[Title 40 CFR ]
[Code of Federal Regulations (annual edition) - July 1, 1997 Edition]
[From the U.S. Government Publishing Office]
[[Page 1]]
40
Protection of Environment
PARTS 72 TO 80
Revised as of July 1, 1997
CONTAINING
A CODIFICATION OF DOCUMENTS
OF GENERAL APPLICABILITY
AND FUTURE EFFECT
AS OF JULY 1, 1997
With Ancillaries
Published by
the Office of the Federal Register
National Archives and Records
Administration
as a Special Edition of
the Federal Register
[[Page ii]]
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1997
For sale by U.S. Government Printing Office
Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328
[[Page iii]]
Table of Contents
Page
Explanation................................................. v
Title 40:
Chapter I--Environmental Protection Agency................ 3
Finding Aids:
Material Approved for Incorporation by Reference.......... 715
Table of CFR Titles and Chapters.......................... 721
Alphabetical List of Agencies Appearing in the CFR........ 737
Table of OMB Control Numbers.............................. 747
List of CFR Sections Affected............................. 767
[[Page iv]]
--------------------------------------------------------------
Cite this Code: CFR
To cite the regulations in this volume use title, part and
section number. Thus, 40 CFR 72.1 refers to title 40, part
72, section 1.
--------------------------------------------------------------
[[Page v]]
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
The contents of the Federal Register are required to be judicially
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie
evidence of the text of the original documents (44 U.S.C. 1510).
HOW TO USE THE CODE OF FEDERAL REGULATIONS
The Code of Federal Regulations is kept up to date by the individual
issues of the Federal Register. These two publications must be used
together to determine the latest version of any given rule.
To determine whether a Code volume has been amended since its
revision date (in this case, July 1, 1997), consult the ``List of CFR
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative
List of Parts Affected,'' which appears in the Reader Aids section of
the daily Federal Register. These two lists will identify the Federal
Register page number of the latest amendment of any given rule.
EFFECTIVE AND EXPIRATION DATES
Each volume of the Code contains amendments published in the Federal
Register since the last revision of that volume of the Code. Source
citations for the regulations are referred to by volume number and page
number of the Federal Register and date of publication. Publication
dates and effective dates are usually not the same and care must be
exercised by the user in determining the actual effective date. In
instances where the effective date is beyond the cut-off date for the
Code a note has been inserted to reflect the future effective date. In
those instances where a regulation published in the Federal Register
states a date certain for expiration, an appropriate note will be
inserted following the text.
OMB CONTROL NUMBERS
The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires
Federal agencies to display an OMB control number with their information
collection request.
[[Page vi]]
Many agencies have begun publishing numerous OMB control numbers as
amendments to existing regulations in the CFR. These OMB numbers are
placed as close as possible to the applicable recordkeeping or reporting
requirements.
OBSOLETE PROVISIONS
Provisions that become obsolete before the revision date stated on
the cover of each volume are not carried. Code users may find the text
of provisions in effect on a given date in the past by using the
appropriate numerical list of sections affected. For the period before
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For
the period beginning January 1, 1986, a ``List of CFR Sections
Affected'' is published at the end of each CFR volume.
INCORPORATION BY REFERENCE
What is incorporation by reference? Incorporation by reference was
established by statute and allows Federal agencies to meet the
requirement to publish regulations in the Federal Register by referring
to materials already published elsewhere. For an incorporation to be
valid, the Director of the Federal Register must approve it. The legal
effect of incorporation by reference is that the material is treated as
if it were published in full in the Federal Register (5 U.S.C. 552(a)).
This material, like any other properly issued regulation, has the force
of law.
What is a proper incorporation by reference? The Director of the
Federal Register will approve an incorporation by reference only when
the requirements of 1 CFR part 51 are met. Some of the elements on which
approval is based are:
(a) The incorporation will substantially reduce the volume of
material published in the Federal Register.
(b) The matter incorporated is in fact available to the extent
necessary to afford fairness and uniformity in the administrative
process.
(c) The incorporating document is drafted and submitted for
publication in accordance with 1 CFR part 51.
Properly approved incorporations by reference in this volume are
listed in the Finding Aids at the end of this volume.
What if the material incorporated by reference cannot be found? If
you have any problem locating or obtaining a copy of material listed in
the Finding Aids of this volume as an approved incorporation by
reference, please contact the agency that issued the regulation
containing that incorporation. If, after contacting the agency, you find
the material is not available, please notify the Director of the Federal
Register, National Archives and Records Administration, Washington DC
20408, or call (202) 523-4534.
CFR INDEXES AND TABULAR GUIDES
A subject index to the Code of Federal Regulations is contained in a
separate volume, revised annually as of January 1, entitled CFR Index
and Finding Aids. This volume contains the Parallel Table of Statutory
Authorities and Agency Rules (Table I), and Acts Requiring Publication
in the Federal Register (Table II). A list of CFR titles, chapters, and
parts and an alphabetical list of agencies publishing in the CFR are
also included in this volume.
An index to the text of ``Title 3--The President'' is carried within
that volume.
The Federal Register Index is issued monthly in cumulative form.
This index is based on a consolidation of the ``Contents'' entries in
the daily Federal Register.
[[Page vii]]
A List of CFR Sections Affected (LSA) is published monthly, keyed to
the revision dates of the 50 CFR titles.
REPUBLICATION OF MATERIAL
There are no restrictions on the republication of material appearing
in the Code of Federal Regulations.
INQUIRIES
For a legal interpretation or explanation of any regulation in this
volume, contact the issuing agency. The issuing agency's name appears at
the top of odd-numbered pages.
For inquiries concerning CFR reference assistance, call 202-523-5227
or write to the Director, Office of the Federal Register, National
Archives and Records Administration, Washington, DC 20408.
SALES
The Government Printing Office (GPO) processes all sales and
distribution of the CFR. For payment by credit card, call 202-512-1800,
M-F, 8 a.m. to 4 p.m. e.s.t. or fax your order to 202-512-2233, 24 hours
a day. For payment by check, write to the Superintendent of Documents,
Attn: New Orders, P.O. Box 371954, Pittsburgh, PA 15250-7954. For GPO
Customer Service call 202-512-1803.
Raymond A. Mosley,
Director,
Office of the Federal Register.
July 1, 1997.
[[Page ix]]
THIS TITLE
Title 40--Protection of Environment is composed of twenty-two
volumes. The parts in these volumes are arranged in the following order:
parts 1-49, parts 50-51; parts 52.01-52.1018, parts 52.1019-end, parts
53-59, part 60, parts 61-62, parts 63-71, parts 72-80, parts 81-85, part
86, parts 87-135, 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 and part 790 to end. The contents of these volumes
represent all current regulations codified under this title of the CFR
as of July 1, 1997.
Chapter I--Environmental Protection Agency appears in all twenty-two
volumes. A Pesticide Tolerance Commodity/Chemical Index appears in parts
150-189. A Toxic Substances Chemical--CAS Number Index appears in parts
700-789 and part 790 to end. Redesignation Tables appear in the volumes
containing parts 1-51, parts 150-189, and parts 700-789. Regulations
issued by the Council on Environmental Quality appear in the volume
containing part 790 to end.
The OMB control numbers for title 40 appear in Sec. 9.1 of this
chapter. For the convenience of the user, Sec. 9.1 appears in the
Finding Aids section of the volumes containing parts 52 to the end.
For this volume, Ruth Reedy Green was Chief Editor. The Code of
Federal Regulations publication program is under the direction of
Frances D. McDonald, assisted by Alomha S. Morris.
[[Page x]]
[[Page 1]]
TITLE 40--PROTECTION OF ENVIRONMENT
(This book contains parts 72-80)
--------------------------------------------------------------------
Part
Chapter i--Environmental Protection Agency (Continued)...... 72
[[Page 3]]
CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
--------------------------------------------------------------------
SUBCHAPTER C--AIR PROGRAMS (Continued)
Editorial Note: Subchapter C--Air Programs is continued in the volume
containing 40 CFR parts 81-85.
Part Page
72 Permits regulation.......................... 5
73 Sulphur dioxide allowance system............ 83
74 Sulfur dioxide opt-ins...................... 180
75 Continuous emission monitoring.............. 206
76 Acid rain nitrogen oxides emission reduction
program................................. 336
77 Excess emissions............................ 362
78 Appeal procedures for Acid Rain Program..... 368
79 Registration of fuels and fuel additives.... 378
80 Regulation of fuels and fuel additives...... 474
[[Page 5]]
SUBCHAPTER C--AIR PROGRAMS--(Continued)
PART 72--PERMITS REGULATION--Table of Contents
Subpart A--Acid Rain Program General Provisions
Sec.
72.1 Purpose and scope.
72.2 Definitions.
72.3 Measurements, abbreviations, and acronyms.
72.4 Federal authority.
72.5 State authority.
72.6 Applicability.
72.7 New units exemption.
72.8 Retired units exemption.
72.9 Standard requirements.
72.10 Availability of information.
72.11 Computation of time.
72.12 Administrative appeals.
72.13 Incorporation by reference.
Subpart B--Designated Representative
72.20 Authorization and responsibilities of the designated
representative.
72.21 Submissions.
72.22 Alternate designated representative.
72.23 Changing the designated representative, alternate designated
representative; changes in the owners and operators.
72.24 Certificate of representation.
72.25 Objections.
Subpart C--Acid Rain Permit Applications
72.30 Requirement to apply.
72.31 Information requirements for Acid Rain permit applications.
72.32 Permit application shield and binding effect of permit
application.
72.33 Identification of dispatch system.
Subpart D--Acid Rain Compliance Plan and Compliance Options
72.40 General.
72.41 Phase I substitution plans.
72.42 Phase I extension plans.
72.43 Phase I reduced utilization plans.
72.44 Phase II repowering extensions.
Subpart E--Acid Rain Permit Contents
72.50 General.
72.51 Permit shield.
Subpart F--Federal Acid Rain Permit Issuance Procedures
72.60 General.
72.61 Completeness.
72.62 Draft permit.
72.63 Administrative record.
72.64 Statement of basis.
72.65 Public notice of opportunities for public comment.
72.66 Public comments.
72.67 Opportunity for public hearing.
72.68 Response to comments.
72.69 Issuance and effective date of acid rain permits.
Subpart G--Acid Rain Phase II Implementation
72.70 Relationship to title V operating permit program.
72.71 Approval of state programs--general.
72.72 State permit program approval criteria.
72.73 State issuance of Phase II permits.
72.74 Federal issuance of Phase II permits.
Subpart H--Permit Revisions
72.80 General.
72.81 Permit modifications.
72.82 Fast-track modifications.
72.83 Administrative permit amendment.
72.84 Automatic permit amendment.
72.85 Permit reopenings.
Subpart I--Compliance Certification
72.90 Annual compliance certification report.
72.91 Phase I unit adjusted utilization.
72.92 Phase I unit allowance surrender.
72.93 Units with Phase I extension plans.
72.94 Units with repowering extension plans.
72.95 Allowance deduction formula.
72.96 Administrator's action on compliance certifications.
Appendix A to Part 72--Methodology for Annualization of Emissions Limits
Appendix B to Part 72--Methodology for Conversion of Emissions Limits
Appendix C to Part 72--Actual 1985 Yearly SO2 Emissions
Calculation
Appendix D to Part 72--Calculation of Potential Electric Output Capacity
Authority: 42 U.S.C. 7601, 7651, et seq.
Source: 58 FR 3650, Jan. 11, 1993, unless otherwise noted.
Subpart A--Acid Rain Program General Provisions
Sec. 72.1 Purpose and scope.
(a) Purpose. The purpose of this part is to establish certain
general provisions and the operating permit program requirements for
affected sources and affected units under the Acid Rain
[[Page 6]]
Program, pursuant to title IV of the Clean Air Act, 42 U.S.C. 7401, et
seq., as amended by Public Law 101-549 (November 15, 1990).
(b) Scope. The regulations under this part set forth certain
generally applicable provisions under the Acid Rain Program. The
regulations also set forth requirements for obtaining three types of
Acid Rain permits, during Phases I and II, for which an affected source
may apply: Acid Rain permits issued by the United States Environmental
Protection Agency during Phase I; the Acid Rain portion of an operating
permit issued by a State permitting authority during Phase II; and the
Acid Rain portion of an operating permit issued by EPA when it is the
permitting authority during Phase II. The requirements under this part
supplement, and in some cases modify, the requirements under part 70 of
this chapter and other regulations implementing title V for approving
and implementing State operating permit programs and for federal
issuance of operating permits under title V, as such requirements apply
to affected sources under the Acid Rain Program.
Sec. 72.2 Definitions.
The terms used in this part, in parts 73, 74, 75, 76, 77 and 78 of
this chapter shall have the meanings set forth in the Act, including
sections 302 and 402 of the Act, and in this section as follows:
Account number means the identification number given by the
Administrator to each Allowance Tracking System account pursuant to
Sec. 73.31(d) of this chapter.
Acid Rain compliance option means one of the methods of compliance
used by an affected unit under the Acid Rain Program as described in a
compliance plan submitted and approved in accordance with subpart D of
this part, part 74 of this chapter or part 76 of this chapter.
Acid Rain emissions limitation means:
(1) For the purposes of sulfur dioxide emissions:
(i) The tonnage equivalent of the allowances authorized to be
allocated to an affected unit for use in a calendar year under section
404(a)(1) and (a)(3) of the Act, the basic Phase II allowance
allocations authorized to be allocated to an affected unit for use in a
calendar year, or the allowances authorized to be allocated to an opt-in
source under section 410 of the Act for use in a calendar year;
(ii) As adjusted:
(A) By allowances allocated by the Administrator pursuant to section
403, section 405 (a)(2), (a)(3), (b)(2), (c)(4), (d)(3), and (h)(2), and
section 406 of the Act;
(B) By allowances allocated by the Administrator pursuant to subpart
D of this part; and thereafter
(C) By allowance transfers to or from the compliance subaccount for
that unit that were recorded or properly submitted for recordation by
the allowance transfer deadline as provided in Sec. 73.35 of this
chapter, after deductions and other adjustments are made pursuant to
Sec. 73.34(c) of this chapter; and
(2) For purposes of nitrogen oxides emissions, the applicable
limitation established by regulations promulgated by the Administrator
pursuant to section 407 of the Act, as modified by an Acid Rain permit
application submitted to the permitting authority, and an Acid Rain
permit issued by the permitting authority, in accordance with
regulations implementing section 407 of the Act.
Acid Rain emissions reduction requirement means a requirement under
the Acid Rain Program to reduce the emissions of sulfur dioxide or
nitrogen oxides from a unit to a specified level or by a specified
percentage.
Acid Rain permit or permit means the legally binding written
document, or portion of such document, issued by a permitting authority
under this part (following an opportunity for appeal pursuant to part 78
of this chapter or any State administrative appeals procedure),
including any permit revisions, specifying the Acid Rain Program
requirements applicable to an affected source, to each affected unit at
an affected source, and to the owners and operators and the designated
representative of the affected source or the affected unit.
Acid Rain Program means the national sulfur dioxide and nitrogen
oxides air pollution control and emissions
[[Page 7]]
reduction program established in accordance with title IV of the Act,
this part, and parts 73, 74, 75, 76, 77, and 78 of this chapter.
Act means the Clean Air Act, 42 U.S.C. 7401, et seq. as amended by
Public Law No. 101-549 (November 15, 1990).
Actual SO2 emissions rate means the annual average sulfur
dioxide emissions rate for the unit (expressed in lb/mmBtu), for the
specified calendar year; provided that, if the unit is listed in the
NADB, the ``1985 actual SO2 emissions rate'' for the unit
shall be the rate specified by the Administrator in the NADB under the
data field ``SO2RTE.''
Add-on control means a pollution reduction control technology that
operates independent of the combustion process.
Additional advance auction means the auction of advance allowances
that were offered the previous year for sale in an advance sale.
Administrator means the Administrator of the United States
Environmental Protection Agency or the Administrator's duly authorized
representative.
Advance allowance means an allowance that may be used for purposes
of compliance with a unit's Acid Rain sulfur dioxide emissions
limitation requirements beginning no earlier than seven years following
the year in which the allowance is first offered for sale.
Advance auction means an auction of advance allowances.
Advance sale means a sale of advance allowances.
Affected source means a source that includes one or more affected
units.
Affected unit means a unit that is subject to any Acid Rain
emissions reduction requirement or Acid Rain emissions limitation under
Sec. 72.6 or part 74 of this chapter.
Affiliate shall have the meaning set forth in section 2(a)(11) of
the Public Utility Holding Company Act of 1935, 15 U.S.C. 79b(a)(11), as
of November 15, 1990.
Allocate or allocation means the initial crediting of an allowance
by the Administrator to an Allowance Tracking System unit account or
general account.
Allowable SO2 emissions rate means the most stringent
federally enforceable emissions limitation for sulfur dioxide (in lb/
mmBtu) applicable to the unit or combustion source for the specified
calendar year, or for such subsequent year as determined by the
Administrator where such a limitation does not exist for the specified
year; provided that, if a Phase I or Phase II unit is listed in the
NADB, the ``1985 allowable SO2 emissions rate'' for the Phase
I or Phase II unit shall be the rate specified by the Administrator in
the NADB under the data field ``1985 annualized boiler SO2
emission limit.''
Allowance means an authorization by the Administrator under the Acid
Rain Program to emit up to one ton of sulfur dioxide during or after a
specified calendar year.
Allowance deduction, or deduct when referring to allowances, means
the permanent withdrawal of allowances by the Administrator from an
Allowance Tracking System compliance subaccount, or future year
subaccount, to account for the number of tons of SO2
emissions from an affected unit for the calendar year, for tonnage
emissions estimates calculated for periods of missing data as provided
in part 75 of this chapter, or for any other allowance surrender
obligations of the Acid Rain Program.
Allowances held or hold allowances means the allowances recorded by
the Administrator, or submitted to the Administrator for recordation in
accordance with Sec. 73.50 of this chapter, in an Allowance Tracking
System account.
Allowance reserve means any bank of allowances established by the
Administrator in the Allowance Tracking System pursuant to sections
404(a)(2) (Phase I extension reserve), 404(g) (energy conservation and
renewable energy reserve), or 416(b) (special allowance reserve) of the
Act, and implemented in accordance with part 73, subpart B of this
chapter.
Allowance Tracking System or ATS means the Acid Rain Program system
by which the Administrator allocates, records, deducts, and tracks
allowances.
Allowance Tracking System account means an account in the Allowance
Tracking System established by the
[[Page 8]]
Administrator for purposes of allocating, holding, transferring, and
using allowances.
Allowance transfer deadline means midnight of January 30 or, if
January 30 is not a business day, midnight of the first business day
thereafter and is the deadline by which allowances may be submitted for
recordation in an affected unit's compliance subaccount for the purposes
of meeting the unit's Acid Rain emissions limitation requirements for
sulfur dioxide for the previous calendar year.
Alternative monitoring system means a system or a component of a
system designed to provide direct or indirect data of mass emissions per
time period, pollutant concentrations, or volumetric flow, that is
demonstrated to the Administrator as having the same precision,
reliability, accessibility, and timeliness as the data provided by a
certified CEMS or certified CEMS component in accordance with part 75 of
this chapter.
As-fired means the taking of a fuel sample just prior to its
introduction into the unit for combustion.
Auction subaccount means a subaccount in the Special Allowance
Reserve, as specified in section 416(b) of the Act, which contains
allowances to be sold at auction in the amount of 150,000 per year from
calendar year 1995 through 1999, inclusive, and 200,000 per year for
each year begnning in calendar year 2000, subject to the adjustments
noted in the regulations in part 73, subpart E of this chapter.
Authorized account representative means a responsible natural person
who is authorized, in accordance with part 73 of this chapter, to
transfer and otherwise dispose of allowances held in an Allowance
Tracking System general account; or, in the case of a unit account, the
designated representative of the owners and operators of the affected
unit.
Automated data acquisition and handling system means that component
of the CEMS, COMS, or other emissions monitoring system approved by the
Administrator for use in the Acid Rain Program, designed to interpret
and convert individual output signals from pollutant concentration
monitors, flow monitors, diluent gas monitors, opacity monitors, and
other component parts of the monitoring system to produce a continuous
record of the measured parameters in the measurement units required by
part 75 of this chapter.
Award means the conditional set-aside by the Administrator, based on
the submission of an early ranking application pursuant to subpart D of
this part, of an allowance from the Phase I extension reserve, for
possible future allocation to a Phase I extension applicant's Allowance
Tracking System unit account.
Backup fuel means a fuel for a unit where: (1) For purposes of the
requirements of the monitoring exception of appendix E of part 75 of
this chapter, the fuel provides less than 10.0 percent of the heat input
to a unit during the three calendar years prior to certification testing
for the primary fuel and the fuel provides less than 15.0 percent of the
heat input to a unit in each of those three calendar years; or the
Administrator approves the fuel as a backup fuel; and (2) For all other
purposes under the Acid Rain Program, a fuel that is not the primary
fuel (expressed in mmBtu) consumed by an affected unit for the
applicable calendar year.
Baseline means the annual average quantity of fossil fuel consumed
by a unit, measured in millions of British Thermal Units (expressed in
mmBtu) for calendar years 1985 through 1987; provided that in the event
that a unit is listed in the NADB, the baseline will be calculated for
each unit-generator pair that includes the unit, and the unit's baseline
will be the sum of such unit-generator baselines. The unit-generator
baseline will be as provided in the NADB under the data field
``BASE8587'', as adjusted by the outage hours listed in the NADB under
the data field ``OUTAGEHR'' in accordance with the following equation:
Baseline=BASE8587 x {26280/(26280--OUTAGEHR)} x {36/(36 --months not on
line)} x 106
``Months not on line'' is the number of months during January 1985
through December 1987 prior to the commencement of firing for units that
commenced firing in that period, i.e., the number of months, in that
period, prior
[[Page 9]]
to the on-line month listed under the data field ``BLRMNONL'' and the
on-line year listed in the data field ``BLRYRONL'' in the NADB.
Basic Phase II allowance allocations means:
(1) For calendar years 2000 through 2009 inclusive, allocations of
allowances made by the Administrator pursuant to section 403 and section
405 (b)(1), (3), and (4); (c)(1), (2), (3), and (5); (d)(1), (2), (4),
and (5); (e); (f); (g)(1), (2), (3), (4), and (5); (h)(1); (i); and (j).
