sought must be submitted 
on or before February 1 before such control period and after the date on 
which the CAIR NOX Ozone Season unit commences commercial 
operation.
    (3) In a CAIR NOX Ozone Season allowance allocation 
request under paragraph (c)(2) of this section, the CAIR designated 
representative may request for a control period CAIR NOX 
Ozone Season allowances in an amount not exceeding the CAIR 
NOX Ozone Season unit's total tons of NOX 
emissions during the control period immediately before such control 
period.
    (4) The permitting authority will review each CAIR NOX 
Ozone Season allowance allocation request under paragraph (c)(2) of this 
section and will allocate CAIR NOX Ozone Season allowances 
for each control period pursuant to such request as follows:
    (i) The permitting authority will accept an allowance allocation 
request only if the request meets, or is adjusted by the permitting 
authority as necessary to meet, the requirements of paragraphs (c)(2) 
and (3) of this section.
    (ii) On or after February 1 before the control period, the 
permitting authority will determine the sum of the CAIR NOX 
Ozone Season allowances requested (as adjusted under paragraph (c)(4)(i) 
of this section) in all allowance allocation requests accepted under 
paragraph (c)(4)(i) of this section for the control period.
    (iii) If the amount of CAIR NOX Ozone Season allowances 
in the new unit set-aside for the control period is greater than or 
equal to the sum under paragraph (c)(4)(ii) of this section, then the 
permitting authority will allocate the amount of CAIR NOX 
Ozone Season allowances requested (as adjusted under paragraph (c)(4)(i) 
of this section) to each CAIR NOX Ozone Season unit covered 
by an allowance allocation request accepted under paragraph (c)(4)(i) of 
this section.
    (iv) If the amount of CAIR NOX Ozone Season allowances in 
the new unit set-aside for the control period is less than the sum under 
paragraph (c)(4)(ii) of this section, then the permitting authority will 
allocate to each CAIR NOX Ozone Season unit covered by an 
allowance allocation request accepted under paragraph (c)(4)(i) of this 
section the amount of the CAIR NOX Ozone Season allowances 
requested (as adjusted under paragraph (c)(4)(i) of this section), 
multiplied by the amount of CAIR NOX Ozone Season allowances 
in the new unit set-aside for the control period, divided by the sum 
determined

[[Page 149]]

under paragraph (c)(4)(ii) of this section, and rounded to the nearest 
whole allowance as appropriate.
    (v) The permitting authority will notify each CAIR designated 
representative that submitted an allowance allocation request of the 
amount of CAIR NOX Ozone Season allowances (if any) allocated 
for the control period to the CAIR NOX Ozone Season unit 
covered by the request.
    (d) If, after completion of the procedures under paragraph (c)(4) of 
this section for a control period, any unallocated CAIR NOX 
Ozone Season allowances remain in the new unit set-aside for the control 
period, the permitting authority will allocate to each CAIR 
NOX Ozone Season unit that was allocated CAIR NOX 
Ozone Season allowances under paragraph (b) of this section an amount of 
CAIR NOX Ozone Season allowances equal to the total amount of 
such remaining unallocated CAIR NOX Ozone Season allowances, 
multiplied by the unit's allocation under paragraph (b) of this section, 
divided by 95 percent for a control period during 2009 through 2014, and 
97 percent for a control period during 2015 and thereafter, of the 
amount of tons of NOX emissions in the State trading budget 
under Sec. 96.340, and rounded to the nearest whole allowance as 
appropriate.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25394, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



      Subpart FFFF_CAIR NOX Ozone Season Allowance Tracking System

    Source: 70 FR 25382, May 12, 2005, unless otherwise noted.



Sec. 96.350  [Reserved]



Sec. 96.351  Establishment of accounts.

    (a) Compliance accounts. Except as provided in Sec. 96.384(e), upon 
receipt of a complete certificate of representation under Sec. 96.313, 
the Administrator will establish a compliance account for the CAIR 
NOX Ozone Season source for which the certificate of 
representation was submitted, unless the source already has a compliance 
account.
    (b) General accounts--(1) Application for general account. (i) Any 
person may apply to open a general account for the purpose of holding 
and transferring CAIR NOX Ozone Season allowances. An 
application for a general account may designate one and only one CAIR 
authorized account representative and one and only one alternate CAIR 
authorized account representative who may act on behalf of the CAIR 
authorized account representative. The agreement by which the alternate 
CAIR authorized account representative is selected shall include a 
procedure for authorizing the alternate CAIR authorized account 
representative to act in lieu of the CAIR authorized account 
representative.
    (ii) A complete application for a general account shall be submitted 
to the Administrator and shall include the following elements in a 
format prescribed by the Administrator:
    (A) Name, mailing address, e-mail address (if any), telephone 
number, and facsimile transmission number (if any) of the CAIR 
authorized account representative and any alternate CAIR authorized 
account representative;
    (B) Organization name and type of organization, if applicable;
    (C) A list of all persons subject to a binding agreement for the 
CAIR authorized account representative and any alternate CAIR authorized 
account representative to represent their ownership interest with 
respect to the CAIR NOX Ozone Season allowances held in the 
general account;
    (D) The following certification statement by the CAIR authorized 
account representative and any alternate CAIR authorized account 
representative: ``I certify that I was selected as the CAIR authorized 
account representative or the alternate CAIR authorized account 
representative, as applicable, by an agreement that is binding on all 
persons who have an ownership interest with respect to CAIR 
NOX Ozone Season allowances held in the general account. I 
certify that I have all the necessary authority to carry out my duties 
and responsibilities under the CAIR NOX Ozone Season Trading 
Program on behalf of such persons and that each such person shall be 
fully bound by my representations, actions,

[[Page 150]]

inactions, or submissions and by any order or decision issued to me by 
the Administrator or a court regarding the general account.''
    (E) The signature of the CAIR authorized account representative and 
any alternate CAIR authorized account representative and the dates 
signed.
    (iii) Unless otherwise required by the permitting authority or the 
Administrator, documents of agreement referred to in the application for 
a general account shall not be submitted to the permitting authority or 
the Administrator. Neither the permitting authority nor the 
Administrator shall be under any obligation to review or evaluate the 
sufficiency of such documents, if submitted.
    (2) Authorization of CAIR authorized account representative 
andalternate CAIR authorized account representative. (i) Upon receipt by 
the Administrator of a complete application for a general account under 
paragraph (b)(1) of this section:
    (A) The Administrator will establish a general account for the 
person or persons for whom the application is submitted.
    (B) The CAIR authorized account representative and any alternate 
CAIR authorized account representative for the general account shall 
represent and, by his or her representations, actions, inactions, or 
submissions, legally bind each person who has an ownership interest with 
respect to CAIR NOX Ozone Season allowances held in the 
general account in all matters pertaining to the CAIR NOX 
Ozone Season Trading Program, notwithstanding any agreement between the 
CAIR authorized account representative or any alternate CAIR authorized 
account representative and such person. Any such person shall be bound 
by any order or decision issued to the CAIR authorized account 
representative or any alternate CAIR authorized account representative 
by the Administrator or a court regarding the general account.
    (C) Any representation, action, inaction, or submission by any 
alternate CAIR authorized account representative shall be deemed to be a 
representation, action, inaction, or submission by the CAIR authorized 
account representative.
    (ii) Each submission concerning the general account shall be 
submitted, signed, and certified by the CAIR authorized account 
representative or any alternate CAIR authorized account representative 
for the persons having an ownership interest with respect to CAIR 
NOX Ozone Season allowances held in the general account. Each 
such submission shall include the following certification statement by 
the CAIR authorized account representative or any alternate CAIR 
authorized account representative: ``I am authorized to make this 
submission on behalf of the persons having an ownership interest with 
respect to the CAIR NOX Ozone Season allowances held in the 
general account. I certify under penalty of law that I have personally 
examined, and am familiar with, the statements and information submitted 
in this document and all its attachments. Based on my inquiry of those 
individuals with primary responsibility for obtaining the information, I 
certify that the statements and information are to the best of my 
knowledge and belief true, accurate, and complete. I am aware that there 
are significant penalties for submitting false statements and 
information or omitting required statements and information, including 
the possibility of fine or imprisonment.''
    (iii) The Administrator will accept or act on a submission 
concerning the general account only if the submission has been made, 
signed, and certified in accordance with paragraph (b)(2)(ii) of this 
section.
    (3) Changing CAIR authorized account representative and alternate 
CAIR authorized account representative; changes in persons with 
ownership interest. (i) The CAIR authorized account representative for a 
general account may be changed at any time upon receipt by the 
Administrator of a superseding complete application for a general 
account under paragraph (b)(1) of this section. Notwithstanding any such 
change, all representations, actions, inactions, and submissions by the 
previous CAIR authorized account representative before the time and date 
when the Administrator receives the superseding application for a 
general account shall be binding on the new

[[Page 151]]

CAIR authorized account representative and the persons with an ownership 
interest with respect to the CAIR NOX Ozone Season allowances 
in the general account.
    (ii) The alternate CAIR authorized account representative for a 
general account may be changed at any time upon receipt by the 
Administrator of a superseding complete application for a general 
account under paragraph (b)(1) of this section. Notwithstanding any such 
change, all representations, actions, inactions, and submissions by the 
previous alternate CAIR authorized account representative before the 
time and date when the Administrator receives the superseding 
application for a general account shall be binding on the new alternate 
CAIR authorized account representative and the persons with an ownership 
interest with respect to the CAIR NOX Ozone Season allowances 
in the general account.
    (iii)(A) In the event a person having an ownership interest with 
respect to CAIR NOX Ozone Season allowances in the general 
account is not included in the list of such persons in the application 
for a general account, such person shall be deemed to be subject to and 
bound by the application for a general account, the representation, 
actions, inactions, and submissions of the CAIR authorized account 
representative and any alternate CAIR authorized account representative 
of the account, and the decisions and orders of the Administrator or a 
court, as if the person were included in such list.
    (B) Within 30 days following any change in the persons having an 
ownership interest with respect to CAIR NOX Ozone Season 
allowances in the general account, including the addition of a new 
person, the CAIR authorized account representative or any alternate CAIR 
authorized account representative shall submit a revision to the 
application for a general account amending the list of persons having an 
ownership interest with respect to the CAIR NOX Ozone Season 
allowances in the general account to include the change.
    (4) Objections concerning CAIR authorized account representative and 
alternate CAIR authorized account representative. (i) Once a complete 
application for a general account under paragraph (b)(1) of this section 
has been submitted and received, the Administrator will rely on the 
application unless and until a superseding complete application for a 
general account under paragraph (b)(1) of this section is received by 
the Administrator.
    (ii) Except as provided in paragraph (b)(3)(i) or (ii) of this 
section, no objection or other communication submitted to the 
Administrator concerning the authorization, or any representation, 
action, inaction, or submission of the CAIR authorized account 
representative or any alternate CAIR authorized account representative 
for a general account shall affect any representation, action, inaction, 
or submission of the CAIR authorized account representative or any 
alternative CAIR authorized account representative or the finality of 
any decision or order by the Administrator under the CAIR NOX 
Ozone Season Trading Program.
    (iii) The Administrator will not adjudicate any private legal 
dispute concerning the authorization or any representation, action, 
inaction, or submission of the CAIR authorized account representative or 
any alternate CAIR authorized account representative for a general 
account, including private legal disputes concerning the proceeds of 
CAIR NOX Ozone Season allowance transfers.
    (c) Account identification. The Administrator will assign a unique 
identifying number to each account established under paragraph (a) or 
(b) of this section.
    (5) Delegation by CAIR authorized account representative and 
alternate CAIR authorized account representative. (i) A CAIR 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 subparts FFFF and GGGG of this part.
    (ii) An alternate CAIR 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 subparts FFFF and GGGG of this part.

[[Page 152]]

    (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 CAIR authorized account representative or 
alternate CAIR 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 CAIR authorized account 
representative or alternate CAIR 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 CAIR authorized 
account representative or alternate CAIR 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 CAIR authorized account 
representative or alternate CAIR authorized representative, as 
appropriate, and before this notice of delegation is superseded by 
another notice of delegation under 40 CFR 96.351(b)(5)(iv) shall be 
deemed to be an electronic submission by me.''; and
    (E) The following certification statement by such CAIR authorized 
account representative or alternate CAIR authorized account 
representative: ``Until this notice of delegation is superseded by 
another notice of delegation under 40 CFR 96.351(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 by 
me under 40 CFR 96.351(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 CAIR authorized 
account representative or alternate CAIR 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 CAIR authorized 
account representative or alternate CAIR 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 CAIR 
designated representative or alternate CAIR designated representative 
submitting such notice of delegation.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25394, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



Sec. 96.352  Responsibilities of CAIR authorized account representative.

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



Sec. 96.353  Recordation of CAIR NOX Ozone Season allowance allocations.

    (a) By September 30, 2007, the Administrator will record in the CAIR 
NOX Ozone Season source's compliance account the CAIR 
NOX Ozone Season allowances allocated for the CAIR 
NOX Ozone Season units at the source, as submitted by the 
permitting authority in accordance with Sec. 96.341(a), for the control 
periods in 2009, 2010, 2011, 2012, 2013, and 2014.
    (b) By December 1, 2009, the Administrator will record in the CAIR 
NOX

[[Page 153]]

Ozone Season source's compliance account the CAIR NOX Ozone 
Season allowances allocated for the CAIR NOX Ozone Season 
units at the source, as submitted by the permitting authority in 
accordance with Sec. 96.341(b), for the control period in 2015.
    (c) By December 1, 2010 and December 1 of each year thereafter, the 
Administrator will record in the CAIR NOX Ozone Season 
source's compliance account the CAIR NOX Ozone Season 
allowances allocated for the CAIR NOX Ozone Season units at 
the source, as submitted by the permitting authority in accordance with 
Sec. 96.341(b), for the control period in the sixth year after the year 
of the applicable deadline for recordation under this paragraph.
    (d) By September 1, 2009 and September 1 of each year thereafter, 
the Administrator will record in the CAIR NOX Ozone Season 
source's compliance account the CAIR NOX Ozone Season 
allowances allocated for the CAIR NOX Ozone Season units at 
the source, as submitted by the permitting authority or determined by 
the Administrator in accordance with Sec. 96.341(c), for the control 
period in the year of the applicable deadline for recordation under this 
paragraph.
    (e) Serial numbers for allocated CAIR NOX Ozone Season 
allowances. When recording the allocation of CAIR NOX Ozone 
Season allowances for a CAIR NOX Ozone Season unit in a 
compliance account, the Administrator will assign each CAIR 
NOX Ozone Season allowance a unique identification number 
that will include digits identifying the year of the control period for 
which the CAIR NOX Ozone Season allowance is allocated.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25394, Apr. 28, 2006]

    Editorial Note: At 71 FR 25395, Apr. 28, 2006, Sec. 96.353(d) was 
amended; however, the amendment could not be incorporated due to 
inaccurate amendatory instruction.



Sec. 96.354  Compliance with CAIR NOX emissions limitation.

    (a) Allowance transfer deadline. The CAIR NOX Ozone 
Season allowances are available to be deducted for compliance with a 
source's CAIR NOX Ozone Season emissions limitation for a 
control period in a given calendar year only if the CAIR NOX 
Ozone Season allowances:
    (1) Were allocated for the control period in the year or a prior 
year; and
    (2) Are held in the compliance account as of the allowance transfer 
deadline for the control period or are transferred into the compliance 
account by a CAIR NOX Ozone Season allowance transfer 
correctly submitted for recordation under Sec. Sec. 96.360 and 96.361 
by the allowance transfer deadline for the control period.
    (c)(1) Identification of CAIR NO X Ozone Season 
allowances by serial number. The CAIR authorized account representative 
for a source's compliance account may request that specific CAIR 
NOX Ozone Season allowances, identified by serial number, in 
the compliance account be deducted for emissions or excess emissions for 
a control period in accordance with paragraph (b) or (d) of this 
section. Such request shall be submitted to the Administrator by the 
allowance transfer deadline for the control period and include, in a 
format prescribed by the Administrator, the identification of the CAIR 
NOX Ozone Season source and the appropriate serial numbers.
    (2) First-in, first-out. The Administrator will deduct CAIR 
NOX Ozone Season allowances under paragraph (b) or (d) of 
this section from the source's compliance account, in the absence of an 
identification or in the case of a partial identification of CAIR 
NOX Ozone Season allowances by serial number under paragraph 
(c)(1) of this section, on a first-in, first-out (FIFO) accounting basis 
in the following order:
    (i) Any CAIR NOX Ozone Season allowances that were 
allocated to the units at the source, in the order of recordation; and 
then
    (ii) Any CAIR NOX Ozone Season allowances that were 
allocated to any entity and transferred and recorded in the compliance 
account pursuant to subpart GGGG of this part, in the order of 
recordation.
    (d) Deductions for excess emissions. (1) After making the deductions 
for compliance under paragraph (b) of this section for a control period 
in a calendar year in which the CAIR NOX Ozone Season source 
has excess emissions, the Administrator will deduct from the

[[Page 154]]

source's compliance account an amount of CAIR NOX Ozone 
Season allowances, allocated for the control period in the immediately 
following calendar year, equal to 3 times the number of tons of the 
source's excess emissions.
    (2) Any allowance deduction required under paragraph (d)(1) of this 
section shall not affect the liability of the owners and operators of 
the CAIR NOX Ozone Season source or the CAIR NOX 
Ozone Season units at the source for any fine, penalty, or assessment, 
or their obligation to comply with any other remedy, for the same 
violations, as ordered under the Clean Air Act or applicable State law.
    (e) Recordation of deductions. The Administrator will record in the 
appropriate compliance account all deductions from such an account under 
paragraphs (b) and (d) of this section and subpart IIII.
    (f) Administrator's action on submissions. (1) The Administrator may 
review and conduct independent audits concerning any submission under 
the CAIR NOX Ozone Season Trading Program and make 
appropriate adjustments of the information in the submissions.
    (2) The Administrator may deduct CAIR NOX Ozone Season 
allowances from or transfer CAIR NOX Ozone Season allowances 
to a source's compliance account based on the information in the 
submissions, as adjusted under paragraph (f)(1) of this section, and 
record such deductions and transfers.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25395, Apr. 28, 2006]



Sec. 96.355  Banking.

    (a) CAIR NOX Ozone Season allowances may be banked for 
future use or transfer in a compliance account or a general account in 
accordance with paragraph (b) of this section.
    (b) Any CAIR NOX Ozone Season allowance that is held in a 
compliance account or a general account will remain in such account 
unless and until the CAIR NOX Ozone Season allowance is 
deducted or transferred under Sec. 96.354, Sec. 96.356, or subpart GG 
of this part.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25395, Apr. 28, 2006]

    Editorial Note: At 71 FR 25395, Apr. 28, 2006, Sec. 96.355 was 
amended; however, the amendment could not be incorporated due to 
inaccurate amendatory instruction.



Sec. 96.356  Account error.

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



Sec. 96.357  Closing of general accounts.

    (a) The CAIR authorized account representative of a general account 
may submit to the Administrator a request to close the account, which 
shall include a correctly submitted allowance transfer under Sec. Sec. 
96.360 and 96.361 for any CAIR NOX Ozone Season allowances in 
the account to one or more other CAIR NOX Ozone Season 
Allowance Tracking System accounts.
    (b) If a general account has no allowance transfers in or out of the 
account for a 12-month period or longer and does not contain any CAIR 
NOX Ozone Season allowances, the Administrator may notify the 
CAIR authorized account representative for the account that the account 
will be closed following 20 business days after the notice is sent. The 
account will be closed after the 20-day period unless, before the end of 
the 20-day period, the Administrator receives a correctly submitted 
transfer of CAIR NOX Ozone Season allowances into the account 
under Sec. Sec. 96.360 and 96.361 or a statement submitted by the CAIR 
authorized account representative demonstrating to the satisfaction of 
the Administrator good cause as to why the account should not be closed.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25395, Apr. 28, 2006]

[[Page 155]]



         Subpart GGGG_CAIR NOX Ozone Season Allowance Transfers

    Source: 70 FR 25382, May 12, 2005, unless otherwise noted.



Sec. 96.360  Submission of CAIR NOX Ozone Season allowance transfers.

    A CAIR authorized account representative seeking recordation of a 
CAIR NOX Ozone Season allowance transfer shall submit the 
transfer to the Administrator. To be considered correctly submitted, the 
CAIR NOX Ozone Season allowance transfer shall include the 
following elements, in a format specified by the Administrator:
    (a) The account numbers for both the transferor and transferee 
accounts;
    (b) The serial number of each CAIR NOX Ozone Season 
allowance that is in the transferor account and is to be transferred; 
and
    (c) The name and signature of the CAIR authorized account 
representative of the transferor account and the date signed.



Sec. 96.361  EPA recordation.

    (a) Within 5 business days (except as provided in paragraph (b) of 
this section) of receiving a CAIR NOX Ozone Season allowance 
transfer, the Administrator will record a CAIR NOX Ozone 
Season allowance transfer by moving each CAIR NOX Ozone 
Season allowance from the transferor account to the transferee account 
as specified by the request, provided that:
    (1) The transfer is correctly submitted under Sec. 96.360; and
    (2) The transferor account includes each CAIR NOX Ozone 
Season allowance identified by serial number in the transfer.
    (b) A CAIR NOX Ozone Season allowance transfer that is 
submitted for recordation after the allowance transfer deadline for a 
control period and that includes any CAIR NOX Ozone Season 
allowances allocated for any control period before such allowance 
transfer deadline will not be recorded until after the Administrator 
completes the deductions under Sec. 96.354 for the control period 
immediately before such allowance transfer deadline.
    (c) Where a CAIR NOX Ozone Season allowance transfer 
submitted for recordation fails to meet the requirements of paragraph 
(a) of this section, the Administrator will not record such transfer.



Sec. 96.362  Notification.

    (a) Notification of recordation. Within 5 business days of 
recordation of a CAIR NOX Ozone Season allowance transfer 
under Sec. 96.361, the Administrator will notify the CAIR authorized 
account representatives of both the transferor and transferee accounts.
    (b) Notification of non-recordation. Within 10 business days of 
receipt of a CAIR NOX Ozone Season allowance transfer that 
fails to meet the requirements of Sec. 96.361(a), the Administrator 
will notify the CAIR authorized account representatives of both accounts 
subject to the transfer of:
    (1) A decision not to record the transfer, and
    (2) The reasons for such non-recordation.
    (c) Nothing in this section shall preclude the submission of a CAIR 
NOX Ozone Season allowance transfer for recordation following 
notification of non-recordation.



                  Subpart HHHH_Monitoring and Reporting

    Source: 70 FR 25382, May 12, 2005, unless otherwise noted.



Sec. 96.370  General requirements.

    The owners and operators, and to the extent applicable, the CAIR 
designated representative, of a CAIR NOX Ozone Season unit, 
shall comply with the monitoring, recordkeeping, and reporting 
requirements as provided in this subpart and in subpart H of part 75 of 
this chapter. For purposes of complying with such requirements, the 
definitions in Sec. 96.302 and in Sec. 72.2 of this chapter shall 
apply, and the terms ``affected unit,'' ``designated representative,'' 
and ``continuous emission monitoring system'' (or ``CEMS'') in part 75 
of this chapter shall be deemed to refer to the terms ``CAIR 
NOX Ozone Season unit,'' ``CAIR designated representative,'' 
and ``continuous emission monitoring system'' (or ``CEMS'') 
respectively, as defined in Sec. 96.302. The owner or operator of a 
unit that is not a CAIR

[[Page 156]]

NOX Ozone Season unit but that is monitored under Sec. 
75.72(b)(2)(ii) of this chapter shall comply with the same monitoring, 
recordkeeping, and reporting requirements as a CAIR NOX Ozone 
Season unit.
    (a) Requirements for installation, certification, and data 
accounting. The owner or operator of each CAIR NOX Ozone 
Season unit shall:
    (1) Install all monitoring systems required under this subpart for 
monitoring NOX mass emissions and individual unit heat input 
(including all systems required to monitor NOX emission rate, 
NOX concentration, stack gas moisture content, stack gas flow 
rate, CO2 or O2 concentration, and fuel flow rate, 
as applicable, in accordance with Sec. Sec. 75.71 and 75.72 of this 
chapter);
    (2) Successfully complete all certification tests required under 
Sec. 96.371 and meet all other requirements of this subpart and part 75 
of this chapter applicable to the monitoring systems under paragraph 
(a)(1) of this section; and
    (3) Record, report, and quality-assure the data from the monitoring 
systems under paragraph (a)(1) of this section.
    (b) Compliance deadlines. Except as provided in paragraph (e) of 
this section, the owner or operator shall meet the monitoring system 
certification and other requirements of paragraphs (a)(1) and (2) of 
this section on or before the following dates. The owner or operator 
shall record, report, and quality-assure the data from the monitoring 
systems under paragraph (a)(1) of this section on and after the 
following dates.
    (1) For the owner or operator of a CAIR NOX Ozone Season 
unit that commences commercial operation before July 1, 2007, by May 1, 
2008.
    (2) For the owner or operator of a CAIR NOX Ozone Season 
unit that commences commercial operation on or after July 1, 2007 and 
that reports on an annual basis under Sec. 96.374(d), by the later of 
the following dates:
    (i) 90 unit operating days or 180 calendar days, whichever occurs 
first, after the date on which the unit commences commercial operation; 
or
    (ii) May 1, 2008.
    (3) For the owner or operator of a CAIR NOX Ozone Season 
unit that commences commercial operation on or after July 1, 2007 and 
that reports on a control period basis under Sec. 96.374(d)(2)(ii), by 
the later of the following dates:
    (i) 90 unit operating days or 180 calendar days, whichever occurs 
first, after the date on which the unit commences commercial operation; 
or
    (ii) If the compliance date under paragraph (b)(3)(i) of this 
section is not during a control period, May 1 immediately following the 
compliance date under paragraph (b)(3)(i) of this section.
    (4) For the owner or operator of a CAIR NOX Ozone Season 
unit for which construction of a new stack or flue or installation of 
add-on NOX emission controls is completed after the 
applicable deadline under paragraph (b)(1), (2), (6), or (7) of this 
section and that reports on an annual basis under Sec. 96.374(d), by 90 
unit operating days or 180 calendar days, whichever occurs first, after 
the date on which emissions first exit to the atmosphere through the new 
stack or flue or add-on NOX emissions controls.
    (5) For the owner or operator of a CAIR NOX Ozone Season 
unit for which construction of a new stack or flue or installation of 
add-on NOX emission controls is completed after the 
applicable deadline under paragraph (b)(1), (3), (6), or (7) of this 
section and that reports on a control period basis under Sec. 
96.374(d)(2)(ii), by the later of the following dates:
    (i) 90 unit operating days or 180 calendar days, whichever occurs 
first, after the date on which emissions first exit to the atmosphere 
through the new stack or flue or add-on NOX emissions 
controls; or
    (ii) If the compliance date under paragraph (b)(5)(i) of this 
section is not during a control period, May 1 immediately following the 
compliance date under paragraph (b)(5)(i) of this section.
    (6) Notwithstanding the dates in paragraphs (b)(1), (2), and (3) of 
this section, for the owner or operator of a unit for which a CAIR 
NOX Ozone Season opt-in permit application is submitted and 
not withdrawn and a CAIR

[[Page 157]]

opt-in permit is not yet issued or denied under subpart IIII of this 
part, by the date specified in Sec. 96.384(b).
    (7) Notwithstanding the dates in paragraphs (b)(1), (2), and (3) of 
this section, for the owner or operator of a CAIR NOX Ozone 
Season opt-in unit, by the date on which the CAIR NOX Ozone 
Season opt-in unit under subpart IIII of this part enters the CAIR 
NOX Ozone Season Trading Program as provided in Sec. 
96.384(g).
    (c) Reporting data. The owner or operator of a CAIR NOX 
Ozone Season unit that does not meet the applicable compliance date set 
forth in paragraph (b) of this section for any monitoring system under 
paragraph (a)(1) of this section shall, for each such monitoring system, 
determine, record, and report maximum potential (or, as appropriate, 
minimum potential) values for NOX concentration, 
NOX emission rate, stack gas flow rate, stack gas moisture 
content, fuel flow rate, and any other parameters required to determine 
NOX mass emissions and heat input in accordance with Sec. 
75.31(b)(2) or (c)(3) of this chapter, section 2.4 of appendix D to part 
75 of this chapter, or section 2.5 of appendix E to part 75 of this 
chapter, as applicable.
    (d) Prohibitions. (1) No owner or operator of a CAIR NOX 
Ozone Season unit shall use any alternative monitoring system, 
alternative reference method, or any other alternative to any 
requirement of this subpart without having obtained prior written 
approval in accordance with Sec. 96.375.
    (2) No owner or operator of a CAIR NOX Ozone Season unit 
shall operate the unit so as to discharge, or allow to be discharged, 
NOX emissions to the atmosphere without accounting for all 
such emissions in accordance with the applicable provisions of this 
subpart and part 75 of this chapter.
    (3) No owner or operator of a CAIR NOX Ozone Season unit 
shall disrupt the continuous emission monitoring system, any portion 
thereof, or any other approved emission monitoring method, and thereby 
avoid monitoring and recording NOX mass emissions discharged 
into the atmosphere or heat input, except for periods of recertification 
or periods when calibration, quality assurance testing, or maintenance 
is performed in accordance with the applicable provisions of this 
subpart and part 75 of this chapter.
    (4) No owner or operator of a CAIR NOX Ozone Season unit 
shall retire or permanently discontinue use of the continuous emission 
monitoring system, any component thereof, or any other approved 
monitoring system under this subpart, except under any one of the 
following circumstances:
    (i) During the period that the unit is covered by an exemption under 
Sec. 96.305 that is in effect;
    (ii) The owner or operator is monitoring emissions from the unit 
with another certified monitoring system approved, in accordance with 
the applicable provisions of this subpart and part 75 of this chapter, 
by the permitting authority for use at that unit that provides emission 
data for the same pollutant or parameter as the retired or discontinued 
monitoring system; or
    (iii) The CAIR designated representative submits notification of the 
date of certification testing of a replacement monitoring system for the 
retired or discontinued monitoring system in accordance with Sec. 
96.371(d)(3)(i).
    (e) Long-term cold storage. The owner or operator of a CAIR 
NOX Ozone Season unit is subject to the applicable provisions 
of part 75 of this chapter concerning units in long-term cold storage.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25395, Apr. 28, 2006]



Sec. 96.371  Initial certification and recertification procedures.

    (a) The owner or operator of a CAIR NOX Ozone Season unit 
shall be exempt from the initial certification requirements of this 
section for a monitoring system under Sec. 96.370(a)(1) if the 
following conditions are met:
    (1) The monitoring system has been previously certified in 
accordance with part 75 of this chapter; and
    (2) The applicable quality-assurance and quality-control 
requirements of Sec. 75.21 of this chapter and appendix B, appendix D, 
and appendix E to part 75 of this chapter are fully met for the 
certified monitoring system described in paragraph (a)(1) of this 
section.

[[Page 158]]

    (b) The recertification provisions of this section shall apply to a 
monitoring system under Sec. 96.370(a)(1) exempt from initial 
certification requirements under paragraph (a) of this section.
    (c) If the Administrator has previously approved a petition under 
Sec. 75.17(a) or (b) of this chapter for apportioning the 
NOX emission rate measured in a common stack or a petition 
under Sec. 75.66 of this chapter for an alternative to a requirement in 
Sec. 75.12 or Sec. 75.17 of this chapter, the CAIR designated 
representative shall resubmit the petition to the Administrator under 
Sec. 96.375(a) to determine whether the approval applies under the CAIR 
NOX Ozone Season Trading Program.
    (d) Except as provided in paragraph (a) of this section, the owner 
or operator of a CAIR NOX Ozone Season unit shall comply with 
the following initial certification and recertification procedures for a 
continuous monitoring system (i.e., a continuous emission monitoring 
system and an excepted monitoring system under appendices D and E to 
part 75 of this chapter) under Sec. 96.370(a)(1). The owner or operator 
of a unit that qualifies to use the low mass emissions excepted 
monitoring methodology under Sec. 75.19 of this chapter or that 
qualifies to use an alternative monitoring system under subpart E of 
part 75 of this chapter shall comply with the procedures in paragraph 
(e) or (f) of this section respectively.
    (1) Requirements for initial certification. The owner or operator 
shall ensure that each continuous monitoring system under Sec. 
96.370(a)(1)(including the automated data acquisition and handling 
system) successfully completes all of the initial certification testing 
required under Sec. 75.20 of this chapter by the applicable deadline in 
Sec. 96.370(b). In addition, whenever the owner or operator installs a 
monitoring system to meet the requirements of this subpart in a location 
where no such monitoring system was previously installed, initial 
certification in accordance with Sec. 75.20 of this chapter is 
required.
    (2) Requirements for recertification. Whenever the owner or operator 
makes a replacement, modification, or change in any certified continuous 
emission monitoring system under Sec. 96.370(a)(1) that may 
significantly affect the ability of the system to accurately measure or 
record NOX mass emissions or heat input rate or to meet the 
quality-assurance and quality-control requirements of Sec. 75.21 of 
this chapter or appendix B to part 75 of this chapter, the owner or 
operator shall recertify the monitoring system in accordance with Sec. 
75.20(b) of this chapter. Furthermore, whenever the owner or operator 
makes a replacement, modification, or change to the flue gas handling 
system or the unit's operation that may significantly change the stack 
flow or concentration profile, the owner or operator shall recertify 
each continuous emission monitoring system whose accuracy is potentially 
affected by the change, in accordance with Sec. 75.20(b) of this 
chapter. Examples of changes to a continuous emission monitoring system 
that require recertification include: replacement of the analyzer, 
complete replacement of an existing continuous emission monitoring 
system, or change in location or orientation of the sampling probe or 
site. Any fuel flowmeter systems, and any excepted NOX 
monitoring system under appendix E to part 75 of this chapter, under 
Sec. 96.370(a)(1) are subject to the recertification requirements in 
Sec. 75.20(g)(6) of this chapter.
    (3) Approval process for initial certification and recertification. 
Paragraphs (d)(3)(i) through (iv) of this section apply to both initial 
certification and recertification of a continuous monitoring system 
under Sec. 96.370(a)(1). For recertifications, replace the words 
``certification'' and ``initial certification'' with the word 
``recertification'', replace the word ``certified'' with the word 
``recertified,'' and follow the procedures in Sec. Sec. 75.20(b)(5) and 
(g)(7) of this chapter in lieu of the procedures in paragraph (d)(3)(v) 
of this section.
    (i) Notification of certification. The CAIR designated 
representative shall submit to the permitting authority, the appropriate 
EPA Regional Office, and the Administrator written notice of the dates 
of certification testing, in accordance with Sec. 96.373.
    (ii) Certification application. The CAIR designated representative 
shall submit to the permitting authority a certification application for 
each monitoring

[[Page 159]]

system. A complete certification application shall include the 
information specified in Sec. 75.63 of this chapter.
    (iii) Provisional certification date. The provisional certification 
date for a monitoring system shall be determined in accordance with 
Sec. 75.20(a)(3) of this chapter. A provisionally certified monitoring 
system may be used under the CAIR NOX Ozone Season Trading 
Program for a period not to exceed 120 days after receipt by the 
permitting authority of the complete certification application for the 
monitoring system under paragraph (d)(3)(ii) of this section. Data 
measured and recorded by the provisionally certified monitoring system, 
in accordance with the requirements of part 75 of this chapter, will be 
considered valid quality-assured data (retroactive to the date and time 
of provisional certification), provided that the permitting authority 
does not invalidate the provisional certification by issuing a notice of 
disapproval within 120 days of the date of receipt of the complete 
certification application by the permitting authority.
    (iv) Certification application approval process. The permitting 
authority will issue a written notice of approval or disapproval of the 
certification application to the owner or operator within 120 days of 
receipt of the complete certification application under paragraph 
(d)(3)(ii) of this section. In the event the permitting authority does 
not issue such a notice within such 120-day period, each monitoring 
system that meets the applicable performance requirements of part 75 of 
this chapter and is included in the certification application will be 
deemed certified for use under the CAIR NOX Ozone Season 
Trading Program.
    (A) Approval notice. If the certification application is complete 
and shows that each monitoring system meets the applicable performance 
requirements of part 75 of this chapter, then the permitting authority 
will issue a written notice of approval of the certification application 
within 120 days of receipt.
    (B) Incomplete application notice. If the certification application 
is not complete, then the permitting authority will issue a written 
notice of incompleteness that sets a reasonable date by which the CAIR 
designated representative must submit the additional information 
required to complete the certification application. If the CAIR 
designated representative does not comply with the notice of 
incompleteness by the specified date, then the permitting authority may 
issue a notice of disapproval under paragraph (d)(3)(iv)(C) of this 
section. The 120-day review period shall not begin before receipt of a 
complete certification application.
    (C) Disapproval notice. If the certification application shows that 
any monitoring system does not meet the performance requirements of part 
75 of this chapter or if the certification application is incomplete and 
the requirement for disapproval under paragraph (d)(3)(iv)(B) of this 
section is met, then the permitting authority will issue a written 
notice of disapproval of the certification application. Upon issuance of 
such notice of disapproval, the provisional certification is invalidated 
by the permitting authority and the data measured and recorded by each 
uncertified monitoring system shall not be considered valid quality-
assured data beginning with the date and hour of provisional 
certification (as defined under Sec. 75.20(a)(3) of this chapter). The 
owner or operator shall follow the procedures for loss of certification 
in paragraph (d)(3)(v) of this section for each monitoring system that 
is disapproved for initial certification.
    (D) Audit decertification. The permitting authority or, for a CAIR 
NOX Ozone Season opt-in unit or a unit for which a CAIR opt-
in permit application is submitted and not withdrawn and a CAIR opt-in 
permit is not yet issued or denied under subpart IIII of this part, the 
Administrator may issue a notice of disapproval of the certification 
status of a monitor in accordance with Sec. 96.372(b).
    (v) Procedures for loss of certification. If the permitting 
authority or the Administrator issues a notice of disapproval of a 
certification application under paragraph (d)(3)(iv)(C) of this section 
or a notice of disapproval of certification status under paragraph 
(d)(3)(iv)(D) of this section, then:

[[Page 160]]

    (A) The owner or operator shall substitute the following values, for 
each disapproved monitoring system, for each hour of unit operation 
during the period of invalid data specified under Sec. 
75.20(a)(4)(iii), Sec. 75.20(g)(7), or Sec. 75.21(e) of this chapter 
and continuing until the applicable date and hour specified under Sec. 
75.20(a)(5)(i) or (g)(7) of this chapter:
    (1) For a disapproved NOX emission rate (i.e., 
NOX-diluent) system, the maximum potential NOX 
emission rate, as defined in Sec. 72.2 of this chapter.
    (2) For a disapproved NOX pollutant concentration monitor 
and disapproved flow monitor, respectively, the maximum potential 
concentration of NOX and the maximum potential flow rate, as 
defined in sections 2.1.2.1 and 2.1.4.1 of appendix A to part 75 of this 
chapter.
    (3) For a disapproved moisture monitoring system and disapproved 
diluent gas monitoring system, respectively, the minimum potential 
moisture percentage and either the maximum potential CO2 
concentration or the minimum potential O2 concentration (as 
applicable), as defined in sections 2.1.5, 2.1.3.1, and 2.1.3.2 of 
appendix A to part 75 of this chapter.
    (4) For a disapproved fuel flowmeter system, the maximum potential 
fuel flow rate, as defined in section 2.4.2.1 of appendix D to part 75 
of this chapter.
    (5) For a disapproved excepted NOX monitoring system 
under appendix E to part 75 of this chapter, the fuel-specific maximum 
potential NOX emission rate, as defined in Sec. 72.2 of this 
chapter.
    (B) The CAIR designated representative shall submit a notification 
of certification retest dates and a new certification application in 
accordance with paragraphs (d)(3)(i) and (ii) of this section.
    (C) The owner or operator shall repeat all certification tests or 
other requirements that were failed by the monitoring system, as 
indicated in the permitting authority's or the Administrator's notice of 
disapproval, no later than 30 unit operating days after the date of 
issuance of the notice of disapproval.
    (e) Initial certification and recertification procedures for units 
using the low mass emission excepted methodology under Sec. 75.19 of 
this chapter. The owner or operator of a unit qualified to use the low 
mass emissions (LME) excepted methodology under Sec. 75.19 of this 
chapter shall meet the applicable certification and recertification 
requirements in Sec. Sec. 75.19(a)(2) and 75.20(h) of this chapter. If 
the owner or operator of such a unit elects to certify a fuel flowmeter 
system for heat input determination, the owner or operator shall also 
meet the certification and recertification requirements in Sec. 
75.20(g) of this chapter.
    (f) Certification/recertification procedures for alternative 
monitoring systems. The CAIR designated representative of each unit for 
which the owner or operator intends to use an alternative monitoring 
system approved by the Administrator and, if applicable, the permitting 
authority under subpart E of part 75 of this chapter shall comply with 
the applicable notification and application procedures of Sec. 75.20(f) 
of this chapter.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25395, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



Sec. 96.372  Out of control periods.