(2) For each calendar year beginning in 2010, allocations of
allowances made by the Administrator pursuant to section 403 and section
405 (b)(1), (3), and (4); (c)(1), (2), (3), and (5); (d)(1), (2), (4),
and (5); (e); (f); (g)(1), (2), (3), (4), and (5); (h)(1) and (3); (i);
and (j).
Bias means systematic error, resulting in measurements that will be
either consistently low or high relative to the reference value.
Boiler means an enclosed fossil or other fuel-fired combustion
device used to produce heat and to transfer heat to recirculating water,
steam, or any other medium.
Bypass operating quarter means a calendar quarter during which
emissions pass through a stack, duct or flue that bypasses add-on
emission controls.
By-pass stack means any duct, stack, or conduit through which
emissions from an affected unit may or do pass to the atmosphere, which
either augments or substitutes for the principal stack exhaust system or
ductwork during any portion of the unit's operation.
Calibration error means the difference between:
(1) The response of gaseous monitor to a calibration gas and the
known concentration of the calibration gas;
(2) The response of a flow monitor to a reference signal and the
known value of the reference signal; or
(3) The response of a continuous opacity monitoring system to an
attenuation filter and the known value of the filter after a stated
period of operation during which no unscheduled maintenance, repair, or
adjustment took place.
Calibration gas means: (1) a standard reference material; (2) a NIST
traceable reference material; (3) a Protocol 1 gas; (4) a research gas
material; or (5) zero air material.
Capacity factor means either: (1) the ratio of a unit's actual
annual electric output (expressed in MWe-hr) to the unit's nameplate
capacity times 8760 hours, or (2) the ratio of a unit's annual heat
input (in million British thermal units or equivalent units of measure)
to the unit's maximum design heat input (in million British thermal
units per hour or equivalent units of measure) times 8,760 hours.
CEMS precision or precision as applied to the monitoring
requirements of part 75 of this chapter, means the closeness of a
measurement to the actual measured value expressed as the uncertainty
associated with repeated measurements of the same sample or of different
samples from the same process (e.g., the random error associated with
simultaneous measurements of a process made by more than one
instrument). A measurement technique is determined to have increasing
``precision'' as the variation among the repeated measurements
decreases.
Centroidal area means a representational concentric area that is
geometrically similar to the stack or duct cross section, and is not
greater than 1 percent of the stack or duct cross-sectional area.
Certificate of representation means the completed and signed
submission required by Sec. 72.20, for certifying the appointment of a
designated representative for an affected source or a group of
identified affected sources authorized to represent the owners and
operators of such source(s) and of the affected units at such source(s)
with regard to matters under the Acid Rain Program.
Certifying official, for purposes of part 73 of this chapter, means:
(1) For a corporation, a president, secretary, treasurer, or vice-
president of the corporation in charge of a principal business function,
or any other person who performs similar policy or decision-making
functions for the corporation;
(2) For partnership or sole proprietorship, a general partner or the
proprietor, respectively; and
(3) For a local government entity or State, federal, or other public
agency,
[[Page 10]]
either a principal executive officer or ranking elected official.
Coal means all solid fuels classified as anthracite, bituminous,
subbituminous, or lignite by the American Society for Testing and
Materials Designation ASTM D388-92 ``Standard Classification of Coals by
Rank'' (as incorporated by reference in Sec. 72.13).
Coal-derived fuel means any fuel, whether in a solid, liquid, or
gaseous state, produced by the mechanical, thermal, or chemical
processing of coal (e.g., pulverized coal, coal refuse, liquified or
gasified coal, washed coal, chemically cleaned coal, coal-oil mixtures,
and coke).
Coal-fired means the combustion of fuel consisting of coal or any
coal-derived fuel (except a coal-derived gaseous fuel with a sulfur
content no greater than natural gas), alone or in combination with any
other fuel, where:
(1) For purposes of the requirements of part 75 of this chapter, a
unit is ``coal-fired'' independent of the percentage of coal or coal-
derived fuel consumed in any calendar year (expressed in mmBtu); and
(2) For all other purposes under the Acid Rain Program (including
for calculating allowance allocations pursuant to part 73 of this
chapter and applicability of the requirements of section 407 of the
Act), a unit is ``coal-fired'' if it uses coal or coal-derived fuel as
its primary fuel (expressed in mmBtu); provided that, if the unit is
listed in the NADB, the primary fuel is the fuel listed in the NADB
under the data field ``PRIMFUEL''.
Cogeneration unit means a unit that has equipment used to produce
electric energy and forms of useful thermal energy (such as heat or
steam) for industrial, commercial, heating or cooling purposes, through
the sequential use of energy.
Combustion source means a stationary fossil fuel fired boiler,
turbine, or internal combustion engine that has submitted or intends to
submit an opt-in permit application under Sec. 74.14 of this chapter to
enter the Opt-in Program.
Commence commercial operation means to have begun to generate
electricity for sale, including the sale of test generation.
Commence construction means that an owner or operator has either
undertaken a continuous program of construction or has entered into a
contractual obligation to undertake and complete, within a reasonable
time, a continuous program of construction.
Commence operation means to have begun any mechanical, chemical, or
electronic process, including start-up of an emissions control
technology or emissions monitor or of a unit's combustion chamber.
Common stack means the exhaust of emissions from two or more units
through a single flue.
Compensating unit means an affected unit that is not otherwise
subject to Acid Rain emissions limitation or Acid Rain emissions
reduction requirements during Phase I and that is designated as a Phase
I unit in a reduced utilization plan under Sec. 72.43; provided that an
opt-in source shall not be a compensating unit.
Compliance certification means a submission to the Administrator or
permitting authority, as appropriate, that is required by this part, by
part 73, 74, 75, 76, 77, or 78 of this chapter, to report an affected
source or an affected unit's compliance or non-compliance with a
provision of the Acid Rain Program and that is signed and verified by
the designated representative in accordance with subparts B and I of
this part and the Acid Rain Program regulations generally.
Compliance plan, for the purposes of the Acid Rain Program, means
the document submitted for an affected source in accordance with subpart
C of this part or subpart E of part 74 of this chapter, or part 76 of
this chapter, specifying the method(s) (including one or more Acid Rain
compliance options as provided under subpart D of this part or subpart E
of part 74 of this chapter, or part 76 of this chapter by which each
affected unit at the source will meet the applicable Acid Rain emissions
limitation and Acid Rain emissions reduction requirements.
Compliance subaccount means the subaccount in an affected unit's
Allowance Tracking System account, established pursuant to Sec. 73.31
(a) or (b) of this chapter, in which are held, from the date that
allowances for the current
[[Page 11]]
calendar year are recorded under Sec. 73.34(a) until December 31,
allowances available for use by the unit in the current calendar year
and, after December 31 until the date that deductions are made under
Sec. 73.35(b), allowances available for use by the unit in the preceding
calendar year, for the purpose of meeting the unit's Acid Rain emissions
limitation for sulfur dioxide.
Compliance use date means the first calendar year for which an
allowance may be used for purposes of meeting a unit's Acid Rain
emissions limitation for sulfur dioxide.
Conservation Verification Protocol means a methodology developed by
the Administrator for calculating the kilowatt hour savings from energy
conservation measures and improved unit efficiency measures for the
purposes of title IV of the Act.
Construction means fabrication, erection, or installation of a unit
or any portion of a unit.
Consumer Price Index or CPI means, for purposes of the Acid Rain
Program, the U.S. Department of Labor, Bureau of Labor Statistics
unadjusted Consumer Price Index for All Urban Consumers for the U.S.
city average, for All Items on the latest reference base, or if such
index is no longer published, such other index as the Administrator in
his or her discretion determines meets the requirements of the Clean Air
Act Amendments of 1990.
(1) CPI (1990) means the CPI for all urban consumers for the month
of August 1989. The ``CPI (1990)'' is 124.6 (with 1982-1984=100).
Beginning in the month for which a new reference base is established,
``CPI (1990)'' will be the CPI value for August 1989 on the new
reference base.
(2) CPI (year) means the CPI for all urban consumers for the month
of August of the previous year.
Continuous emission monitoring system or CEMS means the equipment
required by part 75 of this chapter used to sample, analyze, measure,
and provide, by readings taken at least once every 15 minutes, a
permanent record of emissions, expressed in pounds per hour (lb/hr) for
sulfur dioxide and in pounds per million British thermal units (lb/
mmBtu) for nitrogen oxides. The following systems are component parts
included in a continuous emission monitoring system:
(1) Sulfur dioxide pollutant concentration monitor;
(2) Flow monitor;
(3) Nitrogen oxides pollutant concentration monitors;
(4) Diluent gas monitor (oxygen or carbon dioxide);
(5) A continuous moisture monitor when such monitoring is required
by part 75 of this chapter; and
(6) A data acquisition and handling system.
Continuous opacity monitoring system or COMS means the equipment
required by part 75 of this chapter to sample, measure, analyze, and
provide, with readings taken at least once every 6 minutes, a permanent
record of opacity or transmittance. The following systems are component
parts included in a continuous opacity monitoring system:
(1) Opacity monitor; and
(2) A data acquisition and handling system.
Control unit means a unit employing a qualifying Phase I technology
in accordance with a Phase I extension plan under Sec. 72.42.
Current year subaccount means the subaccount in an Allowance
Tracking System general account, established pursuant to Sec. 73.31(c)
of this chapter, in which are held allowances that may be transferred to
a unit's compliance subaccount for use by the unit for the purpose of
meeting its Acid Rain sulfur dioxide emissions limitation.
Customer means a purchaser of electricity not for purposes of
transmission or resale.
Decisional body means any EPA employee who is or may reasonably be
expected to act in a decision-making role in a proceeding under part 78
of this chapter, including the Administrator, a member of the
Environmental Appeals Board, and a Presiding Officer, and any staff of
any such person who are participating in the decisional process.
Demand-side measure means a measure:
(1) To improve the efficiency of consumption of electricity from a
utility by customers of the utility; or
(2) To reduce the amount of consumption of electricity from a
utility by
[[Page 12]]
customers of the utility without increasing the use by the customer of
fuel other than: Biomass (i.e., combustible energy-producing materials
from biological sources, which include wood, plant residues, biological
wastes, landfill gas, energy crops, and eligible components of municipal
solid waste), solar, geothermal, or wind resources; or industrial waste
gases where the party making the submission involved certifies that
there is no net increase in sulfur dioxide emissions from the use of
such gases. ``Demand-side measure'' includes the measures listed in part
73, appendix A, section 1 of this chapter.
Designated representative means a responsible natural person
authorized by the owners and operators of an affected source and of all
affected units at the source or by the owners and operators of a
combustion source or process source, as evidenced by a certificate of
representation submitted in accordance with subpart B of this part, to
represent and legally bind each owner and operator, as a matter of
federal law, in matters pertaining to the Acid Rain Program. Whenever
the term ``responsible official'' is used in part 70 of this chapter, in
any other regulations implementing title V of the Act, or in a State
operating permit program, it shall be deemed to refer to the
``designated representative'' with regard to all matters under the Acid
Rain Program.
Desulfurization refers to various procedures whereby sulfur is
removed from petroleum during or apart from the refining process.
``Desulfurization'' does not include such processes as dilution or
blending of low sulfur content diesel fuel with high sulfur content
diesel fuel from a diesel refinery not eligible under 40 CFR part 73,
subpart G.
Diesel-fired unit means, for the purposes of part 75 of this
chapter, an oil-fired unit that combusts diesel fuel as its fuel oil,
where the supplementary fuel, if any, shall be limited to natural gas or
gaseous fuels containing no more sulfur than natural gas.
Diesel fuel means a low sulfur fuel oil of grades 1-D or 2-D, as
defined by the American Society for Testing and Materials standard ASTM
D975-91, ``Standard Specification for Diesel Fuel Oils,'' grades 1-GT or
2-GT, as defined by ASTM D2880-90a, ``Standard Specification for Gas
Turbine Fuel Oils,'' or grades 1 or 2, as defined by ASTM D396-90,
``Standard Specification for Fuel Oils'' (incorporated by reference in
Sec. 72.13).
Diesel reciprocating engine unit means an internal combustion engine
that combusts only diesel fuel and that thereby generates electricity
through the operation of pistons, rather than by heating steam or water.
Diluent gas means a major gaseous constituent in a gaseous pollutant
mixture, which in the case of emissions from fossil fuel-fired units are
carbon dioxide and oxygen.
Diluent gas monitor means that component of the continuous emission
monitoring system that measures the diluent gas concentration in a
unit's flue gas.
Direct public utility ownership means direct ownership of equipment
and facilities by one or more corporations, the principal business of
which is sale of electricity to the public at retail. Percentage
ownership of such equipment and facilities shall be measured on the
basis of book value.
Direct Sale Subaccount means a subaccount in the Special Allowance
Reserve, as specified in section 416(b) of the Act, which contains Phase
II allowances to be sold in the amount of 25,000 per year, from calendar
year 1993 to 1999, inclusive, and of 50,000 per year for each year
beginning in calendar year 2000, subject to the adjustments noted in the
regulations at part 73, subpart E of this chapter.
Dispatch means the assignment within a dispatch system of generating
levels to specific units and generators to effect the reliable and
economical supply of electricity, as customer demand rises or falls, and
includes:
(1) The operation of high-voltage lines, substations, and related
equipment; and
(2) The scheduling of generation for the purpose of supplying
electricity to other utilities over interconnecting transmission lines.
Dispatch system means either:
(1) A specified unit and generator or specified group of units, and
portions of
[[Page 13]]
units, and generators that are interconnected and centrally dispatched,
provided that the requirements of Sec. 72.33 are met; or
(2) In the event the requirements specified in paragraph (1) of this
definition are not met, the unit and generator or group of units and
generators that make up one utility system.
Draft Acid Rain permit or draft permit means the version of the Acid
Rain permit, or the Acid Rain portion of an operating permit, that a
permitting authority offers for public comment.
Dual-fuel reciprocating engine unit means an internal combustion
engine that combusts any combination of natural gas and diesel fuel and
that thereby generates electricity through the operation of pistons,
rather than by heating steam or water.
Emergency fuel means either:
(1) For purposes of the requirements for a fuel flowmeter used in an
excepted monitoring system under appendix D or E of part 75 of this
chapter, the fuel identified by the designated representative in the
unit's monitoring plan as the fuel which is combusted only during
emergencies where the primary fuel is not available; or
(2) For purposes of the requirement for stack testing for an
excepted monitoring system under appendix E of part 75 of this chapter,
the fuel identified in the State, local, or Federal permit for a plant
and is identified by the designated representative in the unit's
monitoring plan as the fuel which is combusted only during emergencies
where the primary fuel is not available, as established in a petition
under Sec. 75.66 of this chapter.
Emissions means air pollutants exhausted from a unit or source into
the atmosphere, as measured, recorded, and reported to the Administrator
by the designated representative and as determined by the Administrator,
in accordance with the emissions monitoring requirements of part 75 of
this chapter.
Environmental Appeals Board means the three-member board established
pursuant to Sec. 1.25(e) of this chapter and authorized to hear appeals
pursuant to part 78 of this chapter.
EPA means the United States Environmental Protection Agency.
EPA trial staff means an employee of EPA, whether temporary or
permanent, who has been designated by the Administrator to investigate,
litigate, and present evidence, arguments, and positions of EPA in any
evidentiary hearing under part 78 of this chapter. Any EPA or permitting
authority employee, consultant, or contractor who is called as a witness
in the evidentiary hearing by EPA trial staff shall be deemed to be
``EPA trial staff''.
Equivalent diameter means a value, calculated using the equation in
paragraph 2.1 of Method 1 in part 60, Appendix A of this chapter, and
used to determine the upstream and downstream distances for locating
CEMS or CEMS components in flues or stacks with rectangular cross
sections.
Ex parte communication means any communication, written or oral,
relating to the merits of an adjudicatory proceeding under part 78 of
this chapter, that was not originally included or stated in the
administrative record, in a pleading, or in an evidentiary hearing or
oral argument under part 78 of this chapter, between the decisional body
and any interested person outside EPA or any EPA trial staff. Ex parte
communication shall not include:
(1) Communication between EPA employees other than between EPA trial
staff and a member of the decisional body; or
(2) Communication between the decisional body and interested persons
outside the Agency, or EPA trial staff, where all parties to the
proceeding have received prior written notice of the proposed
communication and are given an opportunity to be present and to
participate therein.
Excepted monitoring system means a monitoring system that follows
the procedures and requirements of appendix D or E of part 75 of this
chapter for approved exceptions to the use of continuous emission
monitoring systems.
Excess emissions means:
(1) Any tonnage of sulfur dioxide emitted by an affected unit during
a calendar year that exceeds the Acid Rain emissions limitation for
sulfur dioxide for the unit; and
(2) Any tonnage of nitrogen oxide emitted by an affected unit during
a calendar year that exceeds the annual
[[Page 14]]
tonnage equivalent of the Acid Rain emissions limitation for nitrogen
oxides applicable to the affected unit taking into account the unit's
heat input for the year.
Existing unit means a unit (including a unit subject to section 111
of the Act) that commenced commercial operation before November 15, 1990
and that on or after November 15, 1990 served a generator with nameplate
capacity of greater than 25 MWe. ``Existing unit'' does not include
simple combustion turbines or any unit that on or after November 15,
1990 served only generators with a nameplate capacity of 25 MWe or less.
Any ``existing unit'' that is modified, reconstructed, or repowered
after November 15, 1990 shall continue to be an ``existing unit.''
Facility means any institutional, commercial, or industrial
structure, installation, plant, source, or building.
File means to send or transmit a document, information, or
correspondence to the official custody of the person specified to take
possession in accordance with the applicable regulation. Compliance with
any ``filing'' deadline shall be determined by the date that person
receives the document, information, or correspondence.
Flow meter accuracy means the closeness of the measurement made by a
flow meter to the reference value of the fuel flow being measured,
expressed as the difference between the measurement and the reference
value.
Flow monitor means a component of the continuous emission monitoring
system that measures the volumetric flow of exhaust gas.
Flue means a conduit or duct through which gases or other matter are
exhausted to the atmosphere.
Flue gas desulfurization system means a type of add-on emission
control used to remove sulfur dioxide from flue gas, commonly referred
to as a ``scrubber.''
Forced outage means the removal of a unit from service due to an
unplanned component failure or other unplanned condition that requires
such removal immediately or within 7 days from the onset of the
unplanned component failure or condition. For purposes of Secs. 72.43,
72.91, and 72.92, ``forced outage'' also includes a partial reduction in
the heat input or electrical output due to an unplanned component
failure or other unplanned condition that requires such reduction
immediately or within 7 days from the onset of the unplanned component
failure or condition.
Fossil fuel means natural gas, petroleum, coal, or any form of
solid, liquid, or gaseous fuel derived from such material.
Fossil fuel-fired means the combustion of fossil fuel or any
derivative of fossil fuel, alone or in combination with any other fuel,
independent of the percentage of fossil fuel consumed in any calendar
year (expressed in mmBtu).
Fuel oil means any petroleum-based fuel (including diesel fuel or
petroleum derivatives such as oil tar) as defined by the American
Society for Testing and Materials in ASTM D396-90a, ``Standard
Specification for Fuel Oils'' (incorporated by reference in Sec. 72.13),
and any recycled or blended petroleum products or petroleum by-products
used as a fuel whether in a liquid, solid or gaseous state; provided
that for purposes of the monitoring requirements of part 75 of this
chapter, ``fuel oil'' shall be limited to the petroleum-based fuels for
which applicable ASTM methods are specified in Appendices D, E, or F of
part 75 of this chapter.
Fuel supply agreement means a legally binding agreement between a
new IPP or a firm associated with a new IPP and a fuel supplier that
establishes the terms and conditions under which the fuel supplier
commits to provide fuel to be delivered to the new IPP.
Future year subaccount means a subaccount in an Allowance Tracking
System account, established by the Administrator pursuant to Sec. 73.31
of this chapter, in which allowances are held for one of the 30 years
following the later of 1995 or a current calendar year following 1995.
Gas-fired means:
(1) The combustion of:
(i) Natural gas or other gaseous fuel (including coal-derived
gaseous fuel), for at least 90.0 percent of the unit's average annual
heat input during the previous three calendar years and for at least
85.0 percent of the annual heat input in each of those calendar years;
and
[[Page 15]]
(ii) Any fuel other than coal or coal-derived fuel (other than coal-
derived gaseous fuel) for the remaining heat input, if any; provided
that for purposes of part 75 of this chapter, any fuel used other than
natural gas, shall be limited to:
(A) Gaseous fuels containing no more sulfur than natural gas; or
(B) Fuel oil.
(2) For purposes of part 75 of this chapter, a unit may initially
qualify as gas-fired under the following circumstances:
(i) If the designated representative provides fuel usage data for
the unit for the three calendar years immediately prior to submission of
the monitoring plan, and if the unit's fuel usage is projected to change
on or before January 1, 1995, the designated representative submits a
demonstration satisfactory to the Administrator that the unit will
qualify as gas-fired under the first sentence of this definition using
the years 1995 through 1997 as the three calendar year period; or
(ii) If a unit does not have fuel usage data for one or more of the
three calendar years immediately prior to submission of the monitoring
plan, the designated representative submits:
(A) The unit's designed fuel usage;
(B) Any fuel usage data, beginning with the unit's first calendar
year of commercial operation following 1992;
(C) The unit's projected fuel usage for any remaining future period
needed to provide fuel usage data for three consecutive calendar years;
and
(D) Demonstration satisfactory to the Administrator that the unit
will qualify as gas-fired under the first sentence of this definition
using those three consecutive calendar years as the three calendar year
period.
Gaseous fuel means a material that is in the gaseous state at
standard atmospheric temperature and pressure conditions and that is
combusted to produce heat.
General account means an Allowance Tracking System account that is
not a unit account.
Generator means a device that produces electricity and was or would
have been required to be reported as a generating unit pursuant to the
United States Department of Energy Form 860 (1990 edition).
Generator Output capacity means the full-load continuous rating of a
generator under specific conditions as designed by the manufacturer.
Hearing clerk means an EPA employee designated by the Administrator
to establish a repository for all books, records, documents, and other
materials relating to proceedings under part 78 of this chapter.
Heat input means the product (expressed in mmBtu/time) of the gross
calorific value of the fuel (expressed in Btu/lb) and the fuel feed rate
into the combustion device (expressed in mass of fuel/time) and does not
include the heat derived from preheated combustion air, recirculated
flue gases, or exhaust from other sources.