    (a) Whenever any monitoring system fails to meet the quality-
assurance and quality-control requirements or data validation 
requirements of part 75 of this chapter, data shall be substituted using 
the applicable missing data procedures in subpart D or subpart H of, or 
appendix D or appendix E to, part 75 of this chapter.
    (b) Audit decertification. Whenever both an audit of a monitoring 
system and a review of the initial certification or recertification 
application reveal that any monitoring system should not have been 
certified or recertified because it did not meet a particular 
performance specification or other requirement under Sec. 96.371 or the 
applicable provisions of part 75 of this chapter, both at the time of 
the initial certification or recertification application submission and 
at the time of the audit, the permitting authority or, for a CAIR 
NOX Ozone Season opt-in unit or a unit for which a CAIR opt-
in permit application is submitted and not withdrawn and a CAIR opt-in 
permit is not yet issued or denied under subpart IIII of this part, the 
Administrator will

[[Page 161]]

issue a notice of disapproval of the certification status of such 
monitoring system. For the purposes of this paragraph, an audit shall be 
either a field audit or an audit of any information submitted to the 
permitting authority or the Administrator. By issuing the notice of 
disapproval, the permitting authority or the Administrator revokes 
prospectively the certification status of the monitoring system. The 
data measured and recorded by the monitoring system shall not be 
considered valid quality-assured data from the date of issuance of the 
notification of the revoked certification status until the date and time 
that the owner or operator completes subsequently approved initial 
certification or recertification tests for the monitoring system. The 
owner or operator shall follow the applicable initial certification or 
recertification procedures in Sec. 96.371 for each disapproved 
monitoring system.



Sec. 96.373  Notifications.

    The CAIR designated representative for a CAIR NOX Ozone 
Season unit shall submit written notice to the permitting authority and 
the Administrator in accordance with Sec. 75.61 of this chapter.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25395, Apr. 28, 2006]



Sec. 96.374  Recordkeeping and reporting.

    (a) General provisions. The CAIR designated representative shall 
comply with all recordkeeping and reporting requirements in this 
section, the applicable recordkeeping and reporting requirements under 
Sec. 75.73 of this chapter, and the requirements of Sec. 96.310(e)(1).
    (b) Monitoring plans. The owner or operator of a CAIR NOX 
Ozone Season unit shall comply with requirements of Sec. 75.73(c) and 
(e) of this chapter and, for a unit for which a CAIR opt-in permit 
application is submitted and not withdrawn and a CAIR opt-in permit is 
not yet issued or denied under subpart IIII of this part, Sec. Sec. 
96.383 and 96.384(a).
    (c) Certification applications. The CAIR designated representative 
shall submit an application to the permitting authority within 45 days 
after completing all initial certification or recertification tests 
required under Sec. 96.371, including the information required under 
Sec. 75.63 of this chapter.
    (d) Quarterly reports. The CAIR designated representative shall 
submit quarterly reports, as follows:
    (1) If the CAIR NOX Ozone Season unit is subject to an 
Acid Rain emissions limitation or a CAIR NOX emissions 
limitation or if the owner or operator of such unit chooses to report on 
an annual basis under this subpart, the CAIR designated representative 
shall meet the requirements of subpart H of part 75 of this chapter 
(concerning monitoring of NOX mass emissions) for such unit 
for the entire year and shall report the NOX mass emissions 
data and heat input data for such unit, in an electronic quarterly 
report in a format prescribed by the Administrator, for each calendar 
quarter beginning with:
    (i) For a unit that commences commercial operation before July 1, 
2007, the calendar quarter covering May 1, 2008 through June 30, 2008;
    (ii) For a unit that commences commercial operation on or after July 
1, 2007, the calendar quarter corresponding to the earlier of the date 
of provisional certification or the applicable deadline for initial 
certification under Sec. 96.370(b), unless that quarter is the third or 
fourth quarter of 2007 or the first quarter of 2008, in which case 
reporting shall commence in the quarter covering May 1, 2008 through 
June 30, 2008;
    (iii) Notwithstanding paragraphs (d)(1)(i) and (ii) of this section, 
for a unit for which a CAIR opt-in permit application is submitted and 
not withdrawn and a CAIR opt-in permit is not yet issued or denied under 
subpart IIII of this part, the calendar quarter corresponding to the 
date specified in Sec. 96.384(b); and
    (iv) Notwithstanding paragraphs (d)(1)(i) and (ii) of this section, 
for a CAIR NOX Ozone Season opt-in unit under subpart IIII of 
this part, the calendar quarter corresponding to the date on which the 
CAIR NOX Ozone Season opt-in unit enters the CAIR 
NOX Ozone Season Trading Program as provided in Sec. 
96.384(g).
    (2) If the CAIR NOX Ozone Season unit is not subject to 
an Acid Rain emissions limitation or a CAIR NOX

[[Page 162]]

emissions limitation, then the CAIR designated representative shall 
either:
    (i) Meet the requirements of subpart H of part 75 (concerning 
monitoring of NOX mass emissions) for such unit for the 
entire year and report the NOX mass emissions data and heat 
input data for such unit in accordance with paragraph (d)(1) of this 
section; or
    (ii) Meet the requirements of subpart H of part 75 for the control 
period (including the requirements in Sec. 75.74(c) of this chapter) 
and report NOX mass emissions data and heat input data 
(including the data described in Sec. 75.74(c)(6) of this chapter) for 
such unit only for the control period of each year and report, in an 
electronic quarterly report in a format prescribed by the Administrator, 
for each calendar quarter beginning with:
    (A) For a unit that commences commercial operation before July 1, 
2007, the calendar quarter covering May 1, 2008 through June 30, 2008;
    (B) For a unit that commences commercial operation on or after July 
1, 2007, the calendar quarter corresponding to the earlier of the date 
of provisional certification or the applicable deadline for initial 
certification under Sec. 96.370(b), unless that date is not during a 
control period, in which case reporting shall commence in the quarter 
that includes May 1 through June 30 of the first control period after 
such date;.
    (C) Notwithstanding paragraphs (d)(2)(ii)(A) and (2)(ii)(B) of this 
section, for a unit for which a CAIR opt-in permit application is 
submitted and not withdrawn and a CAIR opt-in permit is not yet issued 
or denied under subpart IIII of this part, the calendar quarter 
corresponding to the date specified in Sec. 96.384(b); and
    (D) Notwithstanding paragraphs (d)(2)(ii)(A) and (2)(ii)(B) of this 
section, for a CAIR NOX Ozone Season opt-in unit under 
subpart IIII of this part, the calendar quarter corresponding to the 
date on which the CAIR NOX Ozone Season opt-in unit enters 
the CAIR NOX Ozone Season Trading Program as provided in 
Sec. 96.384(g).
    (2) The CAIR designated representative shall submit each quarterly 
report to the Administrator within 30 days following the end of the 
calendar quarter covered by the report. Quarterly reports shall be 
submitted in the manner specified in Sec. 75.73(f) of this chapter.
    (3) For CAIR NOX Ozone Season units that are also subject 
to an Acid Rain emissions limitation or the CAIR NOX Annual 
Trading Program or CAIR SO2 Trading Program, quarterly 
reports shall include the applicable data and information required by 
subparts F through H of part 75 of this chapter as applicable, in 
addition to the NOX mass emission data, heat input data, and 
other information required by this subpart.
    (e) Compliance certification. The CAIR designated representative 
shall submit to the Administrator a compliance certification (in a 
format prescribed by the Administrator) in support of each quarterly 
report based on reasonable inquiry of those persons with primary 
responsibility for ensuring that all of the unit's emissions are 
correctly and fully monitored. The certification shall state that:
    (1) The monitoring data submitted were recorded in accordance with 
the applicable requirements of this subpart and part 75 of this chapter, 
including the quality assurance procedures and specifications;
    (2) For a unit with add-on NOX emission controls and for 
all hours where NOX data are substituted in accordance with 
Sec. 75.34(a)(1) of this chapter, the add-on emission controls were 
operating within the range of parameters listed in the quality 
assurance/quality control program under appendix B to part 75 of this 
chapter and the substitute data values do not systematically 
underestimate NOX emissions; and
    (3) For a unit that is reporting on a control period basis under 
paragraph (d)(2)(ii) of this section, the NOX emission rate 
and NOX concentration values substituted for missing data 
under subpart D of part 75 of this chapter are calculated using only 
values from a control period and do not systematically underestimate 
NOX emissions.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25395, Apr. 28, 2006]

[[Page 163]]



Sec. 96.375  Petitions.

    (a) Except as provided in paragraph (b)(2) of this section, the CAIR 
designated representative of a CAIR NOX Ozone Season unit 
that is subject to an Acid Rain emissions limitation may submit a 
petition under Sec. 75.66 of this chapter to the Administrator 
requesting approval to apply an alternative to any requirement of this 
subpart. Application of an alternative to any requirement of this 
subpart is in accordance with this subpart only to the extent that the 
petition is approved in writing by the Administrator, in consultation 
with the permitting authority.
    (b)(1) The CAIR designated representative of a CAIR NOX 
Ozone Season unit that is not subject to an Acid Rain emissions 
limitation may submit a petition under Sec. 75.66 of this chapter to 
the permitting authority and the Administrator requesting approval to 
apply an alternative to any requirement of this subpart. Application of 
an alternative to any requirement of this subpart is in accordance with 
this subpart only to the extent that the petition is approved in writing 
by both the permitting authority and the Administrator.
    (2) The CAIR designated representative of a CAIR NOX 
Ozone Season unit that is subject to an Acid Rain emissions limitation 
may submit a petition under Sec. 75.66 of this chapter to the 
permitting authority and the Administrator requesting approval to apply 
an alternative to a requirement concerning any additional continuous 
emission monitoring system required under Sec. 75.72 of this chapter. 
Application of an alternative to any such requirement is in accordance 
with this subpart only to the extent that the petition is approved in 
writing by both the permitting authority and the Administrator.



             Subpart IIII_CAIR NOX Ozone Season Opt-in Units

    Source: 70 FR 25382, May 12, 2005, unless otherwise noted.



Sec. 96.380  Applicability.

    A CAIR NOX Ozone Season opt-in unit must be a unit that:
    (a) Is located in the State;
    (b) Is not a CAIR NOX Ozone Season unit under Sec. 
96.304 and is not covered by a retired unit exemption under Sec. 96.305 
that is in effect;
    (c) Is not covered by a retired unit exemption under Sec. 72.8 of 
this chapter that is in effect;
    (d) Has or is required or qualified to have a title V operating 
permit or other federally enforceable permit; and
    (e) Vents all of its emissions to a stack and can meet the 
monitoring, recordkeeping, and reporting requirements of subpart HHHH of 
this part.



Sec. 96.381  General.

    (a) Except as otherwise provided in Sec. Sec. 96.301 through 
96.304, Sec. Sec. 96.306 through 96.308, and subparts BBBB and CCCC and 
subparts FFFF through HHHH of this part, a CAIR NOX Ozone 
Season opt-in unit shall be treated as a CAIR NOX Ozone 
Season unit for purposes of applying such sections and subparts of this 
part.
    (b) Solely for purposes of applying, as provided in this subpart, 
the requirements of subpart HHHH of this part to a unit for which a CAIR 
opt-in permit application is submitted and not withdrawn and a CAIR opt-
in permit is not yet issued or denied under this subpart, such unit 
shall be treated as a CAIR NOX Ozone Season unit before 
issuance of a CAIR opt-in permit for such unit.



Sec. 96.382  CAIR designated representative.

    Any CAIR NOX Ozone Season opt-in unit, and any unit for 
which a CAIR opt-in permit application is submitted and not withdrawn 
and a CAIR opt-in permit is not yet issued or denied under this subpart, 
located at the same source as one or more CAIR NOX Ozone 
Season units shall have the same CAIR designated representative and 
alternate CAIR designated representative as such CAIR NOX 
Ozone Season units.



Sec. 96.383  Applying for CAIR opt-in permit.

    (a) Applying for initial CAIR opt-in permit. The CAIR designated 
representative of a unit meeting the requirements for a CAIR 
NOX Ozone Season opt-in unit in Sec. 96.380 may apply for an 
initial CAIR opt-in permit at any time, except

[[Page 164]]

as provided under Sec. 96.386 (f) and (g), and, in order to apply, must 
submit the following:
    (1) A complete CAIR permit application under Sec. 96.322;
    (2) A certification, in a format specified by the permitting 
authority, that the unit:
    (i) Is not a CAIR NOX Ozone Season unit under Sec. 
96.304 and is not covered by a retired unit exemption under Sec. 96.305 
that is in effect;
    (ii) Is not covered by a retired unit exemption under Sec. 72.8 of 
this chapter that is in effect;
    (iii) Vents all of its emissions to a stack; and
    (iv) Has documented heat input for more than 876 hours during the 6 
months immediately preceding submission of the CAIR permit application 
under Sec. 96.322;
    (3) A monitoring plan in accordance with subpart HHHH of this part;
    (4) A complete certificate of representation under Sec. 96.313 
consistent with Sec. 96.382, if no CAIR designated representative has 
been previously designated for the source that includes the unit; and
    (5) A statement, in a format specified by the permitting authority, 
whether the CAIR designated representative requests that the unit be 
allocated CAIR NOX Ozone Season allowances under Sec. 
96.388(b) or Sec. 96.388(c) (subject to the conditions in Sec. Sec. 
96.384(h) and 96.386(g)). If allocation under Sec. 96.388(c) is 
requested, this statement shall include a statement that the owners and 
operators of the unit intend to repower the unit before January 1, 2015 
and that they will provide, upon request, documentation demonstrating 
such intent.
    (b) Duty to reapply. (1) The CAIR designated representative of a 
CAIR NOX Ozone Season opt-in unit shall submit a complete 
CAIR permit application under Sec. 96.322 to renew the CAIR opt-in unit 
permit in accordance with the permitting authority's regulations for 
title V operating permits, or the permitting authority's regulations for 
other federally enforceable permits if applicable, addressing permit 
renewal.
    (2) Unless the permitting authority issues a notification of 
acceptance of withdrawal of the CAIR NOX Ozone Season opt-in 
unit from the CAIR NOX Ozone Season Trading Program in 
accordance with Sec. 96.186 or the unit becomes a CAIR NOX 
Ozone Season unit under Sec. 96.304, the CAIR NOX opt-in 
unit shall remain subject to the requirements for a CAIR NOX 
Ozone Season opt-in unit, even if the CAIR designated representative for 
the CAIR NOX Ozone Season opt-in unit fails to submit a CAIR 
permit application that is required for renewal of the CAIR opt-in 
permit under paragraph (b)(1) of this section.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25396, Apr. 28, 2006]



Sec. 96.384  Opt-in process.

    The permitting authority will issue or deny a CAIR opt-in permit for 
a unit for which an initial application for a CAIR opt-in permit under 
Sec. 96.383 is submitted in accordance with the following:
    (a) Interim review of monitoring plan. The permitting authority and 
the Administrator will determine, on an interim basis, the sufficiency 
of the monitoring plan accompanying the initial application for a CAIR 
opt-in permit under Sec. 96.383. A monitoring plan is sufficient, for 
purposes of interim review, if the plan appears to contain information 
demonstrating that the NOX emissions rate and heat input of 
the unit and all other applicable parameters are monitored and reported 
in accordance with subpart HHHH of this part. A determination of 
sufficiency shall not be construed as acceptance or approval of the 
monitoring plan.
    (b) Monitoring and reporting. (1)(i) If the permitting authority and 
the Administrator determine that the monitoring plan is sufficient under 
paragraph (a) of this section, the owner or operator shall monitor and 
report the NOX emissions rate and the heat input of the unit 
and all other applicable parameters, in accordance with subpart HHHH of 
this part, starting on the date of certification of the appropriate 
monitoring systems under subpart HHHH of this part and continuing until 
a CAIR opt-in permit is denied under Sec. 96.384(f) or, if a CAIR opt-
in permit is issued, the date and time when the unit is withdrawn from 
the CAIR NOX Ozone Season Trading Program in accordance with 
Sec. 96.386.

[[Page 165]]

    (ii) The monitoring and reporting under paragraph (b)(1)(i) of this 
section shall include the entire control period immediately before the 
date on which the unit enters the CAIR NOX Ozone Season 
Trading Program under Sec. 96.384(g), during which period monitoring 
system availability must not be less than 90 percent under subpart HHHH 
of this part and the unit must be in full compliance with any applicable 
State or Federal emissions or emissions-related requirements.
    (2) To the extent the NOX emissions rate and the heat 
input of the unit are monitored and reported in accordance with subpart 
HHHH of this part for one or more control periods, in addition to the 
control period under paragraph (b)(1)(ii) of this section, during which 
control periods monitoring system availability is not less than 90 
percent under subpart HHHH of this part and the unit is in full 
compliance with any applicable State or Federal emissions or emissions-
related requirements and which control periods begin not more than 3 
years before the unit enters the CAIR NOX Ozone Season 
Trading Program under Sec. 96.384(g), such information shall be used as 
provided in paragraphs (c) and (d) of this section.
    (c) Baseline heat input. The unit's baseline heat input shall equal:
    (1) If the unit's NOX emissions rate and heat input are 
monitored and reported for only one control period, in accordance with 
paragraph (b)(1) of this section, the unit's total heat input (in mmBtu) 
for the control period; or
    (2) If the unit's NOX emissions rate and heat input are 
monitored and reported for more than one control period, in accordance 
with paragraphs (b)(1) and (2) of this section, the average of the 
amounts of the unit's total heat input (in mmBtu) for the control 
periods under paragraphs (b)(1)(ii) and (2) of this section.
    (d) Baseline NOX emission rate. The unit's baseline 
NOX emission rate shall equal:
    (1) If the unit's NOX emissions rate and heat input are 
monitored and reported for only one control period, in accordance with 
paragraph (b)(1) of this section, the unit's NOX emissions 
rate (in lb/mmBtu) for the control period;
    (2) If the unit's NOX emissions rate and heat input are 
monitored and reported for more than one control period, in accordance 
with paragraphs (b)(1) and (2) of this section, and the unit does not 
have add-on NOX emission controls during any such control 
periods, the average of the amounts of the unit's NOX 
emissions rate (in lb/mmBtu) for the control periods under paragraphs 
(b)(1)(ii) and (2) of this section; or
    (3) If the unit's NOX emissions rate and heat input are 
monitored and reported for more than one control period, in accordance 
with paragraphs (b)(1) and (2) of this section, and the unit has add-on 
NOX emission controls during any such control periods, the 
average of the amounts of the unit's NOX emissions rate (in 
lb/mmBtu) for such control periods during which the unit has add-on 
NOX emission controls.
    (e) Issuance of CAIR opt-in permit. After calculating the baseline 
heat input and the baseline NOX emissions rate for the unit 
under paragraphs (c) and (d) of this section and if the permitting 
authority determines that the CAIR designated representative shows that 
the unit meets the requirements for a CAIR NOX Ozone Season 
opt-in unit in Sec. 96.380 and meets the elements certified in Sec. 
96.383(a)(2), the permitting authority will issue a CAIR opt-in permit. 
The permitting authority will provide a copy of the CAIR opt-in permit 
to the Administrator, who will then establish a compliance account for 
the source that includes the CAIR NOX Ozone Season opt-in 
unit unless the source already has a compliance account.
    (f) Issuance of denial of CAIR opt-in permit. Notwithstanding 
paragraphs (a) through (e) of this section, if at any time before 
issuance of a CAIR opt-in permit for the unit, the permitting authority 
determines that the CAIR designated representative fails to show that 
the unit meets the requirements for a CAIR NOX Ozone Season 
opt-in unit in Sec. 96.380 or meets the elements certified in Sec. 
96.383(a)(2), the permitting authority will issue a denial of a CAIR 
opt-in permit for the unit.
    (g) Date of entry into CAIR NOX Ozone Season Trading 
Program. A unit for which an initial CAIR opt-in permit is

[[Page 166]]

issued by the permitting authority shall become a CAIR NOX 
Ozone Season opt-in unit, and a CAIR NOX Ozone Season unit, 
as of the later of May 1, 2009 or May 1 of the first control period 
during which such CAIR opt-in permit is issued.
    (h) Repowered CAIR NOX Ozone Season opt-in unit. (1) If 
CAIR designated representative requests, and the permitting authority 
issues a CAIR opt-in permit providing for, allocation to a CAIR 
NOX Ozone Season opt-in unit of CAIR NOX Ozone 
Season allowances under Sec. 96.388(c) and such unit is repowered after 
its date of entry into the CAIR NOX Ozone Season Trading 
Program under paragraph (g) of this section, the repowered unit shall be 
treated as a CAIR NOX Ozone Season opt-in unit replacing the 
original CAIR NOX Ozone Season opt-in unit, as of the date of 
start-up of the repowered unit's combustion chamber.
    (2) Notwithstanding paragraphs (c) and (d) of this section, as of 
the date of start-up under paragraph (h)(1) of this section, the 
repowered unit shall be deemed to have the same date of commencement of 
operation, date of commencement of commercial operation, baseline heat 
input, and baseline NOX emission rate as the original CAIR 
NOX Ozone Season opt-in unit, and the original CAIR 
NOX Ozone Season opt-in unit shall no longer be treated as a 
CAIR NOX Ozone Season opt-in unit or a CAIR NOX 
Ozone Season unit.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25396, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



Sec. 96.385  CAIR opt-in permit contents.

    (a) Each CAIR opt-in permit will contain:
    (1) All elements required for a complete CAIR permit application 
under Sec. 96.322;
    (2) The certification in Sec. 96.383(a)(2);
    (3) The unit's baseline heat input under Sec. 96.384(c);
    (4) The unit's baseline NOX emission rate under Sec. 
96.384(d);
    (5) A statement whether the unit is to be allocated CAIR 
NOX Ozone Season allowances under Sec. 96.388(b) or Sec. 
96.388(c) (subject to the conditions in Sec. Sec. 96.384(h) and 
96.386(g));
    (6) A statement that the unit may withdraw from the CAIR 
NOX Ozone Season Trading Program only in accordance with 
Sec. 96.386; and
    (7) A statement that the unit is subject to, and the owners and 
operators of the unit must comply with, the requirements of Sec. 
96.387.
    (b) Each CAIR opt-in permit is deemed to incorporate automatically 
the definitions of terms under Sec. 96.302 and, upon recordation by the 
Administrator under subpart FFFF or GGGG of this part or this subpart, 
every allocation, transfer, or deduction of CAIR NOX Ozone 
Season allowances to or from the compliance account of the source that 
includes a CAIR NOX Ozone Season opt-in unit covered by the 
CAIR opt-in permit.
    (c) The CAIR opt-in permit shall be included, in a format specified 
by the permitting authority, in the CAIR permit for the source where the 
CAIR NOX Ozone Season opt-in unit is located and in a title V 
operating permit or other federally enforceable permit for the source.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25396, Apr. 28, 2006]



Sec. 96.386  Withdrawal from CAIR NOX Ozone Season Trading Program.

    Except as provided under paragraph (g) of this section, a CAIR 
NOX Ozone Season opt-in unit may withdraw from the CAIR 
NOX Ozone Season Trading Program, but only if the permitting 
authority issues a notification to the CAIR designated representative of 
the CAIR NOX Ozone Season opt-in unit of the acceptance of 
the withdrawal of the CAIR NOX Ozone Season opt-in unit in 
accordance with paragraph (d) of this section.
    (a) Requesting withdrawal. In order to withdraw a CAIR 
NOX Ozone Season opt-on unit from the CAIR NOX 
Ozone Season Trading Program, the CAIR designated representative of the 
CAIR NOX Ozone Season opt-in unit shall submit to the 
permitting authority a request to withdraw effective as of midnight of 
September 30 of a specified calendar year, which date must be at least 4 
years after September 30 of the year of entry into the CAIR 
NOX Ozone Season Trading Program under

[[Page 167]]

Sec. 96.384(g). The request must be submitted no later than 90 days 
before the requested effective date of withdrawal.
    (b) Conditions for withdrawal. Before a CAIR NOX Ozone 
Season opt-in unit covered by a request under paragraph (a) of this 
section may withdraw from the CAIR NOX Ozone Season Trading 
Program and the CAIR opt-in permit may be terminated under paragraph (e) 
of this section, the following conditions must be met:
    (1) For the control period ending on the date on which the 
withdrawal is to be effective, the source that includes the CAIR 
NOX Ozone Season opt-in unit must meet the requirement to 
hold CAIR NOX Ozone Season allowances under Sec. 96.306(c) 
and cannot have any excess emissions.
    (2) After the requirement for withdrawal under paragraph (b)(1) of 
this section is met, the Administrator will deduct from the compliance 
account of the source that includes the CAIR NOX Ozone Season 
opt-in unit CAIR NOX Ozone Season allowances equal in amount 
to and allocated for the same or a prior control period as any CAIR 
NOX Ozone Season allowances allocated to the CAIR 
NOX Ozone Season opt-in unit under Sec. 96.388 for any 
control period for which the withdrawal is to be effective. If there are 
no remaining CAIR NOX Ozone Season units at the source, the 
Administrator will close the compliance account, and the owners and 
operators of the CAIR NOX Ozone Season opt-in unit may submit 
a CAIR NOX Ozone Season allowance transfer for any remaining 
CAIR NOX Ozone Season allowances to another CAIR 
NOX Ozone Season Allowance Tracking System in accordance with 
subpart GGGG of this part.
    (c) Notification. (1) After the requirements for withdrawal under 
paragraphs (a) and (b) of this section are met (including deduction of 
the full amount of CAIR NOX Ozone Season allowances 
required), the permitting authority will issue a notification to the 
CAIR designated representative of the CAIR NOX Ozone Season 
opt-in unit of the acceptance of the withdrawal of the CAIR 
NOX Ozone Season opt-in unit as of midnight on September 30 
of the calendar year for which the withdrawal was requested.
    (2) If the requirements for withdrawal under paragraphs (a) and (b) 
of this section are not met, the permitting authority will issue a 
notification to the CAIR designated representative of the CAIR 
NOX Ozone Season opt-in unit that the CAIR NOX 
Ozone Season opt-in unit's request to withdraw is denied. Such CAIR 
NOX Ozone Season opt-in unit shall continue to be a CAIR 
NOX Ozone Season opt-in unit.
    (d) Permit amendment. After the permitting authority issues a 
notification under paragraph (c)(1) of this section that the 
requirements for withdrawal have been met, the permitting authority will 
revise the CAIR permit covering the CAIR NOX Ozone Season 
opt-in unit to terminate the CAIR opt-in permit for such unit as of the 
effective date specified under paragraph (c)(1) of this section. The 
unit shall continue to be a CAIR NOX Ozone Season opt-in unit 
until the effective date of the termination and shall comply with all 
requirements under the CAIR NOX Ozone Season Trading Program 
concerning any control periods for which the unit is a CAIR 
NOX Ozone Season opt-in unit, even if such requirements arise 
or must be complied with after the withdrawal takes effect.
    (e) Reapplication upon failure to meet conditions of withdrawal. If 
the permitting authority denies the CAIR NOX Ozone Season 
opt-in unit's request to withdraw, the CAIR designated representative 
may submit another request to withdraw in accordance with paragraphs (a) 
and (b) of this section.
    (f) Ability to reapply to the CAIR NOX Ozone Season 
Trading Program. Once a CAIR NOX Ozone Season opt-in unit 
withdraws from the CAIR NOX Ozone Season Trading Program and 
its CAIR opt-in permit is terminated under this section, the CAIR 
designated representative may not submit another application for a CAIR 
opt-in permit under Sec. 96.383 for such CAIR NOX Ozone 
Season opt-in unit before the date that is 4 years after the date on 
which the withdrawal became effective. Such new application for a CAIR 
opt-in permit will be treated as an initial application for a CAIR opt-
in permit under Sec. 96.384.
    (g) Inability to withdraw. Notwithstanding paragraphs (a) through 
(f) of this section, a CAIR NOX Ozone Season

[[Page 168]]

opt-in unit shall not be eligible to withdraw from the CAIR 
NOX Ozone Season Trading Program if the CAIR designated 
representative of the CAIR NOX Ozone Season opt-in unit 
requests, and the permitting authority issues a CAIR opt-in permit 
providing for, allocation to the CAIR NOX Ozone Season opt-in 
unit of CAIR NOX Ozone Season allowances under Sec. 
96.388(c).

[70 FR 25382, May 12, 2005, as amended at 71 FR 25396, Apr. 28, 2006]



Sec. 96.387  Change in regulatory status.

    (a) Notification. If a CAIR NOX Ozone Season opt-in unit 
becomes a CAIR NOX Ozone Season unit under Sec. 96.304, then 
the CAIR designated representative shall notify in writing the 
permitting authority and the Administrator of such change in the CAIR 
NOX Ozone Season opt-in unit's regulatory status, within 30 
days of such change.
    (b) Permitting authority's and Administrator's actions. (1) If a 
CAIR NOX Ozone Season opt-in unit becomes a CAIR 
NOX Ozone Season unit under Sec. 96.304, the permitting 
authority will revise the CAIR NOX Ozone Season opt-in unit's 
CAIR opt-in permit to meet the requirements of a CAIR permit under Sec. 
96.323, and remove the CAIR opt-in permit provisions, as of the date on 
which the CAIR NOX Ozone Season opt-in unit becomes a CAIR 
NOX Ozone Season unit under Sec. 96.304.
    (2)(i) The Administrator will deduct from the compliance account of 
the source that includes the CAIR NOX Ozone Season opt-in 
unit that becomes a CAIR NOX Ozone Season unit under Sec. 
96.304, CAIR NOX Ozone Season allowances equal in amount to 
and allocated for the same or a prior control period as:
    (A) Any CAIR NOX Ozone Season allowances allocated to the 
CAIR NOX Ozone Season opt-in unit under Sec. 96.388 for any 
control period after the date on which the CAIR NOX Ozone 
Season opt-in unit becomes a CAIR NOX Ozone Season unit under 
Sec. 96.304; and
    (B) If the date on which the CAIR NOX Ozone Season opt-in 
unit becomes a CAIR NOX Ozone Season unit under Sec. 96.304 
is not September 30, the CAIR NOX Ozone Season allowances 
allocated to the CAIR NOX Ozone Season opt-in unit under 
Sec. 96.388 for the control period that includes the date on which the 
CAIR NOX Ozone Season opt-in unit becomes a CAIR 
NOX Ozone Season unit under Sec. 96.304, multiplied by the 
ratio of the number of days, in the control period, starting with the 
date on which the CAIR NOX Ozone Season opt-in unit becomes a 
CAIR NOX Ozone Season unit under Sec. 96.304 divided by the 
total number of days in the control period and rounded to the nearest 
whole allowance as appropriate.
    (ii) The CAIR designated representative shall ensure that the 
compliance account of the source that includes the CAIR NOX 
Ozone Season opt-in unit that becomes a CAIR NOX Ozone Season 
unit under Sec. 96.304 contains the CAIR NOX Ozone Season 
allowances necessary for completion of the deduction under paragraph 
(b)(2)(i) of this section.
    (3)(i) For every control period after the date on which the CAIR 
NOX Ozone Season opt-in unit becomes a CAIR NOX 
Ozone Season unit under Sec. 96.304, the CAIR NOX Ozone 
Season opt-in unit will be allocated CAIR NOX Ozone Season 
allowances under Sec. 96.342.
    (ii) If the date on which the CAIR NOX Ozone Season opt-
in unit becomes a CAIR NOX Ozone Season unit under Sec. 
96.304 is not September 30, the following amount of CAIR NOX 
Ozone Season allowances will be allocated to the CAIR NOX 
Ozone Season opt-in unit (as a CAIR NOX Ozone Season unit) 
under Sec. 96.342 for the control period that includes the date on 
which the CAIR NOX Ozone Season opt-in unit becomes a CAIR 
NOX Ozone Season unit under Sec. 96.304:
    (A) The amount of CAIR NOX Ozone Season allowances 
otherwise allocated to the CAIR NOX Ozone Season opt-in unit 
(as a CAIR NOX Ozone Season unit) under Sec. 96.342 for the 
control period multiplied by;
    (B) The ratio of the number of days, in the control period, starting 
with the date on which the CAIR NOX Ozone Season opt-in unit 
becomes a CAIR NOX Ozone Season unit under Sec. 96.304, 
divided by the total number of days in the control period; and

[[Page 169]]

    (C) Rounded to the nearest whole allowance as appropriate.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25396, Apr. 28, 2006; 71 
FR 74794, Dec. 13, 2006]



Sec. 96.388  CAIR NOX Ozone Season allowance allocations 
to CAIR NOX Ozone Season opt-in units.