Hour before and after means, for purposes of the missing data
substitution procedures of part 75 of this chapter, the quality-assured
hourly SO2 or CO2 concentration, hourly flow rate,
or hourly NOX emission rate recorded by a certified monitor
during the unit operating hour immediately before and the unit operating
hour immediately after a missing data period.
Hybrid generation facility means a plant that generates electrical
energy derived from a combination of qualified renewable energy (wind,
solar, biomass, or geothermal) and one or more other energy resources.
Independent auditor means a professional engineer who is not an
employee or agent of the source being audited.
Independent Power Production Facility (IPP) means a source that:
(1) Is nonrecourse project financed, as defined by the Secretary of
Energy at 10 CFR part 715;
(2) Is used for the generation of electricity, eighty percent or
more of which is sold at wholesale; and
(3) Is a new unit required to hold allowances under Title IV of the
Clean Air Act; but only if direct public utility ownership of the
equipment comprising the facility does not exceed 50 percent.
Interested person means any person who submitted written comments or
testified at a public hearing on the draft permit or other matter
subject to notice and comment under the Acid
[[Page 16]]
Rain Program or any person who submitted his or her name to the
Administrator or the permitting authority, as appropriate, to be placed
on a list of persons interested in such matter. The Administrator or the
permitting authority may update the list of interested persons from time
to time by requesting additional written indication of continued
interest from the persons listed and may delete from the list the name
of any person failing to respond as requested.
Investor-owned utility means a utility that is organized as a tax-
paying for-profit business.
Kilowatthour saved or savings means the net savings in electricity
use (expressed in Kwh) that result directly from a utility's energy
conservation measures or programs.
Least-cost plan or least-cost planning process means an energy
conservation and electric power planning methodology meeting the
requirements of Sec. 73.82(a)(4) of this chapter.
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 generating 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
was 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.
Mail or serve by mail means to submit or serve by means other than
personal service.
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, 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.
Missing data period means the total number of consecutive hours
during which any component part of a certified CEMS or approved
alternative monitoring system is not providing quality-assured data,
regardless of the reason.
Monitor accuracy means the closeness of the measurement made by a
CEMS or by one of its component parts to the reference value of the
emissions or volumetric flow being measured, expressed as the difference
between the measurement and the reference value.
Monitor operating hour means any unit operating hour or portion
thereof over which a CEMS, or other monitoring system approved by the
Administrator under part 75 of this chapter is operating, regardless of
the number of measurements (i.e., data points) collected during the hour
or portion of an hour.
Most stringent federally enforceable emissions limitation means the
most stringent emissions limitation for a given pollutant applicable to
the unit, which has been approved by the Administrator under the Act,
whether in a State implementation plan approved pursuant to title I of
the Act, a new source performance standard, or otherwise. To determine
the most stringent emissions limitation for sulfur dioxide, each
limitation shall be converted to lbs/mmBtu, using the appropriate
conversion factors in appendix B of this part; provided that for
determining the most stringent emissions limitation for sulfur dioxide
for 1985, each limitation shall also be annualized, using the
appropriate annualization factors in appendix A of this part.
Multi-header generator means a generator served by ductwork from
more than one unit.
Multi-header unit means a unit with ductwork serving more than one
generator.
[[Page 17]]
Nameplate capacity means the maximum electrical generating output
(expressed in MWe) that a generator can sustain over a specified period
of time when not restricted by seasonal or other deratings, as listed in
the NADB under the data field ``NAMECAP'' if the generator is listed in
the NADB or as measured in accordance with the United States Department
of Energy standards if the generator is not listed in the NADB.
National Allowance Data Base or NADB means the data base established
by the Administrator under section 402(4)(C) of the Act.
Natural gas means a naturally occurring fluid mixture of
hydrocarbons (e.g., methane, ethane, or propane) containing 1 grain or
less hydrogen sulfide per 100 standard cubic feet, and 20 grains or less
total sulfur per 100 standard cubic feet), produced in geological
formations beneath the Earth's surface, and maintaining a gaseous state
at standard atmospheric temperature and pressure under ordinary
conditions.
NERC region means the North American Electric Reliability Council
region or, if any, subregion.
Net income neutrality means, in the case of energy conservation
measures undertaken by an investor-owned utility whose rates are
regulated by a State utility regulatory authority, rates and charges
established by the State utility regulatory authority that ensure that
the net income earned by the utility on its State-jurisdictional equity
investment will be no lower as a consequence of its expenditures on
cost-effective qualified energy conservation measures and any associated
lost sales than it would have been had the utility not made such
expenditures, or that the State utility regulatory authority has
implemented a ratemaking approach designed to meet this objective.
New independent power production facility or new IPP means a unit
that:
(1) Commences commercial operation on or after November 15, 1990;
(2) Is nonrecourse project-financed, as defined in 10 CFR part 715;
(3) Sells 80% of electricity generated at wholesale; and
(4) Does not sell electricity to any affiliate or, if it does,
demonstrates it cannot obtain the required allowances from such an
affiliate.
New unit means a unit that commences commercial operation on or
after November 15, 1990, including any such unit that serves a generator
with a nameplate capacity of 25 MWe or less or that is a simple
combustion turbine.
Ninetieth (90th) percentile means a value that would divide an
ordered set of increasing values so that at least 90 percent are less
than or equal to the value and at least 10 percent are greater than or
equal to the value.
Ninety-fifth (95th) percentile means a value that would divide an
ordered set of increasing values so that at least 95 percent of the set
are less than or equal to the value and at least 5 percent are greater
than or equal to the value.
NIST/EPA-approved certified reference material or NIST/EPA-approved
CRM means a calibration gas mixture that has been approved by EPA and
the National Institutes of Standards and Technologies (NIST) as having
specific known chemical or physical property values certified by a
technically valid procedure as evidenced by a certificate or other
documentation issued by a certifying standard-setting body.
NIST traceable reference material (NTRM) means a calibration gas
mixture tested by and certified by the National Institutes of Standards
and Technologies (NIST) to have a certain specified concentration of
gases. NTRMs may have different concentrations from those of standard
reference materials.
Offset plan means a plan pursuant to part 77 of this chapter for
offsetting excess emissions of sulfur dioxide that have occurred at an
affected unit in any calendar year.
Oil-fired means:
(1) The combustion of:
(i) Fuel oil for more than 10.0 percent of the average annual heat
input during the previous three calendar years or for more than 15.0
percent of the annual heat input during any one of those calendar years;
and
(ii) Any solid, liquid, or gaseous fuel (including coal-derived
gaseous fuel), other than coal or any other coal derived fuel, for the
remaining heat
[[Page 18]]
input, if any; provided that for purposes of part 75 of this chapter,
any fuel used other than fuel oil shall be limited to gaseous fuels
containing no more sulfur than natural gas.
(2) For purposes of part 75 of this chapter, a unit that does not
have fuel usage data for one or more of the three calendar years
immediately prior to submission of the monitoring plan may initially
qualify as oil-fired under the following circumstances: the designated
representative submits:
(i) Unit design fuel usage,
(ii) The unit's designed fuel usage,
(iii) Any fuel usage data, beginning with the unit's first calendar
year of commercial operation following 1992,
(iv) The unit's projected fuel usage for any remaining future period
needed to provide fuel usage data for three consecutive calendar years,
and
(v) A demonstration satisfactory to the Administrator that the unit
will qualify as oil-fired under the first sentence of this definition
using those three consecutive calendar years as the three calendar year
period.
Opacity means the degree to which emissions reduce the transmission
of light and obscure the view of an object in the background.
Operating when referring to a combustion or process source seeking
entry into the Opt-in Program, means that the source had documented
consumption of fuel input for more than 876 hours in the 6 months
immediately preceding the submission of a combustion source's opt-in
application under Sec. 74.16(a) of this chapter.
Operating permit means a permit issued under part 70 of this chapter
and any other regulations implementing title V of the Act.
Opt in or opt into means to elect to become an affected unit under
the Acid Rain Program through the issuance of the final effective opt-in
permit under Sec. 74.14 of this chapter.
Opt-in permit means the legally binding written document that is
contained within the Acid Rain permit and sets forth the requirements
under part 74 of this chapter for a combustion source or a process
source that opts into the Acid Rain Program.
Opt-in source means a combustion source or process source that has
elected to become an affected unit under the Acid Rain Program and whose
opt-in permit has been issued and is in effect.
Out-of-control period means any period:
(1) Beginning with the hour corresponding to the completion of a
daily calibration error, linearity check, or quality assurance audit
that indicates that the instrument is not measuring and recording within
the applicable performance specifications; and
(2) Ending with the hour corresponding to the completion of an
additional calibration error, linearity check, or quality assurance
audit following corrective action that demonstrates that the instrument
is measuring and recording within the applicable performance
specifications.
Oversubscription payment deadline means 30 calendar days prior to
the allowance transfer deadline.
Owner means any of the following persons:
(1) Any holder of any portion of the legal or equitable title in an
affected unit or in a combustion source or process source; or
(2) Any holder of a leasehold interest in an affected unit or in a
combustion source or process source; or
(3) Any purchaser of power from an affected unit or from a
combustion source or process source under a life-of-the-unit, firm power
contractual arrangement as the term is defined herein and used in
section 408(i) of the Act. 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 affected unit; or
(4) With respect to any Allowance Tracking System general account,
any person identified in the submission required by Sec. 73.31(c) of
this chapter that is subject to the binding agreement for the authorized
account representative to represent that person's ownership interest
with respect to allowances.
Owner or operator means any person who is an owner or who operates,
controls, or supervises an affected unit, affected source, combustion
source, or process source and shall include, but
[[Page 19]]
not be limited to, any holding company, utility system, or plant manager
of an affected unit, affected source, combustion source, or process
source.
Ozone nonattainment area means an area designated as a nonattainment
area for ozone under subpart C of part 81 of this chapter.
Ozone transport region means the ozone transport region designated
under Section 184 of the Act.
Peaking unit means:
(1) A unit that has:
(i) An average capacity factor of no more than 10.0 percent during
the previous three calendar years and
(ii) A capacity factor of no more than 20.0 percent in each of those
calendar years.
(2) For purposes of part 75 of this chapter, a unit may initially
qualify as a peaking unit under the following circumstances:
(i) If the designated representative provides capacity factor data
for the unit for the three calendar years immediately prior to
submission of the monitoring plan and if the unit's capacity factor is
projected to change on or before the certification deadline for
NOX monitoring in Sec. 75.4 of this chapter, the designated
representative submits a demonstration satisfactory to the Administrator
that the unit will qualify as a peaking unit under the first sentence of
this definition using the three calendar years beginning with the year
of the certification deadline for NOX monitoring in Sec. 75.4
of this chapter (either 1995 or 1996) as the three year period; or
(ii) If the unit does not have capacity factor data for any one or
more of the three calendar years immediately prior to submission of the
monitoring plan, the designated representative submits:
(A) Any capacity factor data, beginning with the unit's first
calendar year of commercial operation following the first year of the
three calendar years immediately prior to the certification deadline for
NOX monitoring in Sec. 75.4 of this chapter (either 1992 or
1993),
(B) Capacity factor information for the unit for any remaining
future period needed to provide capacity factor data for three
consecutive calendar years, and
(C) A demonstration satisfactory to the Administrator that the unit
will qualify as a peaking unit under the first sentence of this
definition using the three consecutive calendar years specified in (2)
(ii) (A) and (B) as the three calendar year period.
Permit revision means a permit modification, fast track
modification, administrative permit amendment, or automatic permit
amendment, as provided in subpart H of this part.
Permitting authority means either:
(1) The Administrator in the case of issuance and administration of
Acid Rain permits; or
(2) The State air pollution control agency, local agency, other
State agency, or other agency authorized by the Administrator to issue
proposed Acid Rain permits under subpart G of this part and the other
regulations promulgated pursuant to titles IV and V of the Act.
Person includes an individual, corporation, partnership,
association, State, municipality, political subdivision of a State, any
agency, department, or instrumentality of the United States, and any
officer, agent, or employee thereof.
Phase I means the Acid Rain Program period beginning January 1, 1995
and ending December 31, 1999.
Phase I unit means any affected unit, except an affected unit under
part 74 of this chapter, that is subject to an Acid Rain emissions
reduction requirement or Acid Rain emissions limitations beginning in
Phase I.
Phase II means the Acid Rain Program period beginning January 1,
2000, and continuing into the future thereafter.
Phase II unit means any affected unit, except an affected unit under
part 74 of this chapter, that is subject to an Acid Rain emissions
reduction requirement or Acid Rain emissions limitation during Phase II
only.
Pipeline natural gas means natural gas that is provided by a
supplier through a pipeline.
Pollutant concentration monitor means that component of the
continuous emission monitoring system that measures the concentration of
a pollutant in a unit's flue gas.
[[Page 20]]
Potential electrical output capacity means the MWe capacity rating
for the units which shall be equal to 33 percent of the maximum design
heat input capacity of the steam generating unit, as calculated
according to appendix D of part 72.
Power distribution system means the portion of an electricity grid
owned or operated by a utility that is dedicated to delivering electric
energy to customers.
Power purchase commitment means a commitment or obligation of a
utility to purchase electric power from a facility pursuant to:
(1) A power sales agreement;
(2) A state regulatory authority order requiring a utility to:
(i) Enter into a power sales agreement with the facility;
(ii) Purchase from the facility; or
(iii) Enter into arbitration concerning the facility for the purpose
of establishing terms and conditions of the utility's purchase of power;
(3) A letter of intent or similar instrument committing to purchase
power (actual electrical output or generator output capacity) from the
source at a previously offered or lower price and a power sales
agreement applicable to the source is executed within the time frame
established by the terms of the letter of intent but no later than
November 15, 1992 or, where the letter of intent does not specify a
timeframe, a power sales agreement applicable to the source is executed
on or before November 15, 1992; or
(4) A utility competitive bid solicitation that has resulted in the
selection of the qualifying facility or independent power production
facility as the winning bidder.
Power sales agreement is a legally binding agreement between a QF,
IPP, new IPP, or firm associated with such facility and a regulated
electric utility that establishes the terms and conditions for the sale
of power from the facility to the utility.
Presiding Officer means an Administrative Law Judge appointed under
5 U.S.C. 3105 and designated to preside at a hearing in an appeal under
part 78 of this chapter or an EPA lawyer designated to preside at any
such hearing under Sec. 78.6(b)(3)(ii) of this chapter.
Primary fuel or primary fuel supply means the main fuel type
(expressed in mmBtu) consumed by an affected unit for the applicable
calendar year.
Proposed Acid Rain permit or proposed permit means, in the case of a
State operating permit program, the version of an Acid Rain permit that
the permitting authority submits to the Administrator after the public
comment period, but prior to completion of the EPA permit review period,
as provided for in part 70 of this chapter.
Protocol 1 gas means a calibration gas mixture prepared and analyzed
according to the ``Procedure for NBS-Traceable Certification of
Compressed Gas Working Standards Used for Calibration and Audit of
Continuous Emission Monitors (``Revised Traceability Protocol No.
1''),'' Quality Assurance Handbook for Air Pollution Measurement
Systems, Volume III, Stationary Source Specific Methods, Section 3.04,
EPA-600/4-77-027b, June 1987 (set forth in Appendix H of part 75 of this
chapter) or such revised procedure as approved by the Administrator.
Qualifying facility (QF) means a ``qualifying small power production
facility'' within the meaning of section 3(17)(C) of the Federal Power
Act or a ``qualifying cogeneration facility'' within the meaning of
section 3(18)(B) of the Federal Power Act.
Qualifying Phase I technology means a technological system of
continuous emission reduction that is demonstrated to achieve a ninety
(90) percent (or greater) reduction in emissions of sulfur dioxide from
the emissions that would have resulted from the use of fossil fuels that
were not subject to treatment prior to combustion, as provided in
Sec. 72.42.
Qualifying power purchase commitment means a power purchase
commitment in effect as of November 15, 1990 without regard to changes
to that commitment so long as:
(1) The identity of the electric output purchaser; or
(2) The identity of the steam purchaser and the location of the
facility, remain unchanged as of the date the facility commences
commercial operation; and
(3) The terms and conditions of the power purchase commitment are
not
[[Page 21]]
changed in such a way as to allow the costs of compliance with the Acid
Rain Program to be shifted to the purchaser.
Qualifying repowering technology means:
(1) Replacement of an existing coal-fired boiler with one of the
following clean coal technologies: Atmospheric or pressurized fluidized
bed combustion, integrated gasification combined cycle,
magnetohydrodynamics, direct and indirect coal-fired turbines,
integrated gasification fuel cells, or as determined by the
Administrator, in consultation with the Secretary of Energy, a
derivative of one or more of these technologies, and any other
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 the date of enactment of
the Clean Air Act Amendments of 1990; or
(2) Any oil- or gas-fired unit that has been awarded clean coal
technology demonstration funding as of January 1, 1991, by the
Department of Energy.
Quality-assured monitor operating hour means any unit operating hour
or portion thereof over which a certified CEMS, or other monitoring
system approved by the Administrator under part 75 of this chapter, is
operating:
(1) Within the performance specifications set forth in part 75,
appendix A of this chapter and the quality assurance/quality control
procedures set forth in part 75, appendix B of this chapter, without
unscheduled maintenance, repair, or adjustment; and
(2) In accordance with Sec. 75.10(d), (e), and (f) of this chapter.
Receive or receipt of means the date the Administrator or a
permitting authority comes into possession of 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 information or correspondence, by the Administrator
or the permitting authority in the regular course of business.
Recordation, record, or recorded means, with regard to allowances,
the transfer of allowances by the Administrator from one Allowance
Tracking System account or subaccount to another.
Reduced utilization means a reduction, during any calendar year in
Phase I, in the heat input (expressed in mmBtu for the calendar year) at
a Phase I unit below the unit's baseline, where such reduction subjects
the unit to the requirement to submit a reduced utilization plan under
Sec. 72.43; or, in the case of an opt-in source, means a reduction in
the average utilization, as specified in Sec. 74.44 of this chapter, of
an opt-in source below the opt-in source's baseline.
Reference method means any direct test method of sampling and
analyzing for an air pollutant as specified in part 60, appendix A of
this chapter.
Reference value or reference signal means the known concentration of
a calibration gas, the known value of an electronic calibration signal,
or the known value of any other measurement standard approved by the
Administrator, assumed to be the true value for the pollutant or diluent
concentration or volumetric flow being measured.
Relative accuracy means a statistic designed to provide a measure of
the systematic and random errors associated with data from continuous
emission monitoring systems, and is expressed as the absolute mean
difference between the pollutant concentration or volumetric flow
measured by the pollutant concentration or flow monitor and the value
determined by the applicable reference method(s) plus the 2.5 percent
error confidence coefficient of a series of tests divided by the mean of
the reference method tests in accordance with part 75 of this chapter.
Replacement unit means an affected unit replacing the thermal energy
provided by an opt-in source, where both the affected unit and the opt-
in source are governed by a thermal energy plan.
Research gas material (RGM) means a calibration gas mixture
developed by agreement of a requestor and the National Institutes for
Standards and Technologies (NIST) that NIST analyzes and certifies as
``NIST traceable.'' RGMs may have concentrations different from those of
standard reference materials.
[[Page 22]]
Schedule of compliance means an enforceable sequence of actions,
measures, or operations designed to achieve or maintain compliance, or
correct non-compliance, with an applicable requirement of the Acid Rain
Program, including any applicable Acid Rain permit requirement.
Secretary of Energy means the Secretary of the United States
Department of Energy or the Secretary's duly authorized representative.
Serial number means, when referring to allowances, the unique
identification number assigned to each allowance by the Administrator,
pursuant to Sec. 73.34(d) of this chapter.
Simple combustion turbine means a unit that is a rotary engine
driven by a gas under pressure that is created by the combustion of any
fuel. This term includes combined cycle units without auxiliary firing.
This term excludes combined cycle units with auxiliary firing, unless
the unit did not use the auxiliary firing from 1985 through 1987 and
does not use auxiliary firing at any time after November 15, 1990.
Site lease, as used in part 73, subpart E of this chapter, means a
legally-binding agreement signed between a new IPP or a firm associated
with a new IPP and a site owner that establishes the terms and
conditions under which the new IPP or the firm associated with the new
IPP has the binding right to utilize a specific site for the purposes of
operating or constructing the new IPP.
Small diesel refinery means a domestic motor diesel fuel refinery or
portion of a refinery that, as an annual average of calendar years 1988
through 1990 and as reported to the Department of Energy on Form 810,
had bona fide crude oil throughput less than 18,250,000 barrels per
year, and the refinery or portion of a refinery is owned or controlled
by a refiner with a total combined bona fide crude oil throughput of
less than 50,187,500 barrels per year.
Solid waste incinerator means a source as defined in section
129(g)(1) of the Act.
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
Act. For purposes of section 502(c) of the Act, a ``source'', including
a ``source'' with multiple units, shall be considered a single
``facility.''
Span means the range of values that a monitor component is required
to be capable of measuring under part 75 of this chapter.
Spot allowance means an allowance that may be used for purposes of
compliance with a unit's Acid Rain sulfur dioxide emissions limitation
requirements beginning in the year in which the allowance is offered for
sale.
Spot auction means an auction of a spot allowance.
Spot sale means a sale of a spot allowance.
Stack means a structure that includes one or more flues and the
housing for the flues.
Standard conditions means 68 deg.F at 1 atm (29.92 in. of mercury).
Standard reference material or SRM means a calibration gas mixture
issued and certified by NIST as having specific known chemical or
physical property values.
State means one of the 48 contiguous States and the District of
Columbia and includes any non-federal authorities, including local
agencies, interstate associations, and State-wide agencies with approved
State operating permit programs. The term ``State'' shall have its
conventional meaning where such meaning is clear from the context.
State operating permit program means an operating permit program
that the Administrator has approved as meeting the requirements of
titles IV and V of the Act, part 70 of this chapter, and this part,
including subpart G of this part.
Stationary gas turbine means a turbine that is not self-propelled
and that combusts natural gas, other gaseous fuel with a sulfur content
no greater than natural gas, or fuel oil in order to heat inlet
combustion air and thereby turn a turbine, in addition to or instead of
producing steam or heating water.
Steam sales agreement is a legally binding agreement between a QF,
IPP, new IPP, or firm associated with such facility and an industrial or
commercial establishment requiring steam
[[Page 23]]
that establishes the terms and conditions under which the facility will
supply steam to the establishment.