    (a) Timing requirements. (1) When the CAIR opt-in permit is issued 
under Sec. 96.384(e), the permitting authority will allocate CAIR 
NOX Ozone Season allowances to the CAIR NOX Ozone 
Season opt-in unit, and submit to the Administrator the allocation for 
the control period in which a CAIR NOX Ozone Season opt-in 
unit enters the CAIR NOX Ozone Season Trading Program under 
Sec. 96.384(g), in accordance with paragraph (b) or (c) of this 
section.
    (2) By no later than July 31 of the control period after the control 
period in which a CAIR NOX Ozone Season opt-in unit enters 
the CAIR NOX Ozone Season Trading Program under Sec. 
96.384(g) and July 31 of each year thereafter, the permitting authority 
will allocate CAIR NOX Ozone Season allowances to the CAIR 
NOX Ozone Season opt-in unit, and submit to the Administrator 
the allocation for the control period that includes such submission 
deadline and in which the unit is a CAIR NOX Ozone Season 
opt-in unit, in accordance with paragraph (b)or (c) of this section.
    (b) Calculation of allocation. For each control period for which a 
CAIR NOX Ozone Season opt-in unit is to be allocated CAIR 
NOX Ozone Season allowances, the permitting authority will 
allocate in accordance with the following procedures:
    (1) The heat input (in mmBtu) used for calculating the CAIR 
NOX Ozone Season allowance allocation will be the lesser of:
    (i) The CAIR NOX Ozone Season opt-in unit's baseline heat 
input determined under Sec. 96.384(c); or
    (ii) The CAIR NOX Ozone Season opt-in unit's heat input, 
as determined in accordance with subpart HHHH of this part, for the 
immediately prior control period, except when the allocation is being 
calculated for the control period in which the CAIR NOX Ozone 
Season opt-in unit enters the CAIR NOX Ozone Season Trading 
Program under Sec. 96.384(g).
    (2) The NOX emission rate (in lb/mmBtu) used for 
calculating CAIR NOX Ozone Season allowance allocations will 
be the lesser of:
    (i) The CAIR NOX Ozone Season opt-in unit's baseline 
NOX emissions rate (in lb/mmBtu) determined under Sec. 
96.384(d) and multiplied by 70 percent; or
    (ii) The most stringent State or Federal NOX emissions 
limitation applicable to the CAIR NOX Ozone Season opt-in 
unit at any time during the control period for which CAIR NOX 
Ozone Season allowances are to be allocated.
    (3) The permitting authority will allocate CAIR NOX Ozone 
Season allowances to the CAIR NOX Ozone Season opt-in unit in 
an amount equaling the heat input under paragraph (b)(1) of this 
section, multiplied by the NOX emission rate under paragraph 
(b)(2) of this section, divided by 2,000 lb/ton, and rounded to the 
nearest whole allowance as appropriate.
    (c) Notwithstanding paragraph (b) of this section and if the CAIR 
designated representative requests, and the permitting authority issues 
a CAIR opt-in permit'' (based on a demonstration of the intent to 
repower stated under Sec. 96.383(a)(5)) providing for, allocation to a 
CAIR NOX Ozone Season opt-in unit of CAIR NOX 
Ozone Season allowances under this paragraph (subject to the conditions 
in Sec. Sec. 96.384(h) and 96.386(g)), the permitting authority will 
allocate to the CAIR NOX Ozone Season opt-in unit as follows:
    (1) For each control period in 2009 through 2014 for which the CAIR 
NOX Ozone Season opt-in unit is to be allocated CAIR 
NOX Ozone Season allowances,
    (i) The heat input (in mmBtu) used for calculating CAIR 
NOX Ozone Season allowance allocations will be determined as 
described in paragraph (b)(1) of this section.
    (ii) The NOX emission rate (in lb/mmBtu) used for 
calculating CAIR NOX Ozone Season allowance allocations will 
be the lesser of:
    (A) The CAIR NOX Ozone Season opt-in unit's baseline 
NOX emissions rate

[[Page 170]]

(in lb/mmBtu) determined under Sec. 96.384(d); or
    (B) The most stringent State or Federal NOX emissions 
limitation applicable to the CAIR NOX Ozone Season opt-in 
unit at any time during the control period in which the CAIR 
NOX Ozone Season opt-in unit enters the CAIR NOX 
Ozone Season Trading Program under Sec. 96.384(g).
    (iii) The permitting authority will allocate CAIR NOX 
Ozone Season allowances to the CAIR NOX Ozone Season opt-in 
unit in an amount equaling the heat input under paragraph (c)(1)(i) of 
this section, multiplied by the NOX emission rate under 
paragraph (c)(1)(ii) of this section, divided by 2,000 lb/ton, and 
rounded to the nearest whole allowance as appropriate.
    (2) For each control period in 2015 and thereafter for which the 
CAIR NOX Ozone Season opt-in unit is to be allocated CAIR 
NOX Ozone Season allowances,
    (i) The heat input (in mmBtu) used for calculating the CAIR 
NOX Ozone Season allowance allocations will be determined as 
described in paragraph (b)(1) of this section.
    (ii) The NOX emission rate (in lb/mmBtu) used for 
calculating the CAIR NOX Ozone Season allowance allocation 
will be the lesser of:
    (A) 0.15 lb/mmBtu;
    (B) The CAIR NOX Ozone Season opt-in unit's baseline 
NOX emissions rate (in lb/mmBtu) determined under Sec. 
96.384(d); or
    (C) The most stringent State or Federal NOX emissions 
limitation applicable to the CAIR NOX Ozone Season opt-in 
unit at any time during the control period for which CAIR NOX 
Ozone Season allowances are to be allocated.
    (iii) The permitting authority will allocate CAIR NOX 
Ozone Season allowances to the CAIR NOX Ozone Season opt-in 
unit in an amount equaling the heat input under paragraph (c)(2)(i) of 
this section, multiplied by the NOX emission rate under 
paragraph (c)(2)(ii) of this section, divided by 2,000 lb/ton, and 
rounded to the nearest whole allowance as appropriate.
    (d) Recordation. (1) The Administrator will record, in the 
compliance account of the source that includes the CAIR NOX 
Ozone Season opt-in unit, the CAIR NOX Ozone Season 
allowances allocated by the permitting authority to the CAIR 
NOX Ozone Season opt-in unit under paragraph (a)(1) of this 
section.
    (2) By September 1, of the control period in which a CAIR 
NOX Ozone Season opt-in unit enters the CAIR NOX 
Ozone Season Trading Program under Sec. 96.384(g), and September 1 of 
each year thereafter, the Administrator will record, in the compliance 
account of the source that includes the CAIR NOX Ozone Season 
opt-in unit, the CAIR NOX Ozone Season allowances allocated 
by the permitting authority to the CAIR NOX Ozone Season opt-
in unit under paragraph (a)(2) of this section.

[70 FR 25382, May 12, 2005, as amended at 71 FR 25396, Apr. 28, 2006]



PART 97_FEDERAL NOX BUDGET TRADING PROGRAM AND CAIR 
NOX AND SO2 TRADING PROGRAMS--Table of Contents



         Subpart A_NOX Budget Trading Program General Provisions

Sec.
97.1 Purpose.
97.2 Definitions.
97.3 Measurements, abbreviations, and acronyms.
97.4 Applicability.
97.5 Retired unit exemption.
97.6 Standard requirements.
97.7 Computation of time.

 Subpart B_NOX Authorized Account Representative for NOX Budget Sources

97.10 Authorization and responsibilities of NOX authorized 
          account representative.
97.11 Alternate NOX authorized account representative.
97.12 Changing NOX authorized account representative and 
          alternate NOX authorized account representative; 
          changes in owners and operators.
97.13 Account certificate of representation.
97.14 Objections concerning NOX authorized account 
          representative.

                            Subpart C_Permits

97.20 General NOX Budget Trading Program permit requirements.
97.21 Submission of NOX Budget permit applications.
97.22 Information requirements for NOX Budget permit 
          applications.
97.23 NOX Budget permit contents.
97.24 NOX Budget permit revisions.

[[Page 171]]

                   Subpart D_Compliance Certification

97.30 Compliance certification report.
97.31 Administrator's action on compliance certifications.

                   Subpart E_NOX Allowance Allocations

97.40 Trading program budget.
97.41 Timing requirements for NOX allowance allocations.
97.42 NOX allowance allocations.
97.43 Compliance supplement pool.

                 Subpart F_NOX Allowance Tracking System

97.50 NOX Allowance Tracking System accounts.
97.51 Establishment of accounts.
97.52 NOX Allowance Tracking System responsibilities of 
          NOX authorized account representative.
97.53 Recordation of NOX allowance allocations.
97.54 Compliance.
97.55 Banking.
97.56 Account error.
97.57 Closing of general accounts.

                    Subpart G_NOX Allowance Transfers

97.60 Submission of NOX allowance transfers.
97.61 EPA recordation.
97.62 Notification.

                   Subpart H_Monitoring and Reporting

97.70 General requirements.
97.71 Initial certification and recertification procedures.
97.72 Out of control periods.
97.73 Notifications.
97.74 Recordkeeping and reporting.
97.75 Petitions.
97.76 Additional requirements to provide heat input data.

                    Subpart I_Individual Unit Opt-ins

97.80 Applicability.
97.81 General.
97.82 NOX authorized account representative.
97.83 Applying for NOX Budget opt-in permit.
97.84 Opt-in process.
97.85 NOX Budget opt-in permit contents.
97.86 Withdrawal from NOX Budget Trading Program.
97.87 Change in regulatory status.
97.88 NOX allowance allocations to opt-in units.

                       Subpart J_Appeal Procedures

97.90 Appeal procedures.

      Subpart AA_CAIR NOX Annual Trading Program General Provisions

97.101 Purpose.
97.102 Definitions.
97.103 Measurements, abbreviations, and acronyms.
97.104 Applicability.
97.105 Retired unit exemption.
97.106 Standard requirements.
97.107 Computation of time.
97.108 Appeal procedures.

     Subpart BB_CAIR Designated Representative for CAIR NOX Sources

97.110 Authorization and responsibilities of CAIR designated 
          representative.
97.111 Alternate CAIR designated representative.
97.112 Changing CAIR designated representative and alternate CAIR 
          designated representative; changes in owners and operators.
97.113 Certificate of representation.
97.114 Objections concerning CAIR designated representative.
97.115 Delegation by CAIR designated representative and alternate CAIR 
          designated representative.

                           Subpart CC_Permits

97.120 General CAIR NOX Annual Trading Program permit 
          requirements.
97.121 Submission of CAIR permit applications.
97.122 Information requirements for CAIR permit applications.
97.123 CAIR permit contents and term.
97.124 CAIR permit revisions.

Subpart DD [Reserved]

                Subpart EE_CAIR NOX Allowance Allocations

97.140 State trading budgets.
97.141 Timing requirements for CAIR NOX allowance 
          allocations.
97.142 CAIR NOX allowance allocations.
97.143 Compliance supplement pool.
97.144 Alternative of allocation of CAIR NOX allowances and 
          compliance supplement pool by permitting authority.

Appendix A to Subpart EE of Part 97--States With Approved State 
          Implementation Plan Revisions Concerning Allocations

             Subpart FF_ CAIR NOX Allowance Tracking System

97.150 [Reserved]
97.151 Establishment of accounts.
97.152 Responsibilities of CAIR authorized account representative.

[[Page 172]]

97.153 Recordation of CAIR NOX allowance allocations.
97.154 Compliance with CAIR NOX emissions limitation.
97.155 Banking.
97.156 Account error.
97.157 Closing of general accounts.

                 Subpart GG_CAIR NOX Allowance Transfers

97.160 Submission of CAIR NOX allowance transfers.
97.161 EPA recordation.
97.162 Notification.

                   Subpart HH_Monitoring and Reporting

97.170 General requirements.
97.171 Initial certification and recertification procedures.
97.172 Out of control periods.
97.173 Notifications.
97.174 Recordkeeping and reporting.
97.175 Petitions.

                    Subpart II_CAIR NOX Opt-in Units

97.180 Applicability.
97.181 General.
97.182 CAIR designated representative.
97.183 Applying for CAIR opt-in permit.
97.184 Opt-in process.
97.185 CAIR opt-in permit contents.
97.186 Withdrawal from CAIR NOX Annual Trading Program.
97.187 Change in regulatory status.
97.188 CAIR NOX allowance allocations to CAIR NOX 
          opt-in units.

Appendix A to Subpart II of Part 97--States With Approved State 
          Implementation Plan Revisions Concerning CAIR NOX 
          Opt-in Units

      Subpart AAA_CAIR SO[bdi2] Trading Program General Provisions

97.201 Purpose.
97.202 Definitions.
97.203 Measurements, abbreviations, and acronyms.
97.204 Applicability.
97.205 Retired unit exemption.
97.206 Standard requirements.
97.207 Computation of time.
97.208 Appeal procedures.

  Subpart BBB_CAIR Designated Representative for CAIR SO[bdi2] Sources

97.210 Authorization and responsibilities of CAIR designated 
          representative.
97.211 Alternate CAIR designated representative.
97.212 Changing CAIR designated representative and alternate CAIR 
          designated representative; changes in owners and operators.
97.213 Certificate of representation.
97.214 Objections concerning CAIR designated representative.
97.215 Delegation by CAIR designated representative and alternate CAIR 
          designated representative.

                           Subpart CCC_Permits

97.220 General CAIR SO2 Trading Program permit requirements.
97.221 Submission of CAIR permit applications.
97.222 Information requirements for CAIR permit applications.
97.223 CAIR permit contents and term.
97.224 CAIR permit revisions.

Subparts DDD--EEE [Reserved]

           Subpart FFF_CAIR SO[bdi2] Allowance Tracking System

97.250 [Reserved]
97.251 Establishment of accounts.
97.252 Responsibilities of CAIR authorized account representative.
97.253 Recordation of CAIR SO2 allowances.
97.254 Compliance with CAIR SO2 emissions limitation.
97.255 Banking.
97.256 Account error.
97.257 Closing of general accounts.

              Subpart GGG_CAIR SO[bdi2] Allowance Transfers

97.260 Submission of CAIR SO2 allowance transfers.
97.261 EPA recordation.
97.262 Notification.

                  Subpart HHH_Monitoring and Reporting

97.270 General requirements.
97.271 Initial certification and recertification procedures.
97.272 Out of control periods.
97.273 Notifications.
97.274 Recordkeeping and reporting.
97.275 Petitions.

                 Subpart III_CAIR SO[bdi2] Opt-in Units

97.280 Applicability.
97.281 General.
97.282 CAIR designated representative.
97.283 Applying for CAIR opt-in permit.
97.284 Opt-in process.
97.285 CAIR opt-in permit contents.
97.286 Withdrawal from CAIR SO2 Trading Program.
97.287 Change in regulatory status.
97.288 CAIR SO2 allowance allocations to CAIR SO2 
          opt-in units.

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Appendix A to Subpart III of Part 97--States With Approved State 
          Implementation Plan Revisions Concerning CAIR SO2 
          Opt-In Units

  Subpart AAAA_CAIR NOX Ozone Season Trading Program General Provisions

97.301 Purpose.
97.302 Definitions.
97.303 Measurements, abbreviations, and acronyms.
97.304 Applicability.
97.305 Retired unit exemption.
97.306 Standard requirements.
97.307 Computation of time.
97.308 Appeal procedures.

Appendix A to Subpart AAAA of Part 97--States With Approved State 
          Implementation Plan Revisions Concerning Applicability

 Subpart BBBB_CAIR Designated Representative for CAIR NOX Ozone Season 
                                 Sources

97.310 Authorization and responsibilities of CAIR designated 
          representative.
97.311 Alternate CAIR designated representative.
97.312 Changing CAIR designated representative and alternate CAIR 
          designated representative; changes in owners and operators.
97.313 Certificate of representation.
97.314 Objections concerning CAIR designated representative.
97.315 Delegation by CAIR designated representative and alternate CAIR 
          designated representative.

                          Subpart CCCC_Permits

97.320 General CAIR NOX Ozone Season Trading Program permit 
          requirements.
97.321 Submission of CAIR permit applications.
97.322 Information requirements for CAIR permit applications.
97.323 CAIR permit contents and term.
97.324 CAIR permit revisions.

Subpart DDDD [Reserved]

        Subpart EEEE_CAIR NOX Ozone Season Allowance Allocations

97.340 State trading budgets.
97.341 Timing requirements for CAIR NOX Ozone Season 
          allowance allocations.
97.342 CAIR NOX Ozone Season allowance allocations.
97.343 Alternative of allocation of CAIR NOX Ozone Season 
          allowances by permitting authority.

Appendix A to Subpart EEEE of Part 97--States With Approved State 
          Implementation Plan Revisions Concerning Allocations

      Subpart FFFF_CAIR NOX Ozone Season Allowance Tracking System

97.350 [Reserved]
97.351 Establishment of accounts.
97.352 Responsibilities of CAIR authorized account representative.
97.353 Recordation of CAIR NOX Ozone Season allowance 
          allocations.
97.354 Compliance with CAIR NOX emissions limitation.
97.355 Banking.
97.356 Account error.
97.357 Closing of general accounts.

         Subpart GGGG_CAIR NOX Ozone Season Allowance Transfers

97.360 Submission of CAIR NOX Ozone Season allowance 
          transfers.
97.361 EPA recordation.
97.362 Notification.

                  Subpart HHHH_Monitoring and Reporting

97.370 General requirements.
97.371 Initial certification and recertification procedures.
97.372 Out of control periods.
97.373 Notifications.
97.374 Recordkeeping and reporting.
97.375 Petitions.

             Subpart IIII_CAIR NOX Ozone Season Opt-in Units

97.380 Applicability.
97.381 General.
97.382 CAIR designated representative.
97.383 Applying for CAIR opt-in permit.
97.384 Opt-in process.
97.385 CAIR opt-in permit contents.
97.386 Withdrawal from CAIR NOX Ozone Season Trading Program.
97.387 Change in regulatory status.
97.388 CAIR NOX Ozone Season allowance allocations to CAIR 
          NOX Ozone Season opt-in units.

Appendix A to Subpart IIII of Part 97--States With Approved State 
          Implementation Plan Revisions Concerning CAIR NOX 
          Ozone Season Opt-In Units
Appendix A to Part 97--Final Section 126 Rule: EGU Allocations, 2003-
          2007
Appendix B to Part 97--Final Section 126 Rule: Non-EGU Allocations, 
          2003-2007
Appendix C to Part 97--Final Section 126 Rule: Trading Budget, 2003-2007
Appendix D to Part 97--Final Section 126 Rule: State Compliance 
          Supplement Pools for the Section 126 Final Rule (Tons)

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

[[Page 174]]


    Source: 65 FR 2727, Jan. 18, 2000, unless otherwise noted. 71 FR 
25396, 25422, and 25443, Apr. 28, 2006



         Subpart A_NOX Budget Trading Program General Provisions



Sec. 97.1  Purpose.

    This part establishes general provisions and the applicability, 
permitting, allowance, excess emissions, monitoring, and opt-in 
provisions for the federal NOX Budget Trading Program, under 
section 126 of the CAA and Sec. 52.34 of this chapter, as a means of 
mitigating the interstate transport of ozone and nitrogen oxides, an 
ozone precursor.



Sec. 97.2  Definitions.

    The terms used in this part shall have the meanings set forth in 
this section as follows:
    Account number means the identification number given by the 
Administrator to each NOX Allowance Tracking System account.
    Acid Rain emissions limitation means, as defined in Sec. 72.2 of 
this chapter, a limitation on emissions of sulfur dioxide or nitrogen 
oxides under the Acid Rain Program under title IV of the Clean Air Act.
    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 NOX 
allowances, the determination by the Administrator of the number of 
NOX allowances to be initially credited to a NOX 
Budget unit or an allocation set-aside.
    Automated data acquisition and handling system or DAHS means that 
component of the CEMS, or other emissions monitoring system approved for 
use under subpart H of this part, designed to interpret and convert 
individual output signals from pollutant concentration monitors, flow 
monitors, diluent gas monitors, and other component parts of the 
monitoring system to produce a continuous record of the measured 
parameters in the measurement units required by subpart H of this part.
    Boiler means an enclosed fossil or other fuel-fired combustion 
device used to produce heat and to transfer heat to recirculating water, 
steam, or other medium.
    Clean Air Act means the Clean Air Act, 42 U.S.C. 7401 et seq.
    Combined cycle system means a system comprised of one or more 
combustion turbines, heat recovery steam generators, and steam turbines 
configured to improve overall efficiency of electricity generation or 
steam production.
    Combustion turbine means an enclosed fossil or other fuel-fired 
device that is comprised of 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.
    Commence commercial operation means, with regard to a unit that 
serves a generator, to have begun to produce steam, gas, or other heated 
medium used to generate electricity for sale or use, including test 
generation. Except as provided in Sec. 97.4(b), Sec. 97.5, or subpart 
I of this part, for a unit that is a NOX Budget unit under 
Sec. 97.4(a) on the date the unit commences commercial operation, such 
date shall remain the unit's date of commencement of commercial 
operation even if the unit is subsequently modified, reconstructed, or 
repowered. Except as provided in Sec. 97.4(b), Sec. 97.5, or subpart I 
of this part, for a unit that is not a NOX Budget unit under 
Sec. 97.4(a) on the date the unit commences commercial operation, the 
date the unit becomes a NOX Budget unit under Sec. 97.4(a) 
shall be the unit's date of commencement of commercial operation.
    Commence operation means to have begun any mechanical, chemical, or 
electronic process, including, with regard to a unit, start-up of a 
unit's combustion chamber. Except as provided in Sec. 97.4(b), Sec. 
97.5, or subpart I of this part for a unit that is a NOX 
Budget unit under Sec. 97.4(a) on the date of commencement of 
operation, such date shall remain the unit's date of commencement of 
operation even if the unit is subsequently modified, reconstructed, or 
repowered. Except as provided in Sec. 97.4(b), Sec. 97.5, or subpart I 
of this part, for a unit that is not a NOX Budget unit under 
Sec. 97.4(a) on the date

[[Page 175]]

of commencement of operation, the date the unit becomes a NOX 
Budget unit under Sec. 97.4(a) shall be the unit's date of commencement 
of operation.
    Common stack means a single flue through which emissions from two or 
more units are exhausted.
    Compliance account means a NOX Allowance Tracking System 
account, established by the Administrator for a NOX Budget 
unit under subpart F of this part, in which the NOX allowance 
allocations for the unit are initially recorded and in which are held 
NOX allowances available for use by the unit for a control 
period for the purpose of meeting the unit's NOX Budget 
emissions limitation.
    Continuous emission monitoring system or CEMS means the equipment 
required under subpart H of this part to sample, analyze, measure, and 
provide, by means of readings taken at least once every 15 minutes 
(using an automated data acquisition and handling system (DAHS)), a 
permanent record of nitrogen oxides (NOX) emissions, stack 
gas volumetric flow rate or stack gas moisture content (as applicable), 
in a manner consistent with part 75 of this chapter. The following are 
the principal types of continuous emission monitoring systems required 
under subpart H of this part:
    (1) A flow monitoring system, consisting of a stack flow rate 
monitor and an automated DAHS. A flow monitoring system provides a 
permanent, continuous record of stack gas volumetric flow rate, in units 
of standard cubic feet per hour (scfh);
    (2) A nitrogen oxides concentration monitoring system, consisting of 
a NOX pollutant concentration monitor and an automated DAHS. 
A NOX concentration monitoring system provides a permanent, 
continuous record of NOX emissions in units of parts per 
million (ppm);
    (3) A nitrogen oxides emission rate (or NOX-diluent) 
monitoring system, consisting of a NOX pollutant 
concentration monitor, a diluent gas (CO2 or O2) 
monitor, and an automated DAHS. A NOX concentration 
monitoring system provides a permanent, continuous record of: 
NOX concentration in units of parts per million (ppm), 
diluent gas concentration in units of percent O2 or 
CO2 (percent O2 or CO2), and 
NOX emission rate in units of pounds per million British 
thermal units (lb/mmBtu); and
    (4) A moisture monitoring system, as defined in Sec. 75.11(b)(2) of 
this chapter. A moisture monitoring system provides a permanent, 
continuous record of the stack gas moisture content, in units of percent 
H2O (percent H2O).
    Control period means the period beginning May 1 of a year and ending 
on September 30 of the same year, inclusive.
    Electricity for sale under firm contract to the grid means 
electricity for sale where the capacity involved is intended to be 
available at all times during the period covered by a guaranteed 
commitment to deliver, even under adverse conditions.
    Emissions means air pollutants exhausted from a unit or source into 
the atmosphere, as measured, recorded, and reported to the Administrator 
by the NOX authorized account representative and as 
determined by the Administrator in accordance with subpart H of this 
part.
    Energy Information Administration means the Energy Information 
Administration of the United States Department of Energy.
    Excess emissions means any tonnage of nitrogen oxides emitted by a 
NOX Budget unit during a control period that exceeds the 
NOX Budget emissions limitation for the unit.
    Fossil fuel means natural gas, petroleum, coal, or any form of 
solid, liquid, or gaseous fuel derived from such material.
    Fossil fuel fired means, with regard to a unit:
    (1) For units that commenced operation before January 1, 1996, the 
combustion of fossil fuel, alone or in combination with any other fuel, 
where fossil fuel actually combusted comprises more than 50 percent of 
the annual heat input on a Btu basis during 1995, or, if a unit had no 
heat input in 1995, during the last year of operation of the unit prior 
to 1995;
    (2) For units that commenced operation on or after January 1, 1996 
and before January 1, 1997, the combustion of fossil fuel, alone or in 
combination with any other fuel, where fossil fuel

[[Page 176]]

actually combusted comprises more than 50 percent of the annual heat 
input on a Btu basis during 1996; or
    (3) For units that commence operation on or after January 1, 1997:
    (i) The combination of fossil fuel, alone or in combustion with any 
other fuel, where fossil fuel actually combusted comprises more than 50 
percent of the annual heat input on a Btu basis during any year; or
    (ii) The combination of fossil fuel, alone or in combination with 
any other fuel, where fossil fuel is projected to comprise more than 50 
percent of the annual heat input on a Btu basis during any year, 
provided that the unit shall be ``fossil fuel-fired'' as of the date, 
during such year, on which the unit begins combusting fossil fuel.
    General account means a NOX Allowance Tracking System 
account, established under subpart F of this part, that is not a 
compliance account or an overdraft account.
    Generator means a device that produces electricity.
    Heat input means, with regard to a specified period to 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 NOX 
authorized account representative and as determined by the Administrator 
in accordance with subpart H of this part. Heat input does not include 
the heat derived from preheated combustion air, recirculated flue gases, 
or exhaust from other sources.
    Heat input rate means the amount of heat input (in mmBtu) divided by 
unit operating time (in hr) or, with regard to a specific fuel, the 
amount of heat input attributed to the fuel (in mmBtu) divided by the 
unit operating time (in hr) during which the unit combusts the fuel.
    Life-of-the-unit, firm power contractual arrangement means a unit 
participation power sales agreement under which a utility or industrial 
customer reserves, or is entitled to receive, a specified amount or 
percentage of nameplate capacity and associated energy from any 
specified unit and pays its proportional amount of such unit's total 
costs, pursuant to a contract:
    (1) For the life of the unit;
    (2) For a cumulative term of no less than 30 years, including 
contracts that permit an election for early termination; or
    (3) For a period equal to or greater than 25 years or 70 percent of 
the economic useful life of the unit determined as of the time the unit 
is built, with option rights to purchase or release some portion of the 
nameplate capacity and associated energy generated by the unit at the 
end of the period.
    Maximum design heat input means the ability of a unit to combust a 
stated maximum amount of fuel per hour (in mmBtu/hr) on a steady state 
basis, as determined by the physical design and physical characteristics 
of the unit.
    Maximum potential hourly heat input means an hourly heat input (in 
mmBtu/hr) used for reporting purposes when a unit lacks certified 
monitors to report heat input. If the unit intends to use appendix D of 
part 75 of this chapter to report heat input, this value should be 
calculated, in accordance with part 75 of this chapter, using the 
maximum fuel flow rate and the maximum gross calorific value. If the 
unit intends to use a flow monitor and a diluent gas monitor, this value 
should be reported, in accordance with part 75 of this chapter, using 
the maximum potential flowrate and either the maximum carbon dioxide 
concentration (in percent CO2) or the minimum oxygen 
concentration (in percent O2).
    Maximum potential NOX emission rate means the emission rate of 
nitrogen oxides (in lb/mmBtu) calculated in accordance with section 3 of 
appendix F of part 75 of this chapter, using the maximum potential 
concentration of NOX under section 2 of appendix A of part 75 
of this chapter, and either the maximum oxygen concentration (in percent 
O2) or the minimum carbon dioxide concentration (in percent 
CO2), under all operating conditions of the unit except for 
unit start up, shutdown, and upsets.
    Maximum rated hourly heat input means a unit specific maximum hourly 
heat input (in mmBtu/hr) which is the higher of the manufacturer's 
maximum

[[Page 177]]

rated hourly heat input or the highest observed hourly heat input.
    Monitoring system means any monitoring system that meets the 
requirements of subpart H of this part, including a continuous emissions 
monitoring system, an excepted monitoring system, or an alternative 
monitoring system.
    Most stringent State or Federal NOX emissions limitation means the 
lowest NOX emissions limitation (in lb/mmBtu) that is 
applicable to the unit under State or Federal law, regardless of the 
averaging period to which the emissions limitation applies.
    Nameplate capacity means the maximum electrical generating output 
(in MWe) that a generator can sustain over a specified period of time 
when not restricted by seasonal or other deratings as measured in 
accordance with the United States Department of Energy standards.
    Non-title V permit means a federally enforceable permit administered 
by the permitting authority pursuant to the Clean Air Act and regulatory 
authority under the Clean Air Act, other than title V of the Clean Air 
Act and part 70 or 71 of this chapter.
    NOX allowance means a limited authorization by the Administrator 
under the NOX Budget Trading Program to emit up to one ton of 
nitrogen oxides during the control period of the specified year or of 
any year thereafter, except as provided under Sec. 97.54(f). No 
provision of the NOX Budget Trading Program, the 
NOX Budget permit application, the NOX Budget 
permit, or an exemption under Sec. 97.4(b) or Sec. 97.5 and no 
provision of law shall be construed to limit the authority of the United 
States to terminate or limit such authorization, which does not 
constitute a property right. For purposes of all sections of this part 
except Sec. 97.40, Sec. 97.41, Sec. 97.42, Sec. 97.43, or Sec. 
97.88, ``NOX allowance'' also includes an authorization to 
emit up to one ton of nitrogen oxides during the control period of the 
specified year or of any year thereafter by the permitting authority or 
the Administrator in accordance with a State NOX Budget 
Trading Program established, and approved and administered by the 
Administrator, pursuant to Sec. 51.121 of this chapter.
    NOX allowance deduction or deduct NOX allowances means the permanent 
withdrawal of NOX allowances by the Administrator from a 
NOX Allowance Tracking System compliance account or overdraft 
account to account for the number of tons of NOX emissions 
from a NOX Budget unit for a control period, determined in 
accordance with subparts H and F of this part, or for any other 
NOX allowance withdrawal requirement under this part.
    NOX Allowance Tracking System means the system by which the 
Administrator records allocations, deductions, and transfers of 
NOX allowances under the NOX Budget Trading 
Program.
    NOX Allowance Tracking System account means an account in the 
NOX Allowance Tracking System established by the 
Administrator for purposes of recording the allocation, holding, 
transferring, or deducting of NOX allowances.
    NOX allowance transfer deadline means midnight of November 30 or, if 
November 30 is not a business day, midnight of the first business day 
thereafter and is the deadline by which NOX allowances must 
be submitted for recordation in a NOX Budget unit's 
compliance account, or the overdraft account of the source where the 
unit is located, in order to meet the unit's NOX Budget 
emissions limitation for the control period immediately preceding such 
deadline.
    NOX allowances held or hold NOX allowances means the NOX 
allowances recorded by the Administrator, or submitted to the 
Administrator for recordation, in accordance with subparts F and G of 
this part, in a NOX Allowance Tracking System account.
    NOX authorized account representative means, for a NOX 
Budget source or NOX Budget unit at the source, the natural 
person who is authorized by the owners and operators of the source and 
all NOX Budget units at the source, in accordance with 
subpart B of this part, to represent and legally bind each owner and 
operator in matters pertaining to the NOX Budget Trading 
Program or, for a general account, the natural person who is authorized, 
in accordance with subpart F of this part, to transfer or otherwise 
dispose of NOX allowances held in the general account.

[[Page 178]]

    NOX Budget emissions limitation means, for a NOX Budget 
unit, the tonnage equivalent of the NOX allowances available 
for compliance deduction for the unit under Sec. 97.54(a), (b), (e), 
and (f) in a control period adjusted by deductions of such 
NOX allowances to account for actual heat input under Sec. 
97.42(e) for the control period or to account for excess emissions for a 
prior control period under Sec. 97.54(d) or to account for withdrawal 
from the NOX Budget Trading Program, or for a change in 
regulatory status, of a NOX Budget opt-in unit under Sec. 
97.86 or Sec. 97.87.
    NOX Budget opt-in permit means a NOX Budget permit 
covering a NOX Budget opt-in unit.
    NOX Budget opt-in unit means a unit that has been elected to become 
a NOX Budget unit under the NOX Budget Trading 
Program and whose NOX Budget opt-in permit has been issued 
and is in effect under subpart I of this part.
    NOX Budget permit means the legally binding and federally 
enforceable written document, or portion of such document, issued by the 
permitting authority under this part, including any permit revisions, 
specifying the NOX Budget Trading Program requirements 
applicable to a NOX Budget source, to each NOX 
Budget unit at the NOX Budget source, and to the owners and 
operators and the NOX authorized account representative of 
the NOX Budget source and each NOX Budget unit.
    NOX Budget source means a source that includes one or more 
NOX Budget units.
    NOX Budget Trading Program means a multistate nitrogen oxides air 
pollution control and emission reduction program established by the 
Administrator in accordance with this part and pursuant to Sec. 52.34 
of this chapter, as a means of mitigating the interstate transport of 
ozone and nitrogen oxides, an ozone precursor.
    NOX Budget unit means a unit that is subject to the NOX 
Budget emissions limitation under Sec. 97.4(a) or Sec. 97.80.
    Operating means, with regard to a unit under Sec. Sec. 97.22(d)(2) 
and 97.80, having documented heat input for more than 876 hours in the 6 
months immediately preceding the submission of an application for an 
initial NOX Budget permit under Sec. 97.83(a). The unit's 
documented heat input will be determined in accordance with part 75 of 
this chapter if the unit was otherwise subject to the requirements of 
part 75 of this chapter during that 6-month period or will be based on 
the best available data reported to the Administrator for the unit if 
the unit was not otherwise subject to the requirements of part 75 of 
this chapter during that 6-month period.
    Operator means any person who operates, controls, or supervises a 
NOX Budget unit, a NOX Budget source, or a unit 
for which an application for a NOX Budget opt-in permit under 
Sec. 97.83 is submitted and not denied or withdrawn and shall include, 
but not be limited to, any holding company, utility system, or plant 
manager of such a unit or source.
    Opt-in means to be elected to become a NOX Budget unit 
under the NOX Budget Trading Program through a final, 
effective NOX Budget opt-in permit under subpart I of this 
part.
    Overdraft account means the NOX Allowance Tracking System 
account, established by the Administrator under subpart F of this part, 
for each NOX Budget source where there are two or more 
NOX Budget units.
    Owner means any of the following persons:
    (1) Any holder of any portion of the legal or equitable title in a 
NOX Budget unit or in a unit for which an application for a 
NOX Budget opt-in permit under Sec. 97.83 is submitted and 
not denied or withdrawn; or
    (2) Any holder of a leasehold interest in a NOX Budget 
unit or in a unit for which an application for a NOX Budget 
opt-in permit under Sec. 97.83 is submitted and not denied or 
withdrawn; or
    (3) Any purchaser of power from a NOX Budget unit or from 
a unit for which an application for a NOX Budget opt-in 
permit under Sec. 97.83 is submitted and not denied or withdrawn under 
a life-of-the-unit, firm power contractual arrangement. However, 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, upon the revenues or income from the NOX

[[Page 179]]

Budget unit or the unit for which an application for a NOX 
Budget opt-in permit under Sec. 97.83 is submitted and not denied or 
withdrawn; or
    (4) With respect to any general account, any person who has an 
ownership interest with respect to the NOX allowances held in 
the general account and who is subject to the binding agreement for the 
NOX authorized account representative to represent that 
person's ownership interest with respect to the NOX 
allowances.
    Percent monitor data availability means, for purposes of Sec. 97.43 
(a)(1) and Sec. 97.84(b), total unit operating hours for which quality-
assured data were recorded under subpart H of this part in a control 
period, divided by the total number of unit operating hours in the 
control period, and multiplied by 100 percent.
    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 
NOX Budget Trading Program in accordance with subpart C of 
this part.
    Potential electrical output capacity means 33 percent of a unit's 
maximum design heat input.
    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 writing or by authorized 
electronic transmission), as indicated in an official correspondence 
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 
NOX allowances, the movement of NOX allowances by 
the Administrator from one NOX Allowance Tracking System 
account to another, 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 appendix A of part 60 of 
this chapter.
    Serial number means, when referring to NOX allowances, 
the unique identification number assigned to each NOX 
allowance by the Administrator, under Sec. 97.53(c).
    Source means any governmental, institutional, commercial, or 
industrial structure, installation, plant, building, or facility that 
emits or has the potential to emit any regulated air pollutant under the 
Clean Air Act. For purposes of section 502(c) of the Clean Air Act, a 
``source,'' including a ``source'' with multiple units, shall be 
considered a single ``facility.''
    State means one of the 48 contiguous States or a portion thereof or 
the District of Columbia that is specified in Sec. 52.34 of this 
chapter and in which are located units for which the Administrator makes 
an effective finding under Sec. 52.34 of this chapter.
    Submit or serve means to send or transmit a document, information, 
or correspondence to the person specified in accordance with the 
applicable regulation:
    (1) In person;
    (2) By United States Postal Service; or
    (3) By other means of dispatch or transmission and delivery. 
Compliance with any ``submission,'' ``service,'' or ``mailing'' deadline 
shall be determined by the date of dispatch, transmission, or mailing 
and not the date of receipt.
    Title V operating permit means a permit issued under title V of the 
Clean Air Act and part 70 or part 71 of this chapter.
    Title V operating permit regulations means the regulations that the 
Administrator has approved or issued as meeting the requirements of 
title V of the Clean Air Act and part 70 or 71 of this chapter.
    Ton or tonnage means any ``short ton'' (i.e., 2,000 pounds). For the 
purpose of determining compliance with the NOX Budget 
emissions limitation, total tons for a control period shall be 
calculated as the sum of all recorded hourly emissions (or the tonnage 
equivalent of the recorded hourly emissions rates) in accordance with 
subpart H of this part, with any remaining fraction of a ton equal to or 
greater than 0.50 ton deemed to equal one ton and any fraction of a ton 
less than 0.50 ton deemed to equal zero tons.

[[Page 180]]

    Unit means a fossil fuel-fired stationary boiler, combustion 
turbine, or combined cycle system.
    Unit operating day means a calendar day in which a unit combusts any 
fuel.
    Unit operating hour or hour of unit operation means any hour (or 
fraction of an hour) during which a unit combusts any fuel.

[65 FR 2727, Jan. 18, 2000, as amended at 69 FR 21645, Apr. 21, 2004]



Sec. 97.3  Measurements, abbreviations, and acronyms.