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 certified mail with the official
postmark or, if service is by the Administrator or the permitting
authority, by any other mail service by the United States Postal
Service; or
(3) By other means with an equivalent time and date mark used in the
regular course of business to indicate the date of dispatch or
transmission and a record of prompt 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.
Substitute data means emissions or volumetric flow data provided to
assure 100 percent recording and reporting of emissions when all or part
of the continuous emission monitoring system is not functional or is
operating outside applicable performance specifications.
Substitution unit means an affected unit, other than a unit under
section 410 of the Act, that is designated as a Phase I unit in a
substitution plan under Sec. 72.41.
Sulfur-free generation means the generation of electricity by a
process that does not have any emissions of sulfur dioxide, including
hydroelectric, nuclear, solar, or wind generation. A ``sulfur-free
generator'' is a generator that is located in one of the 48 contiguous
States or the District of Columbia and produces ``sulfur-free
generation.''
Supply-side measure means a measure to improve the efficiency of the
generation, transmission, or distribution of electricity, implemented by
a utility in connection with its operations or facilities to provide
electricity to its customers, and includes the measures set forth in
part 73, appendix A, section 2 of this chapter.
Thermal energy means the thermal output produced by a combustion
source used directly as part of a manufacturing process but not used to
produce electricity.
Ton or tonnage means any ``short ton'' (i.e., 2,000 pounds). For the
purpose of determining compliance with the Acid Rain emissions
limitations and reduction requirements, total tons for a year shall be
calculated as the sum of all recorded hourly emissions (or the tonnage
equivalent of the recorded hourly emissions rates) in accordance with
part 75 of this chapter, 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 not to equal any ton.
Total planned net output capacity means the planned generator output
capacity, excluding that portion of the electrical power which is
designed to be used at the power production facility, as specified under
one or more qualifying power purchase commitments or contemporaneous
documents as of November 15, 1990; ``Total installed net output
capacity'' shall be the generator output capacity, excluding that
portion of the electrical power actually used at the power production
facility, as installed.
Transfer unit means a Phase I unit that transfers all or part of its
Phase I emission reduction obligations to a control unit designated
pursuant to a Phase I extension plan under Sec. 72.42.
Underutilization means a reduction, during any calendar year in
Phase I, of the heat input (expressed in mmBtu for the calendar year) at
a Phase I unit below the unit's baseline.
Unit means a fossil fuel-fired combustion device.
Unit account means an Allowance Tracking System account, established
by the Administrator for an affected unit pursuant to Sec. 73.31 (a) or
(b) of this chapter.
Unit load means the total (i.e., gross) output of a unit or source
in any calendar year (or other specified time period) produced by
combusting a given heat input of fuel, expressed in terms of:
(1) The total electrical generation (MWe) for use within the plant
and for sale; or
[[Page 24]]
(2) In the case of a unit or source that uses part of its heat input
for purposes other than electrical generation, the total steam pressure
(psia) produced by the unit or source.
Unit operating day means a calendar day in which a unit combusts any
fuel.
Unit operating hour means any hour (or fraction of an hour) during
which a unit combusts any fuel.
Unit operating quarter means a calendar quarter in which a unit
combusts any fuel.
Utility means any person that sells electricity.
Utility competitive bid solicitation is a public request from a
regulated utility for offers to the utility for meeting future
generating needs. A qualifying facility, independent power production
facility, or new IPP may be regarded as having been ``selected'' in such
solicitation if the utility has named the facility as a project with
which the utility intends to negotiate a power sales agreement.
Utility regulatory authority means an authority, board, commission,
or other entity (limited to the local-, State-, or federal-level,
whenever so specified) responsible for overseeing the business
operations of utilities located within its jurisdiction, including, but
not limited to, utility rates and charges to customers.
Utility system means all interconnected units and generators
operated by the same utility operating company.
Utility unit means a unit owned or operated by a utility:
(1) That serves a generator in any State that produces electricity
for sale, or
(2) That during 1985, served a generator in any State that produced
electricity for sale.
(3) Notwithstanding paragraphs (1) and (2) of this definition, a
unit that was in operation during 1985, but did not serve a generator
that produced electricity for sale during 1985, and did not commence
commercial operation on or after November 15, 1990 is not a utility unit
for purposes of the Acid Rain Program.
(4) Notwithstanding paragraphs (1) and (2) of this definition, a
unit that cogenerates steam and electricity is not a utility unit for
purposes of the Acid Rain Program, unless the unit is constructed for
the purpose of supplying, or commences construction after November 15,
1990 and supplies, more than one-third of its potential electrical
output capacity and more than 25 MWe output to any power distribution
system for sale.
Utilization means the heat input (expressed in mmBtu/time) for a
unit.
Volumetric flow means the rate of movement of a specified volume of
gas past a cross-sectional area (e.g., cubic feet per hour).
Zero air material means either: (1) a calibration gas certified by
the gas vendor not to contain concentrations of either SO2,
NO, or total hydrocarbons above 0.1 parts per million (ppm); a
concentration of CO above 1 ppm; and a concentration of CO2
above 400 ppm, or (2) ambient air conditioned and purified by a
continuous emission monitoring system for which the continuous emission
monitoring system manufacturer or vendor certifies that the particular
continuous emission monitoring system model produces conditioned gas
that does not contain concentrations of either SO2 or
NO above 0.1 ppm or CO2 above 400 ppm; and that
does not contain concentrations of other gases that interfere with
instrument readings or cause the instrument to read concentrations of
SO2, NO, or CO2 for a particular
continuous emission monitoring system model.
[58 FR 3650, Jan. 11, 1993, as amended at 58 FR 15647, Mar. 23, 1993; 58
FR 33770, June 21, 1993; 58 FR 40747, July 30, 1993; 60 FR 17111, Apr.
4, 1995; 60 FR 18468, Apr. 11, 1995; 60 FR 26514, May 17, 1995]
Sec. 72.3 Measurements, abbreviations, and acronyms.
Measurements, abbreviations, and acronyms used in this part are
defined as follows:
acfh--actual cubic feet per hour.
atm--atmosphere.
bbl--barrel.
Btu--British thermal unit.
deg.C--degree Celsius (centigrade).
cfm--cubic feet per minute.
cm--centimeter.
dcf--dry cubic feet.
DOE--Department of Energy.
[[Page 25]]
dscf--dry cubic feet at standard conditions.
dscfh--dry cubic feet per hour at standard conditions.
EIA--Energy Information Administration.
eq--equivalent.
deg.F--degree Fahrenheit.
fps--feet per second.
gal--gallon.
hr--hour.
in--inch.
deg.K--degree Kelvin.
Kwh--kilowatt hour.
lb--pounds.
m--meter.
mmBtu--million Btu.
min--minute.
mol. wt.--molecular weight.
MWe--megawatt electrical.
MWge--gross megawatt electrical.
ppm--parts per million.
psi--pounds per square inch.
deg.R--degree Rankine.
scf--cubic feet at standard conditions.
scfh--cubic feet per hour at standard conditions.
sec--second.
std--at standard conditions.
CO2--carbon dioxide.
NOx--nitrogen oxides.
O2--oxygen.
THC--total hydrocarbon content.
SO2--sulfur dioxide.
Sec. 72.4 Federal authority.
(a) The Administrator reserves all authority under sections
112(r)(9), 113, 114, 120, 301, 303, 304, 306, and 307(a) of the Act,
including, but not limited to, the authority to:
(1) Secure information needed for the purpose of developing,
revising, or implementing, or of determining whether any person is in
violation of, any standard, method, requirement, or prohibition of the
Act, this part, parts 73, 74, 75, 76, 77, and 78 of this chapter;
(2) Make inspections, conduct tests, examine records, and require an
owner or operator of an affected unit to submit information reasonably
required for the purpose of developing, revising, or implementing, or of
determining whether any person is in violation of, any standard, method,
requirement, or prohibition of the Act, this part, parts 73, 74, 75, 76,
77, and 78 of this chapter.
(3) Issue orders, call witnesses, and compel the production of
documents.
(b) The Administrator reserves the right under title IV of the Act
to take any action necessary to protect the orderly and competitive
functioning of the allowance system, including actions to prevent fraud
and misrepresentation.
[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 17113, Apr. 4, 1995]
Sec. 72.5 State authority.
Consistent with section 116 of the Act, the provisions of the Acid
Rain Program shall not be construed in any manner to preclude any State
from adopting and enforcing any other air quality requirement (including
any continuous emissions monitoring) that is not less stringent than,
and does not alter, any requirement applicable to an affected unit or
affected source under the Acid Rain Program; provided that such State
requirement, if articulated in an operating permit, is in a portion of
the operating permit separate from the portion containing the Acid Rain
Program requirements.
Sec. 72.6 Applicability.
(a) Each of the following units shall be an affected unit, and any
source that includes such a unit shall be an affected source, subject to
the requirements of the Acid Rain Program:
(1) A unit listed in Table 1 of Sec. 73.10(a) of this chapter.
(2) A unit that is listed in Table 2 or 3 of Sec. 73.10 of this
chapter and any other existing utility unit, except a unit under
paragraph (b) of this section.
(3) A utility unit, except a unit under paragraph (b) of this
section, that:
(i) Is a new unit; or
(ii) Did not serve a generator with a nameplate capacity greater
than 25 MWe on November 15, 1990 but serves such a generator after
November 15, 1990.
(iii) Was a simple combustion turbine on November 15, 1990 but adds
or uses auxiliary firing after November 15, 1990;
(iv) Was an exempt cogeneration facility under paragraph (b)(4) of
this section but during any three calendar year period after November
15, 1990 sold, to a utility power distribution
[[Page 26]]
system, an annual average of more than one-third of its potential
electrical output capacity and more than 219,000 MWe-hrs electric
output, on a gross basis;
(v) Was an exempt qualifying facility under paragraph (b)(5) of this
section but, at any time after the later of November 15, 1990 or the
date the facility commences commercial operation, fails to meet the
definition of qualifying facility;
(vi) Was an exempt IPP under paragraph (b)(6) of this section but,
at any time after the later of November 15, 1990 or the date the
facility commences commercial operation, fails to meet the definition of
independent power production facility; or
(vii) Was an exempt solid waste incinerator under paragraph (b)(7)
of this section but during any three calendar year period after November
15, 1990 consumes 20 percent or more (on a Btu basis) fossil fuel.
(b) The following types of units are not affected units subject to
the requirements of the Acid Rain Program:
(1) A simple combustion turbine that commenced operation before
November 15, 1990.
(2) Any unit that commenced commercial operation before November 15,
1990 and that did not, as of November 15, 1990, and does not currently,
serve a generator with a nameplate capacity of greater than 25 MWe.
(3) Any unit that, during 1985, did not serve a generator that
produced electricity for sale and that did not, as of November 15, 1990,
and does not currently, serve a generator that produces electricity for
sale.
(4) A cogeneration facility which:
(i) For a unit that commenced construction on or prior to November
15, 1990, was constructed for the purpose of supplying equal to or less
than one-third its potential electrical output capacity or equal to or
less than 219,000 MWe-hrs actual electric output on an annual basis to
any utility power distribution system for sale (on a gross basis). If
the purpose of construction is not known, the Administrator will presume
that actual operation from 1985 through 1987 is consistent with such
purpose. However, if in any three calendar year period after November
15, 1990, such unit sells to a utility power distribution system an
annual average of more than one-third of its potential electrical output
capacity and more than 219,000 MWe-hrs actual electric output (on a
gross basis), that unit shall be an affected unit, subject to the
requirements of the Acid Rain Program; or
(ii) For units which commenced construction after November 15, 1990,
supplies equal to or less than one-third its potential electrical output
capacity or equal to or less than 219,000 MWe-hrs actual electric output
on an annual basis to any utility power distribution system for sale (on
a gross basis). However, if in any three calendar year period after
November 15, 1990, such unit sells to a utility power distribution
system an annual average of more than one-third of its potential
electrical output capacity and more than 219,000 MWe-hrs actual electric
output (on a gross basis), that unit shall be an affected unit, subject
to the requirements of the Acid Rain Program.
(5) A qualifying facility that:
(i) Has, as of November 15, 1990, one or more qualifying power
purchase commitments to sell at least 15 percent of its total planned
net output capacity; and
(ii) Consists of one or more units designated by the owner or
operator with total installed net output capacity not exceeding 130
percent of the total planned net output capacity. If the emissions rates
of the units are not the same, the Administrator may exercise discretion
to designate which units are exempt.
(6) An independent power production facility that:
(i) Has, as of November 15, 1990, one or more qualifying power
purchase commitments to sell at least 15 percent of its total planned
net output capacity; and
(ii) Consists of one or more units designated by the owner or
operator with total installed net output capacity not exceeding 130
percent of its total planned net output capacity. If the emissions rates
of the units are not the same, the Administrator may exercise discretion
to designate which units are exempt.
[[Page 27]]
(7) A solid waste incinerator, if more than 80 percent (on a Btu
basis) of the annual fuel consumed at such incinerator is other than
fossil fuels. For solid waste incinerators which began operation before
January 1, 1985, the average annual fuel consumption of non-fossil fuels
for calendar years 1985 through 1987 must be greater than 80 percent for
such an incinerator to be exempt. For solid waste incinerators which
began operation after January 1, 1985, the average annual fuel
consumption of non-fossil fuels for the first three years of operation
must be greater than 80 percent for such an incinerator to be exempt.
If, during any three calendar year period after November 15, 1990, such
incinerator consumes 20 percent or more (on a Btu basis) fossil fuel,
such incinerator will be an affected source under the Acid Rain Program.
(8) A non-utility unit.
(c) A certifying official of any unit may petition the Administrator
for a determination of applicability under this section.
(1) Petition content. The petition shall be in writing and include
identification of the unit and relevant and appropriate facts about the
unit. The petition shall meet the requirements of Sec. 72.21. In
accordance with Sec. 72.21(d), the certifying official shall provide
each owner or operator of the unit, facility, or source with a copy of
the petition and a copy of the Administrator's response.
(2) Timing. The petition shall be submitted to the Administrator
prior to the issuance (including renewal) of a Phase II Acid Rain permit
for the unit as a final agency action.
(3) Submission. All submittals under this section shall be made by
the certifying official to the Director, Acid Rain Division, (6204J),
401 M Street, SW., Washington, DC, 20460.
(4) Response. The Administrator will issue a written response based
upon the factual submittal meeting the requirements of paragraph (c)(1)
of this section.
(5) Administrative appeals. The Administrator's determination of
applicability is a decision appealable under 40 CFR part 78 of this
chapter.
(6) Effect of determination. The Administrator's determination of
applicability shall be binding upon the permitting authority, unless the
petition is found to have contained significant errors or omissions.
[58 FR 3650, Jan. 11, 1993, as amended at 58 FR 15648, Mar. 23, 1993]
Sec. 72.7 New units exemption.
(a) Applicability. This section applies to any new utility unit that
serves one or more generators with total nameplate capacity of 25 MWe or
less and burns only fuels with a sulfur content of 0.05 percent or less
by weight, as determined in accordance with paragraph (d)(2) of this
section.
(b) Petition for written exemption. The designated representative,
authorized in accordance with subpart B of this part, of a source that
includes a unit under paragraph (a) of this section may petition the
permitting authority for a written exemption, or to renew a written
exemption, for the unit from certain requirements of the Acid Rain
Program. The petition shall include the following elements in a format
prescribed by the Administrator:
(1) Identification of the unit.
(2) The nameplate capacity of each generator served by the unit.
(3) A list of all fuels currently burned by the unit and their
percentage sulfur content by weight, determined in accordance with
paragraph (a) of this section.
(4) A list of all fuels that are expected to be burned by the unit
and their sulfur content by weight.
(5) The special provisions in paragraph (d) of this section.
(c) Permitting authority's action.
(1)(i) The permitting authority shall issue, for any unit meeting
the requirements of paragraphs (a) and (b) of this section, a written
exemption from the requirements of the Acid Rain Program except for the
requirements specified in this section and Secs. 72.1 through 72.6 and
Secs. 72.10 through 72.13; provided that no unit shall be exempted
unless allowances, equal in number to, and with the same or earlier
compliance use date as, all of those allocated under subpart B of part
73 of this chapter for any year for which the unit will be exempted,
[[Page 28]]
are deducted from the unit's Allowance Tracking System account.
(ii) The exemption shall take effect on January 1 of the year
immediately following the earlier of the date on which the written
exemption is issued subject to administrative appeal under part 78 of
this chapter or is issued as a final agency action subject to judicial
review, in accordance with paragraph (c)(2) of this section; provided
that the owners and operators, and, to the extent applicable, the
designated representative, shall comply with the requirements of the
Acid Rain Program concerning all years for which the unit was not
exempted, even if such requirements arise, or must be complied with,
after the exemption takes effect. The exemption shall not be a defense
against any violation of such requirements of the Acid Rain Program
whether the violation occurs before or after the exemption takes effect.
(2) In considering and issuing or denying a written exemption under
paragraph (c)(1) of this section, the permitting authority shall apply
the procedures in subparts F and G of this part and part 70 of this
chapter, as applicable, by:
(i) Treating the petition as an Acid Rain permit application under
such provisions;
(ii) Issuing or denying a draft written exemption that is treated as
the issuance or denial of a draft permit under such provisions; and
(iii) Where the Administrator is the permitting authority, issuing
or denying a written exemption that is treated as the issuance or denial
of a permit under subpart F of this part or, where a State is the
permitting authority, issuing or denying a proposed written exemption
that is treated as the issuance or denial of a proposed permit under
subpart G of this part and part 70 of this chapter; provided that no
provision under subparts F and G of this part and part 70 of this
chapter concerning the content, effective date, or term of an Acid Rain
permit shall apply to the written exemption or proposed written
exemption under this section.
(3) A written exemption issued under this section shall have a term
of 5 years from its effective date, except as provided in paragraph
(d)(4) of this section.
(d) Special provisions. (1) The owners and operators of each unit
exempted under this section shall surrender allowances equal in number
to, and with the same or an earlier compliance use date as, all of those
allocated to the unit under subpart B of part 73 of this chapter for any
year for which the unit is exempted and shall waive the right to receive
any allowances to be allocated under subpart B of part 73 of this
chapter for any year for which the unit is exempted.
(2) The owners and operators of each unit exempted under this
section shall determine the sulfur content by weight of its fuel as
follows:
(i) For petroleum or petroleum products that the unit burns starting
on the first day on which the exemption takes effect until the exemption
terminates, a sample of each delivery of such fuel shall be tested using
ASTM methods ASTM D4057-88 and ASTM D129-91, ASTM D2622-92, or ASTM
D4294-90 (all methods incorporated by reference under Sec. 72.13 of this
part.)
(ii) For natural gas that the unit burns starting on the first day
on which the exemption takes effect until the exemption terminates, the
sulfur content shall be assumed to be 0.05 per cent or less by weight.
(iii) For gaseous fuel (other than natural gas) that the unit burns
starting on the first day on which the exemption takes effect until the
exemption terminates, a sample of each delivery of such fuel shall be
tested using ASTM methods ASTM D1072-90 and ASTM D1265-92 (incorporated
by reference under Sec. 72.13 of this part); provided that if the
gaseous fuel is delivered by pipeline to the unit, a sample of the fuel
shall be tested, at least once every quarter in which the unit operates
during any year for which the exemption is in effect, using ASTM method
ASTM D1072-90 (incorporated by reference under Sec. 72.13 of this part).
(3) The owners and operators of each unit exempted under this
section shall retain at the source that includes the unit, the records
of the results of the tests performed under paragraph (d)(2) (i) and
(iii) of this section and a copy of the purchase agreements for the fuel
[[Page 29]]
under paragraph (d)(2) of this section, stating the sulfur content of
such fuel. Such records and documents shall be retained for 5 years from
the date they are created.
(4) On the earlier of the date the written exemption expires, the
date a unit exempted under this section burns any fuel with a sulfur
content in excess of 0.05 percent by weight (as determined in accordance
with paragraph (d)(2) of this section), or 24 months prior to the date
the unit first serves one or more generators with total nameplate
capacity in excess of 25 MWe, the unit shall no longer be exempted under
this section and shall be subject to all requirements of the Acid Rain
Program, except that:
(i) Notwithstanding Sec. 72.30 (b) and (c), the designated
representative of the source that includes the unit shall submit a
complete Acid Rain permit application on the later of January 1, 1998 or
the date the unit is no longer exempted under this section.
(ii) For purposes of applying monitoring requirements under part 75
of this chapter, the unit shall be treated as a new unit that commenced
commercial operation on the date the unit no longer meets the
requirements of paragraph (a) of this section.
Sec. 72.8 Retired units exemption.
(a) Applicability. This section applies to any affected unit that is
retired prior to the issuance (including renewal) of a Phase II Acid
Rain permit for the unit as a final agency action.
(b) Petition for Written Exemption. (1) The designated
representative, authorized in accordance with subpart B of this part, of
a source that includes a unit under paragraph (a) of this section may
petition the permitting authority for a written exemption, or to renew a
written exemption, for the unit from certain requirements of this part.
(2) A petition under this section shall be submitted on or before:
(i) The deadline for submitting an Acid Rain permit application for
Phase II; or
(ii) If the unit has a Phase II Acid Rain permit, the deadline for
reapplying for such permit.
(3) The petition under this section shall include the following
elements in a format prescribed by the Administrator:
(i) Identification of the unit.
(ii) The applicable deadline under paragraph (b)(2) of this section.
(iii) The actual or expected date of retirement of the unit.
(iv) The following statement: ``I certify that this unit [`is' or
`will be', as applicable] permanently retired on the date specified in
this petition and will not emit any sulfur dioxide or nitrogen oxides
after such date.''
(v) A description of any actions that have been or will be taken and
provide the basis for the certification in paragraph (b)(3)(iv) of this
section.
(vi) The special provisions in paragraph (d) of this section.
(c) Permitting Authority's Action. (1)(i) The permitting authority
shall issue, for any unit meeting the requirements of paragraphs (a) and
(b) of this section, a written exemption from the requirements of this
part except for the requirements specified in this section and
Secs. 72.1 through 72.6 and Secs. 72.10 through 72.13.
(ii) The exemption shall take effect on January 1 of the year
following the earlier of the date on which the written exemption is
issued subject to administrative appeal under part 78 of this chapter or
is issued as a final agency action subject to judicial review, in
accordance with paragraph (c)(2) of this section; provided that the
owners and operators, and, to the extent applicable, the designated
representative, shall comply with the requirements of this part
concerning all years for which the unit was not exempted, even if such
requirements arise or must be complied with after the exemption takes
effect. The exemption shall not be a defense against any violation of
such requirements of the Acid Rain Program whether the violation occurs
before or after the exemption takes effect.
(2) In considering and issuing or denying a written exemption under
paragraph (c)(1) of this section, the permitting authority shall apply
the procedures in subparts F and G of this part and part 70 of this
chapter, as applicable, by:
(i) Treating the petition as an Acid Rain permit application under
such provisions;
[[Page 30]]
(ii) Issuing or denying a draft written exemption that is treated as
the issuance or denial of a draft permit under such provisions; and
(iii) Where the Administrator is the permitting authority, issuing
or denying a written exemption that is treated as a permit under subpart
F of this part or, where a State is the permitting authority, issuing or
denying a proposed written exemption that is treated as a proposed
permit under subpart G of this part and part 70 of this chapter;
provided that no provision under subparts F and G of this part and part
70 of this chapter concerning, the content, effective date, or term of
an Acid Rain permit shall apply to the written exemption or proposed
written exemption under this section.
(3) A written exemption issued under this section shall have a term
of 5 years, except as provided in paragraph (d)(3) of this section.
(d) Special Provisions. (1) A unit exempted under this section shall
not emit any sulfur dioxide and nitrogen dioxide starting on the date it
is exempted.
(2) The owners and operators of a unit exempted under this section
shall comply with monitoring requirements in accordance with part 75 of
this chapter and will be allocated allowances in accordance with part 73
of this chapter.
(3) A unit exempted under this section shall not resume operation
unless the designated representative of the source that includes the
unit submits an Acid Rain permit application for the unit not less than
24 months prior to the later of January 1, 2000 or the date the unit is
to resume operation. On the earlier of the date the written exemption
expires or the date an Acid Rain permit application is submitted or is
required to be submitted under this paragraph, the unit shall no longer
be exempted under this section and shall be subject to all requirements
of this part.
[58 FR 3650, Jan. 11, 1993; 58 FR 40747, July 30, 1993]
Sec. 72.9 Standard requirements.
(a) Permit Requirements. (1) The designated representative of each
affected source and each affected unit at the source shall:
(i) Submit a complete Acid Rain permit application (including a
compliance plan) under this part in accordance with the deadlines
specified in Sec. 72.30;
(ii) Submit in a timely manner a complete reduced utilization plan
if required under Sec. 72.43; and
(iii) Submit in a timely manner any supplemental information that
the permitting authority determines is necessary in order to review an
Acid Rain permit application and issue or deny an Acid Rain permit.
(2) The owners and operators of each affected source and each
affected unit at the source shall:
(i) Operate the unit in compliance with a complete Acid Rain permit
application or a superseding Acid Rain permit issued by the permitting
authority; and
(ii) Have an Acid Rain Permit.
(b) Monitoring Requirements. (1) The owners and operators and, to
the extent applicable, designated representative of each affected source
and each affected unit at the source shall comply with the monitoring
requirements as provided in part 75 of this chapter and section 407 of
the Act and regulations implementing section 407 of the Act.
(2) The emissions measurements recorded and reported in accordance
with part 75 of this chapter and section 407 of the Act and regulations
implementing section 407 of the Act shall be used to determine
compliance by the unit with the Acid Rain emissions limitations and
emissions reduction requirements for sulfur dioxide and nitrogen oxides
under the Acid Rain Program.
(3) The requirements of part 75 of this chapter and regulations
implementing section 407 of the Act shall not affect the responsibility
of the owners and operators to monitor emissions of other pollutants or
other emissions characteristics at the unit under other applicable
requirements of the Act and other provisions of the operating permit for
the source.
(c) Sulfur Dioxide Requirements. (1) The owners and operators of
each source and each affected unit at the source shall:
(i) Hold allowances, as of the allowance transfer deadline, in the
unit's
[[Page 31]]
compliance subaccount (after deductions under Sec. 73.34(c) of this
chapter) not less than the total annual emissions of sulfur dioxide for
the previous calendar year from the unit; and
(ii) Comply with the applicable Acid Rain emissions limitation for
sulfur dioxide.
(2) Each ton of sulfur dioxide emitted in excess of the Acid Rain
emissions limitations for sulfur dioxide shall constitute a separate
violation of the Act.
(3) An affected unit shall be subject to the requirements under
paragraph (c)(1) of this section as follows:
(i) Starting January 1, 1995, an affected unit under
Sec. 72.6(a)(1);
(ii) Starting on or after January 1, 1995 in accordance with
Secs. 72.41 and 72.43, an affected unit under Sec. 72.6(a) (2) or (3)
that is a substitution or compensating unit;
(iii) Starting January 1, 2000, an affected unit under
Sec. 72.6(a)(2) that is not a substitution or compensating unit; or
(iv) Starting on the later of January 1, 2000 or the deadline for
monitor certification under part 75 of this chapter, an affected unit
under Sec. 72.6(a)(3) that is not a substitution or compensating unit.
(4) Allowances shall be held in, deducted from, or transferred among
Allowance Tracking System accounts in accordance with the Acid Rain
Program.
(5) An allowance shall not be deducted, in order to comply with the
requirements under paragraph (c)(1)(i) of this section, prior to the
calendar year for which the allowance was allocated.
(6) An allowance allocated by the Administrator under the Acid Rain
Program is a limited authorization to emit sulfur dioxide in accordance
with the Acid Rain Program. No provision of the Acid Rain Program, the
Acid Rain permit application, the Acid Rain permit, or the written
exemption under Secs. 72.7 and 72.8 and no provision of law shall be
construed to limit the authority of the United States to terminate or
limit such authorization.
(7) An allowance allocated by the Administrator under the Acid Rain
Program does not constitute a property right.
(d) Nitrogen Oxides Requirements. The owners and operators of the
source and each affected unit at the source shall comply with the
applicable Acid Rain emissions limitation for nitrogen oxides.
(e) Excess Emissions Requirements. (1) The designated representative
of an affected unit that has excess emissions in any calendar year shall
submit a proposed offset plan, as required under part 77 of this
chapter.
(2) The owners and operators of an affected unit that has excess
emissions in any calendar year shall:
(i) Pay without demand the penalty required, and pay upon demand the
interest on that penalty, as required by part 77 of this chapter; and
(ii) Comply with the terms of an approved offset plan, as required
by part 77 of this chapter.
(f) Recordkeeping and Reporting Requirements. (1) Unless otherwise
provided, the owners and operators of the source and each affected 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 Administrator or permitting authority.
(i) The certificate of representation for the designated
representative for the source and each affected unit at the source and
all documents that demonstrate the truth of the statements in the
certificate of representation, in accordance with Sec. 72.24; 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
changing the designated representative.
(ii) All emissions monitoring information, in accordance with part
75 of this chapter.
(iii) Copies of all reports, compliance certifications, and other
submissions and all records made or required under the Acid Rain
Program.
(iv) Copies of all documents used to complete an Acid Rain permit
application and any other submission under the Acid Rain Program or to
demonstrate compliance with the requirements of the Acid Rain Program.
[[Page 32]]
(2) The designated representative of an affected source and each
affected unit at the source shall submit the reports and compliance
certifications required under the Acid Rain Program, including those
under subpart I of this part and part 75 of this chapter.
(g) Liability. (1) Any person who knowingly violates any requirement
or prohibition of the Acid Rain Program, a complete Acid Rain permit
application, an Acid Rain permit, or a written exemption under Sec. 72.7
or Sec. 72.8, including any requirement for the payment of any penalty
owed to the United States, shall be subject to enforcement pursuant to
section 113(c) of the Act.
(2) Any person who knowingly makes a false, material statement in
any record, submission, or report under the Acid Rain Program shall be
subject to criminal enforcement pursuant to section 113(c) of the Act
and 18 U.S.C. 1001.
(3) No permit revision shall excuse any violation of the
requirements of the Acid Rain Program that occurs prior to the date that
the revision takes effect.
(4) Each affected source and each affected unit shall meet the
requirements of the Acid Rain Program.
(5) Any provision of the Acid Rain Program that applies to an
affected source (including a provision applicable to the designated
representative of an affected source) shall also apply to the owners and
operators of such source and of the affected units at the source.
(6) Any provision of the Acid Rain Program that applies to an
affected unit (including a provision applicable to the designated
representative of an affected unit) shall also apply to the owners and
operators of such unit. Except as provided under Sec. 72.41
(substitution plans), Sec. 72.42 (Phase I extension plans), Sec. 72.43
(reduced utilization plans), Sec. 72.44 (Phase II repowering extension
plans), Sec. 74.47 of this chapter (thermal energy plans), and part 76
of this chapter (NOX averaging plans), and except with regard
to the requirements applicable to units with a common stack under part
75 of this chapter (including Secs. 75.16, 75.17 and 75.18 of this
chapter), the owners and operators and the designated representative of
one affected unit shall not be liable for any violation by any other
affected unit of which they are not owners or operators or the
designated representative and that is located at a source of which they
are not owners or operators or the designated representative.
(7) Each violation of a provision of this part, parts 73, 74, 75,
76, 77, and 78 of this chapter, by an affected source or affected unit,
or by an owner or operator or designated representative of such source
or unit, shall be a separate violation of the Act.
(h) Effect on Other Authorities. No provision of the Acid Rain
Program, an Acid Rain permit application, an Acid Rain permit, or a
written exemption under Sec. Sec. 72.7 or 72.8 shall be construed as:
(1) Except as expressly provided in title IV of the Act, exempting
or excluding the owners and operators and, to the extent applicable, the
designated representative of an affected source or affected unit from
compliance with any other provision of the Act, including the provisions
of title I of the Act relating to applicable National Ambient Air
Quality Standards or State Implementation Plans.
(2) Limiting the number of allowances a unit can hold; provided,
that the number of allowances held by the unit shall not affect the
source's obligation to comply with any other provisions of the Act.
(3) Requiring a change of any kind in any State law regulating
electric utility rates and charges, affecting any State law regarding
such State regulation, or limiting such State regulation, including any
prudence review requirements under such State law.
(4) Modifying the Federal Power Act or affecting the authority of
the Federal Energy Regulatory Commission under the Federal Power Act.
(5) Interfering with or impairing any program for competitive
bidding for power supply in a State in which such program is
established.
[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 17113, Apr. 4, 1995]
Sec. 72.10 Availability of information.
The availability to the public of information provided to, or
otherwise obtained by, the Administrator under the
[[Page 33]]
Acid Rain Program shall be governed by part 2 of this chapter.
Sec. 72.11 Computation of time.
(a) Unless otherwise stated, any time period scheduled, under the
Acid Rain 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
Acid Rain Program, to begin before the occurrence of an act or event
shall be computed so that the period ends on the day before the act or
event occurs.
(c) Unless otherwise stated, if the final day of any time period,
under the Acid Rain Program, falls on a weekend or a federal holiday,
the time period shall be extended to the next business day.
(d) Whenever a party or interested person has the right, or is
required, to act under the Acid Rain Program within a prescribed time
period after service of notice or other document upon him or her by
mail, 3 days shall be added to the prescribed time.
Sec. 72.12 Administrative appeals.
The procedures for appeals of decisions of the Administrator under
this part are contained in part 78 of this chapter.
Sec. 72.13 Incorporation by reference.
The materials listed in this section are incorporated by reference
in the corresponding sections noted. These incorporations by reference
were approved by the Director of the Federal Register in accordance with
5 U.S.C. 552(a) and 1 CFR part 51. These materials are incorporated as
they existed on the date of approval, and a notice of any change in
these materials will be published in the Federal Register. The materials
are available for purchase at the corresponding address noted below and
are available for inspection at the Office of the Federal Register, 800
North Capitol Street, NW., Suite 700, Washington, DC, at the Public
Information Reference Unit of the U.S. EPA, 401 M Street SW, Washington,
DC and at the Library (MD-35), U.S. EPA, Research Triangle Park, North
Carolina.
(a) The following materials are available for purchase from the
following addresses: American Society for Testing and Material (ASTM),
1916 Race Street, Philadelphia, Pennsylvania 19103; and the University
Microfilms International 300 North Zeeb Road, Ann Arbor, Michigan 48106.
(1) ASTM D129-91, Standard Test Method for Sulfur in Petroleum
Products (General Bomb Method), for Sec. 72.7 of this chapter.
(2) ASTM D388-92, Standard Classification of Coals by Rank for
Sec. 72.2 of this chapter.
(3) ASTM D396-90a, Standard Specification for Fuel Oils, for
Sec. 72.2 of this chapter.
(4) ASTM D975-91, Standard Specification for Diesel Fuel Oils, for
Sec. 72.2 of this chapter.
(5) ASTMD1072-90, Standard Test Method for Total Sulfur in Fuel
Gases, for Sec. 72.7 of this chapter.
(6) ASTMD1265-92, Standard Practice for Sampling Liquified Petroleum
(LP) Gases (Manual Method), for Sec. 72.7 of this chapter.
(7) ASTM D2622-92, Standard Test Method for Sulfur in Petroleum
Products by X-Ray Spectrometry, for Sec. 72.7 of this chapter.
(8) ASTM D2880-90a, Standard Specification for Gas Turbine Fuel
Oils, for Sec. 72.2 of this part.
(9) ASTM D4057-88, Standard Practice for Manual Sampling of
Petroleum and Petroleum Products, for Sec. 72.7 of this part.
(10) ASTM D4294-90, Standard Test Method for Sulfur in Petroleum
Products by Energy-Dispersive X-Ray Fluorescence Spectroscopy, for
Sec. 72.7 of this part.
(b) [Reserved]
[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 26526, May 17, 1995]
Subpart B--Designated Representative
Sec. 72.20 Authorization and responsibilities of the designated representative.
(a) Except as provided under Sec. 72.22, each affected source,
including all affected units at the source, shall have one and only one
designated representative, with regard to all matters under
[[Page 34]]
the Acid Rain Program concerning the source or any affected unit at the
source.
(b) Upon receipt by the Administrator of a complete certificate of
representation, the designated representative of the source shall
represent and, by his or her actions, inactions, or submissions, legally
bind each owner and operator of the affected source represented and each
affected unit at the source in all matters pertaining to the Acid Rain
Program, not withstanding any agreement between the designated
representative and such owners and operators. The owners and operators
shall be bound by any order issued to the designated representative by
the Administrator, the permitting authority, or a court.
(c) The designated representative shall be selected and act in
accordance with the certifications set forth in Sec. 72.24(a) (4), (5),
(7), and (9).
(d) No Acid Rain permit shall be issued to an affected source, nor
shall any allowance transfer be recorded for an Allowance Tracking
System account of an affected unit at a source, until the Administrator
has received a complete certificate of representation for the designated
representative of the source and the affected units at the source.
Sec. 72.21 Submissions.
(a) Each submission under the Acid Rain Program shall be submitted,
signed, and certified by the designated representative for all sources
on behalf of which the submission is made.
(b) In each submission under the Acid Rain Program, the designated
representative shall certify, by his or her signature:
(1) The following statement, which shall be included verbatim in
such submission: ``I am authorized to make this submission on behalf of
the owners and operators of the affected source or affected units for
which the submission is made.''
(2) The following statement, which shall be included verbatim in
such submission: ``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.''
(c) The Administrator and the permitting authority shall accept or
act on a submission made on behalf of owners or operators of an affected
source and an affected unit only if the submission has been made,
signed, and certified in accordance with paragraphs (a) and (b) of this
section.
(d)(1) The designated representative of a source shall serve notice
on each owner and operator of the source and of an affected unit at the
source:
(i) By the date of submission, of any Acid Rain Program submissions
by the designated representative and
(ii) Within 10 business days of receipt of a determination, of any
written determination by the Administrator or the permitting authority,
(iii) Provided that the submission or determination covers the
source or the unit.
(2) The designated representative of a source shall provide each
owner and operator of an affected unit at the source a copy of any
submission or determination under paragraph (d)(1) of this section,
unless the owner or operator expressly waives the right to receive such
a copy.
(e) The provisions of this section shall apply to a submission made
under parts 73, 74, 75, 76, 77, and 78 of this chapter only if it is
made or signed or required to be made or signed, in accordance with
parts 73, 74, 75, 76, 77, and 78 of this chapter, by:
(1) The designated representative; or
(2) The authorized account representative or alternate authorized
account representative of a unit account.
[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 17113, Apr. 4, 1995]
[[Page 35]]
Sec. 72.22 Alternate designated representative.
(a) The certificate of representation may designate one and only one
alternate designated representative, who may act on behalf of the
designated representative. The agreement by which the alternate
designated representative is selected shall include a procedure for the
owners and operators of the source and affected units at the source to
authorize the alternate designated representative to act in lieu of the
designated representative.
(b) Upon receipt by the Administrator of a complete certificate of
representation that meets the requirements of Sec. 72.24 (including
those applicable to the alternate designated representative), any
action, representation, or failure to act by the alternate designated
representative shall be deemed to be an action, representation, or
failure to act by the designated representative.
(c) In the event of a conflict, any action taken by the designated
representative shall take precedence over any action taken by the
alternate designated representative if, in the Administrator's
judgement, the actions are concurrent and conflicting.
(d) Except in this section, Sec. 72.23, and Sec. 72.24, whenever the
term ``designated representative'' is used under the Acid Rain Program,
the term shall be construed to include the alternate designated
representative.
Sec. 72.23 Changing the designated representative, alternate designated representative; changes in the owners and operators.
(a) Changing the designated representative. The designated
representative may be changed at any time upon receipt by the
Administrator of a superseding complete certificate of representation.
Notwithstanding any such change, all submissions, actions, and inactions
by the previous designated representative prior to the time and date
when the Administrator receives the superseding certificate of
representation shall be binding on the new designated representative and
on the owners and operators of the source represented and the affected
units at the source.
(b) Changing the alternate designated representative. The alternate
designated representative may be changed at any time upon receipt by the
Administrator of a superseding complete certificate of representation.
Notwithstanding any such change, all submissions, actions, and inactions
by the previous alternate designated representative prior to the time
and date when the Administrator receives the superseding certificate of
representation shall be binding on the new alternate designated
representative and on the owners and operators of the source represented
and the affected units at the source.
(c) Changes in the owners and operators. (1) In the event a new
owner or operator of an affected source or an affected unit is not
included in the list of owners and operators submitted in the
certificate of representation, such new owner or operator shall be
deemed to be subject to and bound by the certificate of representation,
the submissions, actions, and inactions of the designated representative
and any alternative designated representative of the source or unit, and
the decisions, actions, and inactions of the Administrator and
permitting authority, 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 an affected unit, including the addition of a new owner or operator,
the designated representative or any alternative designated
representative shall submit a revision to the certificate of
representation amending the list of owners and operators to include the
change.
Sec. 72.24 Certificate of representation.
(a) A complete certificate of representation for a designated
representative or an alternate designated representative shall include
the following elements in a format prescribed by the Administrator:
(1) Identification of the affected source and each affected unit at
the source for which the certificate of representation is submitted.
[[Page 36]]
(2) The name, address, and telephone and facsimile numbers of the
designated representative and any alternate designated representative.
(3) A list of the owners and operators of the affected source and of
each affected unit at the source and all State or local utility
regulatory authorities with jurisdiction over each owner.
(4) The following statement: ``I certify that I was selected as the
`designated representative' or `alternate designated representative,' as
applicable, by an agreement binding on the owners and operators of the
affected source and each affected unit at the source.''
(5) The following statement: ``I certify that I have given notice of
the agreement, selecting me as the `designated representative' or
`alternate designated representative,' as applicable for the affected
source and each affected unit at the source identified in this
certificate of representation, daily for a period of one week in a
newspaper of general circulation in the area where the source is located
or in a State publication designed to give general public notice.''
(6) The following statement: ``I certify that I have all necessary
authority to carry out my duties and responsibilities under the Acid
Rain Program on behalf of the owners and operators of the affected
source and of each affected unit at the source and that each such owner
and operator shall be fully bound by my actions, inactions, or
submissions.''
(7) The following statement: ``I certify that I shall abide by any
fiduciary responsibilities imposed by the agreement by which I was
selected as `designated representative' or `alternate designated
representative', as applicable.''
(8) The following statement: ``I certify that the owners and
operators of the affected source and of each affected 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.''
(9) The following statement: ``Where there are multiple holders of a
legal or equitable title to, or a leasehold interest in, an affected
unit, or where a utility or industrial customer purchases power from an
affected unit under life-of-the-unit, firm power contractual
arrangements, I certify that:
(i) ``I have given a written notice of my selection as the
`designated representative' or `alternate designated representative', as
applicable, and of the agreement by which I was selected to each owner
and operator of the affected source and of each affected unit at the
source; and
(ii) ``Allowances and proceeds of transactions involving allowances
will be deemed to be held or distributed in proportion to each holder's
legal, equitable, leasehold, or contractual reservation or entitlement
or, if such multiple holders have expressly provided for a different
distribution of allowances by contract, that allowances and the proceeds
of transactions involving allowances will be deemed to be held or
distributed in accordance with the contract.''
(10) If there is an alternate designated representative, the
following statement: ``The agreement by which I was selected as the
alternate designated representative includes a procedure for the owners
and operators of the source and affected units at the source to
authorize the alternate designated representative to act in lieu of the
designated representative.''
(11) The signature of the designated representative and any
alternate designated representative and the date signed.
(b) Unless otherwise required by the Administrator or the permitting
authority, documents of agreement or notice referred to in the
certificate of representation shall not be submitted to the
Administrator or the permitting authority. Neither the Administrator nor
the permitting authority shall be under any obligation to review or
evaluate the sufficiency of such documents, if submitted.
Sec. 72.25 Objections.
(a) Once a complete certificate of representation has been submitted
in accordance with Sec. 72.24, the Administrator will rely on the
certificate of representation unless and until a superseding complete
certificate is submitted to the Administrator.
[[Page 37]]
(b) Except as provided in Sec. 72.23, no objection or other
communication submitted to the Administrator or the permitting authority
concerning the authorization, or any submission, action or inaction, of
the designated representative shall affect any submission, action, or
inaction of the designated representative, or the finality of any
decision by the Administrator or permitting authority, under the Acid
Rain Program. In the event of such communication, the Administrator and
the permitting authority are not required to stay any allowance
transfer, any submission, or the effect of any action or inaction under
the Acid Rain Program.