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

Btu-British thermal unit.
CO2-carbon dioxide.
hr-hour.
kW-kilowatt electrical.
kWh-kilowatt hour.
lb-pounds.
mmBtu-million Btu.
MWe-megawatt electrical.
NOX-nitrogen oxides.
O2-oxygen.
ton-2000 pounds.



Sec. 97.4  Applicability.

    (a) The following units in a State shall be a NOX Budget 
unit, and any source that includes one or more such units shall be a 
NOX Budget source, subject to the requirements of this part:
    (1)(i) For units other than cogeneration units--
    (A) For units commencing operation before January 1, 1997, a unit 
serving during 1995 or 1996 a generator--
    (1) With a nameplate capacity greater than 25 MWe and
    (2) Producing electricity for sale under a firm contract to the 
electric grid.
    (B) For units commencing operation in 1997 or 1998, a unit serving 
during 1997 or 1998 a generator--
    (1) With a nameplate capacity greater than 25 MWe and
    (2) Producing electricity for sale under a firm contract to the 
electric grid.
    (C) For units commencing operation on or after January 1, 1999, a 
unit serving at any time a generator--
    (1) With a nameplate capacity greater than 25 MWe and
    (2) Producing electricity for sale.
    (ii) For cogeneration units--
    (A) For units commencing operation before January 1, 1997, a unit 
serving during 1995 or 1996 a generator with a nameplate capacity 
greater than 25 MWe and failing to qualify as an unaffected unit under 
Sec. 72.6(b)(4) of this chapter for 1995 or 1996 under the Acid Rain 
Program.
    (B) For units commencing operation in 1997 or 1998, a unit serving 
during 1997 or 1998 a generator with a nameplate capacity grater than 25 
MWe and failing to qualify as an unaffected unit under Sec. 72.6(b)(4) 
of this chapter for 1997 or 1998 under the Acid Rain Program.
    (C) For units commencing operation on or after January 1, 1999, a 
unit serving at any time a generator with a nameplate capacity greater 
than 25 MWe and failing to qualify as an unaffected unit under Sec. 
72.6(b)(4) of this chapter under the Acid Rain Program for any year.
    (2)(i) For units other than cogeneration units--
    (A) For units commencing operation before January 1, 1997, a unit--
    (1) With a maximum design heat input greater than 250 mmBtu/hr and
    (2) Not serving during 1995 or 1996 a generator producing 
electricity for sale under a firm contract to the electric grid.
    (B) For units commencing operation in 1997 or 1998, a unit--
    (1) With a maximum design heat input greater than 250 mmBtu/hr and
    (2) Not serving during 1997 or 1998 a generator producing 
electricity for sale under a firm contract to the electric grid.
    (C) For units commencing on or after January 1, 1999, a unit with a 
maximum design heat input greater than 250 mmBtu/hr:
    (1) At no time serving a generator producing electricity for sale; 
or
    (2) At any time serving a generator with a nameplate capacity of 25 
MWe or less producing electricity for sale and with the potential to use 
no more than 50 percent of the potential electrical output capacity of 
the unit.
    (ii) For cogeneration units--
    (A) For units commencing operation before January 1, 1997, a unit 
with a maximum design heat input greater than 250 mmBtu/hr and 
qualifying as

[[Page 181]]

an unaffected unit under Sec. 72.6(b)(4) of this chapter under the Acid 
Rain Program for 1995 and 1996.
    (B) For units commencing operation in 1997 or 1998, a unit with a 
maximum design heat input greater than 250 mmBtu/hr and qualifying as an 
unaffected unit under Sec. 72.6(b)(4) under the Acid Rain Program for 
1997 and 1998.
    (C) For units commencing on or after January 1, 1999, a unit with a 
maximum design heat input greater than 250 mmBtu/hr and qualifying as an 
unaffected unit under Sec. 72.6(b)(4) of this chapter under the Acid 
Rain Program for each year.
    (b)(1) Notwithstanding paragraph (a) of this section, a unit under 
paragraph (a)(1) or (a)(2) of this section that has a federally 
enforceable permit that restricts the unit to combusting only natural 
gas or fuel oil (as defined in Sec. 75.2 of this chapter) during a 
control period includes a NOX emission limitation restricting 
NOX emissions during a control period to 25 tons or less, and 
includes the special provisions in paragraph (b)(4) of this section 
shall be exempt from the requirements of the NOX Budget 
Trading Program, except for the provisions of this paragraph (b), Sec. 
97.2, Sec. 97.3, Sec. 97.4(a), Sec. 97.7, and subparts E, F, and G of 
this part. The NOX emission limitation under this paragraph 
(b)(1) shall restrict NOX emissions during the control period 
by limiting unit operating hours. The restriction on unit operating 
hours shall be calculated by dividing 25 tons by the unit's maximum 
potential hourly NOX mass emissions, which shall equal the 
unit's maximum rated hourly heat input multiplied by the highest default 
NOX emission rate otherwise applicable to the unit under 
Sec. 75.19 of this chapter.
    (2) The exemption under paragraph (b)(1) of this section shall 
become effective as follows:
    (i) The exemption shall become effective on the date on which the 
NOX emission limitation and the special provisions in the 
permit under paragraph (b)(1) of this section become final; or
    (ii) If the NOX emission limitation and the special 
provisions in the permit under paragraph (b)(1) of this section become 
final during a control period and after the first date on which the unit 
operates during such control period, then the exemption shall become 
effective on May 1 of such control period, provided that such 
NOX emission limitation and the special provisions apply to 
the unit as of such first date of operation. If such NOX 
emission limitation and special provisions do not apply to the unit as 
of such first date of operation, then the exemption under paragraph 
(b)(1) of this section shall become effective on October 1 of the year 
during which such NOX emission limitation and the special 
provisions become final.
    (3) The permitting authority that issues a federally enforceable 
permit under paragraph (b)(1) of this section for a unit under paragraph 
(a)(1) or (a)(2) of this section will provide the Administrator written 
notice of the issuance of such permit and, upon request, a copy of the 
permit.
    (4) Special provisions. (i) A unit exempt under paragraph (b)(1) of 
this section shall comply with the restriction on fuel use and unit 
operating hours described in paragraph (b)(1) of this section during the 
control period in each year.
    (ii) The Administrator will allocate NOX allowances to 
the unit under Sec. Sec. 97.41(a) through (c) and 97.42(a) through (c). 
For each control period for which the unit is allocated NOX 
allowances under Sec. Sec. 97.41(a) through (c) and 97.42(a) through 
(c):
    (A) The owners and operators of the unit must specify a general 
account, in which the Administrator will record the NOX 
allowances; and
    (B) After the Administrator records a NOX allowance 
allocations under Sec. Sec. 97.41(a) through (c) and 97.42(a) through 
(c), the Administrator will deduct, from the general account under 
paragraph (b)(4)(ii)(A) of this section, NOX allowances that 
are allocated for the same or a prior control period as the 
NOX allowances allocated to the unit under Sec. Sec. 
97.41(a) through (c) and 97.42(a) through (c) and that equal the 
NOX emission limitation (in tons of NOX) on which 
the unit's exemption under paragraph (b)(1) of this section is

[[Page 182]]

based. The NOX authorized account representative shall ensure 
that such general account contains the NOX allowances 
necessary for completion of such deduction.
    (iii) A unit exempt under this paragraph (b) shall report hours of 
unit operation during the control period in each year to the permitting 
authority by November 1 of that year.
    (iv) For a period of 5 years from the date the records are created, 
the owners and operators of a unit exempt under paragraph (b)(1) of this 
section shall retain, at the source that includes the unit, records 
demonstrating that the conditions of the federally enforceable permit 
under paragraph (b)(1) of this section were met, including the 
restriction on fuel use or unit operating hours. The 5-year period for 
keeping records may be extended for cause, at any time prior to 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 met the restriction on fuel use or unit operating hours.
    (v) The owners and operators and, to the extent applicable, the 
NOX authorized account representative of a unit exempt under 
paragraph (b)(1) of this section shall comply with the requirements of 
the NOX 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.
    (vi) On the earlier of the following dates, a unit exempt under 
paragraph (b)(1) of this section shall lose its exemption:
    (A) The date on which the restriction on fuel use or unit operating 
hours described in paragraph (b)(1) of this section is removed from the 
unit's federally enforceable permit or otherwise becomes no longer 
applicable to any control period starting in 2004; or
    (B) The first date on which the unit fails to comply, or with regard 
to which the owners and operators fail to meet their burden of proving 
that the unit is complying, with the restriction on fuel use or unit 
operating hours described in paragraph (b)(1) of this section during any 
control period starting in 2004.
    (vii) A unit that loses its exemption in accordance with paragraph 
(b)(4)(vi) of this section shall be subject to the requirements of this 
part. For the purpose of applying permitting requirements under subpart 
C of this part, allocating allowances under subpart E of this part, and 
applying monitoring requirements under subpart H of this part, the unit 
shall be treated as commencing operation and, if the unit is covered by 
paragraph (a)(1) of this section, commencing commercial operation on the 
date the unit loses its exemption.
    (viii) A unit that is exempt under paragraph (b)(1) of this section 
is not eligible to be a NOX Budget opt-in unit under subpart 
I of this part.

[65 FR 2727, Jan. 18, 2000, as amended at 67 FR 21529, Apr. 30, 2002; 69 
FR 21645, Apr. 21, 2004]



Sec. 97.5  Retired unit exemption.

    (a) This section applies to any NOX Budget unit, other 
than a NOX Budget opt-in unit, that is permanently retired.
    (b)(1) Any NOX Budget unit, other than a NOX 
Budget opt-in unit, that is permanently retired shall be exempt from the 
NOX Budget Trading Program, except for the provisions of this 
section, Sec. 97.2, Sec. 97.3, Sec. 97.4, Sec. 97.7, and subparts E, 
F, and G of this part.
    (2) The exemption under paragraph (b)(1) of this section shall 
become effective the day on which the unit is permanently retired. 
Within 30 days of permanent retirement, the NOX authorized 
account representative (authorized in accordance with subpart B of this 
part) shall submit a statement to the permitting authority otherwise 
responsible for administering any NOX Budget permit for the 
unit. The NOX authorized account representative 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 is 
permanently retired and will comply with the requirements of paragraph 
(c) of this section.
    (3) After receipt of the notice under paragraph (b)(2) of this 
section, the permitting authority will amend any permit covering the 
source at which

[[Page 183]]

the unit is located to add the provisions and requirements of the 
exemption under paragraphs (b)(1) and (c) of this section.
    (c) Special provisions. (1) A unit exempt under this section shall 
not emit any nitrogen oxides, starting on the date that the exemption 
takes effect.
    (2) The Administrator will allocate NOX allowances under 
subpart E of this part to a unit exempt under this section. For each 
control period for which the unit is allocated one or more 
NOX allowances, the owners and operators of the unit shall 
specify a general account, in which the Administrator will record such 
NOX allowances.
    (3) For a period of 5 years from the date the records are created, 
the owners and operators of a unit exempt under 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 prior to 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 
NOX authorized account representative of a unit exempt under 
this section shall comply with the requirements of the NOX 
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)(i) A unit exempt under 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 
NOX authorized account representative of the source submits a 
complete NOX Budget permit application under Sec. 97.22 for 
the unit not less than 18 months (or such lesser time provided by the 
permitting authority) before the later of May 31, 2004 or the date on 
which the unit resumes operation.
    (ii) A unit exempt under this section and located at a source that 
is required, or but for this exemption would be required, to have a non-
title V permit shall not resume operation unless the NOX 
authorized account representative of the source submits a complete 
NOX Budget permit application under Sec. 97.22 for the unit 
not less than 18 months (or such lesser time provided by the permitting 
authority) before the later of May 31, 2004 or the date on which the 
unit is to first resume operation.
    (6) On the earlier of the following dates, a unit exempt under 
paragraph (b) of this section shall lose its exemption:
    (i) The date on which the NOX authorized account 
representative submits a NOX Budget permit application under 
paragraph (c)(5) of this section;
    (ii) The date on which the NOX authorized account 
representative is required under paragraph (c)(5) of this section to 
submit a NOX Budget permit application; or
    (iii) The date on which the unit resumes operation, if the unit is 
not required to submit a NOX permit application.
    (7) For the purpose of applying monitoring requirements under 
subpart H of this part, a unit that loses its exemption under this 
section shall be treated as a unit that commences operation or 
commercial operation on the first date on which the unit resumes 
operation.
    (8) A unit that is exempt under this section is not eligible to be a 
NOX Budget opt-in unit under subpart I of this part.

[65 FR 2727, Jan. 18, 2000, as amended at 67 FR 21529, Apr. 30, 2002; 69 
FR 21646, Apr. 21, 2004]



Sec. 97.6  Standard requirements.

    (a) Permit requirements. (1) The NOX authorized account 
representative of each NOX Budget source required to have a 
federally enforceable permit and each NOX Budget unit 
required to have a federally enforceable permit at the source shall:
    (i) Submit to the permitting authority a complete NOX 
Budget permit application under Sec. 97.22 in accordance with the 
deadlines specified in Sec. 97.21(b) and (c);
    (ii) Submit in a timely manner any supplemental information that the 
permitting authority determines is necessary in order to review a 
NOX Budget

[[Page 184]]

permit application and issue or deny a NOX Budget permit.
    (2) The owners and operators of each NOX Budget source 
required to have a federally enforceable permit and each NOX 
Budget unit required to have a federally enforceable permit at the 
source shall have a NOX Budget permit issued by the 
permitting authority and operate the unit in compliance with such 
NOX Budget permit.
    (3) The owners and operators of a NOX Budget source that 
is not otherwise required to have a federally enforceable permit are not 
required to submit a NOX Budget permit application, and to 
have a NOX Budget permit, under subpart C of this part for 
such NOX Budget source.
    (b) Monitoring requirements. (1) The owners and operators and, to 
the extent applicable, the NOX authorized account 
representative of each NOX Budget source and each 
NOX Budget unit at the source shall comply with the 
monitoring requirements of subpart H of this part.
    (2) The emissions measurements recorded and reported in accordance 
with subpart H of this part shall be used to determine compliance by the 
unit with the NOX Budget emissions limitation under paragraph 
(c) of this section.
    (c) Nitrogen oxides requirements. (1) The owners and operators of 
each NOX Budget source and each NOX Budget unit at 
the source shall hold NOX allowances available for compliance 
deductions under Sec. 97.54(a), (b), (e), or (f) as of the 
NOX allowance transfer deadline, in the unit's compliance 
account and the source's overdraft account in an amount not less than 
the total NOX emissions for the control period from the unit, 
as determined in accordance with subpart H of this part, plus any amount 
necessary to account for actual heat input under Sec. 97.42(e) for the 
control period or to account for excess emissions for a prior control 
period under Sec. 97.54(d) or to account for withdrawal from the 
NOX Budget Trading Program, or a change in regulatory status, 
of a NOX Budget opt-in unit under Sec. 97.86 or Sec. 97.87.
    (2) Each ton of nitrogen oxides emitted in excess of the 
NOX Budget emissions limitation shall constitute a separate 
violation of this part, the Clean Air Act, and applicable State law.
    (3) A NOX Budget unit shall be subject to the 
requirements under paragraph (c)(1) of this section starting on the 
later of May 31, 2004 or the date on which the unit commences operation.
    (4) NOX allowances shall be held in, deducted from, or 
transferred among NOX Allowance Tracking System accounts in 
accordance with subparts E, F, G, and I of this part.
    (5) A NOX allowance shall not be deducted, in order to 
comply with the requirements under paragraph (c)(1) of this section, for 
a control period in a year prior to the year for which the 
NOX allowance was allocated.
    (6) A NOX allowance allocated by the Administrator under 
the NOX Budget Trading Program is a limited authorization to 
emit one ton of nitrogen oxides in accordance with the NOX 
Budget Trading Program. No provision of the NOX Budget 
Trading Program, the NOX Budget permit application, the 
NOX Budget permit, or an exemption under Sec. 97.4(b) or 
Sec. 97.5 and no provision of law shall be construed to limit the 
authority of the United States to terminate or limit such authorization.
    (7) A NOX allowance allocated by the Administrator under 
the NOX Budget Trading Program does not constitute a property 
right.
    (8) Upon recordation by the Administrator under subpart F or G of 
this part, every allocation, transfer, or deduction of a NOX 
allowance to or from a NOX Budget unit's compliance account 
or the overdraft account of the source where the unit is located is 
incorporated automatically in any NOX Budget permit of the 
NOX Budget unit.
    (d) Excess emissions requirements. (1) The owners and operators of a 
NOX Budget unit that has excess emissions in any control 
period shall:
    (i) Surrender the NOX allowances required for deduction 
under Sec. 97.54(d)(1); and
    (ii) Pay any fine, penalty, or assessment or comply with any other 
remedy imposed under Sec. 97.54(d)(3).
    (e) Recordkeeping and reporting requirements. (1) Unless otherwise 
provided, the owners and operators of the NOX Budget source 
and each NOX Budget unit at the source shall keep on site

[[Page 185]]

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 prior to the end of 5 years, in writing by the 
permitting authority or the Administrator.
    (i) The account certificate of representation under Sec. 97.13 for 
the NOX authorized account representative for the source and 
each NOX Budget unit at the source and all documents that 
demonstrate the truth of the statements in the account 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 account 
certificate of representation under Sec. 97.13 changing the 
NOX authorized account representative.
    (ii) All emissions monitoring information, in accordance with 
subpart H of this part; provided that to the extent that subpart H of 
this part provides for a 3-year period for recordkeeping, the 3-year 
period shall apply.
    (iii) Copies of all reports, compliance certifications, and other 
submissions and all records made or required under the NOX 
Budget Trading Program.
    (iv) Copies of all documents used to complete a NOX 
Budget permit application and any other submission under the 
NOX Budget Trading Program or to demonstrate compliance with 
the requirements of the NOX Budget Trading Program.
    (2) The NOX authorized account representative of a 
NOX Budget source and each NOX Budget unit at the 
source shall submit the reports and compliance certifications required 
under the NOX Budget Trading Program, including those under 
subpart D, H, or I of this part.
    (f) Liability. (1) Any person who knowingly violates any requirement 
or prohibition of the NOX Budget Trading Program, a 
NOX Budget permit, or an exemption under Sec. 97.4(b) or 
Sec. 97.5 shall be subject to enforcement pursuant to applicable State 
or Federal law.
    (2) Any person who knowingly makes a false material statement in any 
record, submission, or report under the NOX Budget Trading 
Program shall be subject to criminal enforcement pursuant to the 
applicable State or Federal law.
    (3) No permit revision shall excuse any violation of the 
requirements of the NOX Budget Trading Program that occurs 
prior to the date that the revision takes effect.
    (4) Each NOX Budget source and each NOX Budget 
unit shall meet the requirements of the NOX Budget Trading 
Program.
    (5) Any provision of the NOX Budget Trading Program that 
applies to a NOX Budget source or the NOX 
authorized account representative of a NOX Budget source 
shall also apply to the owners and operators of such source and of the 
NOX Budget units at the source.
    (6) Any provision of the NOX Budget Trading Program that 
applies to a NOX Budget unit or the NOX authorized 
account representative of a NOX budget unit shall also apply 
to the owners and operators of such unit. Except with regard to the 
requirements applicable to units with a common stack under subpart H of 
this part, the owners and operators and the NOX authorized 
account representative of one NOX Budget unit shall not be 
liable for any violation by any other NOX Budget unit of 
which they are not owners or operators or the NOX authorized 
account representative and that is located at a source of which they are 
not owners or operators or the NOX authorized account 
representative.
    (g) Effect on other authorities. No provision of the NOX 
Budget Trading Program, a NOX Budget permit application, a 
NOX Budget permit, or an exemption under Sec. 97.4(b) or 
Sec. 97.5 shall be construed as exempting or excluding the owners and 
operators and, to the extent applicable, the NOX authorized 
account representative of a NOX Budget source or 
NOX Budget unit from compliance with any other provision of 
the applicable, approved State implementation plan, a federally 
enforceable permit, or the Clean Air Act.

[65 FR 2727, Jan. 18, 2000, as amended at 67 FR 21529, Apr. 30, 2002]



Sec. 97.7  Computation of time.

    (a) Unless otherwise stated, any time period scheduled, under the 
NOX Budget Trading Program, to begin on the occurrence of an 
act or event shall

[[Page 186]]

begin on the day the act or event occurs.
    (b) Unless otherwise stated, any time period scheduled, under the 
NOX 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 NOX Budget Trading Program, falls on a weekend or a 
State or Federal holiday, the time period shall be extended to the next 
business day.



   Subpart B_NOX Authorized Account Representative for NOX 
                             Budget Sources



Sec. 97.10  Authorization and responsibilities of NOX authorized 
account representative.

    (a) Except as provided under Sec. 97.11, each NOX Budget 
source, including all NOX Budget units at the source, shall 
have one and only one NOX authorized account representative, 
with regard to all matters under the NOX Budget Trading 
Program concerning the source or any NOX Budget unit at the 
source.
    (b) The NOX authorized account representative of the 
NOX Budget source shall be selected by an agreement binding 
on the owners and operators of the source and all NOX Budget 
units at the source.
    (c) Upon receipt by the Administrator of a complete account 
certificate of representation under Sec. 97.13, the NOX 
authorized account representative of the source shall represent and, by 
his or her representations, actions, inactions, or submissions, legally 
bind each owner and operator of the NOX Budget source 
represented and each NOX Budget unit at the source in all 
matters pertaining to the NOX Budget Trading Program, not 
withstanding any agreement between the NOX authorized account 
representative and such owners and operators. The owners and operators 
shall be bound by any decision or order issued to the NOX 
authorized account representative by the permitting authority, the 
Administrator, or a court regarding the source or unit.
    (d) No NOX Budget permit shall be issued, and no 
NOX Allowance Tracking System account shall be established 
for a NOX Budget unit at a source, until the Administrator 
has received a complete account certificate of representation under 
Sec. 97.13 for a NOX authorized account representative of 
the source and the NOX Budget units at the source.
    (e) (1) Each submission under the NOX Budget Trading 
Program shall be submitted, signed, and certified by the NOX 
authorized account representative for each NOX Budget source 
on behalf of which the submission is made. Each such submission shall 
include the following certification statement by the NOX 
authorized account representative: ``I am authorized to make this 
submission on behalf of the owners and operators of the NOX 
Budget sources or NOX Budget units for which the submission 
is made. I certify under penalty of law that I have personally examined, 
and am familiar with, the statements and information submitted in this 
document and all its attachments. Based on my inquiry of those 
individuals with primary responsibility for obtaining the information, I 
certify that the statements and information are to the best of my 
knowledge and belief true, accurate, and complete. I am aware that there 
are significant penalties for submitting false statements and 
information or omitting required statements and information, including 
the possibility of fine or imprisonment.''
    (2) The permitting authority and the Administrator will accept or 
act on a submission made on behalf of owner or operators of a 
NOX Budget source or a NOX Budget unit only if the 
submission has been made, signed, and certified in accordance with 
paragraph (e)(1) of this section.



Sec. 97.11  Alternate NOX authorized account representative.

    (a) An account certificate of representation may designate one and 
only one alternate NOX authorized account representative who 
may act on behalf of the NOX authorized account 
representative. The agreement by which the alternate NOX 
authorized account representative is selected shall include a procedure 
for authorizing the

[[Page 187]]

alternate NOX authorized account representative to act in 
lieu of the NOX authorized account representative.
    (b) Upon receipt by the Administrator of a complete account 
certificate of representation under Sec. 97.13, any representation, 
action, inaction, or submission by the alternate NOX 
authorized account representative shall be deemed to be a 
representation, action, inaction, or submission by the NOX 
authorized account representative.
    (c) Except in this section and Sec. Sec. 97.10(a), 97.12, 97.13, 
and 97.51, whenever the term ``NOX authorized account 
representative'' is used in this part, the term shall be construed to 
include the alternate NOX authorized account representative.



Sec. 97.12  Changing NOX authorized account representative and alternate
NOX authorized account representative; changes in owners and operators.

    (a) Changing NOX authorized account representative. The 
NOX authorized account representative may be changed at any 
time upon receipt by the Administrator of a superseding complete account 
certificate of representation under Sec. 97.13. Notwithstanding any 
such change, all representations, actions, inactions, and submissions by 
the previous NOX authorized account representative prior to 
the time and date when the Administrator receives the superseding 
account certificate of representation shall be binding on the new 
NOX authorized account representative and the owners and 
operators of the NOX Budget source and the NOX 
Budget units at the source.
    (b) Changing alternate NOX authorized account 
representative. The alternate NOX authorized account 
representative may be changed at any time upon receipt by the 
Administrator of a superseding complete account certificate of 
representation under Sec. 97.13. Notwithstanding any such change, all 
representations, actions, inactions, and submissions by the previous 
alternate NOX authorized account representative prior to the 
time and date when the Administrator receives the superseding account 
certificate of representation shall be binding on the new alternate 
NOX authorized account representative and the owners and 
operators of the NOX Budget source and the NOX 
Budget units at the source.
    (c) Changes in owners and operators. (1) In the event a new owner or 
operator of a NOX Budget source or a NOX Budget 
unit is not included in the list of owners and operators submitted in 
the account certificate of representation under Sec. 97.13, such new 
owner or operator shall be deemed to be subject to and bound by the 
account certificate of representation, the representations, actions, 
inactions, and submissions of the NOX authorized account 
representative and any alternate NOX authorized account 
representative of the source or unit, and the decisions, orders, 
actions, and inactions of the permitting authority or the Administrator, 
as if the new owner or operator were included in such list.
    (2) Within 30 days following any change in the owners and operators 
of a NOX Budget source or a NOX Budget unit, 
including the addition of a new owner or operator, the NOX 
authorized account representative or alternate NOX authorized 
account representative shall submit a revision to the account 
certificate of representation under Sec. 97.13 amending the list of 
owners and operators to include the change.



Sec. 97.13  Account certificate of representation.

    (a) A complete account certificate of representation for a 
NOX authorized account representative or an alternate 
NOX authorized account representative shall include the 
following elements in a format prescribed by the Administrator:
    (1) Identification of the NOX Budget source and each 
NOX Budget unit at the source for which the account 
certificate of representation is submitted.
    (2) The name, address, e-mail address (if any), telephone number, 
and facsimile transmission number (if any) of the NOX 
authorized account representative and any alternate NOX 
authorized account representative.
    (3) A list of the owners and operators of the NOX Budget 
source and of each NOX Budget unit at the source.
    (4) The following certification statement by the NOX 
authorized account representative and any alternate NOX 
authorized account representative: ``I

[[Page 188]]

certify that I was selected as the NOX authorized account 
representative or alternate NOX authorized account 
representative, as applicable, by an agreement binding on the owners and 
operators of the NOX Budget source and each NOX 
Budget unit at the source. I certify that I have all the necessary 
authority to carry out my duties and responsibilities under the 
NOX Budget Trading Program on behalf of the owners and 
operators of the NOX Budget source and of each NOX 
Budget unit at the source and that each such owner and operator shall be 
fully bound by my representations, actions, inactions, or submissions 
and by any decision or order issued to me by the permitting authority, 
the Administrator, or a court regarding the source or unit.''
    (5) The signature of the NOX authorized account 
representative and any alternate NOX authorized account 
representative and the dates signed.
    (b) Unless otherwise required by the permitting authority or the 
Administrator, documents of agreement referred to in the account 
certificate of representation shall not be submitted to the permitting 
authority or the Administrator. Neither the permitting authority nor the 
Administrator shall be under any obligation to review or evaluate the 
sufficiency of such documents, if submitted.



Sec. 97.14  Objections concerning NOX authorized account representative.

    (a) Once a complete account certificate of representation under 
Sec. 97.13 has been submitted and received, the permitting authority 
and the Administrator will rely on the account certificate of 
representation unless and until a superseding complete account 
certificate of representation under Sec. 97.13 is received by the 
Administrator.
    (b) Except as provided in Sec. 97.12 (a) or (b), no objection or 
other communication submitted to the permitting authority or the 
Administrator concerning the authorization, or any representation, 
action, inaction, or submission of the NOX authorized account 
representative shall affect any representation, action, inaction, or 
submission of the NOX authorized account representative or 
the finality of any decision or order by the permitting authority or the 
Administrator under the NOX Budget Trading Program.
    (c) Neither the permitting authority nor the Administrator will 
adjudicate any private legal dispute concerning the authorization or any 
representation, action, inaction, or submission of any NOX 
authorized account representative, including private legal disputes 
concerning the proceeds of NOX allowance transfers.



                            Subpart C_Permits



Sec. 97.20  General NOX Budget Trading Program permit requirements.

    (a) For each NOX Budget source required to have a 
federally enforceable permit, such permit shall include a NOX 
Budget permit administered by the permitting authority for the federally 
enforceable permit.
    (1) For NOX Budget sources required to have a title V 
operating permit, the NOX Budget portion of the title V 
permit shall be administered in accordance with the permitting 
authority's title V operating permits regulations promulgated under part 
70 or 71 of this chapter, except as provided otherwise by this subpart 
or subpart I of this part.
    (2) For NOX Budget sources required to have a non-title V 
permit, the NOX Budget portion of the non-title V permit 
shall be administered in accordance with the permitting authority's 
regulations promulgated to administer non-title V permits, except as 
provided otherwise by this subpart or subpart I of this part.
    (b) Each NOX Budget permit shall contain all applicable 
NOX Budget Trading Program requirements and shall be a 
complete and segregable portion of the permit under paragraph (a) of 
this section.



Sec. 97.21  Submission of NOX Budget permit applications.

    (a) Duty to apply. The NOX authorized account 
representative of any NOX Budget source required to have a 
federally enforceable permit shall submit to the permitting authority a 
complete NOX Budget permit application under Sec. 97.22 by 
the applicable deadline in paragraph (b) of this section.

[[Page 189]]

    (b)(1) For NOX Budget sources required to have a title V 
operating permit:
    (i) For any source, with one or more NOX Budget units 
under Sec. 97.4(a) that commence operation before January 1, 2001, the 
NOX authorized account representative shall submit a complete 
NOX Budget permit application under Sec. 97.22 covering such 
NOX Budget units to the permitting authority at least 18 
months (or such lesser time provided by the permitting authority) before 
May 31, 2004.
    (ii) For any source, with any NOX Budget unit under Sec. 
97.4(a) that commences operation on or after January 1, 2001, the 
NOX authorized account representative shall submit a complete 
NOX Budget permit application under Sec. 97.22 covering such 
NOX Budget unit to the permitting authority at least 18 
months (or such lesser time provided by the permitting authority) before 
the later of May 31, 2004 or the date on which the NOX Budget 
unit commences operation.
    (2) For NOX Budget sources required to have a non-title V 
permit:
    (i) For any source, with one or more NOX Budget units 
under Sec. 97.4(a) that commence operation before January 1, 2001, the 
NOX authorized account representative shall submit a complete 
NOX Budget permit application under Sec. 97.22 covering such 
NOX Budget units to the permitting authority at least 18 
months (or such lesser time provided by the permitting authority) before 
May 31, 2004.
    (ii) For any source, with any NOX Budget unit under Sec. 
97.4(a) that commences operation on or after January 1, 2001, the 
NOX authorized account representative shall submit a complete 
NOX Budget permit application under Sec. 97.22 covering such 
NOX Budget unit to the permitting authority at least 18 
months (or such lesser time provided by the permitting authority) before 
the later of May 31, 2004 or the date on which the NOX Budget 
unit commences operation.
    (c) Duty to reapply. (1) For a NOX Budget source required 
to have a title V operating permit, the NOX authorized 
account representative shall submit a complete NOX Budget 
permit application under Sec. 97.22 for the NOX Budget 
source covering the NOX Budget units at the source in 
accordance with the permitting authority's title V operating permits 
regulations addressing operating permit renewal.
    (2) For a NOX Budget source required to have a non-title 
V permit, the NOX authorized account representative shall 
submit a complete NOX Budget permit application under Sec. 
97.22 for the NOX Budget source covering the NOX 
Budget units at the source in accordance with the permitting authority's 
non-title V permits regulations addressing permit renewal.

[65 FR 2727, Jan. 18, 2000, as amended at 67 FR 21529, Apr. 30, 2002]



Sec. 97.22  Information requirements for NOX Budget permit applications.

    A complete NOX Budget permit application shall include 
the following elements concerning the NOX Budget source for 
which the application is submitted, in a format prescribed by the 
permitting authority:
    (a) Identification of the NOX Budget source, including 
plant name and the ORIS (Office of Regulatory Information Systems) or 
facility code assigned to the source by the Energy Information 
Administration, if applicable;
    (b) Identification of each NOX Budget unit at the 
NOX Budget source and whether it is a NOX Budget 
unit under Sec. 97.4(a) or under subpart I of this part;
    (c) The standard requirements under Sec. 97.6; and
    (d) For each NOX Budget opt-in unit at the NOX 
Budget source, the following certification statements by the 
NOX authorized account representative:
    (1) ``I certify that each unit for which this permit application is 
submitted under subpart I of this part is not a NOX Budget 
unit under 40 CFR 97.4(a) and is not covered by an exemption under 40 
CFR 97.4(b) or 97.5 that is in effect.''
    (2) If the application is for an initial NOX Budget opt-
in permit, ``I certify that each unit for which this permit application 
is submitted under subpart I of 40 CFR part 97 is operating, as that 
term is defined under 40 CFR 97.2.''

[[Page 190]]



Sec. 97.23  NOX Budget permit contents.

    (a) Each NOX Budget permit will contain, in a format 
prescribed by the permitting authority, all elements required for a 
complete NOX Budget permit application under Sec. 97.22.
    (b) Each NOX Budget permit is deemed to incorporate 
automatically the definitions of terms under Sec. 97.2 and, upon 
recordation by the Administrator under subpart F or G of this part, 
every allocation, transfer, or deduction of a NOX allowance 
to or from the compliance accounts of the NOX Budget units 
covered by the permit or the overdraft account of the NOX 
Budget source covered by the permit.



Sec. 97.24  NOX Budget permit revisions.

    (a) For a NOX Budget source with a title V operating 
permit, except as provided in Sec. 97.23(b), the permitting authority 
will revise the NOX Budget permit, as necessary, in 
accordance with the permitting authority's title V operating permits 
regulations addressing permit revisions.
    (b) For a NOX Budget source with a non-title V permit, 
except as provided in Sec. 97.23(b), the permitting authority will 
revise the NOX Budget permit, as necessary, in accordance 
with the permitting authority's non-title V permits regulations 
addressing permit revisions.



                   Subpart D_Compliance Certification



Sec. 97.30  Compliance certification report.

    (a) Applicability and deadline. For each control period in which one 
or more NOX Budget units at a source are subject to the 
NOX Budget emissions limitation, the NOX 
authorized account representative of the source shall submit to the 
permitting authority and the Administrator by November 30 of that year, 
a compliance certification report for each source covering all such 
units.
    (b) Contents of report. The NOX authorized account 
representative shall include in the compliance certification report 
under paragraph (a) of this section the following elements, in a format 
prescribed by the Administrator, concerning each unit at the source and 
subject to the NOX Budget emissions limitation for the 
control period covered by the report:
    (1) Identification of each NOX Budget unit;
    (2) At the NOX authorized account representative's 
option, the serial numbers of the NOX allowances that are to 
be deducted from each unit's compliance account under Sec. 97.54 for 
the control period;
    (3) At the NOX authorized account representative's 
option, for units sharing a common stack and having NOX 
emissions that are not monitored separately or apportioned in accordance 
with subpart H of this part, the percentage of allowances that is to be 
deducted from each unit's compliance account under Sec. 97.54(e); and
    (4) The compliance certification under paragraph (c) of this 
section.
    (c) Compliance certification. In the compliance certification report 
under paragraph (a) of this section, the NOX authorized 
account representative shall certify, based on reasonable inquiry of 
those persons with primary responsibility for operating the source and 
the NOX Budget units at the source in compliance with the 
NOX Budget Trading Program, whether each NOX 
Budget unit for which the compliance certification is submitted was 
operated during the calendar year covered by the report in compliance 
with the requirements of the NOX Budget Trading Program 
applicable to the unit, including:
    (1) Whether the unit was operated in compliance with the 
NOX Budget emissions limitation;
    (2) Whether the monitoring plan that governs the unit has been 
maintained to reflect the actual operation and monitoring of the unit 
and contains all information necessary to attribute NOX 
emissions to the unit, in accordance with subpart H of this part;
    (3) Whether all the NOX emissions from the unit, or a 
group of units (including the unit) using a common stack, were monitored 
or accounted for through the missing data procedures and reported in the 
quarterly monitoring reports, including whether conditional data were 
reported in the quarterly reports in accordance with

[[Page 191]]

subpart H of this part. If conditional data were reported, the owner or 
operator shall indicate whether the status of all conditional data has 
been resolved and all necessary quarterly report resubmissions have been 
made;
    (4) Whether the facts that form the basis for certification under 
subpart H of this part of each monitor at the unit or a group of units 
(including the unit) using a common stack, or for using an excepted 
monitoring method or alternative monitoring method approved under 
subpart H of this part, if any, have changed; and
    (5) If a change is required to be reported under paragraph (c)(4) of 
this section, specify the nature of the change, the reason for the 
change, when the change occurred, and how the unit's compliance status 
was determined subsequent to the change, including what method was used 
to determine emissions when a change mandated the need for monitor 
recertification.



Sec. 97.31  Administrator's action on compliance certifications.

    (a) The Administrator may review and conduct independent audits 
concerning any compliance certification or any other submission under 
the NOX Budget Trading Program and make appropriate 
adjustments of the information in the compliance certifications or other 
submissions.
    (b) The Administrator may deduct NOX allowances from or 
transfer NOX allowances to a unit's compliance account or a 
source's overdraft account based on the information in the compliance 
certifications or other submissions, as adjusted under paragraph (a) of 
this section.



                   Subpart E_NOX Allowance Allocations



Sec. 97.40  Trading program budget.