(c) Neither the Administrator nor any permitting authority will
adjudicate any private legal dispute concerning the authorization or any
submission, action, or inaction of any designated representative,
including private legal disputes concerning the proceeds of allowance
transfers.
Subpart C--Acid Rain Permit Applications
Sec. 72.30 Requirement to apply.
(a) Duty to apply. The designated representative of any source with
an affected unit shall submit a complete Acid Rain permit application by
the applicable deadline in paragraphs (b) and (c) of this section, and
the owners and operators of such source and any affected unit at the
source shall not operate the source or unit without a permit that states
its Acid Rain program requirements.
(b) Deadlines. (1) Phase 1. (i) The designated representative shall
submit a complete Acid Rain permit application governing an affected
unit during Phase I to the Administrator on or before February 15, 1993
for:
(A) Any source with such a unit under Sec. 72.6(a)(1); and
(B) Any source with such a unit under Sec. 72.6(a) (2) or (3) that
is designated a substitution or compensating unit in a substitution plan
or reduced utilization plan submitted to the Administrator for approval
or conditional approval.
(ii) Notwithstanding paragraph (b)(1)(i) of this section, if a unit
at a source not previously permitted is designated a substitution or
compensating unit in a submission requesting revision of an existing
Acid Rain permit, the designated representative of the unit shall submit
a complete Acid Rain permit application on the date that the submission
requesting the revision is made.
(2) Phase II. (i) For any source with an existing unit under
Sec. 72.6(a)(2), the designated representative shall submit a complete
Acid Rain permit application governing such unit during Phase II to the
permitting authority on or before January 1, 1996.
(ii) For any source with a new unit under Sec. 72.6(a)(3)(i), the
designated representative shall submit a complete Acid Rain permit
application governing such unit to the permitting authority at least 24
months before the later of January 1, 2000 or the date on which the unit
commences operation.
(iii) For any source with a unit under Sec. 72.6(a)(3)(ii), the
designated representative shall submit a complete Acid Rain permit
application governing such unit to the permitting authority at least 24
months before the later of January 1, 2000 or the date on which the unit
begins to serve a generator with a nameplate capacity greater than 25
MWe.
(iv) For any source with a unit under Sec. 72.6(a)(3)(iii), the
designated representative shall submit a complete Acid Rain permit
application governing such unit to the permitting authority at least 24
months before the later of January 1, 2000 or the date on which the
auxiliary firing commences operation.
(v) For any source with a unit under Sec. 72.6(a)(3)(iv), the
designated representative shall submit a complete Acid Rain permit
application governing such unit to the permitting authority before the
later of January 1, 1998 or March 1 of the year following the three
calendar year period in which the unit sold to a utility power
distribution system an annual average of more than one-third of its
potential electrical output capacity and more than 219,000 MWe-hrs
actual electric output (on a gross basis).
[[Page 38]]
(vi) For any source with a unit under Sec. 72.6(a)(3)(v), the
designated representative shall submit a complete Acid Rain permit
application governing such unit to the permitting authority before the
later of January 1, 1998 or March 1 of the year following the calendar
year in which the facility fails to meet the definition of qualifying
facility.
(vii) For any source with a unit under Sec. 72.6(a)(3)(vi), the
designated representative shall submit a complete Acid Rain permit
application governing such unit to the permitting authority before the
later of January 1, 1998 or March 1 of the year following the calendar
year in which the facility fails to meet the definition of an
independent power production facility.
(viii) For any source with a unit under Sec. 72.6(a)(3)(vii), the
designated representative shall submit a complete Acid Rain permit
application governing such unit to the permitting authority before the
later of January 1, 1998 or March 1 of the year following the three
calendar year period in which the incinerator consumed 20 percent or
more fossil fuel (on a Btu basis).
(3) Acid Rain Compliance Option Deadlines. The deadlines for
applying for approval of any Acid Rain compliance options shall be the
deadlines specified in the relevant section of subpart D of this part
and in section 407 of the Act and regulations implementing section 407
of the Act.
(c) Duty to reapply. The designated representative shall submit a
complete Acid Rain permit application for each source with an affected
unit at least 6 months prior to the expiration of an existing Acid Rain
permit governing the unit during Phase II or an opt-in permit governing
an opt-in source or such longer time as may be approved under part 70 of
this chapter that ensures that the term of the existing permit will not
expire before the effective date of the permit for which the application
is submitted.
(d) The original and three copies of all permit applications for
Phase I and where the Administrator is the permitting authority, for
Phase II, shall be submitted to the EPA Regional Office for the Region
where the affected source is located. The original and three copies of
all permit applications for Phase II, where the Administrator is not the
permitting authority, shall be submitted to the State permitting
authority for the State where the affected source is located.
[58 FR 3650, Jan. 11, 1993, as amended at 58 FR 15649, Mar. 23, 1993; 60
FR 17113, Apr. 4, 1995]
Sec. 72.31 Information requirements for Acid Rain permit applications.
A complete Acid Rain permit application shall include the following
elements in a format prescribed by the Administrator:
(a) Identification of the affected source for which the permit
application is submitted;
(b) Identification of each Phase I unit at the source for which the
permit application is submitted for Phase I or each Phase II unit at the
source for which the permit application is submitted for Phase II;
(c) A complete compliance plan for each unit, in accordance with
subpart D of this part;
(d) The standard requirements under Sec. 72.9; and
(e) If the Acid Rain permit application is for Phase II and the unit
is a new unit, the date that the unit has commenced or will commence
operation and the deadline for monitor certification.
Sec. 72.32 Permit application shield and binding effect of permit application.
(a) Once a designated representative submits a timely and complete
Acid Rain permit application, the owners and operators of the affected
source and the affected units covered by the permit application shall be
deemed in compliance with the requirement to have an Acid Rain permit
under Sec. 72.9(a)(2) and Sec. 72.30(a); provided that any delay in
issuing an Acid Rain permit is not caused by the failure of the
designated representative to submit in a complete and timely fashion
supplemental information, as required by the permitting authority,
necessary to issue a permit.
(b) Prior to the earlier of the date on which an Acid Rain permit is
issued subject to administrative appeal under part 78 of this chapter or
is issued as a
[[Page 39]]
final agency action subject to judicial review, an affected unit
governed by and operated in accordance with the terms and requirements
of a timely and complete Acid Rain permit application shall be deemed to
be operating in compliance with the Acid Rain Program.
(c) A complete Acid Rain permit application shall be binding on the
owners and operators and the designated representative of the affected
source and the affected units covered by the permit application and
shall be enforceable as an Acid Rain permit from the date of submission
of the permit application until the issuance or denial of an Acid Rain
permit covering the units and subject to administrative appeal, where
the Administrator is the permitting authority, or the issuance or denial
of such permit as a final agency action subject to judicial review,
where the State is the permitting authority.
Sec. 72.33 Identification of dispatch system.
(a) Every Phase I unit shall be treated as part of a dispatch system
for purposes of Secs. 72.91 and 72.92 in accordance with this section.
(b)(1) The designated representatives of all affected units in a
group of all units and generators that are interconnected and centrally
dispatched and that are included in the same utility system, holding
company, or power pool, may jointly submit to the Administrator a
complete identification of dispatch system.
(2) Except as provided in paragraph (f) of this section, each unit
or generator may be included in only one dispatch system.
(3) Any identification of dispatch system must be submitted by
January 30 of the first year for which the identification is to be in
effect.
(c) A complete identification of dispatch system shall include the
following elements in a format prescribed by the Administrator:
(1) The name of the dispatch system.
(2) The list of all units and generators (including sulfur-free
generators) in the dispatch system.
(3) The first calendar year for which the identification is to be in
effect.
(4) The following statement: ``I certify that, except as otherwise
required under a petition as approved under 40 CFR 72.33(f), the units
and generators listed herein are and will continue to be interconnected
and centrally dispatched, and will be treated as a dispatch system under
40 CFR 72.91 and 72.92, during the period that this identification of
dispatch system is in effect. During such period, all information
concerning these units and generators and contained in any submissions
under 40 CFR 72.91 and 72.92 by me and the other designated
representatives of these units shall be consistent and shall conform
with the data in the dispatch system data reports under 40 CFR 72.92(b).
I am aware of, and will comply with, the requirements imposed under 40
CFR 72.33(e)(2).''
(5) The signatures of the designated representative for each
affected unit in the dispatch system.
(d) In order to change a unit's current dispatch system, complete
identifications of dispatch system shall be submitted for the unit's
current dispatch system and the unit's new dispatch system, reflecting
the change.
(e)(1) Any unit or generator not listed in a complete identification
of dispatch system that is in effect shall treat its utility system as
its dispatch system and, if such unit or generator is listed in the
NADB, shall treat the utility system reported under the data field
``UTILNAME'' of the NADB as its utility system.
(2) During the period that the identification of dispatch system is
in effect all information that concerns the units and generators in a
given dispatch system and that is contained in any submissions under
Secs. 72.91 and 72.92 by designated representative of these units shall
be consistent and shall conform with the data in the dispatch system
data reports under Sec. 72.92(b). If this requirement is not met, the
Administrator may reject all such submissions and require the designated
representatives to make the submissions under Secs. 72.91 and 72.92
(including the dispatch system data report) treating the utility system
of each unit or generator as its respective dispatch system and treating
the identification of dispatch system as no longer in effect.
[[Page 40]]
(f)(1) Notwithstanding paragraph (e)(1) of this section or any
submission of an identification of dispatch system under paragraphs (b)
or (d) of this section, the designated representative of a Phase I unit
with two or more owners may petition the Administrator to treat, as the
dispatch system for an owner's portion of the unit, the dispatch system
of another unit.
(i) The owner's portion of the unit shall be based on one of the
following apportionment methods:
(A) Owner's share of the unit's capacity in 1985-1987. Under this
method, the baseline of the owner's portion of the unit shall equal the
baseline of the unit multiplied by the average of the owner's percentage
ownership of the capacity of the unit for each year during 1985-1987.
The actual utilization of the owner's portion of the unit for a year in
Phase I shall equal the actual utilization of the unit for the year that
is attributed to the owner.
(B) Owner's share of the unit's baseline. Under this method, the
baseline of the owner's portion of the unit shall equal the average of
the unit's annual utilization in 1985-1987 that is attributed to the
owner. The actual utilization of the owner's portion of the unit for a
year in Phase I shall equal the actual utilization of the unit for the
year that is attributed to the owner.
(ii) The annual or actual utilization of a unit shall be attributed,
under paragraph (f)(1)(i) of this section, to an owner of the unit using
accounting procedures consistent with those used to determine the
owner's share of the fuel costs in the operation of the unit during the
period for which the annual or actual utilization is being attributed.
(iii) Upon submission of the petition, the designated representative
may not change the election of the apportionment method or the baseline
of the owner's portion of the unit.
The same apportionment method must be used for all portions of the unit
for all years in Phase I for which any petition under paragraph (f)(1)
of this section is approved and in effect.
(2) The petition under paragraph (f)(1) of this section shall be
submitted by January 30 of the first year for which the dispatch system
proposed in the petition will take effect, if approved. A complete
petition shall include the following elements in a format prescribed by
the Administrator:
(i) The election of the apportionment method under paragraph
(f)(1)(i) of this section.
(ii) The baseline of the owner's portion of the unit and the
baseline of any other owner's portion of the unit for which a petition
under paragraph (f)(1) of this section has been approved or has been
submitted (and not disapproved) and a demonstration that the sum of such
baselines and the baseline of any remaining portion of the unit equals
100 percent of the baseline of the unit. The designated representative
shall also submit, upon request, either:
(A) Where the unit is to be apportioned under paragraph (f)(1)(i)(A)
of this section, documentation of the average of the owner's percentage
ownership of the capacity of the unit for each year during 1985-1987; or
(B) Where the unit is to be apportioned under paragraph (f)(1)(i)(B)
of this section, documentation showing the attribution of the unit's
utilization in 1985, 1986, and 1987 among the portions of the unit and
the calculation of the annual average utilization for 1985-1987 for the
portions of the unit.
(iii) The name of the proposed dispatch system and a list of all
units (including portions of units) and generators in that proposed
dispatch system and, upon request, documentation demonstrating that the
owner's portion of the unit, along with the other units in the proposed
dispatch system, are a group of all units and generators that are
interconnected and centrally dispatched by a single utility company, the
service company of a single holding company, or a single power pool.
(iv) The following statement, signed by the designated
representatives of all units in the proposed dispatch system: ``I
certify that the units and generators in the dispatch system proposed in
this petition are and will continue to be interconnected and centrally
dispatched, and will be treated as a dispatch system under 40 CFR 72.91
and 72.92, during the period that this petition, as approved, is in
effect.''
(v) The following statement, signed by the designated
representatives of all
[[Page 41]]
units in all dispatch systems that will include any portion of the unit
if the petition is approved: ``During the period that this petition, if
approved, is in effect, all information that concerns the units and
generators in any dispatch system including any portion of the unit
apportioned under the petition and that is contained in any submissions
under 40 CFR 72.91 and 72.92 by me and the other designated
representatives of these units shall be consistent and shall conform to
the data in the dispatch system data reports under 40 CFR 72.92(b). I am
aware of, and will comply with, the requirements imposed under 40 CFR
72.33(f) (4) and (5).''
(3)(i) The Administrator will approve in whole, in part, or with
changes or conditions, or deny the petition under paragraph (f)(1) of
this section within 90 days of receipt of the petition. The
Administrator will treat the petition, as changed or conditioned upon
approval, as amending any identification of dispatch system that is
submitted prior to the approval and includes any portion of the unit for
which the petition is approved. Where any portion of a unit is not
covered by an approved petition, that remaining portion of the unit
shall continue to be part of the unit's dispatch system.
(ii) In approving the petition, the Administrator will determine, on
a case-by-case basis, the proper calculation and treatment, for purposes
of the reports required under Secs. 72.91 and 72.92, of plan reductions
and compensating generation provided to other units.
(4) The designated representative for the unit for which a petition
is approved under paragraph (f)(3) of this section and the designated
representatives of all other units included in all dispatch systems that
include any portion of the unit shall submit all annual compliance
certification reports, dispatch system data reports, and other reports
required under Secs. 72.91 and 72.92 treating, as a separate Phase I
unit, each portion of the unit for which a petition is approved under
paragraph (f)(3) of this section and the remaining portion of the unit.
The reports shall include all required calculations and demonstrations,
treating each such portion of the unit as a separate Phase I unit. Upon
request, the designated representatives shall demonstrate that the data
in all the reports under Secs. 72.91 and 72.92 has been properly
attributed or apportioned among the portions of the unit and the
dispatch systems and that there is no undercounting or double-counting
with regard to such data.
(i) The baseline of each portion of the unit for which a petition is
approved shall be determined under paragraphs (f)(1) (i) and (ii) of
this section. The baseline of the remaining portion of such unit shall
equal the baseline of the unit less the sum of the baselines of any
portions of the unit for which a petition is approved.
(ii) The actual utilization of each portion of the unit for which a
petition is approved shall be determined under paragraphs (f)(l) (i) and
(ii) of this section. The actual utilization of the remaining portion of
such unit shall equal the actual utilization of the unit less the sum of
the actual utilizations of any portions of the unit for which a petition
is approved. Upon request, the designated representative of the unit
shall demonstrate in the annual compliance certification report that the
requirements concerning calculation of actual utilization under
paragraph (f)(1)(ii) and any requirements established under paragraph
(f)(3) of this section are met.
(iii) Except as provided in paragraph (f)(5) of this section, the
designated representative shall surrender for deduction the number of
allowances calculated using the formula in Sec. 72.92(c) and treating,
as a separate Phase I unit, each portion of unit for which a petition is
approved under paragraph (f)(3) of this section and the remaining
portion of the unit.
(5) In the event that the designated representatives fail to make
all the proper attributions, apportionments, calculations, and
demonstrations under paragraph (f)(4) of this section and Secs. 72.91
and 72.92, the Administrator may require that:
(i) All portions of the unit be treated as part of the dispatch
system of the unit in accordance with paragraph (e)(1) of this paragraph
and any identification of dispatch system submitted under paragraph (b)
or (d) of this section;
[[Page 42]]
(ii) The designated representatives make all submissions under
Secs. 72.91 and 72.92 (including the dispatch system data report),
treating the entire unit as a single Phase I unit, in accordance with
paragraph (e)(1) of this paragraph and any identification of dispatch
system submitted under paragraph (b) or (d) of this section; and
(iii) The designated representative surrender for deduction the
number of allowances calculated, consistent with the reports under
paragraph (f)(5)(ii) of this section and Secs. 72.91 and 72.92, using
the formula in Sec. 72.92(c) and treating the entire unit as a single
Phase I unit.
(6) The designated representative may submit a notification to
terminate an approved petition by January 30 of the first year for which
the termination is to take effect. The notification must be signed and
certified by the designated representatives of all units included in all
dispatch systems that include any portion of the unit apportioned under
the petition. Upon receipt of the notification meeting the requirements
of the prior two sentences by the Administrator, the approved petition
is no longer in effect for that year and the remaining years in Phase I
and the designated representatives shall make all submissions under
Secs. 72.91 and 72.92 treating the petition as no longer in effect for
all such years.
(7) Except as expressly provided in paragraphs (f)(1) through (6) of
this section or the Administrator's approval of the petition, all
provisions of the Acid Rain Program applicable to an affected source or
an affected unit shall apply to the entire unit regardless of whether a
petition has been submitted or approved, or reports have been submitted,
under such paragraphs. Approval of a petition under such paragraphs
shall not constitute a determination of the percentage ownership in a
unit under any other provision of the Acid Rain Program and shall not
change the liability of the owners and operators of an affected unit
that has excess emissions under Sec. 72.9(e).
[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 18468, Apr. 11, 1995]
Subpart D--Acid Rain Compliance Plan and Compliance Options
Sec. 72.40 General.
(a) For each affected unit included in an Acid Rain permit
application, a complete compliance plan shall:
(1) For sulfur dioxide emissions, certify that, as of the allowance
transfer deadline, the designated representative will hold allowances in
the unit's compliance subaccount (after deductions under Sec. 73.34(c)
of this chapter) not less than the total annual emissions of sulfur
dioxide from the unit. The compliance plan may also specify, in
accordance with this subpart, one or more of the Acid Rain compliance
options.
(2) For nitrogen oxides emissions, certify that the unit will comply
with the applicable limitation established by regulations implementing
section 407 of the Act or shall specify one or more Acid Rain compliance
options, in accordance with section 407 of the Act and regulations
implementing section 407.
(b) Multi-unit compliance options. (1) A plan for a compliance
option, under Sec. 72.41, 72.42, 72.43, or 72.44 of this part, under
Sec. 74.47 of this chapter, or an NOX averaging plan
contained in part 76 of this chapter, that includes units at more than
one affected source shall be complete only if:
(i) Such plan is signed and certified by the designated
representative for each source with an affected unit governed by such
plan; and
(ii) A complete permit application is submitted covering each unit
governed by such plan.
(2) A permitting authority's approval of a plan under paragraph
(b)(1) of this section that includes units in more than one State shall
be final only after every permitting authority with jurisdiction over
any such unit has approved the plan with the same modifications or
conditions, if any.
(c) Conditional Approval. In the compliance plan, the designated
representative of an affected unit may propose, in accordance with this
subpart, any Acid Rain compliance option for conditional approval,
except a Phase I extension plan; provided that an Acid Rain compliance
option under section 407 of
[[Page 43]]
the Act may be conditionally proposed only to the extent provided in
regulations implementing section 407 of the Act.
(1) To activate a conditionally-approved Acid Rain compliance
option, the designated representative shall notify the permitting
authority in writing that the conditionally-approved compliance option
will actually be pursued beginning January 1 of a specified year. If the
conditionally approved compliance option includes a plan described in
paragraph (b)(1) of this section, the designated representative of each
source governed by the plan shall sign and certify the notification.
Such notification shall be subject to the limitations on activation
under subpart D of this part and regulations implementing section 407 of
the Act.
(2) The notification under paragraph (c)(1) of this section shall
specify the first calendar year and the last calendar year for which the
conditionally approved Acid Rain compliance option is to be activated. A
conditionally approved compliance option shall be activated, if at all,
before the date of any enforceable milestone applicable to the
compliance option. The date of activation of the compliance option shall
not be a defense against failure to meet the requirements applicable to
that compliance option during each calendar year for which the
compliance option is activated.
(3) Upon submission of a notification meeting the requirements of
paragraphs (c) (1) and (2) of this section, the conditionally-approved
Acid Rain compliance option becomes binding on the owners and operators
and the designated representative of any unit governed by the
conditionally-approved compliance option.
(4) A notification meeting the requirements of paragraphs (c) (1)
and (2) of this section will revise the unit's permit in accordance with
Sec. 72.83 (administrative permit amendment).
(d) Termination of compliance option. (1) The designated
representative for a unit may terminate an Acid Rain compliance option
by notifying the permitting authority in writing that an approved
compliance option will be terminated beginning January 1 of a specified
year. If the compliance option includes a plan described in paragraph
(b)(1) of this section, the designated representative for each source
governed by the plan shall sign and certify the notification. Such
notification shall be subject to the limitations on termination under
subpart D of this part and regulations implementing section 407 of the
Act.
(2) The notification under paragraph (d)(1) of this section shall
specify the calendar year for which the termination will take effect.
(3) Upon submission of a notification meeting the requirements of
paragraphs (d) (1) and (2) of this section, the termination becomes
binding on the owners and operators and the designated representative of
any unit governed by the Acid Rain compliance option to be terminated.
(4) A notification meeting the requirements of paragraphs (d) (1)
and (2) of this section will revise the unit's permit in accordance with
Sec. 72.83 (administrative permit amendment).
[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 17113, Apr. 4, 1995]
Sec. 72.41 Phase I substitution plans.
(a) Applicability. This section shall apply during Phase I to the
designated representative of:
(1) Any unit listed in Table 1 of Sec. 73.10(a) of this chapter; and
(2) Any other existing utility unit that is an affected unit under
this part, provided that this section shall not apply to a unit under
section 410 of the Act.
(b)(1) The designated representative may include, in the Acid Rain
permit application for a unit under paragraph (a)(1) of this section, a
substitution plan under which one or more units under paragraph (a)(2)
of this section are designated as substitution units, provided that:
(i) Each unit under paragraph (a)(2) of this section is under the
control of the owner or operator of each unit under paragraph (a)(1) of
this section that designates the unit under paragraph (a)(2) of this
section as a substitution unit; and
(ii) In accordance with paragraph (c)(3) of this section, the
emissions reductions achieved under the plan shall be the same or
greater than would have
[[Page 44]]
been achieved by all units governed by the plan without such plan.
(2) The designated representative of each source with a unit
designated as a substitution unit in any plan submitted under paragraph
(b)(1) of this section shall incorporate in the permit application each
such plan.
(3) The designated representative may submit a substitution plan not
later than 90 days, or a notification to activate a conditionally
approved plan in accordance with Sec. 72.40(c) not later than 60 days,
before the allowance transfer deadline applicable to the first year for
which the plan is to take effect.
(c) Contents of a substitution plan. A complete substitution plan
shall include the following elements in a format prescribed by the
Administrator:
(1) Identification of each unit under paragraph (a)(1) of this
section and each substitution unit to be governed by the substitution
plan. A unit shall not be a substitution unit in more than one
substitution plan.
(2) Except where the designated representative requests conditional
approval of the plan, the first calendar year and, if known, the last
calendar year in which the substitution plan is to be in effect. Unless
the designated representative specifies an earlier calendar year, the
last calendar year will be deemed to be 1999.
(3) Demonstration that the total emissions reductions achieved under
the substitution plan will be equal to or greater than the total
emissions reductions that would have been achieved without the plan, as
follows:
(i) For each substitution unit:
(A) The unit's baseline.
(B) Each of the following: the unit's 1985 actual SO2
emissions rate; the unit's 1985 allowable SO2 emissions rate;
the unit's 1989 actual SO2 emissions rate; the unit's 1990
actual SO2 emissions rate; and, as of November 15, 1990, the
most stringent unit-specific federally enforceable or State enforceable
SO2 emissions limitation covering the unit for 1995-1999. For
purposes of determining the most stringent emissions limitation,
applicable emissions limitations shall be converted to lbs/mmBtu in
accordance with appendix B of this part. Where the most stringent
emissions limitation is not the same for every year in 1995-1999, the
most stringent emissions limitation shall be stated separately for each
year.
(C) The lesser of: the unit's 1985 actual SO2 emissions
rate; the unit's 1985 allowable SO2 emissions rate; the
greater of the unit's 1989 or 1990 actual SO2 emissions rate;
or, as of November 15, 1990, the most stringent unit-specific federally
enforceable or State enforceable SO2 emissions limitation
covering the unit for 1995-99. Where the most stringent emissions
limitation is not the same for every year during 1995-1999, the lesser
of the emissions rates shall be determined separately for each year
using the most stringent emissions limitation for that year.
(D) The product of the baseline in paragraph (c)(3)(i)(A) of this
section and the emissions rate in paragraph (c)(3)(i)(C) of this
section, divided by 2000 lbs/ton. Where the most stringent emissions
limitation is not the same for every year during 1995-1999, the product
in the prior sentence shall be calculated separately for each year using
the emissions rate determined for that year in paragraph (c)(3)(i)(C) of
this section.
(ii)(A) The sum of the amounts in paragraph (c)(3)(i)(D) of this
section for all substitution units to be governed by the plan. Except as
provided in paragraph (c)(3)(ii)(B) of this section, this sum is the
total number of allowances available each year under the substitution
plan.
(B) Where the most stringent unit-specific federally enforceable or
State enforceable SO2 emissions limitation is not the same
for every year during 1995-1999, the sum in paragraph (c)(3)(ii)(A) of
this section shall be calculated separately for each year using the
amounts calculated for that year in paragraph (c)(3)(i)(D) of this
section. Each separate sum is the total number of allowances available
for the respective year under the substitution plan.
(iii) Where, as of November 15, 1990, a non-unit-specific federally
enforceable or State enforceable SO2 emissions limitation
covers the unit for any year
[[Page 45]]
during 1995-1999, the designated representative shall state each such
limitation and propose a method for applying the unit-specific and non-
unit-specific emissions limitations under paragraph (d) of this section.
(4) Distribution of substitution allowances. (i) A statement that
the allowances in paragraph (c)(3)(ii) of this section are not to be
distributed to any units under paragraph (a)(1) of this section that are
to be governed by the plan; or
(ii) A list showing any annual distribution of the allowances in
paragraph (c)(3)(ii) of this section from a substitution unit to a unit
under paragraph (a)(1) of this section that, under the plan, designates
the substitution unit.
(5) A demonstration that the substitution plan meets the requirement
that each unit under paragraph (a)(2) of this section is under the
control of the owner or operator of each unit under paragraph (a)(1) of
this section that designates the unit under paragraph (a)(2) of this
section as a substitution unit. The demonstration shall be one of the
following:
(i) If the unit under paragraph (a)(1) of this section has one or
more owners or operators that have an aggregate percentage ownership
interest of 50 percent or more in the capacity of the unit under
paragraph (a)(2) of this section or the units have a common operator, a
statement identifying such owners or operators and their aggregate
percentage ownership interest in the capacity of the unit under
paragraph (a)(2) of this section or identifying the units' common
operator. The designated representative shall submit supporting
documentation upon request by the Administrator.
(ii) If the unit under paragraph (a)(1) of this section has one or
more owners or operators that have an aggregate percentage ownership
interest of at least 10 percent and less than 50 percent in the capacity
of the unit under paragraph (a)(2) of this section and the units do not
have a common operator, a statement identifying such owners or operators
and their aggregate percentage ownership interest in the capacity of the
unit under paragraph (a)(2) of this seciton and stating that each such
owner or operator has the contractual right to direct the dispatch of
the electricity that, because of its ownership interest, it has the
right to receive from the unit under paragraph (a)(2) of this section.
The fact that the electricity that such owner or operator has the right
to receive is centrally dispatched through a power pool will not be the
basis for determining that the owner or operator does not have the
contractual right to direct the dispatch of such electricity. The
designated representative shall submit supporting documentation upon
request by the Administrator.
(iii) A copy of an agreement that is binding on the owners and
operators of the unit under paragraph (a)(2) of this section and the
owners and operators of the unit under paragraph (a)(1) of this section,
provides each of the following elements, and is supported by
documentation meeting the requirements of paragraph (c)(6) of this
section:
(A) The owners and operators of the unit under paragraph (a)(2) of
this section must not allow the unit to emit sulfur dioxide in excess of
a maximum annual average SO2 emissions rate (in lbs/mmBtu),
specified in the agreement, for each year during the period that the
substitution plan is in effect.
(B) The maximum annual average SO2 emissions rate for the
unit under paragraph (a)(2) of this section shall not exceed 70 percent
of the lesser of: the unit's 1985 actual SO2 emissions rate;
the unit's 1985 allowable SO2 emissions rate; the greater of
the unit's 1989 or 1990 actual SO2 emissions rate; the most
stringent federally enforceable or State enforceable SO2
emissions limitation, as of November 15, 1990, applicable to the unit in
Phase I; or the lesser of the average actual SO2 emissions
rate or the most stringent federally enforceable or State enforceable
SO2 emissions limitation for the unit for four consecutive
quarters that immediately precede the 30-day period ending on the date
the substitution plan is submitted to the Administrator. If the unit is
covered by a non-unit-specific federally enforceable or State
enforceable SO2 emissions limitation in the four consecutive
quarters or, as of November 15, 1990, in Phase I,
[[Page 46]]
the Administrator will determine, on a case-by-case basis, how to apply
the non-unit-specific emissions limitation for purposes of determining
whether the maximum annual average SO2 emissions rate meets
the requirement of the prior sentence. If a non-unit-specific federally
enforceable SO2 emissions limitation is not different from a
non-unit-specific federally enforceable SO2 emissions
limitation that was effective and applicable to the unit in 1985, the
Administrator will apply the non-unit-specific SO2 emissions
limitation by using the 1985 allowable SO2 emissions rate.
(C) For each year that the actual SO2 emissions rate of
the unit under paragraph (a)(2) of this section exceeds the maximum
annual average SO2 emissions rate, the designated
representative of the unit under paragraph (a)(1) of this section must
surrender allowances for deduction from the Allowance Tracking System
account of the unit under paragraph (a)(1) of this section. The
designated representative shall surrender allowances authorizing
emissions equal to the baseline of the unit under paragraph (a)(2) of
this section multiplied by the difference between the actual
SO2 emissions rate of the unit under paragraph (a)(2) of this
section and the maximum annual average SO2 emissions rate and
divided by 2000 lbs/ton. The surrender shall be made by the allowance
transfer deadline of the year of the exceedance, and the surrendered
allowances shall have the same or an earlier compliance use date as the
allowances allocated to the unit under paragraph (a)(2) of this section
for that year. The designated representative may identify the serial
numbers of the allowances to be deducted. In the absence of such
identification, allowances will be deducted on a first-in, first-out
basis under Sec. 73.35(c)(2) of this chapter.
(D) The unit under paragraph (a)(2) of this section and the unit
under paragraph (a)(1) of this section shall designate a common
designated representative during the period that the substitution plan
is in effect. Having a common alternate designated representative shall
not satisfy the requirement in the prior sentence.
(E) Except as provided in paragraph (c)(6)(i) of this section, the
actual SO2 emissions rate for any year and the average actual
SO2 emissions rate for any period shall be determined in
accordance with part 75 of this chapter.
(6) A demonstration under paragraph (c)(5)(iii) of this section
shall include the following supporting documentation:
(i) The calculation of the average actual SO2 emissions
rate and the most stringent federally enforceable or State enforceable
SO2 emissions limitation for the unit for the four
consecutive quarters that immediately preceded the 30-day period ending
on the date the substitution plan is submitted to the Administrator. To
the extent that the four consecutive quarters include a quarter prior to
January 1, 1995, the SO2 emissions rate for the quarter shall
be determined applying the methodology for calculating SO2
emissions set forth in appendix C of this part. This methodology shall
be applied using data submitted for the quarter to the Secretary of
Energy on United States Department of Energy Form 767 or, if such data
has not been submitted for the quarter, using the data prepared for such
submission for the quarter.
(ii) A description of the actions that will be taken in order for
the unit under paragraph (a)(2) of this section to comply with the
maximum annual average SO2 emissions rate under paragraph
(c)(5)(iii) of this section.
(iii) A description of any contract for implementing the actions
described in paragraph (c)(6)(ii) of this section that was executed
before the date on which the agreement under paragraph (c)(5)(iii) of
this section is executed. The designated representative shall state the
execution date of each such contract and state whether the contract is
expressly contingent on the agreement under paragraph (c)(5)(iii) of
this section.
(iv) A showing that the actions described under paragraph (c)(6)(ii)
of this section will not be implemented during Phase I unless the unit
is approved as a substitution unit.
(7) The special provisions in paragraph (e) of this section.
[[Page 47]]
(d) Administrator's action. (1) If the Administrator approves a
substitution plan, he or she will allocate allowances to the Allowance
Tracking System accounts of the units under paragraph (a)(1) of this
section and substitution units, as provided in the approved plan, upon
issuance of an Acid Rain permit containing the plan, except that if the
substitution plan is conditionally approved, the allowances will be
allocated upon revision of the permit to activate the plan.
(2) In no event shall allowances be allocated to a substitution
unit, under an approved substitution plan, for any year in excess of the
sum calculated and applicable to that year under paragraph (c)(3)(ii) of
this section, as adjusted by the Administrator in approving the plan.
(3) Where, as of November 15, 1990, a non-unit-specific federally
enforceable or State enforceable SO2 emissions limitation
covers the unit for any year during 1995-1999, the Administrator will
specify on a case-by-case basis a method for using unit-specific and
non-unit-specific emissions limitations in allocating allowances to the
substitution unit. The specified method will not treat a non-unit-
specific emissions limitation as a unit-specific emissions limitation
and will not result in substitution units retaining allowances allocated
under paragraph (d)(1) of this section for emissions reductions
necessary to meet a non-unit- specific emissions limitation. Such method
may require an end-of-year review and the adjustment of the allowances
allocated to the substitution unit and may require the designated
representative of the substitution unit to surrender allowances by the
allowance transfer deadline of the year that is subject to the review.
Any surrendered allowances shall have the same or an earlier compliance
use date as the allowances originally allocated for the year, and the
designated representative may identify the serial numbers of the
allowances to be deducted. In the absence of such identification, such
allowances will be deducted on a first-in, first-out basis under
Sec. 73.35(c)(2) of this chapter.
(e) Special provisions--(1) Emissions Limitations. (i) Each
substitution unit governed by an approved substitution plan shall become
a Phase I unit from January 1 of the year for which the plan takes
effect until January 1 of the year for which the plan is no longer in
effect or is terminated. The designated representative of a substitution
unit shall surrender allowances, and the Administrator will deduct
allowances, in accordance with paragraph (d)(3) of this section.
(ii) Each unit under paragraph (a)(1) of this section, and each
substitution unit, governed by an approved substitution plan shall be
subject to the Acid Rain emissions limitations for nitrogen oxides in
accordance with section 407 of the Act and regulations implementing
section 407 of the Act.
(iii) Where an approved substitution plan includes a demonstration
under paragraphs (c)(5)(iii) and (c)(6) of this section.
(A) The owners and operators of the substitution unit covered by the
demonstration shall implement the actions described under paragraph
(c)(6)(ii) of this section, as adjusted by the Administrator in
approving the plan or in revising the permit. The designated
representative may submit proposed permit revisions changing the
description of the actions to be taken in order for the substitution
unit to achieve the maximum annual average SO2 emissions rate
under the approved plan and shall include in any such submission a
showing that the actions in the changed description will not be
implemented during Phase I unless the unit remains a substitution unit.
The permit revision will be treated as an administrative amendment,
except where the Administrator determines that the change in the
description alters the fundamental nature of the actions to be taken and
that public notice and comment will contribute to the decision-making
process, in which case the permit revision will be treated as a permit
modification or, at the option of the designated representative, a fast-
track modification.
(B) The designated representative of the unit under paragraph (a)(1)
of this section shall surrender allowances, and theAdministrator will
deduct allowances, in accordance with paragraph
[[Page 48]]
(c)(5)(iii)(C) of this section. The surrender and deduction of
allowances as required under the prior sentence shall be the only remedy
under the Act for a failure to meet the maximum annual average
SO2 emissions rate, provided that, if such deduction of
allowance results in excess emissions, the remedies for excess emissions
shall be fully applicable.
(2) Liability. The owners and operators of a unit governed by an
approved substitution plan shall be liable for any violation of the plan
or this section at that unit or any other unit that is the first unit's
substitution unit or for which the first unit is a substitution unit
under the plan, including liability for fulfilling the obligations
specified in part 77 of this chapter and section 411 of the Act.
(3) Termination. (i) A substitution plan shall be in effect only in
Phase I for the calendar years specified in the plan or until the
calendar year for which a termination of the plan takes effect, provided
that no substitution plan shall be terminated, and no unit shall be de-
designated as a substitution unit, before the end of Phase I if the
substitution unit serves as a control unit under a Phase I extension
plan.
(ii) To terminate a substitution plan for a given calendar year
prior to the last year for which the plan was approved:
(A) A notification to terminate in accordance with Sec. 72.40(d)
shall be submitted no later than 60 days before the allowance transfer
deadline applicable to the given year; and
(B) In the notification to terminate, the designated representative
of each unit governed by the plan shall state that he or she surrenders
for deduction from the unit's Allowance Tracking System account
allowances equal in number to, and with the same or an earlier
compliance use date as, those allocated under paragraph (d)(1) of this
section for all calendar years for which the plan is to be terminated.
The designated representative may identify the serial numbers of the
allowances to be deducted. In the absence of such identification,
allowances will be deducted on a first-in, first-out basis under
Sec. 73.35(c)(2) of this chapter.
(iii) If the requirements of paragraph (e)(3)(ii) of this section
are met and upon revision of the permit to terminate the substitution
plan, the Administrator will deduct the allowances specified in
paragraph (e)(3)(ii)(B) of this section. No substitution plan shall be
terminated, and no unit shall be de-designated as a Phase I unit, unless
such deduction is made.
(iv)(A) If there is a change in the ownership interest of the owners
or operators of any unit under a substitution plan approved as meeting
the requirements of paragraph (c)(5)(i) or (ii) of this section or a
change in such owners' or operators' right to direct dispatch of
electricity from a substitution unit under such a plan and the
demonstration under paragraph (c)(5)(i) or (ii) of this section cannot
be made, then the designated representatives of the units governed by
this plan shall submit a notification to terminate the plan so that the
plan will terminate as of January 1 of the calendar year during which
the change is made.
(B) Where a substitution plan is approved as meeting the
requirements of paragraph (c)(5)(iii) of this section, if there is a
change in the agreement under paragraph (c)(5)(iii) of this section and
a demonstration that the agreement, as changed, meets the requirements
of paragraph (c)(5)(iii) cannot be made, then the designated
representative of the units governed by the plan shall submit a
notification to terminate the plan so that the plan will terminate as of
January 1 of the calendar year during which the change is made. Where a
substitution plan is approved as meeting the requirements of paragraph
(c)(5)(iii) of this section, if the requirements of the first sentence
of paragraph (e)(1)(iii)(A) of this section are not met during a
calendar year, then the designated representative of the units governed
by the plan shall submit a notification to terminate the plan so that
the plan will terminate as of January 1 of such calendar year.
(C) If the plan is not terminated in accordance with paragraphs
(e)(3)(iv)(A) or (B) of this section, the
[[Page 49]]
Administrator, on his or her own motion, will terminate the plan and
deduct the allowances required to be surrendered under paragraph
(e)(3)(ii) of this section.
(D) Where a substitution unit and the Phase I unit designating the
substitution unit in an approved substitution plan have a common owner,
operator, or designated representative during a year, the plan shall not
be terminated under paragraphs (e)(3)(iv)(A), (B), or (C) of this
section with regard to the substitution unit if the year is as specified
in paragraph (e)(3)(iv)(D)(1) or (2) of this section and the unit
received from the Administrator for the year, under the Partial
Settlement in Environmental Defense Fund v. Carol M. Browner, No. 93-
1203 (D.C. Cir. 1993) (signed May 4, 1993), a total number of allowances
equal to the unit's baseline multiplied by the lesser of the unit's 1985
actual SO2 emissions rate or 1985 allowable SO2
emissions rate.
(1) Except as provided in paragraph (e)(3)(iv)(D)(2) of this
section, paragraph (e)(3)(iv)(D) of this section shall apply to the
first year in Phase I for which the unit is and remains an active
substitution unit.
(2) If the unit has a Group 1 boiler under part 76 of this chapter
and is and remains an active substitution unit during 1995, paragraph
(e)(3)(iv)(D) of this section shall apply to 1995 and to the second year
in Phase I for which the unit is and remains an active substitution
unit.
(3) If there is a change in the owners, operators, or designated
representative of the substitution unit or the Phase I unit during a
year under paragraph (e)(3)(iv)(D)(1) or (2) of this section and, with
the change, the units do not have a common owner, operator, or
designated representative, then the designated representatives for such
units shall submit a notification to terminate the plan so that the plan
will terminate as of January 1 of the calendar year during which the
change is made. If the plan is not terminated in accordance with the
prior sentence, the Administrator, on his or her own motion, will
terminate the plan and deduct the allowances required to be surrendered
under paragraph (e)(3)(ii) of this section.
[58 FR 3650, Jan. 11, 1993, as amended at 58 FR 40747, July 30, 1993; 59
FR 60230, 60238, Nov. 22, 1994]
Sec. 72.42 Phase I extension plans.
(a) Applicability. (1) This section shall apply to any designated
representative seeking a 2-year extension of the deadline for meeting
Phase I sulfur dioxide emissions reduction requirements at any of the
following types of units by applying for allowances from the Phase I
extension reserve:
(i) A unit listed in Table 1 of Sec. 73.10(a) of this chapter;
(ii) A unit designated as a substitution unit in accordance with
Sec. 72.41; or
(iii) A unit designated as a compensating unit in accordance with
Sec. 72.43, except a compensating unit that is a new unit.
(2) A unit for which a Phase I extension is sought shall be either:
(i) A control unit, which shall be a unit under paragraph (a)(1) of
this section and at which qualifying Phase I technology shall commence
operation on or after November 15, 1990 but not later than December 31,
1996; or
(ii) A transfer unit, which shall be a unit under paragraph
(a)(1)(i) of this section and whose Phase I emissions reduction
obligation shall be transferred in whole or in part to one or more
control units.
(3) A Phase I extension does not exempt the owner or operator for
any unit governed by the Phase I extension plan from the requirement to
comply with such unit's Acid Rain emissions limitations for sulfur
dioxide.
(b) To apply for a Phase I extension:
(1) The designated representative for each source with a control
unit may submit an early ranking application for a Phase I extension
plan in person, beginning on the 40th day after publication of this
subpart in the Federal Register, between the hours of 9 a.m. and 5 p.m.
Eastern Standard Time at Acid Rain Division, Attn: Early Ranking, U.S.
Environmental Protection Agency, 501 3rd Street NW., 4th floor,
Washington, DC; or send the application by regular mail, certified mail,
or overnight delivery service to Acid Rain
[[Page 50]]
Division, Attn: Early Ranking, U.S. Environmental Protection Agency,
6204 J, 401 M Street, SW., Washington, DC 20460.
(2) By February 15, 1993:
(i) The designated representative for each source with a control
unit shall submit a Phase I extension plan as a part of the Acid Rain
permit application for the source, and
(ii) The designated representative for each source with a unit
designated as a transfer unit in any plan submitted under paragraph
(b)(2)(i) of this section shall incorporate in the Acid Rain permit
application each such plan.
(c) Contents of early ranking application. A complete early ranking
application shall include the following elements in a format prescribed
by the Administrator:
(1) Identification of each control unit. All control units in an
application must be located at the same source. If the control unit is
not a unit under paragraph (a)(1)(i) of this section, a substitution
plan or a reduced utilization plan governing the unit shall be submitted
by the deadline for submitting a Phase I permit application.
(2) Identification of each transfer unit. A unit shall not be a
transfer unit in more than one early ranking application.
(3) For each control and transfer unit, the total tonnage of sulfur
dioxide emitted in 1988 plus the total tonnage of sulfur dioxide emitted
in 1989, divided by 2. The 1988 and 1989 tonnage figures shall be
consistent with the data filed on EIA form 767 for those years and the
conversion methodology specified in Appendix B of this part.
(4) For each control and transfer unit:
(i) The projected annual utilization (in mmBtu) for 1995 multiplied
by the projected uncontrolled emissions rate (i.e., the emissions rate
in the absence of title IV of the Act) for 1995 (in lbs/mmBtu), divided
by 2000 lbs/ton.