    In accordance with Sec. Sec. 97.41 and 97.42, the Administrator 
will allocate to the NOX Budget units under Sec. 97.4(a) in 
a State, for each control period specified in Sec. 97.41, a total 
number of NOX allowances equal to the trading budget for the 
State, as set forth in appendix C of this part, less the sum of the 
NOX emission limitations (in tons) for each unit exempt under 
Sec. 97.4(b) that is not allocated any NOX allowances under 
Sec. 97.42 (b) or (c) for the control period and whose NOX 
emission limitation (in tons of NOX) is not included in the 
amount calculated under Sec. 97.42(d)(5)(ii)(B) for the control period.

[65 FR 2727, Jan. 18, 2000, as amended at 69 FR 21646, Apr. 21, 2004]



Sec. 97.41  Timing requirements for NOX allowance allocations.

    (a) The NOX allowance allocations, determined in 
accordance with Sec. Sec. 97.42(a) through (c), for the control periods 
in 2004 through 2007 are set forth in appendices A and B of this part.
    (b) By April 1, 2005, the Administrator will determine by order the 
NOX allowance allocations, in accordance with Sec. Sec. 
97.42 (a) through (c), for the control periods in 2008 through 2012.
    (c) By April 1, 2010, by April 1 of 2015, and thereafter by April 1 
of the year that is 5 years after the last year for which NOX 
allowances allocations are determined, the Administrator will determine 
by order the NOX allowance allocations, in accordance with 
Sec. Sec. 97.42(a) through (c), for the control periods in the years 
that are 3, 4, 5, 6, and 7 years after the applicable deadline under 
this paragraph (c).
    (d) By April 1, 2004 and April 1 of each year thereafter, the 
Administrator will determine by order the NOX allowance 
allocations, in accordance with Sec. 97.42(d), for the control period 
in the year of the applicable deadline under this paragraph (d).
    (e) The Administrator will make available to the public each 
determination of NOX allowance allocations under paragraph 
(b), (c), or (d) of this section and will provide an opportunity for 
submission of objections to the determination. Objections shall be 
limited to addressing whether the determination is in accordance with 
Sec. 97.42. Based on any such objections, the Administrator will adjust 
each determination to the extent necessary to ensure that it is in 
accordance with Sec. 97.42.

[65 FR 2727, Jan. 18, 2000, as amended at 67 FR 21529, Apr. 30, 2002]

[[Page 192]]



Sec. 97.42  NOX allowance allocations.

    (a)(1) The heat input (in mmBtu) used for calculating NOX 
allowance allocations for each NOX Budget unit under Sec. 
97.4(a) will be:
    (i) For a NOX allowance allocation under Sec. 97.41(a):
    (A) For a unit under Sec. 97.4(a)(1), the average of the two 
highest amounts of the unit's heat input for the control periods in 1995 
through 1998; or
    (B) For a unit under Sec. 97.4(a)(2), the control period in 1995 
or, if the Administrator determines that reasonably reliable data are 
available for control periods in 1996 through 1998, the average of the 
two highest amounts of the unit's heat input for the control periods in 
1995 through 1998.
    (ii) For a NOX allowance allocation under Sec. 97.41(b), 
the unit's average heat input for the control periods in 2002 through 
2004.
    (iii) For a NOX allowance allocation under Sec. 
97.41(c), the unit's average heat input for the control period in the 
years that are 4, 5, 6, 7, and 8 years before the first year for which 
the allocation is being calculated.
    (2) The unit's heat input for the control period in each year 
specified under paragraph (a)(1) of this section will be determined in 
accordance with part 75 of this chapter. Notwithstanding the first 
sentence of this paragraph (a)(2):
    (i) For a NOX allowance allocation under Sec. 97.41(a), 
such heat input will be determined using the best available data 
reported to the Administrator for the unit if the unit was not otherwise 
subject to the requirements of part 75 of this chapter for the control 
period.
    (ii) For a NOX allowance allocation under Sec. 97.41(b) 
or (c) for a unit exempt under Sec. 97.4(b), such heat input shall be 
treated as zero if the unit is exempt under Sec. 97.4(b) during the 
control period.
    (b) For each group of control periods specified in Sec. 97.41(a) 
through (c), the Administrator will allocate to all NOX 
Budget units in a given State under Sec. 97.4(a)(1) that commenced 
operation before May 1, 1997 for allocations under Sec. 97.41(a), May 
1, 2003 for allocations under Sec. 97.41(b), and May 1 of the year 5 
years before the first year for which the allocation under Sec. 
97.41(c) is being calculated, a total number of NOX 
allowances equal to 95 percent of the portion of the State's trading 
program budget under Sec. 97.40 covering such units. The Administrator 
will allocate in accordance with the following procedures:
    (1) The Administrator will allocate NOX allowances to 
each NOX Budget unit under Sec. 97.4(a)(1) for each control 
period in an amount equaling 0.15 lb/mmBtu multiplied by the heat input 
determined under paragraph (a) of this section, divided by 2,000 lb/ton, 
and rounded to the nearest whole number of NOX allowances as 
appropriate.
    (2) If the initial total number of NOX allowances 
allocated to all NOX Budget units under Sec. 97.4(a)(1) in 
the State for a control period under paragraph (b)(1) of this section 
does not equal 95 percent of the portion of the State's trading program 
budget under Sec. 97.40 covering such units, the Administrator will 
adjust the total number of NOX allowances allocated to all 
such NOX Budget units for the control period under paragraph 
(b)(1) of this section so that the total number of NOX 
allowances allocated equals 95 percent of such portion of the State's 
trading program budget. This adjustment will be made by: multiplying 
each unit's allocation by 95 percent of such portion of the State's 
trading program budget; dividing by the total number of NOX 
allowances allocated under paragraph (b)(1) of this section for the 
control period; and rounding to the nearest whole number of 
NOX allowances as appropriate.
    (c) For each group of control periods specified in Sec. 97.41(a) 
through (c), the Administrator will allocate to all NOX 
Budget units in a given State under Sec. 97.4(a)(2) that commenced 
operation before May 1, 1997 for allocations under Sec. 97.41(a), May 
1, 2003 for allocations under Sec. 97.41(b), and May 1 of the year 5 
years before the first year for which the allocation under Sec. 
97.41(c) is being calculated, a total number of NOX 
allowances equal to 95 percent of the portion of the State's trading 
program budget under Sec. 97.40 covering such units. The Administrator 
will allocate in accordance with the following procedures:
    (1) The Administrator will allocate NOX allowances to 
each NOX Budget

[[Page 193]]

unit under Sec. 97.4(a)(2) for each control period in an amount 
equaling 0.17 lb/mmBtu multiplied by the heat input determined under 
paragraph (a) of this section, divided by 2,000 lb/ton, and rounded to 
the nearest whole number of NOX allowances as appropriate.
    (2) If the initial total number of NOX allowances 
allocated to all NOX Budget units under Sec. 97.4(a)(2) in 
the State for a control period under paragraph (c)(1) of this section 
does not equal 95 percent of the portion of the State's trading program 
budget under Sec. 97.40 covering such units, the Administrator will 
adjust the total number of NOX allowances allocated to all 
such NOX Budget units for the control period under paragraph 
(a)(1) of this section so that the total number of NOX 
allowances allocated equals 95 percent of the portion of the State's 
trading program budget under Sec. 97.40 covering such units. This 
adjustment will be made by: multiplying each unit's allocation by 95 
percent of the portion of the State's trading program budget under Sec. 
97.40 covering such units; dividing by the total number of 
NOX allowances allocated under paragraph (c)(1) of this 
section for the control period; and rounding to the nearest whole number 
of NOX allowances as appropriate.
    (d) For each control period specified in Sec. 97.41(d), the 
Administrator will allocate NOX allowances to NOX 
Budget units in a given State under Sec. 97.4(a) (except for units 
exempt under Sec. 97.4(b)) that commence operation, or are projected to 
commence operation, on or after: May 1, 1997 (for control periods under 
Sec. 97.41(a)); May 1, 2003, (for control periods under Sec. 
97.41(b)); and May 1 of the year 5 years before the beginning of the 
group of 5 years that includes the control period (for control periods 
under Sec. 97.41(c)). The Administrator will make the allocations under 
this paragraph (d) in accordance with the following procedures:
    (1) The Administrator will establish one allocation set-aside for 
each control period. Each allocation set-aside will be allocated 
NOX allowances equal to 5 percent of the tons of 
NOX emission in the State's trading program budget under 
Sec. 97.40, rounded to the nearest whole number of NOX 
allowances as appropriate.
    (2) The NOX authorized account representative of a 
NOX Budget unit specified in this paragraph (d) may submit to 
the Administrator a request, in a format specified by the Administrator, 
to be allocated NOX allowances for the control period. The 
NOX allowance allocation request must be received by the 
Administrator on or after the date on which the State permitting 
authority issues a permit to construct the unit and by January 1 before 
the control period for which NOX allowances are requested.
    (3) In a NOX allowance allocation request under paragraph 
(d)(2) of this section, the NOX authorized account 
representative for a NOX Budget unit under Sec. 97.4(a)(1) 
may request for the control period NOX allowances in an 
amount that does not exceed the lesser of:
    (i) 0.15 lb/mmBtu multiplied by the unit's maximum design heat 
input, multiplied by the lesser of 3,672 hours or the number of hours 
remaining in the control period starting with the day in the control 
period on which the unit commences operation or is projected to commence 
operation, divided by 2,000 lb/ton, and rounded to the nearest whole 
number of NOX allowances as appropriate; or
    (ii) The unit's most stringent State or Federal NOX 
emission limitation multiplied by the unit's maximum design heat input, 
multiplied by the lesser of 3,672 hours or the number of hours remaining 
in the control period starting with the day in the control period on 
which the unit commences operation or is projected to commence 
operation, divided by 2,000 lb/ton, and rounded to the nearest whole 
number of NOX allowances as appropriate.
    (4) In a NOX allowance allocation request under paragraph 
(d)(2) of this section, the NOX authorized account 
representative for a NOX Budget unit under Sec. 97.4(a)(2) 
may request for the control period NOX allowances in an 
amount that does not exceed the lesser of:
    (i) 0.17 lb/mmBtu multiplied by the unit's maximum design heat 
input, multiplied by the lesser of 3,672 hours or the number of hours 
remaining in the control period starting with the day in the control 
period on which the

[[Page 194]]

unit commences operation or is projected to commence operation, divided 
by 2,000 lb/ton, and rounded to the nearest whole number of 
NOX allowances as appropriate; or
    (ii) The unit's most stringent State or Federal NOX 
emission limitation multiplied by the unit's maximum design heat input, 
multiplied by the lesser of 3,672 hours or the number of hours remaining 
in the control period starting with the day in the control period on 
which the unit commences operation or is projected to commence 
operation, divided by 2,000 lb/ton, and rounded to the nearest whole 
number of NOX allowances as appropriate.
    (5) The Administrator will review each NOX allowance 
allocation request submitted in accordance with paragraph (d)(2) of this 
section and will allocate NOX allowances pursuant to such 
request as follows:
    (i) Upon receipt of the NOX allowance allocation request, 
the Administrator will make any necessary adjustments to the request to 
ensure that the requirements of paragraphs (d) introductory text, 
(d)(2), (d)(3), and (d)(4) are met.
    (ii) The Administrator will determine the following amounts:
    (A) The sum of the NOX allowances requested (as adjusted 
under paragraph (d)(5)(i) of this section) in all NOX 
allowance allocation requests under paragraph (d)(2) of this section for 
the control period; and
    (B) For units exempt under Sec. 97.4(b) in the State that commenced 
operation, or are projected to commence operation, on or after May 1, 
1997 (for control periods under Sec. 97.41(a)); May 1, 2003, (for 
control periods under Sec. 97.41(b)); and May 1 of the year 5 years 
before beginning of the group of 5 years that includes the control 
period (for control periods under Sec. 97.41(c)), the sum of the 
NOX emission limitations (in tons of NOX) on which 
each unit's exemption under Sec. 97.4(b) is based.
    (iii) If the number of NOX allowances in the allocation 
set-aside for the control period less the amount under paragraph 
(d)(5)(ii)(B) of this section is not less than the amount determined 
under paragraph (d)(5)(ii)(A) of this section, the Administrator will 
allocate the amount of the NOX allowances requested (as 
adjusted under paragraph (d)(5)(i) of this section) to the 
NOX Budget unit for which the allocation request was 
submitted.
    (iv) If the number of NOX allowances in the allocation 
set-aside for the control period less the amount under paragraph 
(d)(5)(ii)(B) of this section is less than the amount determined under 
paragraph (d)(5)(ii)(A) of this section, the Administrator will 
allocate, to the NOX Budget unit for which the allocation 
request was submitted, the amount of NOX allowances requested 
(as adjusted under paragraph (d)(5)(i) of this section) multiplied by 
the number of NOX allowances in the allocation set-aside for 
the control period less the amount determined under paragraph 
(d)(5)(ii)(B) of this section, divided by the amount determined under 
paragraph (d)(5)(ii)(A) of this section, and rounded to the nearest 
whole number of NOX allowances as appropriate.
    (e)(1) For a NOX Budget unit that is allocated 
NOX allowances under paragraph (d) of this section for a 
control period, the Administrator will deduct NOX allowances 
under Sec. 97.54(b), (e), or (f) to account for the actual heat input 
of the unit during the control period. The Administrator will calculate 
the number of NOX allowances to be deducted to account for 
the unit's actual heat input using the following formulas and rounding 
to the nearest whole number of NOX allowance as appropriate, 
provided that the number of NOX allowances to be deducted 
shall be zero if the number calculated is less than zero:

NOX allowances deducted for actual heat input for a unit 
    under Sec. 97.4(a)(1) = Unit's NOX allowances allocated 
    for control period-(Unit's actual control period heat inputx the 
    lesser of 0.15 lb/mmBtu the unit's most stringent State or Federal 
    emission limitation x 2,000 lb/ton); and NOX allowances 
    deducted for actual heat input for a unit under Sec. 97.4(a)(2) = 
    Unit's NOX allowances allocated for control period-
    (Unit's actual control period heat input x the lesser of 0.17 lb/
    mmBtu the unit's most stringent State or Federal emission limitation 
    x 2,000 lb/ton)

Where:


[[Page 195]]


``Unit's NOX allowances allocated for control period'' is the 
number of NOX allowances allocated to the unit for the 
control period under paragraph (d) of this section; and
``Unit's actual control period heat input'' is the heat input (in mmBtu) 
of the unit during the control period.

    (2) The Administrator will transfer any NOX allowances 
deducted under paragraph (e)(1) of this section to the allocation set-
aside for the control period for which they were allocated.
    (f) After making the deductions for compliance under Sec. 97.54(b), 
(e), or (f) for a control period, the Administrator will determine 
whether any NOX allowances remain in the allocation set-aside 
for the control period. The Administrator will allocate any such 
NOX allowances to the NOX Budget units in the 
State using the following formula and rounding to the nearest whole 
number of NOX allowances as appropriate:

Unit's share of NOX allowances remaining in allocation set-
    aside = Total NOX allowances remaining in allocation set-
    aside x (Unit's NOX allowance allocation / State's 
    trading program budget excluding allocation set-aside)

Where:

``Total NOX allowances remaining in allocation set-aside'' is 
the total number of NOX allowances remaining in the 
allocation set-aside for the control period;
``Unit's NOX allowance allocation'' is the number of 
NOX allowances allocated under paragraph (b) or (c) of this 
section to the unit for the control period to which the allocation set-
aside applies; and
``State's trading program budget excluding allocation set-aside'' is the 
State's trading program budget under Sec. 97.40 for the control period 
to which the allocation set-aside applies multiplied by 95 percent, 
rounded to the nearest whole number of NOX allowances as 
appropriate.

    (g) If the Administrator determines that NOX allowances 
were allocated under paragraph (b), (c), or (d) of this section for a 
control period and the recipient of the allocation is not actually a 
NOX Budget unit under Sec. 97.4(a), the Administrator will 
notify the NOX authorized account representative and then 
will act in accordance with the following procedures:
    (1)(i) The Administrator will not record such NOX 
allowances for the control period in an account under Sec. 97.53;
    (ii) If the Administrator already recorded such NOX 
allowances for the control period in an account under Sec. 97.53 and if 
the Administrator makes such determination before making all deductions 
pursuant to Sec. 97.54 (except deductions pursuant to Sec. 
97.54(d)(2)) for the control period, then the Administrator will deduct 
from the account NOX allowances equal in number to and 
allocated for the same or a prior control period as the NOX 
allowances allocated to such recipient for the control period. The 
NOX authorized account representative shall ensure that the 
account contains the NOX allowances necessary for completion 
of such deduction. If account does not contain the necessary 
NOX allowances, the Administrator will deduct the required 
number of NOX allowances, regardless of the control period 
for which they were allocated, whenever NOX allowances are 
recorded in the account; or
    (iii) If the Administrator already recorded such NOX 
allowances for the control period in an account under Sec. 97.53 and if 
the Administrator makes such determination after making all deductions 
pursuant to Sec. 97.54 (except deductions pursuant to Sec. 
97.54(d)(2)) for the control period, then the Administrator will apply 
paragraph (g)(1)(ii) of this section to any subsequent control period 
for which NOX allowances were allocated to such recipient.
    (2) The Administrator will transfer the NOX allowances 
that are not recorded, or that are deducted, pursuant to paragraph 
(g)(1) of this section to an allocation set-aside for the State in which 
such source is located.

[65 FR 2727, Jan. 18, 2000, as amended at 67 FR 21529, Apr. 30, 2002; 69 
FR 21646, Apr. 21, 2004]



Sec. 97.43  Compliance Supplement Pool.

    (a) For any NOX Budget unit that reduces its 
NOX emission rate in the 2001 through 2003 control period, 
the owners and operators may request early reduction credits in 
accordance with the following requirements:
    (1) Each NOX Budget unit for which the owners and 
operators intend to request, or request, any early reduction credits in 
accordance with paragraph

[[Page 196]]

(a)(4) of this section shall monitor and report NOX emissions 
in accordance with subpart H of this part starting in the 2000 control 
period and for each control period for which such early reduction 
credits are requested. The unit's percent monitor data availability 
shall not be less than 90 percent during the 2000 control period, and 
the unit must be in full compliance with any applicable State or Federal 
NOX emission control requirements during 2000 through 2002.
    (2) NOX emission rate and heat input under paragraphs 
(a)(3) and (4) of this section shall be determined in accordance with 
subpart H of this part.
    (3) Each NOX Budget unit for which the owners and 
operators intend to request, or request, any early reduction credits 
under paragraph (a)(4) of this section shall reduce its NOX 
emission rate, for each control period for which early reduction credits 
are requested, to less than both 0.25 lb/mmBtu and 80 percent of the 
unit's NOX emission rate in the 2000 control period.
    (4) The NOX authorized account representative of a 
NOX Budget unit that meets the requirements of paragraphs (a) 
(1) and (3) of this section may submit to the Administrator a request 
for early reduction credits for the unit based on NOX 
emission rate reductions made by the unit in the control period for 2001 
through 2003.
    (i) In the early reduction credit request, the NOX 
authorized account may request early reduction credits for such control 
period in an amount equal to the unit's heat input for such control 
period multiplied by the difference between 0.25 lb/mmBtu and the unit's 
NOX emission rate for such control period, divided by 2000 
lb/ton, and rounded to the nearest whole number of tons.
    (ii) The early reduction credit request must be submitted, in a 
format specified by the Administrator, by February 1, 2004.
    (b) For any NOX Budget unit that is subject to the Ozone 
Transport Commission NOX Budget Program under title I of the 
Clean Air Act, the owners and operators may request early reduction 
credits in accordance with the following requirements:
    (1) The NOX authorized account representative of the unit 
may submit to the Administrator a request for early reduction credits in 
an amount equal to the amount of banked allowances under the Ozone 
Transport Commission NOX Budget Program that were allocated 
for the control period in 2001 through 2003 and are held by the unit, in 
accordance with the Ozone Transport Commission NOX Budget 
Program, as of the date of submission of the request. During the entire 
control period in 2001 through 2003 for which the allowances were 
allocated, the unit must have monitored and reported NOX 
emissions in accordance with part 75 (except for subpart H) of this 
chapter and the Guidance for Implementation of Emission Monitoring 
Requirements for the NOX Budget Program (January 28, 1997).
    (2) The early reduction credit request under paragraph (b)(1) must 
be submitted, in a format specified by the Administrator, by February 1, 
2004.
    (3) The NOX authorized account representative of the unit 
shall not submit a request for early reduction credits under paragraph 
(b)(1) of this section for banked allowances under the Ozone Transport 
Commission NOX Budget Program that were allocated for any 
control period during which the unit made NOX emission 
reductions for which he or she submits a request for early reduction 
credits under paragraph (a) of this section for the unit.
    (c) The Administrator will review each early reduction credit 
request submitted in accordance with paragraph (a) or (b) of this 
section and will allocate NOX allowances to NOX 
Budget units in a given State and covered by such request as follows:
    (1) Upon receipt of each early reduction credit request, the 
Administrator will make any necessary adjustments to the request to 
ensure that the amount of the early reduction credits requested meets 
the requirements of paragraph (a) or (b) of this section.
    (2) After February 1, 2004, the Administrator will make available to 
the public a statement of the total number of early reduction credits 
requested by NOX Budget units in the State.
    (3) If the State's compliance supplement pool set forth in appendix 
D of this part has a number of NOX allowances not less than 
the amount of early

[[Page 197]]

reduction credits in all early reduction credit requests under paragraph 
(a) or (b) of this section for 2001 through 2003 (as adjusted under 
paragraph (c)(1) of this section) submitted by February 1, 2004, the 
Administrator will allocate to each NOX Budget unit covered 
by such requests one allowance for each early reduction credit requested 
(as adjusted under paragraph (c)(1) of this section).
    (4) If the State's compliance supplement pool set forth in appendix 
D of this part has a smaller number of NOX allowances than 
the amount of early reduction credits in all early reduction credit 
requests under paragraph (a) or (b) of this section for 2001 through 
2003 (as adjusted under paragraph (c)(1) of this section) submitted by 
February 1, 2004, the Administrator will allocate NOX 
allowances to each NOX Budget unit covered by such requests 
according to the following formula and rounding to the nearest whole 
number of NOX allowances as appropriate:

Unit's allocation for early reduction credits = Unit's adjusted early 
    reduction credits x (State's compliance supplement pool / Total 
    adjusted early reduction credits for all units)

Where:

``Unit's allocation for early reduction credits'' is the number of 
NOX allowances allocated to the unit for early reduction 
credits.
``Unit's adjusted early reduction credits'' is the amount of early 
reduction credits requested for the unit for 2001 and 2002 in early 
reduction credit requests under paragraph (a) or (b) of this section, as 
adjusted under paragraph (c)(1) of this section.
``State's compliance supplement pool'' is the number of NOX 
allowances in the State's compliance supplement pool set forth in 
appendix D of this part.
``Total adjusted early reduction credits for all units'' is the amount 
of early reduction credits requested for all units for 2001 and 2002 in 
early reduction credit requests under paragraph (a) or (b) of this 
section, as adjusted under paragraph (c)(1) of this section.

    (5) By April 1, 2004, the Administrator will determine by order the 
allocations under paragraph (c)(3) or (4) of this section. The 
Administrator will make available to the public each determination of 
NOX allowance allocations and will provide an opportunity for 
submission of objections to the determination. Objections shall be 
limited to addressing whether the determination is in accordance with 
paragraph (c)(1), (3), or (4) of this section. Based on any such 
objections, the Administrator will adjust each determination to the 
extent necessary to ensure that it is in accordance with paragraph 
(c)(1), (3), or (4) of this section.
    (6) By May 1, 2004, the Administrator will record the allocations 
under paragraph (c)(3) or (4) of this section.
    (7) NOX allowances recorded under paragraph (c)(6) of 
this section may be deducted for compliance under Sec. 97.54 for the 
control period in 2004 or 2005. Notwithstanding Sec. 97.55(a), the 
Administrator will deduct as retired any NOX allowance that 
is recorded under paragraph (c)(6) of this section and that is not 
deducted for compliance under Sec. 97.54 for the control period in 2003 
or 2004.

[65 FR 2727, Jan. 18, 2000, as amended at 67 FR 21529, Apr. 30, 2002; 69 
FR 21646, Apr. 21, 2004]



                 Subpart F_NOX Allowance Tracking System



Sec. 97.50  NOX Allowance Tracking System accounts.

    (a) Nature and function of compliance accounts and overdraft 
accounts. Consistent with Sec. 97.51(a), the Administrator will 
establish one compliance account for each NOX Budget unit and 
one overdraft account for each source with two or more NOX 
Budget units. Allocations of NOX allowances pursuant to 
subpart E of this part or Sec. 97.88, and deductions or transfers of 
NOX allowances pursuant to Sec. 97.31, Sec. 96.54, Sec. 
96.56, subpart G of this part, or subpart I of this part will be 
recorded in compliance accounts or overdraft accounts in accordance with 
this subpart.
    (b) Nature and function of general accounts. Consistent with Sec. 
97.51(b), the Administrator will establish, upon request, a general 
account for any person. Allocations of NOX allowances 
pursuant to Sec. 97.4(b)(4)(ii) or Sec. 97.5(c)(2) and transfers of 
allowances pursuant to subpart G of this part will be recorded in 
general accounts in accordance with this subpart.

[[Page 198]]



Sec. 97.51  Establishment of accounts.

    (a) Compliance accounts and overdraft accounts. Upon receipt of a 
complete account certificate of representation under Sec. 97.13, the 
Administrator will establish:
    (1) A compliance account for each NOX Budget unit for 
which the account certificate of representation was submitted; and
    (2) An overdraft account for each source for which the account 
certificate of representation was submitted and that has two or more 
NOX Budget units.
    (b) General accounts--(1) Application for general account. (i) Any 
person may apply to open a general account for the purpose of holding 
and transferring allowances. An application for a general account may 
designate one and only one NOX authorized account 
representative and one and only one alternate NOX authorized 
account representative who may act on behalf of the NOX 
authorized account representative. The agreement by which the alternate 
NOX authorized account representative is selected shall 
include a procedure for authorizing the alternate NOX 
authorized account representative to act in lieu of the NOX 
authorized account representative. A complete application for a general 
account shall be submitted to the Administrator and shall include the 
following elements in a format prescribed by the Administrator:
    (A) Name, mailing address, e-mail address (if any), telephone 
number, and facsimile transmission number (if any) of the NOX 
authorized account representative and any alternate NOX 
authorized account representative;
    (B) At the option of the NOX authorized account 
representative, organization name and type of organization;
    (C) A list of all persons subject to a binding agreement for the 
NOX authorized account representative and any alternate 
NOX authorized account representative to represent their 
ownership interest with respect to the allowances held in the general 
account;
    (D) The following certification statement by the NOX 
authorized account representative and any alternate NOX 
authorized account representative: ``I certify that I was selected as 
the NOX authorized account representative or the 
NOX alternate authorized account representative, as 
applicable, by an agreement that is binding on all persons who have an 
ownership interest with respect to NOX allowances held in the 
general account. I certify that I have all the necessary authority to 
carry out my duties and responsibilities under the NOX Budget 
Trading Program on behalf of such persons and that each such person 
shall be fully bound by my representations, actions, inactions, or 
submissions and by any order or decision issued to me by the 
Administrator or a court regarding the general account.;''
    (E) The signature of the NOX authorized account 
representative and any alternate NOX authorized account 
representative and the dates signed.
    (ii) Unless otherwise required by the permitting authority or the 
Administrator, documents of agreement referred to in the application for 
a general account shall not be submitted to the permitting authority or 
the Administrator. Neither the permitting authority nor the 
Administrator shall be under any obligation to review or evaluate the 
sufficiency of such documents, if submitted.
    (2) Authorization of NOX authorized account 
representative. Upon receipt by the Administrator of a complete 
application for a general account under paragraph (b)(1) of this 
section:
    (i) The Administrator will establish a general account for the 
person or persons for whom the application is submitted.
    (ii) The NOX authorized account representative and any 
alternate NOX authorized account representative for the 
general account shall represent and, by his or her representations, 
actions, inactions, or submissions, legally bind each person who has an 
ownership interest with respect to NOX allowances held in the 
general account in all matters pertaining to the NOX Budget 
Trading Program, not withstanding any agreement between the 
NOX authorized account representative or any alternate 
NOX authorized account representative and such person. Any 
such person shall be bound by any order or decision issued to the 
NOX authorized

[[Page 199]]

account representative or any alternate NOX authorized 
account representative by the Administrator or a court regarding the 
general account.
    (iii) Any representation, action, inaction, or submission by any 
alternate NOX authorized account representative shall be 
deemed to be a representation, action, inaction, or submission by the 
NOX authorized account representative.
    (iv) Each submission concerning the general account shall be 
submitted, signed, and certified by the NOX authorized 
account representative or any alternate NOX authorized 
account representative for the persons having an ownership interest with 
respect to NOX allowances held in the general account. Each 
such submission shall include the following certification statement by 
the NOX authorized account representative or any alternate 
NOX authorizing account representative: ``I am authorized to 
make this submission on behalf of the persons having an ownership 
interest with respect to the NOX allowances held in the 
general account. I certify under penalty of law that I have personally 
examined, and am familiar with, the statements and information submitted 
in this document and all its attachments. Based on my inquiry of those 
individuals with primary responsibility for obtaining the information, I 
certify that the statements and information are to the best of my 
knowledge and belief true, accurate, and complete. I am aware that there 
are significant penalties for submitting false statements and 
information or omitting required statements and information, including 
the possibility of fine or imprisonment.''
    (v) The Administrator will accept or act on a submission concerning 
the general account only if the submission has been made, signed, and 
certified in accordance with paragraph (b)(2)(iv) of this section.
    (3) Changing NOX authorized account representative and 
alternate NOX authorized account representative; changes in 
persons with ownership interest. (i) The NOX authorized 
account representative for a general account may be changed at any time 
upon receipt by the Administrator of a superseding complete application 
for a general account under paragraph (b)(1) of this section. 
Notwithstanding any such change, all representations, actions, 
inactions, and submissions by the previous NOX authorized 
account representative prior to the time and date when the Administrator 
receives the superseding application for a general account shall be 
binding on the new NOX authorized account representative and 
the persons with an ownership interest with respect to the 
NOX allowances in the general account.
    (ii) The alternate NOX authorized account representative 
for a general account may be changed at any time upon receipt by the 
Administrator of a superseding complete application for a general 
account under paragraph (b)(1) of this section. Notwithstanding any such 
change, all representations, actions, inactions, and submissions by the 
previous alternate NOX authorized account representative 
prior to the time and date when the Administrator receives the 
superseding application for a general account shall be binding on the 
new alternate NOX authorized account representative and the 
persons with an ownership interest with respect to the NOX 
allowances in the general account.
    (iii)(A) In the event a new person having an ownership interest with 
respect to NOX allowances in the general account is not 
included in the list of such persons in the account certificate of 
representation, such new person shall be deemed to be subject to and 
bound by the account certificate of representation, the representation, 
actions, inactions, and submissions of the NOX authorized 
account representative and any alternate NOX authorized 
account representative of the source or unit, and the decisions, orders, 
actions, and inactions of the Administrator, as if the new person were 
included in such list.
    (B) Within 30 days following any change in the persons having an 
ownership interest with respect to NOX allowances in the 
general account, including the addition of persons, the NOX 
authorized account representative or any alternate NOX 
authorized account representative shall submit a revision to the 
application for a general account amending the list of persons

[[Page 200]]

having an ownership interest with respect to the NOX 
allowances in the general account to include the change.
    (4) Objections concerning NOX authorized account 
representative. (i) Once a complete application for a general account 
under paragraph (b)(1) of this section has been submitted and received, 
the Administrator will rely on the application unless and until a 
superseding complete application for a general account under paragraph 
(b)(1) of this section is received by the Administrator.
    (ii) Except as provided in paragraph (b)(3)(i) or (ii) of this 
section, no objection or other communication submitted to the 
Administrator concerning the authorization, or any representation, 
action, inaction, or submission of the NOX authorized account 
representative or any alternative NOX authorized account 
representative for a general account shall affect any representation, 
action, inaction, or submission of the NOX authorized account 
representative or any alternative NOX authorized account 
representative or the finality of any decision or order by the 
Administrator under the NOX Budget Trading Program.
    (iii) The Administrator will not adjudicate any private legal 
dispute concerning the authorization or any representation, action, 
inaction, or submission of the NOX authorized account 
representative or any alternative NOX authorized account 
representative for a general account, including private legal disputes 
concerning the proceeds of NOX allowance transfers.
    (c) Account identification. The Administrator will assign a unique 
identifying number to each account established under paragraph (a) or 
(b) of this section.

[65 FR 2727, Jan. 18, 2000, as amended at 69 FR 21646, Apr. 21, 2004]



Sec. 97.52  NOX Allowance Tracking System responsibilities of 
NOX authorized account representative.

    (a) Following the establishment of a NOX Allowance 
Tracking System account, all submissions to the Administrator pertaining 
to the account, including, but not limited to, submissions concerning 
the deduction or transfer of NOX allowances in the account, 
shall be made only by the NOX authorized account 
representative for the account.
    (b) Authorized account representative identification. The 
Administrator will assign a unique identifying number to each 
NOX authorized account representative.



Sec. 97.53  Recordation of NOX allowance allocations.

    (a) The Administrator will record the NOX allowances for 
2004 for a NOX Budget unit allocated under subpart E of this 
part in the unit's compliance account, except for NOX 
allowances under Sec. 97.4(b)(4)(ii) or Sec. 97.5(c)(2), which will be 
recorded in the general account specified by the owners and operators of 
the unit. The Administrator will record NOX allowances for 
2004 for a NOX Budget opt-in unit in the unit's compliance 
account as allocated under Sec. 97.88(a).
    (b) By May 1, 2003, the Administrator will record the NOX 
allowances for 2005 for a NOX Budget unit allocated under 
subpart E of this part in the unit's compliance account, except for 
NOX allowances under Sec. 97.4(b)(4)(ii) or Sec. 
97.5(c)(2), which will be recorded in the general account specified by 
the owners and operators of the unit. The Administrator will record 
NOX allowances for 2005 for a NOX Budget opt-in 
unit in the unit's compliance account as allocated under Sec. 97.88(a).
    (c) By May 1, 2003, the Administrator will record the NOX 
allowances for 2006 for a NOX Budget unit allocated under 
subpart E of this part in the unit's compliance account, except for 
NOX allowances under Sec. 97.4(b)(4)(ii) or Sec. 
97.5(c)(2), which will be recorded in the general account specified by 
the owners and operators of the unit. The Administrator will record 
NOX allowances for 2006 for a NOX Budget opt-in 
unit in the unit's compliance account as allocated under Sec. 97.88(a).
    (d) By May 1, 2004, the Administrator will record the NOX 
allowances for 2007 for a NOX Budget unit allocated under 
subpart E of this part in the unit's compliance account, except for 
NOX allowances under Sec. 97.4(b)(4)(ii) or Sec. 
97.5(c)(2), which will be recorded in the general account specified by 
the owners and operators of the unit. The

[[Page 201]]

Administrator will record NOX allowances for 2007 for a 
NOX Budget opt-in unit in the unit's compliance account as 
allocated under Sec. 97.88(a).
    (e) Each year starting with 2005, after the Administrator has made 
all deductions from a NOX Budget unit's compliance account 
and the overdraft account pursuant to Sec. 97.54 (except deductions 
pursuant to Sec. 97.54(d)(2)), the Administrator will record:
    (1) NOX allowances, in the compliance account, as 
allocated to the unit under subpart E of this part for the third year 
after the year of the control period for which such deductions were or 
could have been made;
    (2) NOX allowances, in the general account specified by 
the owners and operators of the unit, as allocated under Sec. 
97.4(b)(4)(ii) or Sec. 97.5(c)(2) for the third year after the year of 
the control period for which such deductions are or could have been 
made; and
    (3) NOX allowances, in the compliance account, as 
allocated to the unit under Sec. 97.88(a).
    (f) Serial numbers for allocated NOX allowances. When 
allocating NOX allowances to a NOX Budget unit and 
recording them in an account, the Administrator will assign each 
NOX allowance a unique identification number that will 
include digits identifying the year for which the NOX 
allowance is allocated.

[65 FR 2727, Jan. 18, 2000, as amended at 67 FR 21530, Apr. 30, 2002]



Sec. 97.54  Compliance.

    (a) NOX allowance transfer deadline. The NOX 
allowances are available to be deducted for compliance with a unit's 
NOX Budget emissions limitation for a control period in a 
given year only if the NOX allowances:
    (1) Were allocated for a control period in a prior year or the same 
year; and
    (2) Are held in the unit's compliance account, or the overdraft 
account of the source where the unit is located, as of the 
NOX allowance transfer deadline for that control period or 
are transferred into the compliance account or overdraft account by a 
NOX allowance transfer correctly submitted for recordation 
under Sec. 97.60 by the NOX allowance transfer deadline for 
that control period.
    (b) Deductions for compliance. (1) Following the recordation, in 
accordance with Sec. 97.61, of NOX allowance transfers 
submitted for recordation in the unit's compliance account or the 
overdraft account of the source where the unit is located by the 
NOX allowance transfer deadline for a control period, the 
Administrator will deduct NOX allowances available under 
paragraph (a) of this section to cover the unit's NOX 
emissions (as determined in accordance with subpart H of this part), or 
to account for actual heat input under Sec. 97.42(e), for the control 
period:
    (i) From the compliance account; and
    (ii) Only if no more NOX allowances available under 
paragraph (a) of this section remain in the compliance account, from the 
overdraft account. In deducting allowances for units at the source from 
the overdraft account, the Administrator will begin with the unit having 
the compliance account with the lowest account number and end with the 
unit having the compliance account with the highest account number (with 
account numbers sorted beginning with the left-most character and ending 
with the right-most character and the letter characters assigned values 
in alphabetical order and less than all numeric characters).
    (2) The Administrator will deduct NOX allowances first 
under paragraph (b)(1)(i) of this section and then under paragraph 
(b)(1)(ii) of this section:
    (i) Until the number of NOX allowances deducted for the 
control period equals the number of tons of NOX emissions, 
determined in accordance with subpart H of this part, from the unit for 
the control period for which compliance is being determined, plus the 
number of NOX allowances required for deduction to account 
for actual heat input under Sec. 97.42(e) for the control period; or
    (ii) Until no more NOX allowances available under 
paragraph (a) of this section remain in the respective account.
    (c)(1) Identification of NOX allowances by serial number. The 
NOX authorized account representative for each compliance 
account may identify by serial number the NOX allowances to 
be deducted from the unit's compliance account under paragraph (b), (d), 
(e), or

[[Page 202]]

(f) of this section. Such identification shall be made in the compliance 
certification report submitted in accordance with Sec. 97.30.
    (2) First-in, first-out. The Administrator will deduct 
NOX allowances for a control period from the compliance 
account, in the absence of an identification or in the case of a partial 
identification of NOX allowances by serial number under 
paragraph (c)(1) of this section, or the overdraft account on a first-
in, first-out (FIFO) accounting basis in the following order:
    (i) Those NOX allowances that were allocated for the 
control period to the unit under subpart E or I of this part;
    (ii) Those NOX allowances that were allocated for the 
control period to any unit and transferred and recorded in the account 
pursuant to subpart G of this part, in order of their date of 
recordation;
    (iii) Those NOX allowances that were allocated for a 
prior control period to the unit under subpart E or I of this part; and
    (iv) Those NOX allowances that were allocated for a prior 
control period to any unit and transferred and recorded in the account 
pursuant to subpart G of this part, in order of their date of 
recordation.
    (d) Deductions for excess emissions. (1) After making the deductions 
for compliance under paragraph (b) of this section, the Administrator 
will deduct from the unit's compliance account or the overdraft account 
of the source where the unit is located a number of NOX 
allowances, allocated for a control period after the control period in 
which the unit has excess emissions, equal to three times the number of 
the unit's excess emissions.
    (2) If the compliance account or overdraft account does not contain 
sufficient NOX allowances, the Administrator will deduct the 
required number of NOX allowances, regardless of the control 
period for which they were allocated, whenever NOX allowances 
are recorded in either account.
    (3) Any allowance deduction required under paragraph (d) of this 
section shall not affect the liability of the owners and operators of 
the NOX Budget unit for any fine, penalty, or assessment, or 
their obligation to comply with any other remedy, for the same 
violation, as ordered under the Clean Air Act or applicable State law. 
The following guidelines will be followed in assessing fines, penalties 
or other obligations:
    (i) For purposes of determining the number of days of violation, if 
a NOX Budget unit has excess emissions for a control period, 
each day in the control period (153 days) constitutes a day in violation 
unless the owners and operators of the unit demonstrate that a lesser 
number of days should be considered.
    (ii) Each ton of excess emissions is a separate violation.
    (e) Deductions for units sharing a common stack. In the case of 
units sharing a common stack and having emissions that are not 
separately monitored or apportioned in accordance with subpart H of this 
part:
    (1) The NOX authorized account representative of the 
units may identify the percentage of NOX allowances to be 
deducted from each such unit's compliance account to cover the unit's 
share of NOX emissions from the common stack for a control 
period. Such identification shall be made in the compliance 
certification report submitted in accordance with Sec. 97.30.
    (2) Notwithstanding paragraph (b)(2)(i) of this section, the 
Administrator will deduct NOX allowances for each such unit 
until the number of NOX allowances deducted equals the unit's 
identified percentage under paragraph (e)(1) of this section or, if no 
percentage is identified, an equal percentage for each unit multiplied 
by the number of tons of NOX emissions, as determined in 
accordance with subpart H of this part, from the common stack for the 
control period for which compliance is being determined. In addition to 
the deductions under the first sentence of this paragraph (e)(1), the 
Administrator will deduct NOX allowances for each such unit 
until the number of NOX allowances deducted equals the number 
of NOX allowances required to account for actual heat input 
under Sec. 97.42(e) for the unit for the control period.
    (f) Deduction of banked allowances. Each year starting in 2006, 
after the

[[Page 203]]

Administrator has completed the designation of banked NOX 
allowances under Sec. 97.55(b) and before May 1 of the year, the 
Administrator will determine the extent to which banked NOX 
allowances otherwise available under paragraph (a) of this section are 
available for compliance in the control period for the current year, as 
follows. For each State NOX Budget Trading Program that is 
established, and approved and administered by the Administrator pursuant 
to Sec. 51.121 of this chapter, the terms ``compliance account'' or 
``compliance accounts'', ``overdraft account'' or ``overdraft 
accounts'', ``general account'' or ``general accounts'', ``States'', and 
``trading program budgets under Sec. 97.40'' in paragraphs (f)(1) 
through (f)(3) of this section shall be read to include respectively: A 
compliance account or compliance accounts established under such State 
NOX Budget Trading Program; an overdraft account or overdraft 
accounts established under such State NOX Budget Trading 
Program; a general account or general accounts established under such 
State NOX Budget Trading Program; the State or portion of a 
State covered by such State NOX Budget Trading Program; and 
the trading program budget of the State or portion of a State covered by 
such State NOX Budget Trading Program.
    (1) The Administrator will determine the total number of banked 
NOX allowances held in compliance accounts, overdraft 
accounts, or general accounts.
    (2) If the total number of banked NOX allowances 
determined, under paragraph (f)(1) of this section, to be held in 
compliance accounts, overdraft accounts, or general accounts is less 
than or equal to 10 percent of the sum of the trading program budgets 
under Sec. 97.40 for all States for the control period, any banked 
NOX allowance may be deducted for compliance in accordance 
with paragraphs (a) through (e) of this section.
    (3) If the total number of banked NOX allowances 
determined, under paragraph (f)(1) of this section, to be held in 
compliance accounts, overdraft accounts, or general accounts exceeds 10 
percent of the sum of the trading program budgets under Sec. 97.40 for 
all States for the control period, any banked allowance may be deducted 
for compliance in accordance with paragraphs (a) through (e) of this 
section, except as follows:
    (i) The Administrator will determine the following ratio: 0.10 
multiplied by the sum of the trading program budgets under Sec. 97.40 
for all States for the control period and divided by the total number of 
banked NOX allowances determined, under paragraph (f)(1) of 
this section, to be held in compliance accounts, overdraft accounts, or 
general accounts.
    (ii) The Administrator will multiply the number of banked 
NOX allowances in each compliance account or overdraft 
account by the ratio determined under paragraph (f)(3)(i) of this 
section. The resulting product is the number of banked NOX 
allowances in the account that may be deducted for compliance in 
accordance with paragraphs (a) through (e) of this section. Any banked 
NOX allowances in excess of the resulting product may be 
deducted for compliance in accordance with paragraphs (a) through (e) of 
this section, except that, if such NOX allowances are used to 
make a deduction under paragraph (b) or (e) of this section, two (rather 
than one) such NOX allowances shall authorize up to one ton 
of NOX emissions during the control period and must be 
deducted for each deduction of one NOX allowance required 
under paragraph (b) or (e) of this section.
    (g) Recordation of deductions. The Administrator will record in the 
appropriate compliance account or overdraft account all deductions from 
such an account pursuant to paragraph (b), (d), (e), or (f) of this 
section.

[65 FR 2727, Jan. 18, 2000, as amended at 67 FR 21530, Apr. 30, 2002; 69 
FR 21646, Apr. 21, 2004]



Sec. 97.55  Banking.

    NOX allowances may be banked for future use or transfer 
in a compliance account, an overdraft account, or a general account, as 
follows:
    (a) Any NOX allowance that is held in a compliance 
account, an overdraft account, or a general account will remain in such 
account unless and until the

[[Page 204]]

NOX allowance is deducted or transferred under Sec. 97.31, 
Sec. 97.54, Sec. 97.56, or subpart G or I of this part.
    (b) The Administrator will designate, as a ``banked'' NOX 
allowance, any NOX allowance that remains in a compliance 
account, an overdraft account, or a general account after the 
Administrator has made all deductions for a given control period from 
the compliance account or overdraft account pursuant to Sec. 97.54 
(except deductions pursuant to Sec. 97.54(d)(2)) and that was allocated 
for that control period or a control period in a prior year.



Sec. 97.56  Account error.

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



Sec. 97.57  Closing of general accounts.

    (a) The NOX authorized account representative of a 
general account may instruct the Administrator to close the account by 
submitting a statement requesting deletion of the account from the 
NOX Allowance Tracking System and by correctly submitting for 
recordation under Sec. 97.60 an allowance transfer of all 
NOX allowances in the account to one or more other 
NOX Allowance Tracking System accounts.
    (b) If a general account shows no activity for a period of a year or 
more and does not contain any NOX allowances, the 
Administrator may notify the NOX authorized account 
representative for the account that the account will be closed and 
deleted from the NOX Allowance Tracking System following 20 
business days after the notice is sent. The account will be closed after 
the 20-day period unless before the end of the 20-day period the 
Administrator receives a correctly submitted transfer of NOX 
allowances into the account under Sec. 97.60 or a statement submitted 
by the NOX authorized account representative demonstrating to 
the satisfaction of the Administrator good cause as to why the account 
should not be closed.



                    Subpart G_NOX Allowance Transfers



Sec. 97.60  Submission of NOX allowance transfers.

    The NOX authorized account representatives seeking 
recordation of a NOX allowance transfer shall submit the 
transfer to the Administrator. To be considered correctly submitted, the 
NOX allowance transfer shall include the following elements 
in a format specified by the Administrator:
    (a) The numbers identifying both the transferor and transferee 
accounts;
    (b) A specification by serial number of each NOX 
allowance to be transferred; and
    (c) The printed name and signature of the NOX authorized 
account representative of the transferor account and the date signed.



Sec. 97.61  EPA recordation.

    (a) Within 5 business days of receiving a NOX allowance 
transfer, except as provided in paragraph (b) of this section, the 
Administrator will record a NOX allowance transfer by moving 
each NOX allowance from the transferor account to the 
transferee account as specified by the request, provided that:
    (1) The transfer is correctly submitted under Sec. 97.60; and
    (2) The transferor account includes each NOX allowance 
identified by serial number in the transfer.
    (b) A NOX allowance transfer that is submitted for 
recordation following the NOX allowance transfer deadline and 
that includes any NOX allowances allocated for a control 
period prior to or the same as the control period to which the 
NOX allowance transfer deadline applies will not be recorded 
until after the Administrator completes the recordation of 
NOX allowance allocations under Sec. 97.53 for the control 
period in the fourth year after the control period to which the 
NOX allowance transfer deadline applies.
    (c) Where a NOX allowance transfer submitted for 
recordation fails to meet the requirements of paragraph (a) of this 
section, the Administrator will not record such transfer.

[65 FR 2727, Jan. 18, 2000, as amended at 69 FR 21647, Apr. 21, 2004]

[[Page 205]]



Sec. 97.62  Notification.

    (a) Notification of recordation. Within 5 business days of 
recordation of a NOX allowance transfer under Sec. 97.61, 
the Administrator will notify the NOX authorized account 
representatives of both the transferor and transferee accounts.
    (b) Notification of non-recordation. Within 10 business days of 
receipt of a NOX allowance transfer that fails to meet the 
requirements of Sec. 97.61(a), the Administrator will notify the 
NOX authorized account representatives of both accounts 
subject to the transfer of:
    (1) A decision not to record the transfer; and
    (2) The reasons for such non-recordation.
    (c) Nothing in this section shall preclude the submission of a 
NOX allowance transfer for recordation following notification 
of non-recordation.



                   Subpart H_Monitoring and Reporting



Sec. 97.70  General requirements.

    The owners and operators, and to the extent applicable, the 
NOX authorized account representative of a NOX 
Budget unit, shall comply with the monitoring, recordkeeping, and 
reporting requirements as provided in this subpart and in subpart H of 
part 75 of this chapter. For purposes of complying with such 
requirements, the definitions in Sec. 97.2 and in Sec. 72.2 of this 
chapter shall apply, and the terms ``affected unit,'' ``designated 
representative,'' and ``continuous emission monitoring system'' (or 
``CEMS'') in part 75 of this chapter shall be deemed to refer to the 
terms ``NOX Budget unit,'' ``NOX authorized 
account representative,'' and ``continuous emission monitoring system'' 
(or ``CEMS'') respectively, as defined in Sec. 97.2. The owner or 
operator of a unit that is not a NOX Budget unit but that is 
monitored under Sec. 75.72(b)(2)(ii) of this chapter shall comply with 
the monitoring, recordkeeping, and reporting requirements for a 
NOX Budget unit under this part.
    (a) Requirements for installation, certification, and data 
accounting. The owner or operator of each NOX Budget unit 
shall meet the following requirements. These provisions shall also apply 
to a unit for which an application for a NOX Budget opt-in 
permit is submitted and not denied or withdrawn, as provided in subpart 
I of this part:
    (1) Install all monitoring systems required under this subpart for 
monitoring NOX mass emissions. This includes all systems 
required to monitor NOX emission rate, NOX 
concentration, heat input rate, and stack flow rate, in accordance with 
Sec. Sec. 75.71 and 75.72 of this chapter.
    (2) Install all monitoring systems for monitoring heat input rate.
    (3) Successfully complete all certification tests required under 
Sec. 97.71 and meet all other requirements of this subpart and part 75 
of this chapter applicable to the monitoring systems under paragraphs 
(a)(1) and (2) of this section.
    (4) Record, report, and quality-assure the data from the monitoring 
systems under paragraphs (a)(1) and (2) of this section.
    (b) Compliance deadlines. The owner or operator shall meet the 
certification and other requirements of paragraphs (a)(1) through (a)(3) 
of this section on or before the following dates. The owner or operator 
shall record, report and quality-assure the data from the monitoring 
systems under paragraphs (a)(1) and (a)(2) of this section on and after 
the following dates.
    (1) For the owner or operator of a NOX Budget unit for 
which the owner or operator intends to apply for early reduction credits 
under Sec. 97.43, by May 1, 2001. If the owner or operator of a 
NOX Budget unit fails to meet this deadline, he or she is not 
eligible to apply for early reduction credits and is subject to the 
deadline under paragraph (b)(2) of this section.
    (2) For the owner or operator of a NOX Budget unit under 
Sec. 97.4(a) that commences operation before January 1, 2003 and that 
is not subject to or does not meet the deadline under paragraph (b)(1) 
of this section, by May 1, 2003.
    (3) For the owner or operator of a NOX Budget unit under 
Sec. 97.4(a) that

[[Page 206]]

commences operation on or after January 1, 2003 and that reports on an 
annual basis under Sec. 97.74(d) by the following dates:
    (i) The earlier of 90 unit operating days after the date on which 
the unit commences commercial operation or 180 calendar days after the 
date on which the unit commences commercial operation; or
    (ii) May 1, 2003, if the compliance date under paragraph (b)(3)(i) 
of this section is before May 1, 2003.
    (4) For the owner or operator of a NOX Budget unit under 
Sec. 97.4(a) that commences operation on or after January 1, 2003 and 
that reports on a control period basis under Sec. 97.74(d)(2)(ii), by 
the following dates:
    (i) The earlier of 90 unit operating days or 180 calendar days after 
the date on which the unit commences commercial operation, if this 
compliance date is during a control period; or
    (ii) May 1 immediately following the compliance date under paragraph 
(b)(4)(i) of this section, if such compliance date is not during a 
control period.
    (5) For the owner or operator of a NOX Budget unit that 
has a new stack or flue or add-on NOX emission controls for 
which construction is completed after the applicable deadline under 
paragraph (b)(1), (b)(2), (b)(3), or (b)(4) of this section or under 
subpart I of this part and that reports on an annual basis under Sec. 
97.74(d), by the earlier of 90 unit operating days or 180 calendar days 
after the date on which emissions first exit to the atmosphere through 
the new stack or flue or add-on NOX emission controls.
    (6) For the owner or operator of a NOX Budget unit that 
has a new stack or flue or add-on NOX emission controls for 
which construction is completed after the applicable deadline under 
paragraph (b)(1), (b)(2), (b)(3), or (b)(4) of this section or under 
subpart I of this part and that reports on a control period basis under 
Sec. 97.74(d)(2)(ii), by the following dates:
    (i) The earlier of 90 unit operating days or 180 calendar days after 
the date on which emissions first exit to the atmosphere through the new 
stack or flue or add-on NOX emission controls, if this 
compliance date is during a control period; or
    (ii) May 1 immediately following the compliance date under paragraph 
(b)(6)(i) of this section, if such compliance date is not during a 
control period.
    (7) For the owner or operator of a unit for which an application for 
a NOX Budget opt-in permit is submitted and not denied or 
withdrawn, by the date specified under subpart I of this part.
    (c) Commencement of data reporting. (1) The owner or operator of 
NOX Budget units under paragraph (b)(1) or (b)(2) of this 
section shall determine, record and report NOX mass 
emissions, heat input rate, and any other values required to determine 
NOX mass emissions (e.g., NOX emission rate and 
heat input rate, or NOX concentration and stack flow rate) in 
accordance with Sec. 75.70(g) of this chapter, beginning on the first 
hour of the applicable compliance deadline in paragraph (b)(1) or (b)(2) 
of this section.
    (2) The owner or operator of a NOX Budget unit under 
paragraph (b)(3) or (b)(4) of this section shall determine, record and 
report NOX mass emissions, heat input rate, and any other 
values required to determine NOX mass emissions (e.g., 
NOX emission rate and heat input rate, or NOX 
concentration and stack flow rate) and electric and thermal output in 
accordance with Sec. 75.70(g) of this chapter, beginning on:
    (i) The date and hour on which the unit commences operation, if the 
date and hour on which the unit commences operation is during a control 
period; or
    (ii) The first hour on May 1 of the first control period after the 
date and hour on which the unit commences operation, if the date and 
hour on which the unit commences operation is not during a control 
period.
    (3) Notwithstanding paragraphs (c)(2)(i) and (c)(2)(ii) of this 
section, the owner or operator may begin reporting NOX mass 
emission data and heat input data before the date and hour under 
paragraph (c)(2)(i) or (c)(2)(ii) of this section if the unit reports on 
an annual basis and if the required monitoring systems are certified 
before the applicable date and hour under paragraph (c)(1) or (c)(2) of 
this section.

[[Page 207]]

    (d) Prohibitions. (1) No owner or operator of a NOX 
Budget unit shall use any alternative monitoring system, alternative 
reference method, or any other alternative for the required continuous 
emission monitoring system without having obtained prior written 
approval in accordance with Sec. 97.75.
    (2) No owner or operator of a NOX Budget unit shall 
operate the unit so as to discharge, or allow to be discharged, 
NOX emissions to the atmosphere without accounting for all 
such emissions in accordance with the applicable provisions of this 
subpart and part 75 of this chapter, except as provided in Sec. 75.74 
of this chapter.
    (3) No owner or operator of a NOX Budget unit shall 
disrupt the continuous emission monitoring system, any portion thereof, 
or any other approved emission monitoring method, and thereby avoid 
monitoring and recording NOX mass emissions discharged into 
the atmosphere, except for periods of recertification or periods when 
calibration, quality assurance testing, or maintenance is performed in 
accordance with the applicable provisions of this subpart and part 75 of 
this chapter or except as provided in Sec. 75.74 of this chapter.
    (4) No owner or operator of a NOX Budget unit shall 
retire or permanently discontinue use of the continuous emission 
monitoring system, any component thereof, or any other approved emission 
monitoring system under this subpart, except under any one of the 
following circumstances:
    (i) During the period that the unit is covered by an exemption under 
Sec. 97.4(b) or Sec. 97.5 that is in effect;
    (ii) The owner or operator is monitoring emissions from the unit 
with another certified monitoring system approved, in accordance with 
the applicable provisions of this subpart and part 75 of this chapter, 
by the permitting authority for use at that unit that provides emission 
data for the same pollutant or parameter as the retired or discontinued 
monitoring system; or
    (iii) The NOX authorized account representative submits 
notification of the date of certification testing of a replacement 
monitoring system for the retired or discontinued monitoring system in 
accordance with Sec. 97.71(b)(2).

[65 FR 2727, Jan. 18, 2000, as amended at 67 FR 21530, Apr. 30, 2002; 69 
FR 21647, Apr. 21, 2004]



Sec. 97.71  Initial certification and recertification procedures.

    (a) The owner or operator of a NOX Budget unit that is 
subject to an Acid Rain emissions limitation shall comply with the 
initial certification and recertification procedures of part 75 of this 
chapter for NOX-diluent CEMS, flow monitors, NOX 
concentration CEMS, or excepted monitoring systems under appendix E of 
part 75 of this chapter for NOX. under appendix D for heat 
input, or under Sec. 75.19 for NOX and heat input, except 
that:
    (1) If, prior to January 1, 1998, the Administrator approved a 
petition under Sec. 75.17(a) or (b) of this chapter for apportioning 
the NOX emission rate measured in a common stack or a 
petition under Sec. 75.66 of this chapter for an alternative to a 
requirement in Sec. 75.17 of this chapter, the NOX 
authorized account representative shall resubmit the petition to the 
Administrator under Sec. 97.75(a) to determine if the approval applies 
under the NOX Budget Trading Program.
    (2) For any additional CEMS required under the common stack 
provisions in Sec. 75.72 of this chapter or for any NOX 
concentration CEMS used under the provisions of Sec. 75.71(a)(2) of 
this chapter, the owner or operator shall meet the requirements of 
paragraph (b) of this section.
    (b) The owner or operator of a NOX Budget unit that is 
not subject to an Acid Rain emissions limitation shall comply with the 
following initial certification and recertification procedures. The 
owner or operator of such a unit that qualifies to use the low mass 
emissions excepted monitoring methodology under Sec. 75.19 of this 
chapter or that qualifies to use an alternative monitoring system under 
subpart E of part 75 of this chapter shall comply with the following 
procedures, as modified by paragraph (c) or (d) of this section. The 
owner or operator of a NOX Budget unit that is subject to an 
Acid

[[Page 208]]

Rain emissions limitation and that requires additional CEMS under the 
common stack provisions in Sec. 75.72 of this chapter or uses a 
NOX concentration CEMS under Sec. 75.71(a)(2) of this 
chapter shall comply with the following procedures.
    (1) Requirements for initial certification. The owner or operator 
shall ensure that each emission monitoring system required by subpart H 
of part 75 of this chapter (which includes the automated data 
acquisition and handling system) successfully completes all of the 
initial certification testing required under Sec. 75.20 of this chapter 
by the applicable deadline in Sec. 97.70(b). In addition, whenever the 
owner or operator installs an emission monitoring system in order to 
meet the requirements of this part in a location where no such emission 
monitoring system was previously installed, initial certification in 
accordance with Sec. 75.20 of this chapter is required.
    (2) Requirements for recertification. Whenever the owner or operator 
makes a replacement, modification, or change in a certified emission 
monitoring system that may significantly affect the ability of the 
system to accurately measure or record NOX mass emissions or 
heat input rate or to meet the requirements of Sec. 75.21 of this 
chapter or appendix B to part 75 of this chapter, the owner or operator 
shall recertify the emission monitoring system in accordance with Sec. 
75.20(b) of this chapter. Furthermore, whenever the owner or operator 
makes a replacement, modification, or change to the flue gas handling 
system or the unit's operation that may significantly change the stack 
flow or concentration profile, the owner or operator shall recertify the 
continuous emissions monitoring system in accordance with Sec. 75.20(b) 
of this chapter. Examples of changes that require recertification 
include: replacement of the analyzer, complete replacement of an 
existing continuous emission monitoring system, or change in location or 
orientation of the sampling probe or site.
    (3) Certification approval process for initial certification and 
recertification--(i) Notification of certification. The NOX 
authorized account representative shall submit to the Administrator, the 
appropriate EPA Regional Office and the permitting authority written 
notice of the dates of certification in accordance with Sec. 97.73.
    (ii) Certification application. The NOX authorized 
account representative shall submit to the Administrator, the 
appropriate EPA Regional Office and the permitting authority a 
certification application for each emission monitoring system required 
under subpart H of part 75 of this chapter. A complete certification 
application shall include the information specified in subpart H of part 
75 of this chapter.
    (iii) Except for units using the low mass emission excepted 
methodology under Sec. 75.19 of this chapter, the provisional 
certification date for a monitor shall be determined in accordance with 
Sec. 75.20(a)(3) of this chapter. A provisionally certified monitor may 
be used under the NOX Budget Trading Program for a period not 
to exceed 120 days after receipt by the Administrator of the complete 
certification application for the monitoring system under paragraph 
(b)(3)(ii) of this section. Data measured and recorded by the 
provisionally certified monitoring system, in accordance with the 
requirements of part 75 of this chapter, will be considered valid 
quality-assured data (retroactive to the date and time of provisional 
certification), provided that the Administrator does not invalidate the 
provisional certification by issuing a notice of disapproval within 120 
days of receipt of the complete certification application by the 
Administrator.
    (iv) Certification application formal approval process. The 
Administrator will issue a written notice of approval or disapproval of 
the certification application to the owner or operator within 120 days 
of receipt of the complete certification application under paragraph 
(b)(3)(ii) of this section. In the event the Administrator does not 
issue such a notice within such 120-day period, each monitoring system 
that meets the applicable performance requirements of part 75 of this 
chapter and is included in the certification application will be deemed 
certified for use under the NOX Budget Trading Program.
    (A) Approval notice. If the certification application is complete 
and shows that each monitoring system

[[Page 209]]

meets the applicable performance requirements of part 75 of this 
chapter, then the Administrator will issue a written notice of approval 
of the certification application within 120 days of receipt.
    (B) Incomplete application notice. A certification application will 
be considered complete when all of the applicable information required 
to be submitted under paragraph (b)(3)(ii) of this section has been 
received by the Administrator. If the certification application is not 
complete, then the Administrator will issue a written notice of 
incompleteness that sets a reasonable date by which the NOX 
authorized account representative must submit the additional information 
required to complete the certification application. If the 
NOX authorized account representative does not comply with 
the notice of incompleteness by the specified date, then the 
Administrator may issue a notice of disapproval under paragraph 
(b)(3)(iv)(C) of this section. The 120-day review period shall not begin 
prior to receipt of a complete certification application.
    (C) Disapproval notice. If the certification application shows that 
any monitoring system or component thereof does not meet the performance 
requirements of this part, or if the certification application is 
incomplete and the requirement for disapproval under paragraph 
(b)(3)(iv)(B) of this section has been met, then the Administrator will 
issue a written notice of disapproval of the certification application. 
Upon issuance of such notice of disapproval, the provisional 
certification is invalidated by the Administrator and the data measured 
and recorded by each uncertified monitoring system shall not be 
considered valid quality-assured data beginning with the date and hour 
of provisional certification (as defined under Sec. 75.20(a)(3) of this 
chapter). The owner or operator shall follow the procedures for loss of 
certification in paragraph (b)(3)(v) of this section for each monitoring 
system that is disapproved for initial certification.
    (D) Audit decertification. The Administrator may issue a notice of 
disapproval of the certification status of a monitor in accordance with 
Sec. 97.72(b).
    (v) Procedures for loss of certification. If the Administrator 
issues a notice of disapproval of a certification application under 
paragraph (b)(3)(iv)(C) of this section or a notice of disapproval of 
certification status under paragraph (b)(3)(iv)(D) of this section, 
then:
    (A) The owner or operator shall substitute the following values, for 
each hour of unit operation during the period of invalid data specified 
under Sec. 75.20(a)(4)(iii), Sec. 75.20(b)(5), Sec. 75.20(h)(4), or 
Sec. 75.21(e) and continuing until the date and hour specified under 
Sec. 75.20(a)(5)(i) of this chapter:
    (1) For units that the owner or operator intends to monitor or 
monitors for NOX emission rate and heat input rate or intends 
to determine or determines NOX mass emissions using the low 
mass emission excepted methodology under Sec. 75.19 of this chapter, 
the maximum potential NOX emission rate and the maximum 
potential hourly heat input of the unit; and
    (2) For units that the owner or operator intends to monitor or 
monitors for NOX mass emissions using a NOX 
pollutant concentration monitor and a flow monitor, the maximum 
potential concentration of NOX and the maximum potential flow 
rate of the unit under section 2 of appendix A of part 75 of this 
chapter.
    (B) The NOX authorized account representative shall 
submit a notification of certification retest dates and a new 
certification application in accordance with paragraphs (b)(3)(i) and 
(ii) of this section.
    (C) The owner or operator shall repeat all certification tests or 
other requirements that were failed by the monitoring system, as 
indicated in the Administrator's notice of disapproval, no later than 30 
unit operating days after the date of issuance of the notice of 
disapproval.
    (c) Initial certification and recertification procedures for low 
mass emission units using the excepted methodologies under Sec. 75.19 
of this chapter. The owner or operator of a gas-fired or oil-fired unit 
using the low mass emissions excepted methodology under Sec. 75.19 of 
this chapter and not subject to an Acid Rain emissions limitation shall 
meet the applicable general operating requirements of Sec. 75.10 of 
this chapter and

[[Page 210]]

the applicable requirements of Sec. 75.19 of this chapter. The owner or 
operator of such a unit shall also meet the applicable certification and 
recertification procedures of paragraph (b) of this section, except that 
the excepted methodology shall be deemed provisionally certified for use 
under the NOX Budget Trading Program as of the date on which 
a complete certification application is received by the Administrator. 
The methodology shall be considered to be certified either upon receipt 
of a written notice of approval from the Administrator or, if such 
notice is not provided, at the end of the Administrator's 120 day review 
period. However, a provisionally certified or certified low mass 
emissions excepted methodology shall not be used to report data under 
the NOX Budget Trading Program prior to the applicable 
commencement date specified in Sec. 75.19(a)(1)(ii) of this chapter.
    (d) Certification/recertification procedures for alternative 
monitoring systems. The NOX authorized account representative 
of each unit not subject to an Acid Rain emissions limitation for which 
the owner or operator intends to use an alternative monitoring system 
approved by the Administrator under subpart E of part 75 of this chapter 
shall comply with the applicable certification procedures of paragraph 
(b) of this section before using the system under the NOX 
Budget Trading Program. The NOX authorized account 
representative shall also comply with the applicable recertification 
procedures of paragraph (b) of this section. Section 75.20(f) of this 
chapter shall apply to such alternative monitoring system.

[65 FR 2727, Jan. 18, 2000, as amended at 69 FR 21647, Apr. 21, 2004]



Sec. 97.72  Out of control periods.

    (a) Whenever any emission monitoring system fails to meet the 
quality assurance or data validation requirements of part 75 of this 
chapter, data shall be substituted using the applicable procedures in 
subpart D, subpart H, appendix D, or appendix E of part 75 of this 
chapter.
    (b) Audit decertification. Whenever both an audit of an emission 
monitoring system and a review of the initial certification or 
recertification application reveal that any system should not have been 
certified or recertified because it did not meet a particular 
performance specification or other requirement under Sec. 97.71 or the 
applicable provisions of part 75 of this chapter, both at the time of 
the initial certification or recertification application submission and 
at the time of the audit, the Administrator will issue a notice of 
disapproval of the certification status of such system. For the purposes 
of this paragraph, an audit shall be either a field audit or an audit of 
any information submitted to the permitting authority or the 
Administrator. By issuing the notice of disapproval, the Administrator 
revokes prospectively the certification status of the system. The data 
measured and recorded by the system shall not be considered valid 
quality-assured data from the date of issuance of the notification of 
the revoked certification status until the date and time that the owner 
or operator completes subsequently approved initial certification or 
recertification tests for the system. The owner or operator shall follow 
the initial certification or recertification procedures in Sec. 97.71 
for each disapproved system.

[65 FR 2727, Jan. 18, 2000, as amended at 69 FR 21648, Apr. 21, 2004]



Sec. 97.73  Notifications.

    (a) The NOX authorized account representative for a 
NOX Budget unit shall submit written notice to the 
Administrator, the appropriate EPA Regional Office, and the permitting 
authority in accordance with Sec. 75.61 of this chapter.
    (b) For any unit that does not have an Acid Rain emissions 
limitation, the permitting authority may waive the requirement to notify 
the permitting authority in paragraph (a) of this section.



Sec. 97.74  Recordkeeping and reporting.

    (a) General provisions. (1) The NOX authorized account 
representative shall comply with all recordkeeping and reporting 
requirements in this section, with the recordkeeping and reporting 
requirements under Sec. 75.73 of this chapter, and with the 
requirements of Sec. 97.10(e)(1).

[[Page 211]]

    (2) If the NOX authorized account representative for a 
NOX Budget unit subject to an Acid Rain emission limitation 
who signed and certified any submission that is made under subpart F or 
G of part 75 of this chapter and that includes data and information 
required under this subpart or subpart H of part 75 of this chapter is 
not the same person as the designated representative or the alternative 
designated representative for the unit under part 72 of this chapter, 
then the submission must also be signed by the designated representative 
or the alternative designated representative.
    (b) Monitoring plans. (1) The owner or operator of a unit subject to 
an Acid Rain emissions limitation shall comply with requirements of 
Sec. 75.62 of this chapter, except that the monitoring plan shall also 
include all of the information required by subpart H of part 75 of this 
chapter.
    (2) The owner or operator of a unit that is not subject to an Acid 
Rain emissions limitation shall comply with requirements of Sec. 75.62 
of this chapter, except that the monitoring plan is only required to 
include the information required by subpart H of part 75 of this 
chapter.
    (c) Certification applications. The NOX authorized 
account representative shall submit an application to the Administrator, 
the appropriate EPA Regional Office, and the permitting authority within 
45 days after completing all initial certification or recertification 
tests required under Sec. 97.71 including the information required 
under subpart H of part 75 of this chapter.
    (d) Quarterly reports. The NOX authorized account 
representative shall submit quarterly reports, as follows:
    (1) If a unit is subject to an Acid Rain emission limitation or if 
the owner or operator of the NOX budget unit chooses to meet 
the annual reporting requirements of this subpart H, the NOX 
authorized account representative shall submit a quarterly report for 
each calendar quarter beginning with:
    (i) For a unit for which the owner or operator intends to apply or 
applies for the early reduction credits under Sec. 97.43, the calendar 
quarter that covers May 1, 2000 through June 30, 2000. The 
NOX mass emission data shall be recorded and reported from 
the first hour on May 1, 2000; or
    (ii) For a unit that commences operation before January 1, 2003 and 
that is not subject to paragraph (d)(1)(i) of this section, the calendar 
quarter covering May 1, 2003 through June 30, 2003. The NOX 
mass emission data shall be recorded and reported from the first hour on 
May 1, 2003; or
    (iii) For a unit that commences operation on or after January 1, 
2003:
    (A) The calendar quarter in which the unit commences operation, if 
unit operation commences during a control period. The NOX 
mass emission data shall be recorded and reported from the date and hour 
when the unit commences operation; or
    (B) The calendar quarter which includes May 1 through June 30 of the 
first control period following the date on which the unit commences 
operation, if the unit does not commence operation during a control 
period. The NOX mass emission data shall be recorded and 
reported from the first hour on May 1 of that control period; or
    (iv) A calendar quarter before the quarter specified in paragraph 
(d)(1)(i), (d)(1)(ii), or (d)(1)(iii)(B) of this section, if the owner 
or operator elects to begin reporting early under Sec. 97.70(c)(3).
    (2) If a NOX budget unit is not subject to an Acid Rain 
emission limitation, then the NOX authorized account 
representative shall either:
    (i) Meet all of the requirements of part 75 related to monitoring 
and reporting NOX mass emissions during the entire year and 
meet the deadlines specified in paragraph (d)(1) of this section; or
    (ii) Submit quarterly reports, documenting NOX mass 
emissions from the unit, only for the period from May 1 through 
September 30 of each year and including the data described in Sec. 
75.74(c)(6) of this chapter. The NOX authorized account 
representative shall submit such quarterly reports, beginning with:
    (A) For a unit for which the owner or operator intends to apply or 
applies for the early reduction credits under Sec. 97.43, the calendar 
quarter that covers May 1, 2000 through June 30, 2000. The

[[Page 212]]

NOX mass emission data shall be recorded and reported from 
the first hour on May 1, 2000; or
    (B) For a unit that commences operation before January 1, 2003 and 
that is not subject to paragraph (d)(2)(ii)(A) of this section, the 
calendar quarter covering May 1, 2003 through June 30, 2003. The 
NOX mass emission data shall be recorded and reported from 
the first hour on May 1, 2003; or
    (C) For a unit that commences operation on or after January 1, 2003 
and during a control period, the calendar quarter in which the unit 
commences operation. The NOX mass emission data shall be 
recorded and reported from the date and hour when the unit commences 
operation; or
    (D) For a unit that commences operation on or after January 1, 2003 
and not during a control period, the calendar quarter which includes May 
1 through June 30 of the first control period following the date on 
which the unit commences operation. The NOX mass emission 
data shall be recorded and reported from the first hour on May 1 of that 
control period.
    (3) The NOX authorized account representative shall 
submit each quarterly report to the Administrator within 30 days 
following the end of the calendar quarter covered by the report. 
Quarterly reports shall be submitted in the manner specified in subpart 
H of part 75 of this chapter and Sec. 75.64 of this chapter.
    (i) For units subject to an Acid Rain emissions limitation, 
quarterly reports shall include all of the data and information required 
in subpart H of part 75 of this chapter for each NOX Budget 
unit (or group of units using a common stack) and the data and 
information required in subpart G of part 75 of this chapter.
    (ii) For units not subject to an Acid Rain emissions limitation, 
quarterly reports are only required to include all of the data and 
information required in subpart H of part 75 of this chapter for each 
NOX Budget unit (or group of units using a common stack).
    (4) Compliance certification. The NOX authorized account 
representative shall submit to the Administrator a compliance 
certification in support of each quarterly report based on reasonable 
inquiry of those persons with primary responsibility for ensuring that 
all of the unit's emissions are correctly and fully monitored. The 
certification shall state that:
    (i) The monitoring data submitted were recorded in accordance with 
the applicable requirements of this subpart and part 75 of this chapter, 
including the quality assurance procedures and specifications;
    (ii) For a unit with add-on NOX emission controls and for 
all hours where data are substituted in accordance with Sec. 
75.34(a)(1) of this chapter, the add-on emission controls were operating 
within the range of parameters listed in the quality assurance/quality 
control program under appendix B of part 75 of this chapter and the 
substitute values do not systematically underestimate NOX 
emissions; and
    (iii) For a unit that is reporting on a control period basis under 
paragraph (d)(2)(ii) of this section, the NOX emission rate 
and NOX concentration values substituted for missing data 
under subpart D of part 75 of this chapter are calculated using only 
values from a control period and do not systematically underestimate 
NOX emissions.

[65 FR 2727, Jan. 18, 2000, as amended at 67 FR 21530, Apr. 30, 2002; 69 
FR 21648, Apr. 21, 2004]



Sec. 97.75  Petitions.

    (a) The NOX authorized account representative of a 
NOX Budget unit may submit a petition under Sec. 75.66 of 
this chapter to the Administrator requesting approval to apply an 
alternative to any requirement of this subpart.
    (b) Application of an alternative to any requirement of this subpart 
is in accordance with this subpart only to the extent that the petition 
is approved by the Administrator under Sec. 75.66 of this chapter.



Sec. 97.76  Additional requirements to provide heat input data.

    The owner or operator of a NOX Budget unit that monitors 
and reports NOX mass emissions using a NOX 
concentration system and a flow system shall also monitor and report 
heat input rate at the unit level using the procedures set forth in part 
75 of this chapter.

[[Page 213]]



                   Subpart I_Individual Unit Opt-ins.



Sec. 97.80  Applicability.

    A unit that is in a State (as defined in Sec. 97.2), is not a 
NOX Budget unit under Sec. 97.4(a), is not a unit exempt 
under Sec. 97.4(b), vents all of its emissions to a stack, and is 
operating, may qualify to be a NOX Budget opt-in unit under 
this subpart. A unit that is a NOX Budget unit under Sec. 
97.4(a), is covered by an exemption under Sec. 97.4(b) or Sec. 97.5 
that is in effect, or is not operating is not eligible to be a 
NOX Budget opt-in unit.



Sec. 97.81  General.

    Except otherwise as provided in this part, a NOX Budget 
opt-in unit shall be treated as a NOX Budget unit for 
purposes of applying subparts A through H of this part.



Sec. 97.82  NOX authorized account representative.

    A unit for which an application for a NOX Budget opt-in 
permit is submitted, or a NOX Budget opt-in unit, located at 
the same source as one or more NOX Budget units, shall have 
the same NOX authorized account representative as such 
NOX Budget units.



Sec. 97.83  Applying for NOX Budget opt-in permit.

    (a) Applying for initial NOX Budget opt-in permit. In 
order to apply for an initial NOX Budget opt-in permit, the 
NOX authorized account representative of a unit qualified 
under Sec. 97.80 may submit to the Administrator and the permitting 
authority at any time, except as provided under Sec. 97.86(g):
    (1) A complete NOX Budget permit application under Sec. 
97.22;
    (2) A monitoring plan submitted in accordance with subpart H of this 
part; and
    (3) A complete account certificate of representation under Sec. 
97.13, if no NOX authorized account representative has been 
previously designated for the unit.
    (b) Duty to reapply. Unless the NOX Budget opt-in permit 
is terminated or revised under Sec. 97.86(e) or Sec. 97.87(b)(1)(i), 
the NOX authorized account representative of a NOX 
Budget opt-in unit shall submit to the Administrator and permitting 
authority a complete NOX Budget permit application under 
Sec. 97.22 to renew the NOX Budget opt-in permit in 
accordance with Sec. 97.21(c) and, if applicable, an updated monitoring 
plan in accordance with subpart H of this part.



Sec. 97.84  Opt-in process.

    The permitting authority will issue or deny an initial 
NOX Budget opt-in permit for a unit for which an application 
for a NOX Budget opt-in permit under Sec. 97.83 is 
submitted, in accordance with Sec. 97.20 and the following:
    (a) Interim review of monitoring plan. The Administrator will 
determine, on an interim basis, the sufficiency of the monitoring plan 
accompanying the initial application for a NOX Budget opt-in 
permit under Sec. 97.83. A monitoring plan is sufficient, for purposes 
of interim review, if the plan appears to contain information 
demonstrating that the NOX emissions rate and heat input rate 
of the unit are monitored and reported in accordance with subpart H of 
this part. A determination of sufficiency shall not be construed as 
acceptance or approval of the unit's monitoring plan.
    (b) If the Administrator determines that the unit's monitoring plan 
is sufficient under paragraph (a) of this section and after completion 
of monitoring system certification under subpart H of this part, the 
NOX emissions rate and the heat input of the unit shall be 
monitored and reported in accordance with subpart H of this part for one 
full control period during which percent monitor data availability is 
not less than 90 percent and during which the unit is in full compliance 
with any applicable State or Federal emissions or emissions-related 
requirements. Solely for purposes of applying the requirements in the 
prior sentence, the unit shall be treated as a ``NOX Budget 
unit'' prior to issuance of a NOX Budget opt-in permit 
covering the unit.
    (c) Based on the information monitored and reported under paragraph 
(b) of this section, the Administrator will calculate the unit's 
baseline heat input, which will equal the unit's total heat input (in 
mmBtu) for the control period, and the unit's baseline NOX 
emissions rate, which will equal the unit's total NOX mass 
emissions (in lb)

[[Page 214]]

for the control period divided by the unit's baseline heat input.
    (d) Issuance of draft NOX Budget opt-in permit for public 
comment. The permitting authority will issue a draft NOX 
Budget opt-in permit for public comment in accordance with Sec. 97.20.
    (e) Not withstanding paragraphs (a) through (d) of this section, if 
at any time before issuance of a draft NOX Budget opt-in 
permit for public comment for the unit, the Administrator or the 
permitting authority determines that the unit does not qualify as a 
NOX Budget opt-in unit under Sec. 97.80, the permitting 
authority will issue a draft denial of a NOX Budget opt-in 
permit for public comment for the unit in accordance with Sec. 97.20.
    (f) Withdrawal of application for NOX Budget opt-in 
permit. A NOX authorized account representative of a unit may 
withdraw its application for an initial NOX Budget opt-in 
permit under Sec. 97.83 at any time prior to the issuance of the 
initial NOX Budget opt-in permit. Once the application for a 
NOX Budget opt-in permit is withdrawn, a NOX 
authorized account representative wanting to reapply must submit a new 
application for an initial NOX Budget permit under Sec. 
97.83.
    (g) The unit shall be a NOX Budget opt-in unit and a 
NOX Budget unit starting May 1 of the first control period 
starting after the issuance of the initial NOX Budget opt-in 
permit by the permitting authority.



Sec. 97.85  NOX Budget opt-in permit contents.

    (a) Each NOX Budget opt-in permit will contain all 
elements required for a complete NOX Budget opt-in permit 
application under Sec. 97.22.
    (b) Each NOX Budget opt-in permit is deemed to 
incorporate automatically the definitions of terms under Sec. 97.2 and, 
upon recordation by the Administrator under subpart F or G of this part, 
every allocation, transfer, or deduction of NOX allowances to 
or from the compliance accounts of each NOX Budget opt-in 
unit covered by the NOX Budget opt-in permit or the overdraft 
account of the NOX Budget source where the NOX 
Budget opt-in unit is located.



Sec. 97.86  Withdrawal from NOX Budget Trading Program.

    (a) Requesting withdrawal. To withdraw from the NOX 
Budget Trading Program, the NOX authorized account 
representative of a NOX Budget opt-in unit shall submit to 
the Administrator and the permitting authority a request to withdraw 
effective as of a specified date prior to May 1 or after September 30. 
The submission shall be made no later than 90 days prior to the 
requested effective date of withdrawal.
    (b) Conditions for withdrawal. Before a NOX Budget opt-in 
unit covered by a request under paragraph (a) of this section may 
withdraw from the NOX Budget Trading Program and the 
NOX Budget opt-in permit may be terminated under paragraph 
(e) of this section, the following conditions must be met:
    (1) For the control period immediately before the withdrawal is to 
be effective, the NOX authorized account representative must 
submit or must have submitted to the Administrator and the permitting 
authority an annual compliance certification report in accordance with 
Sec. 97.30.
    (2) If the NOX Budget opt-in unit has excess emissions 
for the control period immediately before the withdrawal is to be 
effective, the Administrator will deduct or has deducted from the 
NOX Budget opt-in unit's compliance account, or the overdraft 
account of the NOX Budget source where the NOX 
Budget opt-in unit is located, the full amount required under Sec. 
97.54(d) for the control period.
    (3) After the requirements for withdrawal under paragraphs (b)(1) 
and (2) of this section are met, the Administrator will deduct from the 
NOX Budget opt-in unit's compliance account, or the overdraft 
account of the NOX Budget source where the NOX 
Budget opt-in unit is located, NOX allowances equal in number 
to and allocated for the same or a prior control period as any 
NOX allowances allocated to that source under Sec. 97.88 for 
any control period for which the withdrawal is to be effective. The 
Administrator will close the NOX Budget opt-in unit's 
compliance account and transfer any remaining allowances to a general 
account specified by the owners and operators of the NOX 
Budget opt-in unit.

[[Page 215]]

    (c) A NOX Budget opt-in unit that withdraws from the 
NOX Budget Trading Program shall comply with all requirements 
under the NOX Budget Trading Program concerning all years for 
which such NOX Budget opt-in unit was a NOX Budget 
opt-in unit, even if such requirements arise or must be complied with 
after the withdrawal takes effect.
    (d) Notification. (1) After the requirements for withdrawal under 
paragraphs (a) and (b) of this section are met (including deduction of 
the full amount of NOX allowances required), the 
Administrator will issue a notification to the permitting authority and 
the NOX authorized account representative of the 
NOX Budget opt-in unit of the acceptance of the withdrawal of 
the NOX Budget opt-in unit as of a specified effective date 
that is after such requirements have been met and that is prior to May 1 
or after September 30.
    (2) If the requirements for withdrawal under paragraphs (a) and (b) 
of this section are not met, the Administrator will issue a notification 
to the permitting authority and the NOX authorized account 
representative of the NOX Budget opt-in unit that the request 
to withdraw is denied. If the NOX Budget opt-in unit's 
request to withdraw is denied, the NOX Budget opt-in unit 
shall remain subject to the requirements for a NOX Budget 
opt-in unit.
    (e) Permit revision. After the Administrator issues a notification 
under paragraph (d)(1) of this section that the requirements for 
withdrawal have been met, the permitting authority will revise the 
NOX Budget permit covering the NOX Budget opt-in 
unit to terminate the NOX Budget opt-in permit as of the 
effective date specified under paragraph (d)(1) of this section. A 
NOX Budget opt-in unit shall continue to be a NOX 
Budget opt-in unit until the effective date of the termination.
    (f) Reapplication upon failure to meet conditions of withdrawal. If 
the Administrator denies the request to withdraw the NOX 
Budget opt-in unit, the NOX authorized account representative 
may submit another request to withdraw in accordance with paragraphs (a) 
and (b) of this section.
    (g) Ability to return to the NOX Budget Trading Program. Once a 
NOX Budget opt-in unit withdraws from the NOX 
Budget Trading Program and its NOX Budget opt-in permit is 
terminated under paragraph (e) of this section, the NOX 
authorized account representative may not submit another application for 
a NOX Budget opt-in permit under Sec. 97.83 for the unit 
prior to the date that is 4 years after the date on which the terminated 
NOX Budget opt-in permit became effective.



Sec. 97.87  Change in regulatory status.

    (a) Notification. When a NOX Budget opt-in unit becomes a 
NOX Budget unit under Sec. 97.4(a), the NOX 
authorized account representative shall notify in writing the permitting 
authority and the Administrator of such change in the NOX 
Budget opt-in unit's regulatory status, within 30 days of such change.
    (b) Permitting authority's and Administrator's action. (1)(i) When 
the NOX Budget opt-in unit becomes a NOX Budget 
unit under Sec. 97.4(a), the permitting authority will revise the 
NOX Budget opt-in unit's NOX Budget opt-in permit 
to meet the requirements of a NOX Budget permit under Sec. 
97.23 as of an effective date that is the date on which such 
NOX Budget opt-in unit becomes a NOX Budget unit 
under Sec. 97.4(a).
    (ii)(A) The Administrator will deduct from the compliance account 
for the NOX Budget unit under paragraph (b)(1)(i) of this 
section, or the overdraft account of the NOX Budget source 
where the unit is located, NOX allowances equal in number to 
and allocated for the same or a prior control period as:
    (1) Any NOX allowances allocated to the NOX 
Budget unit (as a NOX Budget opt-in unit) under Sec. 97.88 
for any control period after the last control period during which the 
unit's NOX Budget opt-in permit was effective; and
    (2) If the effective date of the NOX Budget permit 
revision under paragraph (b)(1)(i) of this section is during a control 
period, the NOX allowances allocated to the NOX 
Budget unit (as a NOX Budget opt-in unit) under Sec. 97.88 
for the control period multiplied by the number of days in the control 
period

[[Page 216]]

starting with the effective date of the permit revision under paragraph 
(b)(1)(i) of this section, divided by the total number of days in the 
control period, and rounded to the nearest whole number of 
NOX allowances as appropriate.
    (B) The NOX authorized account representative shall 
ensure that the compliance account of the NOX Budget unit 
under paragraph (b)(1)(i) of this section, or the overdraft account of 
the NOX Budget source where the unit is located, contains the 
NOX allowances necessary for completion of the deduction 
under paragraph (b)(1)(ii)(A) of this section. If the compliance account 
or overdraft account does not contain the necessary NOX 
allowances, the Administrator will deduct the required number of 
NOX allowances, regardless of the control period for which 
they were allocated, whenever NOX allowances are recorded in 
either account.
    (iii)(A) For every control period during which the NOX 
Budget permit revised under paragraph (b)(1)(i) of this section is in 
effect, the NOX Budget unit under paragraph (b)(1)(i) of this 
section will be treated, solely for purposes of NOX allowance 
allocations under Sec. 97.42, as a unit that commenced operation on the 
effective date of the NOX Budget permit revision under 
paragraph (b)(1)(i) of this section and will be allocated NOX 
allowances under Sec. 97.42. The unit's deadline under Sec. 97.84(b) 
for meeting monitoring requirements in accordance with subpart H of this 
part shall not be changed by the change in the unit's regulatory status 
or by the revision of the NOX Budget permit under paragraph 
(b)(1)(i) of this section.
    (B) Notwithstanding paragraph (b)(1)(iii)(A) of this section, if the 
effective date of the NOX Budget permit revision under 
paragraph (b)(1)(i) of this section is during a control period, the 
following number of NOX allowances will be allocated to the 
NOX Budget unit under paragraph (b)(1)(i) of this section 
under Sec. 97.42 for the control period: the number of NOX 
allowances otherwise allocated to the NOX Budget unit under 
Sec. 97.42 for the control period multiplied by the number of days in 
the control period starting with the effective date of the permit 
revision under paragraph (b)(1)(i) of this section, divided by the total 
number of days in the control period, and rounded to the nearest whole 
number of NOX allowances as appropriate.
    (2)(i) When the NOX authorized account representative of 
a NOX Budget opt-in unit does not renew its NOX 
Budget opt-in permit under Sec. 97.83(b), the Administrator will deduct 
from the NOX Budget opt-in unit's compliance account, or the 
overdraft account of the NOX Budget source where the 
NOX Budget opt-in unit is located, NOX allowances 
equal in number to and allocated for the same or a prior control period 
as any NOX allowances allocated to the NOX Budget 
opt-in unit under Sec. 97.88 for any control period after the last 
control period for which the NOX Budget opt-in permit is 
effective. The NOX authorized account representative shall 
ensure that the NOX Budget opt-in unit's compliance account 
or the overdraft account of the NOX Budget source where the 
NOX Budget opt-in unit is located contains the NOX 
allowances necessary for completion of such deduction. If the compliance 
account or overdraft account does not contain the necessary 
NOX allowances, the Administrator will deduct the required 
number of NOX allowances, regardless of the control period 
for which they were allocated, whenever NOX allowances are 
recorded in either account.
    (ii) After the deduction under paragraph (b)(2)(i) of this section 
is completed, the Administrator will close the NOX Budget 
opt-in unit's compliance account. If any NOX allowances 
remain in the compliance account after completion of such deduction and 
any deduction under Sec. 97.54, the Administrator will close the 
NOX Budget opt-in unit's compliance account and transfer any 
remaining allowances to a general account specified by the owners and 
operators of the NOX Budget opt-in unit.

[65 FR 2727, Jan. 18, 2000, as amended at 69 FR 21648, Apr. 21, 2004]



Sec. 97.88  NOX allowance allocations to opt-in units.

    (a) NOX allotment allocation. (1) By April 1 immediately before the 
first control period for which the NOX Budget opt-in permit 
is effective, the Administrator will determine by order

[[Page 217]]

the NOX allowance allocations for the NOX Budget 
opt-in unit for the control period in accordance with paragraph (b) of 
this section.
    (2) By no later than April 1, after the first control period for 
which the NOX Budget opt-in permit is in effect, and April 1 
of each year thereafter, the Administrator will determine by order the 
NOX allowance allocations for the NOX Budget opt-
in unit for the next control period, in accordance with paragraph (b) of 
this section.
    (3) The Administrator will make available to the public each 
determination of NOX allowance allocations under paragraph 
(a)(1) or (2) of this section and will provide an opportunity for 
submission of objections to the determination. Objections shall be 
limited to addressing whether the determination is in accordance with 
paragraph (b) of this section. Based on any such objections, the 
Administrator will adjust each determination to the extent necessary to 
ensure that it is in accordance with paragraph (b) of this section.
    (b) For each control period for which the NOX Budget opt-
in unit has an approved NOX Budget opt-in permit, the 
NOX Budget opt-in unit will be allocated NOX 
allowances in accordance with the following procedures:
    (1) The heat input (in mmBtu) used for calculating NOX 
allowance allocations will be the lesser of:
    (i) The unit's baseline heat input determined pursuant to Sec. 
97.84(c); or
    (ii) The unit's heat input, as determined in accordance with subpart 
H of this part, for the control period in the year prior to the year of 
the control period for which the NOX allocations are being 
calculated.
    (2) The Administrator will allocate NOX allowances to the 
unit in an amount equaling the heat input determined under paragraph 
(b)(1) of this section multiplied by the lesser of the unit's baseline 
NOX emissions rate determined under Sec. 97.84(c) or the 
most stringent State or federal NOX emissions limitation 
applicable to the unit during the control period, divided by 2,000 lb/
ton, and rounded to the nearest whole number of NOX 
allowances as appropriate.



                       Subpart J_Appeal Procedures



Sec. 97.90  Appeal procedures.

    The appeal procedures for the NOX Budget Trading Program 
are set forth in part 78 of this chapter.

[69 FR 21648, Apr. 21, 2004]



      Subpart AA_CAIR NOX Annual Trading Program General Provisions



Sec. 97.101  Purpose.

    This subpart and subparts BB through II set forth the general 
provisions and the designated representative, permitting, allowance, 
monitoring, and opt-in provisions for the Federal Clean Air Interstate 
Rule (CAIR) NOX Annual Trading Program, under section 110 of 
the Clean Air Act and Sec. 52.35 of this chapter, as a means of 
mitigating interstate transport of fine particulates and nitrogen 
oxides.



Sec. 97.102  Definitions.

    The terms used in this subpart and subparts BB through II shall have 
the meanings set forth in this section as follows:
    Account number means the identification number given by the 
Administrator to each CAIR NOX Allowance Tracking System 
account.
    Acid Rain emissions limitation means a limitation on emissions of 
sulfur dioxide or nitrogen oxides under the Acid Rain Program.
    Acid Rain Program means a multi-state sulfur dioxide and nitrogen 
oxides air pollution control and emission reduction program established 
by the Administrator under title IV of the CAA and parts 72 through 78 
of this chapter.
    Actual weighted average NOX emission rate means, for a 
NOX averaging plan under Sec. 76.11 of this chapter and for 
a year:
    (1) The sum of the products of the actual annual average 
NOX emission rate and actual annual heat input (as determined 
in accordance with part 75 of this chapter) for all units in the 
NOX averaging plan for the year; divided by
    (2) The sum of the actual annual heat input (as determined in 
accordance with part 75 of this chapter) for all

[[Page 218]]

units in the NOX averaging plan for the year.
    Administrator means the Administrator of the United States 
Environmental Protection Agency or the Administrator's duly authorized 
representative.
    Allocate or allocation means, with regard to CAIR NOX 
allowances, the determination by a permitting authority or the 
Administrator of the amount of such CAIR NOX allowances to be 
initially credited to a CAIR NOX 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 CAIR NOX 
allowance transfer must be submitted for recordation in a CAIR 
NOX source's compliance account in order to be used to meet 
the source's CAIR NOX emissions limitation for such control 
period in accordance with Sec. 97.154.
    Alternate CAIR designated representative means, for a CAIR 
NOX source and each CAIR NOX unit at the source, 
the natural person who is authorized by the owners and operators of the 
source and all such units at the source, in accordance with subparts BB 
and II of this part, to act on behalf of the CAIR designated 
representative in matters pertaining to the CAIR NOX Annual 
Trading Program. If the CAIR NOX source is also a CAIR 
SO2 source, then this natural person shall be the same person 
as the alternate CAIR designated representative under the CAIR 
SO2 Trading Program. If the CAIR NOX source is 
also a CAIR NOX Ozone Season source, then this natural person 
shall be the same person as the alternate CAIR designated representative 
under the CAIR NOX Ozone Season Trading Program. If the CAIR 
NOX source is also subject to the Acid Rain Program, then 
this natural person shall be the same person as the alternate designated 
representative under the Acid Rain Program. If the CAIR NOX 
source is also subject to the Hg Budget Trading Program, then this 
natural person shall be the same person as the alternate Hg designated 
representative under the Hg Budget Trading Program.
    Automated data acquisition and handling system or DAHS means that 
component of the continuous emission monitoring system, or other 
emissions monitoring system approved for use under subpart HH of this 
part, designed to interpret and convert individual output signals from 
pollutant concentration monitors, flow monitors, diluent gas monitors, 
and other component parts of the monitoring system to produce a 
continuous record of the measured parameters in the measurement units 
required by subpart HH of this part.
    Biomass means--
    (1) Any organic material grown for the purpose of being converted to 
energy;
    (2) Any organic byproduct of agriculture that can be converted into 
energy; or
    (3) Any material that can be converted into energy and is 
nonmerchantable for other purposes, that is segregated from other 
nonmerchantable material, and that is;
    (i) A forest-related organic resource, including mill residues, 
precommercial thinnings, slash, brush, or byproduct from conversion of 
trees to merchantable material; or
    (ii) A wood material, including pallets, crates, dunnage, 
manufacturing and construction materials (other than pressure-treated, 
chemically-treated, or painted wood products), and landscape or right-
of-way tree trimmings.
    Boiler means an enclosed fossil- or other-fuel-fired combustion 
device used to produce heat and to transfer heat to recirculating water, 
steam, or other medium.
    Bottoming-cycle cogeneration unit means a cogeneration unit in which 
the energy input to the unit is first used to produce useful thermal 
energy and at least some of the reject heat from the useful thermal 
energy application or process is then used for electricity production.
    CAIR authorized account representative means, with regard to a 
general account, a responsible natural person who is authorized, in 
accordance with subparts BB, FF, and II of this part, to transfer and 
otherwise dispose of CAIR

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NOX allowances held in the general account and, with regard 
to a compliance account, the CAIR designated representative of the 
source.
    CAIR designated representative means, for a CAIR NOX 
source and each CAIR NOX unit at the source, the natural 
person who is authorized by the owners and operators of the source and 
all such units at the source, in accordance with subparts BB and II of 
this part, to represent and legally bind each owner and operator in 
matters pertaining to the CAIR NOX Annual Trading Program. If 
the CAIR NOX source is also a CAIR SO2 source, 
then this natural person shall be the same person as the CAIR designated 
representative under the CAIR SO2 Trading Program. If the 
CAIR NOX source is also a CAIR NOX Ozone Season 
source, then this natural person shall be the same person as the CAIR 
designated representative under the CAIR NOX Ozone Season 
Trading Program. If the CAIR NOX source is also subject to 
the Acid Rain Program, then this natural person shall be the same person 
as the designated representative under the Acid Rain Program. If the 
CAIR NOX source is also subject to the Hg Budget Trading 
Program, then this natural person shall be the same person as the Hg 
designated representative under the Hg Budget Trading Program.
    CAIR NOX allowance means a limited authorization issued by a 
permitting authority or the Administrator under subpart EE of this part 
or Sec. 97.188, or under provisions of a State implementation plan that 
are approved under Sec. 51.123(o)(1) or (2) or (p) of this chapter, to 
emit one ton of nitrogen oxides during a control period of the specified 
calendar year for which the authorization is allocated or of any 
calendar year thereafter under the CAIR NOX Program. An 
authorization to emit nitrogen oxides that is not issued under subpart 
EE of this part, Sec. 97.188, or provisions of a State implementation 
plan that are approved under Sec. 51.123(o)(1) or (2) or (p) of this 
chapter shall not be a CAIR NOX allowance.
    CAIR NOX allowance deduction or deduct CAIR NOX allowances means the 
permanent withdrawal of CAIR NOX allowances by the 
Administrator from a compliance account, e.g., in order to account for a 
specified number of tons of total nitrogen oxides emissions from all 
CAIR NOX units at a CAIR NOX source for a control 
period, determined in accordance with subpart HH of this part, or to 
account for excess emissions.
    CAIR NOX Allowance Tracking System means the system by which the 
Administrator records allocations, deductions, and transfers of CAIR 
NOX allowances under the CAIR NOX Annual Trading 
Program. Such allowances will be allocated, held, deducted, or 
transferred only as whole allowances.
    CAIR NOX Allowance Tracking System account means an account in the 
CAIR NOX Allowance Tracking System established by the 
Administrator for purposes of recording the allocation, holding, 
transferring, or deducting of CAIR NOX allowances.
    CAIR NOX allowances held or hold CAIR NOX allowances means the CAIR 
NOX allowances recorded by the Administrator, or submitted to 
the Administrator for recordation, in accordance with subparts FF, GG, 
and II of this part, in a CAIR NOX Allowance Tracking System 
account.
    CAIR NOX Annual Trading Program means a multi-state nitrogen oxides 
air pollution control and emission reduction program established by the 
Administrator in accordance with subparts AA through II of this part 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 emissions limitation means, for a CAIR NOX 
source, the tonnage equivalent, in NOX emissions in a control 
period, of the CAIR NOX allowances available for deduction 
for the source under Sec. 97.154 (a) and (b) for the control period.
    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

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Administrator in accordance with subparts AAAA through IIII of this part 
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 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 includes one or more CAIR 
NOX units.
    CAIR NOX unit means a unit that is subject to the CAIR 
NOX Annual Trading Program under Sec. 97.104 and, except for 
purposes of Sec. 97.105 and subpart EE of this part, a CAIR 
NOX opt-in unit under subpart II of this part.
    CAIR permit means the legally binding and federally enforceable 
written document, or portion of such document, issued by the permitting 
authority under subpart CC of this part, including any permit revisions, 
specifying the CAIR NOX Annual Trading Program requirements 
applicable to a CAIR NOX source, to each CAIR NOX 
unit at the source, and to the owners and operators and the CAIR 
designated representative of the source and each such unit.
    CAIR SO2 source means a source that 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 this part 
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 or 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.
    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:
    (1) Except for purposes of subpart EE of this part, combusting any 
amount of coal or coal-derived fuel, alone or in combination with any 
amount of any other fuel, during any year; or
    (2) For purposes of subpart EE of this part, combusting any amount 
of coal or coal-derived fuel, alone or in combination with any amount of 
any other fuel, during a specified year.
    Cogeneration unit means a stationary, fossil-fuel-fired boiler or 
stationary, fossil-fuel-fired combustion turbine:
    (1) Having equipment used to produce electricity and useful thermal 
energy for industrial, commercial, heating, or cooling purposes through 
the sequential use of energy; and
    (2) Producing during the 12-month period starting on the date the 
unit first produces electricity and during any calendar year after 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;
    (3) Provided that the total energy input under paragraphs (2)(i)(B) 
and (2)(ii) of this definition shall equal the

[[Page 221]]

unit's total energy input from all fuel except biomass if the unit is a 
boiler.
    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. 97.105 and Sec. 97.184(h).
    (i) For a unit that is a CAIR NOX unit under Sec. 97.104 
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 CAIR NOX unit under Sec. 
97.104 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. 97.105, for a unit that is not a CAIR NOX 
unit under Sec. 97.104 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 CAIR 
NOX unit under Sec. 97.104.
    (i) For a unit with a date for commencement of commercial operation 
as defined in paragraph (2) of this definition and that subsequently 
undergoes a physical change (other than replacement of the unit by a 
unit at the same source), such date shall remain the 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, except as provided in Sec. 97.184(h).
    (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, except as provided in Sec. 97.184(h).
    Common stack means a single flue through which emissions from 2 or 
more units are exhausted.
    Compliance account means a CAIR NOX Allowance Tracking 
System account, established by the Administrator for a CAIR 
NOX source under subpart FF or II of this part, in which

[[Page 222]]

any CAIR NOX allowance allocations for the CAIR 
NOX units at the source are initially recorded and in which 
are held any CAIR NOX allowances available for use for a 
control period in order to meet the source's CAIR NOX 
emissions limitation in accordance with Sec. 97.154.
    Continuous emission monitoring system or CEMS means the equipment 
required under subpart HH of this part to sample, analyze, measure, and 
provide, by means of readings recorded at least once every 15 minutes 
(using an automated data acquisition and handling system (DAHS)), a 
permanent record of nitrogen oxides emissions, stack gas volumetric flow 
rate, stack gas moisture content, and oxygen or carbon dioxide 
concentration (as applicable), in a manner consistent with part 75 of 
this chapter. The following systems are the principal types of 
continuous emission monitoring systems required under subpart HH of this 
part:
    (1) A flow monitoring system, consisting of a stack flow rate 
monitor and an automated data acquisition and handling system and 
providing a permanent, continuous record of stack gas volumetric flow 
rate, in standard cubic feet per hour (scfh);
    (2) A nitrogen oxides concentration monitoring system, consisting of 
a NOX pollutant concentration monitor and an automated data 
acquisition and handling system and providing a permanent, continuous 
record of NOX emissions, in parts per million (ppm);
    (3) A nitrogen oxides emission rate (or NOX-diluent) 
monitoring system, consisting of a NOX pollutant 
concentration monitor, a diluent gas (CO2 or O2) 
monitor, and an automated data acquisition and handling system and 
providing a permanent, continuous record of NOX 
concentration, in parts per million (ppm), diluent gas concentration, in 
percent CO2 or O2, and NOX emission 
rate, in pounds per million British thermal units (lb/mmBtu);
    (4) A moisture monitoring system, as defined in Sec. 75.11(b)(2) of 
this chapter and providing a permanent, continuous record of the stack 
gas moisture content, in percent H2O;
    (5) A carbon dioxide monitoring system, consisting of a 
CO2 pollutant concentration monitor (or an oxygen monitor 
plus suitable mathematical equations from which the CO2 
concentration is derived) and an automated data acquisition and handling 
system and providing a permanent, continuous record of CO2 
emissions, in percent CO2; and
    (6) An oxygen monitoring system, consisting of an O2 
concentration monitor and an automated data acquisition and handling 
system and providing a permanent, continuous record of O2, in 
percent O2.
    Control period means the period beginning January 1 of a calendar 
year, except as provided in Sec. 97.106(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 CAIR designated representative and as determined by the 
Administrator in accordance with subpart HH of this part.
    Excess emissions means any ton of nitrogen oxides emitted by the 
CAIR NOX units at a CAIR NOX source during a 
control period that exceeds the CAIR NOX emissions limitation 
for the source.
    Fossil fuel means natural gas, petroleum, coal, or any form of 
solid, liquid, or gaseous fuel derived from such material.
    Fossil-fuel-fired means, with regard to a unit, combusting any 
amount of fossil fuel in any calendar year.
    Fuel oil means any petroleum-based fuel (including diesel fuel or 
petroleum derivatives such as oil tar) and any recycled or blended 
petroleum products or petroleum by-products used as a fuel whether in a 
liquid, solid, or gaseous state.
    General account means a CAIR NOX Allowance Tracking 
System account, established under subpart FF of this part, that is not a 
compliance account.
    Generator means a device that produces electricity.
    Gross electrical output means, with regard to a cogeneration unit, 
electricity made available for use, including any such electricity used 
in the power production process (which process includes, but is not 
limited to, any on-site processing or treatment of fuel

[[Page 223]]

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 CAIR designated 
representative and determined by the Administrator in accordance with 
subpart HH of this part and excluding the heat derived from preheated 
combustion air, recirculated flue gases, or exhaust from other sources.
    Heat input rate means the amount of heat input (in mmBtu) divided by 
unit operating time (in hr) or, with regard to a specific fuel, the 
amount of heat input attributed to the fuel (in mmBtu) divided by the 
unit operating time (in hr) during which the unit combusts the fuel.
    Hg Budget Trading Program means a multi-state Hg air pollution 
control and emission reduction program approved and administered by the 
Administrator in accordance subpart HHHH of part 60 of this chapter and 
Sec. 60.24(h)(6), or established by the Administrator under section 111 
of the Clean Air Act, as a means of reducing national Hg emissions.
    Life-of-the-unit, firm power contractual arrangement means a unit 
participation power sales agreement under which a utility or industrial 
customer reserves, or is entitled to receive, a specified amount or 
percentage of nameplate capacity and associated energy generated by any 
specified unit and pays its proportional amount of such unit's total 
costs, pursuant to a contract:
    (1) For the life of the unit;
    (2) For a cumulative term of no less than 30 years, including 
contracts that permit an election for early termination; or
    (3) For a period no less than 25 years or 70 percent of the economic 
useful life of the unit determined as of the time the unit is built, 
with option rights to purchase or release some portion of the nameplate 
capacity and associated energy generated by the unit at the end of the 
period.
    Maximum design heat input 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 subpart HH of this part, including a continuous 
emissions monitoring system, an alternative monitoring system, or an 
excepted monitoring system under part 75 of this chapter.
    Most stringent State or Federal NOX emissions limitation 
means, with regard to a unit, the lowest NOX emissions 
limitation (in terms of lb/mmBtu) that is applicable to the unit under 
State or Federal law, regardless of the averaging period to which the 
emissions limitation applies.
    Nameplate capacity means, 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.
    Oil-fired means, for purposes of subpart EE of this part, combusting 
fuel oil for more than 15.0 percent of the annual heat input in a 
specified year and not qualifying as coal-fired.
    Operator means any person who operates, controls, or supervises a 
CAIR NOX unit or a CAIR NOX source and shall 
include, but not be limited to, any holding company, utility system, or 
plant manager of such a unit or source.
    Owner means any of the following persons:

[[Page 224]]

    (1) With regard to a CAIR NOX source or a CAIR 
NOX unit at a source, respectively:
    (i) Any holder of any portion of the legal or equitable title in a 
CAIR NOX unit at the source or the CAIR NOX unit;
    (ii) Any holder of a leasehold interest in a CAIR NOX 
unit at the source or the CAIR NOX unit; or
    (iii) Any purchaser of power from a CAIR NOX unit at the 
source or the CAIR NOX unit under a life-of-the-unit, firm 
power contractual arrangement; provided that, unless expressly provided 
for in a leasehold agreement, owner shall not include a passive lessor, 
or a person who has an equitable interest through such lessor, whose 
rental payments are not based (either directly or indirectly) on the 
revenues or income from such CAIR NOX unit; or
    (2) With regard to any general account, any person who has an 
ownership interest with respect to the CAIR NOX allowances 
held in the general account and who is subject to the binding agreement 
for the CAIR authorized account representative to represent the person's 
ownership interest with respect to CAIR NOX allowances.
    Permitting authority means the State air pollution control agency, 
local agency, other State agency, or other agency authorized by the 
Administrator to issue or revise permits to meet the requirements of the 
CAIR NOX Annual Trading Program 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 CAIR 
NOX allowances, the movement of CAIR NOX 
allowances by the Administrator into or between CAIR NOX 
Allowance Tracking System accounts, for purposes of allocation, 
transfer, or deduction.
    Reference method means any direct test method of sampling and 
analyzing for an air pollutant as specified in 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 CAIR NOX allowance, the unique 
identification number assigned to each CAIR NOX allowance by 
the Administrator.
    Solid waste incineration unit means a stationary, fossil-fuel-fired 
boiler or

[[Page 225]]

stationary, fossil-fuel-fired combustion turbine that is a ``solid waste 
incineration unit'' as defined in section 129(g)(1) of the Clean Air 
Act.
    Source means all buildings, structures, or installations located in 
one or more contiguous or adjacent properties under common control of 
the same person or persons. For purposes of section 502(c) of the Clean 
Air Act, a ``source,'' including a ``source'' with multiple units, shall 
be considered a single ``facility.''
    State means one of the States or the District of Columbia that is 
subject to the CAIR NOX Annual Trading Program pursuant to 
Sec. 52.35 of this chapter.
    Submit or serve means to send or transmit a document, information, 
or correspondence to the person specified in accordance with the 
applicable regulation:
    (1) In person;
    (2) By United States Postal Service; or
    (3) By other means of dispatch or transmission and delivery. 
Compliance with any ``submission'' or ``service'' deadline shall be 
determined by the date of dispatch, transmission, or mailing and not the 
date of receipt.
    Title V operating permit means a permit issued under title V of the 
Clean Air Act and part 70 or part 71 of this chapter.
    Title V operating permit regulations means the regulations that the 
Administrator has approved or issued as meeting the requirements of 
title V of the Clean Air Act and part 70 or 71 of this chapter.
    Ton means 2,000 pounds. For the purpose of determining compliance 
with the CAIR NOX emissions limitation, total tons of 
nitrogen oxides emissions for a control period shall be calculated as 
the sum of all recorded hourly emissions (or the mass equivalent of the 
recorded hourly emission rates) in accordance with subpart HH of this 
part, but with any remaining fraction of a ton equal to or greater than 
0.50 tons deemed to equal one ton and any remaining fraction of a ton 
less than 0.50 tons deemed to equal zero tons.
    Topping-cycle cogeneration unit means a cogeneration unit in which 
the energy input to the unit is first used to produce 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. Each form of energy supplied 
shall be measured by the lower heating value of that form of energy 
calculated as follows:

LHV = HHV - 10.55(W + 9H)

Where:

LHV = lower heating value of fuel in Btu/lb,
HHV = higher heating value of fuel in Btu/lb,
W = Weight % of moisture in fuel, and
H = Weight % of hydrogen in fuel.

    Total energy output means, with regard to a cogeneration unit, the 
sum of useful power and useful thermal energy produced by the 
cogeneration unit.
    Unit means a stationary, fossil-fuel-fired boiler or combustion 
turbine or other stationary, fossil-fuel-fired combustion device.
    Unit operating day means a calendar day in which a unit combusts any 
fuel.
    Unit operating hour or hour of unit operation means an hour in which 
a unit combusts any fuel.
    Useful power means, with regard to a cogeneration unit, electricity 
or mechanical energy made available for use, excluding any such energy 
used in the power production process (which process includes, but is not 
limited to, any on-site processing or treatment of fuel combusted at the 
unit and any 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

[[Page 226]]

or operated by a utility and dedicated to delivering electricity to 
customers.

[65 FR 2727, Jan. 18, 2000, as amended at 71 FR 74795, Dec. 13, 2006; 72 
FR 59206, Oct. 19, 2007]



Sec. 97.103  Measurements, abbreviations, and acronyms.

    Measurements, abbreviations, and acronyms used in this subpart and 
subparts BB through II 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. 97.104  Applicability

    (a) Except as provided in paragraph (b) of this section:
    (1) The following units in a State shall be CAIR NOX 
units, and any source that includes one or more such units shall be a 
CAIR NOX source, subject to the requirements of this subpart 
and subparts BB through HH of this part: any stationary, fossil-fuel-
fired boiler or stationary, fossil-fuel-fired combustion turbine serving 
at any time, since the later of November 15, 1990 or the start-up of the 
unit's combustion chamber, a generator with nameplate capacity of more 
than 25 MWe producing electricity for sale.
    (2) If a stationary boiler or stationary combustion turbine that, 
under paragraph (a)(1) of this section, is not a CAIR NOX 
unit begins to combust fossil fuel or to serve a generator with 
nameplate capacity of more than 25 MWe producing electricity for sale, 
the unit shall become a CAIR NOX unit as provided in 
paragraph (a)(1) of this section on the first date on which it both 
combusts fossil fuel and serves such generator.
    (b) The units in a State that meet the requirements set forth in 
paragraph (b)(1)(i), (b)(2)(i), or (b)(2)(ii) of this section shall not 
be CAIR NOX units:
    (1)(i) Any unit that is a CAIR NOX 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 CAIR NOX unit starting 
on the earlier of January 1 after the first calendar year during which 
the unit first no longer qualifies as a cogeneration unit or January 1 
after the first calendar year during which the unit no longer meets the 
requirements of paragraph (b)(1)(i)(B) of this section.
    (2)(i) Any unit that is a CAIR NOX unit under paragraph 
(a)(1) or (2) of this section commencing operation before January 1, 
1985:
    (A) Qualifying as a solid waste incineration unit; and
    (B) With an average annual fuel consumption of non-fossil fuel for 
1985-1987 exceeding 80 percent (on a Btu basis) and an average annual 
fuel consumption of non-fossil fuel for any 3 consecutive calendar years 
after 1990 exceeding 80 percent (on a Btu basis).
    (ii) Any unit that is a CAIR NOX unit under paragraph 
(a)(1) or (2) of this section commencing operation on or after January 
1, 1985:
    (A) Qualifying as a solid waste incineration unit; and

[[Page 227]]

    (B) With an average annual fuel consumption of non-fossil fuel for 
the first 3 calendar years of operation exceeding 80 percent (on a Btu 
basis) and an average annual fuel consumption of non-fossil fuel for any 
3 consecutive calendar years after 1990 exceeding 80 percent (on a Btu 
basis).
    (iii) If a unit qualifies as a solid waste incineration unit and 
meets the requirements of paragraph (b)(2)(i) or (ii) of this section 
for at least 3 consecutive calendar years, but subsequently no longer 
meets all such requirements, the unit shall become a CAIR NOX 
unit starting on the earlier of January 1 after the first calendar year 
during which the unit first no longer qualifies as a solid waste 
incineration unit or January 1 after the first 3 consecutive calendar 
years after 1990 for which the unit has an average annual fuel 
consumption of fossil fuel of 20 percent or more.
    (c) A certifying official of an owner or operator of any unit may 
petition the Administrator at any time for a determination concerning 
the applicability, under paragraphs (a) and (b) of this section, of the 
CAIR NOX Annual Trading Program to the unit.
    (1) Petition content. The petition shall be in writing and include 
the identification of the unit and the relevant facts about the unit. 
The petition and any other documents provided to the Administrator in 
connection with the petition shall include the following certification 
statement, signed by the certifying official: ``I am authorized to make 
this submission on behalf of the owners and operators of the unit 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 CAIR 
NOX Annual Trading Program to the unit 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. 97.105  Retired unit exemption.

    (a)(1) Any CAIR NOX unit that is permanently retired and 
is not a CAIR NOX opt-in unit under subpart II of this part 
shall be exempt from the CAIR NOX Annual Trading Program, 
except for the provisions of this section, Sec. Sec. 97.102, 97.103, 
97.104, 97.106(c)(4) through (7), 97.107, 97.108, and subparts BB and EE 
through GG of this part.
    (2) The exemption under paragraph (a)(1) of this section shall 
become effective the day on which the CAIR NOX unit is 
permanently retired. Within 30 days of the unit's permanent retirement, 
the CAIR designated representative shall submit a statement to the 
permitting authority otherwise responsible for administering any CAIR 
permit for the unit and shall submit a copy of the statement to the 
Administrator. The statement shall state, in a format prescribed by the 
permitting authority, that the unit was permanently retired on a 
specific date and will comply with the requirements of paragraph (b) of 
this section.
    (3) After receipt of the statement under paragraph (a)(2) of this 
section, the permitting authority will amend any permit under subpart CC 
of this part covering the source at which the unit is located to add the 
provisions and requirements of the exemption

[[Page 228]]

under paragraphs (a)(1) and (b) of this section.
    (b) Special provisions. (1) A unit exempt under paragraph (a) of 
this section shall not emit any nitrogen oxides, starting on the date 
that the exemption takes effect.
    (2) The Administrator or the permitting authority will allocate CAIR 
NOX allowances under subpart EE of this part to a unit exempt 
under paragraph (a) of this section.
    (3) For a period of 5 years from the date the records are created, 
the owners and operators of a unit exempt under paragraph (a) of this 
section shall retain, at the source that includes the unit, records 
demonstrating that the unit is permanently retired. The 5-year period 
for keeping records may be extended for cause, at any time before the 
end of the period, in writing by the permitting authority or the 
Administrator. The owners and operators bear the burden of proof that 
the unit is permanently retired.
    (4) The owners and operators and, to the extent applicable, the CAIR 
designated representative of a unit exempt under paragraph (a) of this 
section shall comply with the requirements of the CAIR NOX 
Annual Trading Program concerning all periods for which the exemption is 
not in effect, even if such requirements arise, or must be complied 
with, after the exemption takes effect.
    (5) A unit exempt under paragraph (a) of this section and located at 
a source that is required, or but for this exemption would be required, 
to have a title V operating permit shall not resume operation unless the 
CAIR designated representative of the source submits a complete CAIR 
permit application under Sec. 97.122 for the unit not less than 18 
months (or such lesser time provided by the permitting authority) before 
the later of January 1, 2009 or the date on which the unit resumes 
operation.
    (6) On the earlier of the following dates, a unit exempt under 
paragraph (a) of this section shall lose its exemption:
    (i) The date on which the CAIR designated representative submits a 
CAIR permit application for the unit under paragraph (b)(5) of this 
section;
    (ii) The date on which the CAIR designated representative is 
required under paragraph (b)(5) of this section to submit a CAIR permit 
application for the unit; or
    (iii) The date on which the unit resumes operation, if the CAIR 
designated representative is not required to submit a CAIR permit 
application for the unit.
    (7) For the purpose of applying monitoring, reporting, and 
recordkeeping requirements under subpart HH of this part, a unit 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. 97.106  Standard requirements.

    (a) Permit requirements. (1) The CAIR designated representative of 
each CAIR NOX source required to have a title V operating 
permit and each CAIR NOX unit required to have a title V 
operating permit at the source shall:
    (i) Submit to the permitting authority a complete CAIR permit 
application under Sec. 97.122 in accordance with the deadlines 
specified in Sec. 97.121; and
    (ii) Submit in a timely manner any supplemental information that the 
permitting authority determines is necessary in order to review a CAIR 
permit application and issue or deny a CAIR permit.
    (2) The owners and operators of each CAIR NOX source 
required to have a title V operating permit and each CAIR NOX 
unit required to have a title V operating permit at the source shall 
have a CAIR permit issued by the permitting authority under subpart CC 
of this part for the source and operate the source and the unit in 
compliance with such CAIR permit.
    (3) Except as provided in subpart II of this part, the owners and 
operators of a CAIR NOX source that is not otherwise required 
to have a title V operating permit and each CAIR NOX unit 
that is not otherwise required to have a title V operating permit are 
not required to submit a CAIR permit application, and to have a CAIR 
permit, under subpart CC of this part for such CAIR NOX 
source and such CAIR NOX unit.

[[Page 229]]

    (b) Monitoring, reporting, and recordkeeping requirements. (1) The 
owners and operators, and the CAIR designated representative, of each 
CAIR NOX source and each CAIR NOX unit at the 
source shall comply with the monitoring, reporting, and recordkeeping 
requirements of subpart HH of this part.
    (2) The emissions measurements recorded and reported in accordance 
with subpart HH of this part shall be used to determine compliance by 
each CAIR NOX source with the CAIR NOX emissions 
limitation under paragraph (c) of this section.
    (c) Nitrogen oxides emission requirements. (1) As of the allowance 
transfer deadline for a control period, the owners and operators of each 
CAIR NOX source and each CAIR NOX unit at the 
source shall hold, in the source's compliance account, CAIR 
NOX allowances available for compliance deductions for the 
control period under Sec. 97.154(a) in an amount not less than the tons 
of total nitrogen oxides emissions for the control period from all CAIR 
NOX units at the source, as determined in accordance with 
subpart HH of this part.
    (2) A CAIR NOX unit shall be subject to the requirements 
under paragraph (c)(1) of this section for the control period starting 
on the later of January 1, 2009 or the deadline for meeting the unit's 
monitor certification requirements under Sec. 97.170(b)(1), (2), or (5) 
and for each control period thereafter.
    (3) A CAIR NOX allowance shall not be deducted, for 
compliance with the requirements under paragraph (c)(1) of this section, 
for a control period in a calendar year before the year for which the 
CAIR NOX allowance was allocated.
    (4) CAIR NOX allowances shall be held in, deducted from, 
or transferred into or among CAIR NOX Allowance Tracking 
System accounts in accordance with subparts EE, FF, GG, and II of this 
part.
    (5) A CAIR NOX allowance is a limited authorization to 
emit one ton of nitrogen oxides in accordance with the CAIR 
NOX Annual Trading Program. No provision of the CAIR 
NOX Annual Trading Program, the CAIR permit application, the 
CAIR permit, or an exemption under Sec. 97.105 and no provision of law 
shall be construed to limit the authority of the United States to 
terminate or limit such authorization.
    (6) A CAIR NOX allowance does not constitute a property 
right.
    (7) Upon recordation by the Administrator under subpart EE, FF, GG, 
or II of this part, every allocation, transfer, or deduction of a CAIR 
NOX allowance to or from a CAIR NOX source's 
compliance account is incorporated automatically in any CAIR permit of 
the source.
    (d) Excess emissions requirements. If a CAIR NOX source 
emits nitrogen oxides during any control period in excess of the CAIR 
NOX emissions limitation, then:
    (1) The owners and operators of the source and each CAIR 
NOX unit at the source shall surrender the CAIR 
NOX allowances required for deduction under Sec. 
97.154(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 ton of such excess emissions and each day of such control 
period shall constitute a separate violation of this subpart, the Clean 
Air Act, and applicable State law.
    (e) Recordkeeping and reporting requirements. (1) Unless otherwise 
provided, the owners and operators of the CAIR NOX source and 
each CAIR NOX unit at the source shall keep on site at the 
source each of the following documents for a period of 5 years from the 
date the document is created. This period may be extended for cause, at 
any time before the end of 5 years, in writing by the permitting 
authority or the Administrator.
    (i) The certificate of representation under Sec. 97.113 for the 
CAIR designated representative for the source and each CAIR 
NOX unit at the source and all documents that demonstrate the 
truth of the statements in the certificate of representation; provided 
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. 97.113 changing the CAIR designated representative.
    (ii) All emissions monitoring information, in accordance with 
subpart HH

[[Page 230]]

of this part, provided that to the extent that subpart HH of this part 
provides for a 3-year period for recordkeeping, the 3-year period shall 
apply.
    (iii) Copies of all reports, compliance certifications, and other 
submissions and all records made or required under the CAIR 
NOX Annual Trading Program.
    (iv) Copies of all documents used to complete a CAIR permit 
application and any other submission under the CAIR NOX 
Annual Trading Program or to demonstrate compliance with the 
requirements of the CAIR NOX Annual Trading Program.
    (2) The CAIR designated representative of a CAIR NOX 
source and each CAIR NOX unit at the source shall submit the 
reports required under the CAIR NOX Annual Trading Program, 
including those under subpart HH of this part.
    (f) Liability. (1) Each CAIR NOX source and each CAIR 
NOX unit shall meet the requirements of the CAIR 
NOX Annual Trading Program.
    (2) Any provision of the CAIR NOX Annual Trading Program 
that applies to a CAIR NOX source or the CAIR designated 
representative of a CAIR NOX source shall also apply to the 
owners and operators of such source and of the CAIR NOX units 
at the source.
    (3) Any provision of the CAIR NOX Annual Trading Program 
that applies to a CAIR NOX unit or the CAIR designated 
representative of a CAIR NOX unit shall also apply to the 
owners and operators of such unit.
    (g) Effect on other authorities. No provision of the CAIR 
NOX Annual Trading Program, a CAIR permit application, a CAIR 
permit, or an exemption under Sec. 97.105 shall be construed as 
exempting or excluding the owners and operators, and the CAIR designated 
representative, of a CAIR NOX source or CAIR NOX 
unit from compliance with any other provision of the applicable, 
approved State implementation plan, a federally enforceable permit, or 
the Clean Air Act.



Sec. 97.107  Computation of time.

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



Sec. 97.108  Appeal procedures.

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



     Subpart BB_CAIR Designated Representative for CAIR NOX Sources



Sec. 97.110  Authorization and responsibilities of CAIR designated
representative.

    (a) Except as provided under Sec. 97.111, each CAIR NOX 
source, including all CAIR NOX units at the source, shall 
have one and only one CAIR designated representative, with regard to all 
matters under the CAIR NOX Annual Trading Program concerning 
the source or any CAIR NOX unit at the source.
    (b) The CAIR designated representative of the CAIR NOX 
source shall be selected by an agreement binding on the owners and 
operators of the source and all CAIR NOX units at the source 
and shall act in accordance with the certification statement in Sec. 
97.113(a)(4)(iv).
    (c) Upon receipt by the Administrator of a complete certificate of 
representation under Sec. 97.113, the CAIR designated representative of 
the source shall represent and, by his or her representations, actions, 
inactions, or submissions, legally bind each owner and operator of the 
CAIR NOX source represented and each CAIR NOX unit 
at the source in all matters pertaining to the CAIR NOX 
Annual Trading Program, notwithstanding any agreement

[[Page 231]]

between the CAIR designated representative and such owners and 
operators. The owners and operators shall be bound by any decision or 
order issued to the CAIR designated representative by the permitting 
authority, the Administrator, or a court regarding the source or unit.
    (d) No CAIR permit will be issued, no emissions data reports will be 
accepted, and no CAIR NOX Allowance Tracking System account 
will be established for a CAIR NOX unit at a source, until 
the Administrator has received a complete certificate of representation 
under Sec. 97.113 for a CAIR designated representative of the source 
and the CAIR NOX units at the source.
    (e)(1) Each submission under the CAIR NOX Annual Trading 
Program shall be submitted, signed, and certified by the CAIR designated 
representative for each CAIR NOX source on behalf of which 
the submission is made. Each such submission shall include the following 
certification statement by the CAIR designated representative: ``I am 
authorized to make this submission on behalf of the owners and operators 
of the source or units for which the submission is made. I certify under 
penalty of law that I have personally examined, and am familiar with, 
the statements and information submitted in this document and all its 
attachments. Based on my inquiry of those individuals with primary 
responsibility for obtaining the information, I certify that the 
statements and information are to the best of my knowledge and belief 
true, accurate, and complete. I am aware that there are significant 
penalties for submitting false statements and information or omitting 
required statements and information, including the possibility of fine 
or imprisonment.''
    (2) The permitting authority and the Administrator will accept or 
act on a submission made on behalf of owner or operators of a CAIR 
NOX source or a CAIR NOX unit only if the 
submission has been made, signed, and certified in accordance with 
paragraph (e)(1) of this section.



Sec. 97.111  Alternate CAIR designated representative.

    (a) A certificate of representation under Sec. 97.113 may designate 
one and only one alternate CAIR designated representative, who may act 
on behalf of the CAIR designated representative. The agreement by which 
the alternate CAIR designated representative is selected shall include a 
procedure for authorizing the alternate CAIR designated representative 
to act in lieu of the CAIR designated representative.
    (b) Upon receipt by the Administrator of a complete certificate of 
representation under Sec. 97.113, any representation, action, inaction, 
or submission by the alternate CAIR designated representative shall be 
deemed to be a representation, action, inaction, or submission by the 
CAIR designated representative.
    (c) Except in this section and Sec. Sec. 97.102, 97.110(a) and (d), 
97.112, 97.113, 97.115, 97.151 and 97.182, whenever the term ``CAIR 
designated representative'' is used in subparts AA through II of this 
part, the term shall be construed to include the CAIR designated 
representative or any alternate CAIR designated representative.



Sec. 97.112  Changing CAIR designated representative and alternate 
CAIR designated representative; changes in owners and operators.

    (a) Changing CAIR designated representative. The CAIR designated 
representative may be changed at any time upon receipt by the 
Administrator of a superseding complete certificate of representation 
under Sec. 97.113. Notwithstanding any such change, all 
representations, actions, inactions, and submissions by the previous 
CAIR designated representative before the time and date when the 
Administrator receives the superseding certificate of representation 
shall be binding on the new CAIR designated representative and the 
owners and operators of the CAIR NOX source and the CAIR 
NOX units at the source.
    (b) Changing alternate CAIR designated representative. The alternate 
CAIR designated representative may be changed at any time upon receipt 
by the Administrator of a superseding complete certificate of 
representation under

[[Page 232]]

Sec. 97.113. Notwithstanding any such change, all representations, 
actions, inactions, and submissions by the previous alternate CAIR 
designated representative before the time and date when the 
Administrator receives the superseding certificate of representation 
shall be binding on the new alternate CAIR designated representative and 
the owners and operators of the CAIR NOX source and the CAIR 
NOX units at the source.
    (c) Changes in owners and operators. (1) In the event an owner or 
operator of a CAIR NOX source or a CAIR NOX unit 
is not included in the list of owners and operators in the certificate 
of representation under Sec. 97.113, such owner or operator shall be 
deemed to be subject to and bound by the certificate of representation, 
the representations, actions, inactions, and submissions of the CAIR 
designated representative and any alternate CAIR designated 
representative of the source or unit, and the decisions and orders of 
the permitting authority, the Administrator, or a court, as if the owner 
or operator were included in such list.
    (2) Within 30 days following any change in the owners and operators 
of a CAIR NOX source or a CAIR NOX unit, including 
the addition of a new owner or operator, the CAIR designated 
representative or any alternate CAIR designated representative shall 
submit a revision to the certificate of representation under Sec. 
97.113 amending the list of owners and operators to include the change.



Sec. 97.113  Certificate of representation.

    (a) A complete certificate of representation for a CAIR designated 
representative or an alternate CAIR designated representative shall 
include the following elements in a format prescribed by the 
Administrator:
    (1) Identification of the CAIR NOX source, and each CAIR 
NOX unit at the source, for which the certificate of 
representation is submitted, including identification and nameplate 
capacity of each generator served by each such unit.
    (2) The name, address, e-mail address (if any), telephone number, 
and facsimile transmission number (if any) of the CAIR designated 
representative and any alternate CAIR designated representative.
    (3) A list of the owners and operators of the CAIR NOX 
source and of each CAIR NOX unit at the source.
    (4) The following certification statements by the CAIR designated 
representative and any alternate CAIR designated representative--
    (i) ``I certify that I was selected as the CAIR designated 
representative or alternate CAIR designated representative, as 
applicable, by an agreement binding on the owners and operators of the 
source and each CAIR NOX unit at the source.''
    (ii) ``I certify that I have all the necessary authority to carry 
out my duties and responsibilities under the CAIR NOX Annual 
Trading Program on behalf of the owners and operators of the source and 
of each CAIR NOX unit at the source and that each such owner 
and operator shall be fully bound by my representations, actions, 
inactions, or submissions.''
    (iii) ``I certify that the owners and operators of the source and of 
each CAIR NOX unit at the source shall be bound by any order 
issued to me by the Administrator, the permitting authority, or a court 
regarding the source or unit.''
    (iv) Where there are multiple holders of a legal or equitable title 
to, or a leasehold interest in, a CAIR NOX unit, or where a 
utility or industrial customer purchases power from a CAIR 
NOX unit under a life-of-the-unit, firm power contractual 
arrangement, I certify that: I have given a written notice of my 
selection as the `CAIR designated representative' or `alternate CAIR 
designated representative', as applicable, and of the agreement by which 
I was selected to each owner and operator of the source and of each CAIR 
NOX unit at the source; and CAIR NOX allowances 
and proceeds of transactions involving CAIR NOX allowances 
will be deemed to be held or distributed in proportion to each holder's 
legal, equitable, leasehold, or contractual reservation or entitlement, 
except that, if such multiple holders have expressly provided for a 
different distribution of CAIR NOX allowances by contract, 
CAIR NOX allowances and proceeds of

[[Page 233]]

transactions involving CAIR NOX allowances will be deemed to 
be held or distributed in accordance with the contract.''
    (5) The signature of the CAIR designated representative and any 
alternate CAIR designated representative and the dates signed.
    (b) Unless otherwise required by the permitting authority or the 
Administrator, documents of agreement referred to in the certificate of 
representation shall not be submitted to the permitting authority or the 
Administrator. Neither the permitting authority nor the Administrator 
shall be under any obligation to review or evaluate the sufficiency of 
such documents, if submitted.

[65 FR 2727, Jan. 18, 2000, as amended at 71 FR 74795, Dec. 13, 2006]



Sec. 97.114  Objections concerning CAIR designated representative.

    (a) Once a complete certificate of representation under Sec. 97.113 
has been submitted and received, the permitting authority and the 
Administrator will rely on the certificate of representation unless and 
until a superseding complete certificate of representation under Sec. 
97.113 is received by the Administrator.
    (b) Except as provided in Sec. 97.112(a) or (b), no objection or 
other communication submitted to the permitting authority or the 
Administrator concerning the authorization, or any representation, 
action, inaction, or submission, of the CAIR designated representative 
shall affect any representation, action, inaction, or submission of the 
CAIR designated representative or the finality of any decision or order 
by the permitting authority or the Administrator under the CAIR 
NOX Annual Trading Program.
    (c) Neither the permitting authority nor the Administrator will 
adjudicate any private legal dispute concerning the authorization or any 
representation, action, inaction, or submission of any CAIR designated 
representative, including private legal disputes concerning the proceeds 
of CAIR NOX allowance transfers.



Sec. 97.115  Delegation by CAIR designated representative and
alternate CAIR designated representative.

    (a) A CAIR 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 part.
    (b) An alternate CAIR 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 
part.
    (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 CAIR designated representative or alternate CAIR 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 CAIR designated 
representative or alternate CAIR 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 CAIR designated 
representative or alternate CAIR 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 CAIR designated representative or alternate CAIR designated 
representative, as appropriate, and before this notice of delegation is 
superseded by another notice of delegation under 40 CFR 97.115(d) shall 
be deemed to be an electronic submission by me.''

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    (ii) ``Until this notice of delegation is superseded by another 
notice of delegation under 40 CFR 97.115(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 97.115 is terminated.''.
    (d) A notice of delegation submitted under paragraph (c) of this 
section shall be effective, with regard to the CAIR designated 
representative or alternate CAIR 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 CAIR designated representative or alternate CAIR 
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 CAIR designated 
representative or alternate CAIR designated representative submitting 
such notice of delegation.



                           Subpart CC_Permits



Sec. 97.120  General CAIR NOX Annual Trading Program permit requirements.

    (a) For each CAIR NOX source required to have a title V 
operating permit or required, under subpart II of this part, to have a 
title V operating permit or other federally enforceable permit, such 
permit shall include a CAIR permit administered by the permitting 
authority for the title V operating permit or the federally enforceable 
permit as applicable. The CAIR portion of the title V permit or other 
federally enforceable permit as applicable shall be administered in 
accordance with the permitting authority's title V operating permits 
regulations promulgated under part 70 or 71 of this chapter or the 
permitting authority's regulations for other federally enforceable 
permits as applicable, except as provided otherwise by Sec. 97.105, 
this subpart, and subpart II of this part.
    (b) Each CAIR permit shall contain, with regard to the CAIR 
NOX source and the CAIR NOX units at the source 
covered by the CAIR permit, all applicable CAIR NOX Annual 
Trading Program, CAIR NOX Ozone Season Trading Program, and 
CAIR SO2 Trading Program requirements and shall be a complete 
and separable portion of the title V operating permit or other federally 
enforceable permit under paragraph (a) of this section.



Sec. 97.121  Submission of CAIR permit applications.

    (a) Duty to apply. The CAIR designated representative of any CAIR 
NOX source required to have a title V operating permit shall 
submit to the permitting authority a complete CAIR permit application 
under Sec. 97.122 for the source covering each CAIR NOX unit 
at the source at least 18 months (or such lesser time provided by the 
permitting authority) before the later of January 1, 2009 or the date on 
which the CAIR NOX unit commences commercial operation, 
except as provided in Sec. 97.183(a).
    (b) Duty to reapply. For a CAIR NOX source required to 
have a title V operating permit, the CAIR designated representative 
shall submit a complete CAIR permit application under Sec. 97.122 for 
the source covering each CAIR NOX unit at the source to renew 
the CAIR permit in accordance with the permitting authority's title V 
operating permits regulations addressing permit renewal, except as 
provided in Sec. 97.183(b).



Sec. 97.122  Information requirements for CAIR permit applications.

    A complete CAIR permit application shall include the following 
elements concerning the CAIR NOX source for which the 
application is submitted, in a format prescribed by the permitting 
authority:
    (a) Identification of the CAIR NOX source;
    (b) Identification of each CAIR NOX unit at the CAIR 
NOX source; and
    (c) The standard requirements under Sec. 97.106.

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Sec. 97.123  CAIR permit contents and term.

    (a) Each CAIR permit will contain, in a format prescribed by the 
permitting authority, all elements required for a complete CAIR permit 
application under Sec. 97.122.
    (b) Each CAIR permit is deemed to incorporate automatically the 
definitions of terms under Sec. 97.102 and, upon recordation by the 
Administrator under subpart EE, FF, GG, or II of this part, every 
allocation, transfer, or deduction of a CAIR NOX allowance to 
or from the compliance account of the CAIR NOX source covered 
by the permit.
    (c) The term of the CAIR permit will be set by the permitting 
authority, as necessary to facilitate coordination of the renewal of the 
CAIR permit with issuance, revision, or renewal of the CAIR 
NOX source's title V operating permit or other federally 
enforceable permit as applicable.



Sec. 97.124  CAIR permit revisions.

    Except as provided in Sec. 97.123(b), the permitting authority will 
revise the CAIR permit, as necessary, in accordance with the permitting 
authority's title V operating permits regulations or the permitting 
authority's regulations for other federally enforceable permits as 
applicable addressing permit revisions.

Subpart DD [Reserved]



                Subpart EE_CAIR NOX Allowance Allocations



Sec. 97.140  State trading budgets.

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

------------------------------------------------------------------------
                                                           State trading
                                           State trading    budget for
                  State                     budget for       2015 and
                                             2009-2014      thereafter
                                              (tons)          (tons)
------------------------------------------------------------------------
Alabama.................................          69,020          57,517
Delaware................................           4,166           3,472
District of Columbia....................             144             120
Florida.................................          99,445          82,871
Georgia.................................          66,321          55,268
Illinois................................          76,230          63,525
Indiana.................................         108,935          90,779
Iowa....................................          32,692          27,243
Kentucky................................          83,205          69,337
Louisiana...............................          35,512          29,593
Maryland................................          27,724          23,104
Michigan................................          65,304          54,420
Minnesota...............................          31,443          26,203
Mississippi.............................          17,807          14,839
Missouri................................          59,871          49,892
New Jersey..............................          12,670          10,558
New York................................          45,617          38,014
North Carolina..........................          62,183          51,819
Ohio....................................         108,667          90,556
Pennsylvania............................          99,049          82,541
South Carolina..........................          32,662          27,219
Tennessee...............................          50,973          42,478
Texas...................................         181,014         150,845
Virginia................................          36,074          30,062
West Virginia...........................          74,220          61,850
Wisconsin...............................          40,759          33,966
                                         -------------------------------
    Total...............................       1,521,707       1,268,091
------------------------------------------------------------------------



Sec. 97.141  Timing requirements for CAIR NOX allowance allocations.

    (a) The Administrator will determine by order the CAIR 
NOX allowance allocations, in accordance with Sec. 97.142(a) 
and (b), for the control periods in 2009, 2010, 2011, 2012, 2013, and 
2014.
    (b) By July 31, 2011 and July 31 of each year thereafter, the 
Administrator will determine by order the CAIR NOX allowance 
allocations, in accordance with Sec. 97.142(a) and (b), for the control 
period in the fourth year after the year of the applicable deadline for 
determination under this paragraph.
    (c) By July 31, 2009 and July 31 of each year thereafter, the 
Administrator will determine by order the CAIR NOX allowance 
allocations, in accordance with Sec. 97.142(a),(c), and (d), for the 
control period in the year of the applicable deadline for determination 
under this paragraph.
    (d) The Administrator will make available to the public each 
determination of CAIR NOX allowances under paragraph (a), 
(b), or (c) of this section and will provide an opportunity for 
submission of objections to the determination. Objections shall be 
limited to addressing whether the determination is in accordance with 
Sec. 97.142. Based on any such objections, the Administrator will 
adjust each determination to the extent necessary to ensure that it is 
in accordance with Sec. 97.142.

[[Page 236]]



Sec. 97.142  CAIR NOX allowance allocations.

    (a)(1) The baseline heat input (in mmBtu) used with respect to CAIR 
NOX allowance allocations under paragraph (b) of this section 
for each CAIR NOX unit will be:
    (i) For units commencing operation before January 1, 2001 the 
average of the 3 highest amounts of the unit's adjusted control period 
heat input for 2000 through 2004, with the adjusted control period heat 
input for each year calculated as follows:
    (A) If the unit is coal-fired during the year, the unit's control 
period heat input for such year is multiplied by 100 percent;
    (B) If the unit is oil-fired during the year, the unit's control 
period heat input for such year is multiplied by 60 percent; and
    (C) If the unit is not subject to paragraph (a)(1)(i)(A) or (B) of 
this section, the unit's control period heat input for such year is 
multiplied by 40 percent.
    (ii) For units commencing operation on or after January 1, 2001 and 
operating each calendar year during a period of 5 or more consecutive 
calendar years, the average of the 3 highest amounts of the unit's total 
converted control period heat input over the first such 5 years.
    (2)(i) A unit's control period heat input, and a unit's status as 
coal-fired or oil-fired, for a calendar year under paragraph (a)(1)(i) 
of this section, and a unit's total tons of NOX emissions 
during a calendar year under paragraph (c)(3) of this section, will be 
determined in accordance with part 75 of this chapter, to the extent the 
unit was otherwise subject to the requirements of part 75 of this 
chapter for the year, or will be based on the best available data 
reported to the Administrator for the unit (in a format prescribed by 
the Administrator), to the extent the unit was not otherwise subject to 
the requirements of part 75 of this chapter for the year.
    (ii) A unit's converted control period heat input for a calendar 
year specified under paragraph (a)(1)(ii) of this section equals:
    (A) Except as provided in paragraph (a)(2)(ii)(B) or (C) of this 
section, the control period gross electrical output of the generator or 
generators served by the unit multiplied by 7,900 Btu/kWh, if the unit 
is coal-fired for the year, or 6,675 Btu/kWh, if the unit is not coal-
fired for the year, and divided by 1,000,000 Btu/mmBtu, provided that if 
a generator is served by 2 or more units, then the gross electrical 
output of the generator will be attributed to each unit in proportion to 
the unit's share of the total control period heat input of such units 
for the year;
    (B) For a unit that is a boiler and has equipment used to produce 
electricity and useful thermal energy for industrial, commercial, 
heating, or cooling purposes through the sequential use of energy, the 
total heat energy (in Btu) of the steam produced by the boiler during 
the control period, divided by 0.8 and by 1,000,000 Btu/mmBtu; or
    (C) For a unit that is a combustion turbine and has equipment used 
to produce electricity and useful thermal energy for industrial, 
commercial, heating, or cooling purposes through the sequential use of 
energy, the control period gross electrical output of the enclosed 
device comprising the compressor, combustor, and turbine multiplied by 
3,413 Btu/kWh, plus the total heat energy (in Btu) of the steam produced 
by any associated heat recovery steam generator during the control 
period divided by 0.8, and with the sum divided by 1,000,000 Btu/mmBtu.
    (iii) Gross electrical output and total heat energy under paragraph 
(a)(2)(ii) of this section will be determined based on the best 
available data reported to the Administrator for the unit (in a format 
prescribed by the Administrator).
    (3) The Administrator will determine what data are the best 
available data under paragraph (a)(2) of this section by weighing the 
likelihood that data are accurate and reliable and giving greater weight 
to data submitted to a governmental entity in compliance with legal 
requirements or substantiated by an independent entity.
    (b)(1) For each control period in 2009 and thereafter, the 
Administrator will allocate to all CAIR NOX units in a State 
that have a baseline heat input (as determined under paragraph (a) of 
this section) a total amount of CAIR NOX allowances equal to 
95 percent for

[[Page 237]]

a control period during 2009 through 2014, and 97 percent for a control 
period during 2015 and thereafter, of the tons of NOX 
emissions in the applicable State trading budget under Sec. 97.140 
(except as provided in paragraphs (d) and (e) of this section).
    (2) The Administrator will allocate CAIR NOX allowances 
to each CAIR NOX unit under paragraph (b)(1) of this section 
in an amount determined by multiplying the total amount of CAIR 
NOX allowances allocated under paragraph (b)(1) of this 
section by the ratio of the baseline heat input of such CAIR 
NOX unit to the total amount of baseline heat input of all 
such CAIR NOX units in the State and rounding to the nearest 
whole allowance as appropriate.
    (c) For each control period in 2009 and thereafter, the 
Administrator will allocate CAIR NOX allowances to CAIR 
NOX units in a State that are not allocated CAIR 
NOX 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 
CAIR NOX allowances available under paragraph (b) of this 
section for the control period are already allocated, in accordance with 
the following procedures:
    (1) The Administrator will establish a separate new unit set-aside 
for each control period. Each new unit set-aside will be allocated CAIR 
NOX allowances equal to 5 percent for a control period in 
2009 through 2014, and 3 percent for a control period in 2015 and 
thereafter, of the amount of tons of NOX emissions in the 
applicable State trading budget under Sec. 97.140.
    (2) The CAIR designated representative of such a CAIR NOX 
unit may submit to the Administrator a request, in a format specified by 
the Administrator, to be allocated CAIR NOX allowances, 
starting with the later of the control period in 2009 or the first 
control period after the control period in which the CAIR NOX 
unit commences commercial operation and until the first control period 
for which the unit is allocated CAIR NOX allowances under 
paragraph (b) of this section. A separate CAIR NOX allowance 
allocation request for each control period for which CAIR NOX 
allowances are sought must be submitted on or before May 1 of such 
control period and after the date on which the CAIR NOX unit 
commences commercial operation.
    (3) In a CAIR