(ii) The projected annual utilization (in mmBtu) for 1996 multiplied
by the projected uncontrolled emissions rate (i.e., the emissions rate
in the absence of title IV of the Act) for 1996 (in lbs/mmBtu), divided
by 2000 lbs/ton.
(5) For each control and transfer unit, the number of Phase I
extension reserve allowances requested for 1995 and for 1996, not to
exceed the difference between:
(i) The lesser of the value for the unit under paragraph (c)(3) of
this section and the value for the unit for that year under paragraph
(c)(4) of this section, and
(ii) Each unit's baseline multiplied by 2.5 lb/mmBtu, divided by
2000 lbs/ton.
(6) Documentation that the annual emissions reduction obligations
transferred from all transfer units to all control units do not exceed
those authorized under this section, as follows:
(i) For each control unit, the difference, calculated separately for
1995 and 1996, between:
(A) The control unit's allowance allocation in Table 1 of
Sec. 73.10(2) of this chapter, the allocation under Sec. 72.41 if the
control unit is a substitution unit, or the allocation under Sec. 72.43
if the control unit is a compensating unit; and
(B) The projected emissions resulting from 90% control after
installing the qualifying Phase I technology, i.e., 10% of the projected
uncontrolled emissions for the control unit for the year in accordance
with paragraph (c)(4) of this section.
(ii) The sum, by year, of the results under paragraph (c)(6)(i) of
this section for all control units.
(iii) The sum, by year, of Phase I extension reserve allowances
requested for all transfer units.
(iv) A showing that, for each year, the sum under paragraph
(c)(6)(ii) of this section is greater than or equal to the sum under
paragraph (c)(6)(iii) of this section.
(7) For each control and transfer unit, the projected controlled
emissions for 1997, for 1998, and for 1999 calculated as follows:
Projected annual utilization (in mmBtu) multiplied by the projected
controlled emission rate (in lbs/mmBtu), divided by 2000 lbs/ton.\1\
---------------------------------------------------------------------------
\1\ In the case of a transfer unit that shares a common stack with a
unit not listed in Table 1 of Sec. 73.10(a) of this chapter and whose
emissions of sulfur dioxide are not monitored separately or apportioned
in accordance with part 75 of this chapter, the projected figures for
the transfer unit under paragraph (c)(7) of this section must be for the
units combined.
---------------------------------------------------------------------------
[[Page 51]]
(8) For each control unit, the number of Phase I extension reserve
allowances requested for 1997, for 1998, and for 1999, calculated as
follows:
The unit's baseline multiplied by 1.2 lbs/mmBtu and divided by 2000
lbs/ton, minus the projected controlled emissions (in tons/yr) under
paragraph (c)(7) of this section for the given year.
(9) The total of Phase I extension reserve allowances requested for
all units in the plan for 1995 through 1999.
(10) With regard to each executed contract for the design
engineering and construction of qualifying Phase I technology at each
control unit governed by the early ranking application, either a copy of
the contract or a certification that the contract is on site at the
source and will be submitted to the Administrator upon written request.
The contract or contracts may be contingent on the Administrator
approving the Phase I extension plan.
(11) For each contract for which a certification is submitted under
paragraph (c)(10) of this section, a binding letter agreement, signed
and dated by each party and specifying:
(i) The type of qualifying Phase I technology to which the contract
applies;
(ii) The parties to the contract;
(iii) The date each party executed the contracts;
(iv) The unit to which the contract applies;
(v) A brief list identifying each provision of the contract;
(vi) Any dates to which the parties agree, including construction
completion date; and
(vii) The total dollar amount of the contract.
(12) A vendor certification of the sulfur dioxide removal efficiency
guaranteed to be achievable by the qualifying Phase I technology for the
type and range of fossil fuels (before any treatment prior to
combustion) that will be used at the control unit; provided that a
vendor certification shall not be a defense against a control unit's
failure to achieve 90% control of sulfur dioxide.
(13) The date (not later than December 31, 1996) on which the owners
and operators plan to commence operation of the qualifying Phase I
technology.
(14) The special provisions of paragraph (f) of this section.
(d) Contents of Phase I extension plan. A complete Phase I extension
plan shall include the following elements in a format prescribed by the
Administrator:
(1) Identification of each unit in the plan.
(2)(i) A statement that the elements in the Phase I extension plan
are identical to those in the previously submitted early ranking
application for the plan and that such early ranking application is
incorporated by reference; or
(ii) All elements that are different from those in the previously
submitted early ranking application for the plan and a statement that
the early ranking application is incorporated by reference as modified
by the newly submitted elements; provided that the Phase I extension
plan shall not add any new control units or increase the total Phase I
extension allowances requested; or
(iii) All elements required for an early ranking application and a
statement that no early ranking application for the plan was submitted.
(e) Administrator's action. (1) Early ranking applications. (i) The
Administrator may approve in whole or in part or with changes or
conditions, as appropriate, or disapprove an early ranking application.
(ii) The Administrator will act on each early ranking application in
the order of receipt.
(iii) The Administrator will determine the order of receipt by the
following procedures:
(A) Hand-delivered submissions and mailed submissions will be deemed
to have been received on the date they are received by the
Administrator; provided that all submissions received by the
Administrator prior to the 40th day after publication of this subpart in
the Federal Register will be deemed received on the 40th day.
(B) All submissions received by the Administrator on the same day
will be
[[Page 52]]
deemed to have been received simultaneously.
(C) The order of receipt of all submissions received simultaneously
will be determined by a public lottery if allocation of Phase I
extension reserve allowances to each of the simultaneous submissions
would result in oversubscription of the Phase I extension reserve.
(iv) Based on the allowances requested under paragraph (c)(9) of
this section, as adjusted by the Administrator in approving the early
ranking application, the Administrator will award Phase I extension
reserve allowances for each complete early ranking application to the
extent that allowances that have not been awarded remain in the Phase I
extension reserve at the time the Administrator acts on the application.
The allowances will be awarded in accordance with the procedures set
forth the allocation of reserve allowances in paragraph (e)(3) of this
section.
(v) The Administrator's action on an early ranking application shall
be conditional on the Administrator's action on a timely and complete
Acid Rain permit application that includes a complete Phase I extension
plan and, where the plan includes a unit under paragraph (a)(1) (ii) and
(iii) of this section, a complete substitution plan or reduced
utilization plan, as appropriate.
(vi) Not later than 15 days after receipt of each early ranking
application, the Administrator will notify, in writing, the designated
representative of each application of the date that the early ranking
application was received and one of the following:
(A) The award of allowances if the application was complete and the
Phase I extension reserve as not oversubscribed;
(B) A determination that the application was incomplete and is
disapproved; or
(C) If the Phase I extension reserve was oversubscribed, a list of
the applications received on that date, the number of Phase I extension
allowances requested in each application, and the date, time, and
location of a lottery to determine the order of receipt for all
applications received on that date.
(vii) The date of a lottery for all applications received on a given
day will not be earlier than 15 days after the Administrator notifies
each designated representative whose applications were received on that
date.
(viii) Any early ranking application may be withdrawn from the
lottery if a letter signed by the designated representative of each unit
governed by the application and requesting withdrawal is received by the
Administrator before the lottery takes place.
(2) Phase I extension plans. (i) The Administrator will act on each
Phase I extension plan in the order that the early ranking application
for that plan was received or, if no early ranking application was
received, in the order that the Phase I extension plan was received, as
determined under paragraph (e)(1)(iii) of this section.
(ii) Based on the allowances requested under paragraph (c)(9) of
this section, as adjusted under paragraph (d) of this section and by the
Administrator in approving the Phase I extension plan, the Administrator
will allocate Phase I extension reserve allowances to the Allowance
Tracking System account of each control and transfer unit upon issuance
of an Acid Rain permit containing the approved Phase I extension plan.
The allowances will be allocated using the procedures set forth in
paragraph (e)(3) of this section.
(iii) The Administrator will not approve a Phase I extension plan,
even if it meets the requirements of this section, unless unallocated
allowances remain in the Phase I extension reserve at the time the
Administrator acts on the plan.
(3) Allowance allocations. In addition to any allowances allocated
in accordance with Table 1 of Sec. 73.10(a) of this chapter and other
approved compliance options, the Administrator will allocate Phase I
extension reserve allowances to each eligible unit in a Phase I
extension plan in the following order.
(i) For 1995, to each control unit in the order in which it is
listed in the plan and then to each transfer unit in the order in which
it is listed.
(ii) For 1996, to each control unit in the order in which it is
listed in the plan and then to each transfer unit in the order in which
it is listed.
[[Page 53]]
(iii) For 1997, to each control unit in the order in which it is
listed in the plan, then likewise for 1998, and then likewise for 1999.
(iv) The Administrator will allocate any Phase I extension reserve
allowances returned to the Administrator to the next Phase I extension
plan, in the rank order established under paragraph (e)(1)(iii) of this
section, that continues to meet the requirements of this section and
this part.
(f) Special provisions--(1) Emissions Limitations--(i) Sulfur
Dioxide.
(A) If a control or transfer unit governed by an approved Phase I
extension plan emits in 1997, 1998, or 1999 sulfur dioxide in excess of
the projected controlled emissions for the unit specified for the year
under paragraph (c)(7) of this section as adjusted under paragraph (d)
of this section and by the Administrator in approving the Phase I
extension plan, the Administrator will deduct allowances equal to such
exceedence from the unit's annual allowance allocation in the following
calendar year.\2\
---------------------------------------------------------------------------
\2\ In the case of a transfer unit that shares a common stack with a
unit not listed in Table 1 of Sec. 73.10(a) of this chapter where the
units are not monitored separately or apportioned in accordance with
part 75 of this chapter, the combined emissions of both units will be
deemed to be the transfer unit's emissions for purposes of applying
paragraph (f)(1)(i) of this section.
---------------------------------------------------------------------------
(B) Failure to demonstrate at least a 90% reduction of sulfur
dioxide in 1997, 1998, or 1999 in accordance with part 75 of this
chapter at a control unit governed by an approved Phase I extension plan
shall be a violation of this section. In the event of any such
violation, in addition to any other liability under the Act, the
Administrator will deduct allowances from the control unit's compliance
subaccount for the year of the violation. The deduction will be
calculated as follows:
Allowances deducted=(1-(percent reduction achieved90%)) x Phase
I extension reserve allowances received
where:
``Percent reduction achieved'' is the percent reduction determined
in accordance with part 75 of this chapter.
``Phase I extension reserve allowances received'' is the number of
Phase I extension reserve allowances allocated for the year under
paragraph (e)(2)(ii) of this section.
(ii) Nitrogen Oxides.
(A) Beginning on January 1, 1997, each control and transfer unit
shall be subject to the Acid Rain emissions limitations for nitrogen
oxides.
(B) Notwithstanding paragraph (f)(1)(ii)(A) of this section, a
transfer unit shall be subject to the Acid Rain emissions limitations
for nitrogen oxides, under section 407 of the Act and regulations
implementing section 407 of the Act, beginning on January 1 of any year
for which a transfer unit is allocated fewer Phase I extension reserve
allowances than the maximum amount that the designated representative
could have requested in accordance with paragraph (c)(5) of this section
(as adjusted under paragraph (d) of this section and by the
Administrator in approving the Phase I extension plan) unless the
transfer unit is the last unit allocated Phase I extension reserve
allowances under the plan.
(2) Monitoring requirements. Each control unit shall comply with the
special monitoring requirements for Phase I extension plans in
accordance with part 75 of this chapter.
(3) Reporting requirements. Each control and transfer unit shall
comply with the special reporting requirements for Phase I extension
plans in accordance with Sec. 72.93.
(4) Liability. The owners and operators of a control or transfer
unit governed by an approved Phase I extension plan shall be liable for
any violation of the plan or this section at that or any other unit
governed by the plan, including liability for fulfilling the obligations
specified in part 77 of this chapter and section 411 of the Act.
(5) Termination. A Phase I extension plan shall be in effect only in
Phase I, and no Phase I extension plan shall be terminated before the
end of Phase I. The designated representative may, however, withdraw a
Phase I extension plan at any time prior to issuance of the Phase I Acid
Rain permit that includes the Phase I extension plan, as adjusted.
[[Page 54]]
Sec. 72.43 Phase I reduced utilization plans.
(a) Applicability. This section shall apply to the designated
representative of:
(1) Any Phase I unit, including:
(i) Any unit listed in Table 1 of Sec. 73.10(a) of this chapter; and
(ii) Any other unit that becomes a Phase I unit (including any unit
designated as a compensating unit under this section or a substitution
unit under Sec. 72.41).
(2) Any affected unit that:
(i) Is not otherwise subject to any Acid Rain emissions limitation
or emissions reduction requirements during Phase I; and
(ii) Meets the requirement, as set forth in paragraphs (c)(4)(ii)
and (d) of this section, that for each year for which the unit is to be
covered by the reduced utilization plan, the unit's baseline divided by
2,000 lbs/ton and multiplied by the lesser of the unit's 1985 actual
SO2 emissions rate or 1985 allowable SO2 emissions
rate does not exceed the sum of
(A) The lesser of 10 percent of the amount under paragraph
(a)(2)(ii) of this section or 200 tons, plus
(B) The unit's baseline divided by 2,000 lbs/ton and multiplied by
the lesser of: The greater of the unit's 1989 or 1990 actual
SO2 emissions rate; or, as of November 15, 1990, the most
stringent federally enforceable or State enforceable SO2
emissions limitation covering the unit for 1995-1999.
(b)(1) The designated representative of any unit under paragraph
(a)(1) of this section shall include in the Acid Rain permit application
for the unit a reduced utilization plan, meeting the requirements of
this section, when the owners and operators of the unit plan to:
(i) Reduce utilization of the unit below the unit's baseline to
achieve compliance, in whole or in part, with the unit's Phase I Acid
Rain emissions limitations for sulfur dioxide; and
(ii) Accomplish such reduced utilization through one or more of the
following:
(A) Shifting generation of the unit to a unit under paragraph (a)(2)
of this section or to a sulfur-free generator; or
(B) Using one or more energy conservation measures or improved unit
efficiency measures.
(2)(i) Energy conservation measures shall be either demand-side
measures implemented after December 31, 1987 in the residence or
facility of a customer to whom the unit's utility system sells
electricity or supply-side measures implemented after December 31, 1987
in facilities of the unit's utility system.
(ii) The utility system shall pay in whole or in part for the energy
conservation measures either directly or, in the case of demand-side
measures, through payment to another person who purchases the measure.
(iii) Energy conservation measures shall not include:
(A) Conservation programs that are exclusively informational or
educational in nature;
(B) Load management measures that lead to reduction of electric
energy demands during a utility's peak generating period, unless
kilowatt hour savings can be verified under Sec. 72.92;
or
(C) Utilization of industrial waste gases, unless the designated
representative certifies that there is no net increase in sulfur dioxide
emissions from such utilization.
(iv) For calendar years when the unit's utility system is a
subsidiary of a holding company and the unit's dispatch system is or
includes all units that are interconnected and centrally dispatched and
included in that holding company, then:
(A) Energy conservation measures shall be either demand-side
measures implemented in the residence or facility of a customer to whom
any utility system in the holding company sells electricity or supply-
side measures implemented in facilities of any utility system in the
holding company. Such utility system shall pay in whole or in part for
the measures either directly or, in the case of demand-side measures,
through payment to another person who purchases the measures.
(B) The limitations in paragraph (b)(2)(iii) of this section shall
apply.
(3)(i) Improved unit efficiency measures shall be implemented in the
unit after December 31, 1987. Such measures include supply-side measures
listed in
[[Page 55]]
appendix A, section 2.1 of part 73 of this chapter.
(ii) The utility system shall pay in whole or in part for the
improved unit efficiency measures.
(4) The requirement to submit a reduced utilization plan shall apply
in the event that the owners and operators of a Phase I unit decide, at
any time during any Phase I calendar year, to rely on the method of
compliance in paragraph (b)(1) of this section. In that case, the
designated representative shall submit a reduced utilization plan not
later than 90 days, or a notification to activate a conditionally
approved plan in accordance with Sec. 72.40(c) not later than 60 days,
before the allowance transfer deadline applicable to the first year for
which the plan is to take effect.
(5) The designated representative of each source with a unit
designated as a compensating unit in any plan submitted under paragraphs
(b) (1) or (4) of this section shall incorporate by reference in the
permit application each such plan.
(c) Contents of reduced utilization plan. A complete reduced
utilization plan shall include the following elements in a format
prescribed by the Administrator:
(1) Identification of each Phase I unit for which the owners and
operators plan reduced utilization.
(2) Except where the designated representative requests conditional
approval of the plan, the first calendar year and, if known, the last
calendar year in which the reduced utilization plan is to be in effect.
Unless the designated representative specifies an earlier calendar year,
the last calendar year shall be deemed to be 1999.
(3) A statement whether the plan designates a compensating unit or
relies on sulfur-free generation, any energy conservation measure, or
any improved unit efficiency measure to account for any amount of
reduced utilization.
(4) If the plan designates a compensating unit, or relies on sulfur-
free generation, to account for any amount of reduced utilization:
(i) Identification of each compensating unit or sulfur-free
generator.
(ii) For each compensating unit. (A) Each of the following: The
unit's 1985 actual SO2 emissions rate; the unit's 1985
allowable emissions rate; the unit's 1989 actual SO2
emissions rate; the unit's 1990 actual SO2 emissions rate;
and, as of November 15, 1990, the most stringent unit-specific federally
enforceable or State enforceable SO2 emissions limitation
covering the unit for 1995-1999. For purposes of determining the most
stringent emissions limitation, applicable emissions limitations shall
be converted to lbs/mmBtu in accordance with appendix B of this part.
Where the most stringent emissions limitation is not the same for every
year in 1995-1999, the most stringent emissions limitation shall be
stated separately for each year.
(B) The unit's baseline divided by 2,000 lbs/ton and multiplied by
the lesser of the unit's 1985 actual SO2 emissions rate or
1985 allowable SO2 emissions rate.
(C) The unit's baseline divided by 2000 lbs/ton and multiplied by
the lesser of: The greater of the unit's 1989 or 1990 actual
SO2 emissions rate; or, as of November 15, 1990, the most
stringent unit-specific federally enforceable or State enforceable
SO2 emissions limitation covering the unit for 1995-1999.
Where the most stringent emissions limitation is not the same for every
year in 1995-1999, the calculation in the prior sentence shall be made
separately for each year.
(D) The difference between the amount under paragraph (c)(4)(ii)(B)
of this section and the amount under paragraph (c)(4)(ii)(C) of this
section. If the difference calculated in the prior sentence for any year
exceeds the lesser of 10 percent of the amount under paragraph
(c)(4)(ii)(B) of this section or 200 tons, the unit shall not be
designated as a compensating unit for the year. Where the most stringent
unit-specific federally enforceable or State enforceable SO2
emissions limitation is not the same for every year in 1995-1999, the
difference shall be calculated separately for each year.
(E) The allowance allocation calculated as the amount under
paragraph (c)(4)(ii)(B) of this section. If the compensating unit is a
new unit, it shall be deemed to have a baseline of zero and shall be
allocated no allowances.
[[Page 56]]
(F) Where, as of November 15, 1990, a non-unit-specific federally
enforceable or State enforceable SO2 emissions limitation
covers the unit for any year in 1995-1999, the designated representative
shall state each such limitation and propose a method for applying unit-
specific and non-unit-specific emissions limitations under paragraph (d)
of this section.
(iii) For each sulfur-free generator, identification of any other
Phase I units that designate the same sulfur-free generator in another
plan submitted under paragraph (b) (1) or (4) of this section.
(iv) For each compensating unit or sulfur-free generator not in the
dispatch system of the unit reducing utilization under the plan, the
system directives or power purchase agreements or other contractual
agreements governing the acquisition, by the dispatch system, of the
electrical energy that is generated by the compensating unit or sulfur-
free generator and on which the plan relies to accomplish reduced
utilization. Such contractual agreements shall identify the specific
compensating unit or sulfur-free generator from which the dispatch
system acquires such electrical energy.
(5) The special provisions in paragraph (f) of this section.
(d) Administrator's action. (1) If the Administrator approves the
reduced utilization plan, he or she will allocate allowances, as
provided in the approved plan, to the Allowance Tracking System account
for any designated compensating unit upon issuance of an Acid Rain
permit containing the plan, except that, if the plan is conditionally
approved, the allowances will be allocated upon revision of the permit
to activate the plan.
(2) Where, as of November 15, 1990, a non-unit-specific federally
enforceable or State enforceable emissions limitation covers the unit
for any year during 1995-1999, the Administrator will specify on a case-
by-case basis a method for using unit-specific and non-unit specific
emissions limitations in approving or disapproving the compensating
unit. The specified method will not treat a non-unit-specific emissions
limitation as a unit-specific emissions limitation and will not result
in compensating units retaining allowances allocated under paragraph
(d)(1) of this section for emissions reductions necessary to meet a non-
unit-specific emissions limitation. Such method may require an end-of-
year review and the disapproval and de-designation, and adjustment of
the allowances allocated to, the compensating unit and may require the
designated representative of the compensating unit to surrender
allowances by the allowance transfer deadline of the year that is
subject to the review. Any surrendered allowances shall have the same or
an earlier compliance use date as the allowances originally allocated
for the year, and the designated representative may identify the serial
numbers of the allowances to be deducted. In the absence of such
identification, such allowances will be deducted on a first-in, first-
out basis under Sec. 73.35(c)(2) of this chapter.
(e) Failure to submit a plan. The designated representative of a
Phase I unit will be deemed not to violate, during a Phase I calendar
year, the requirement to submit a reduced utilization plan under
paragraph (b)(1) or (4) of this section if the designated representative
complies with the allowance surrender and other requirements of
Secs. 72.33, 72.91, and 72.92 of this chapter.
(f) Special provisions--(1) Emissions limitations. (i) Any
compensating unit designated under an approved reduced utilization plan
shall become a Phase I unit from January 1 of the calendar year in which
the plan takes effect until January 1 of the year for which the plan is
no longer in effect or is terminated, except that such unit shall not
become subject to the Acid Rain emissions limitations for nitrogen
oxides in Phase I under section 407 of the Act and regulations
implementing section 407 of the Act.
(ii) The designated representative of any Phase I unit (including a
unit governed by a reduced utilization plan relying on energy
conservation, improved unit efficiency, sulfur-free generation, or a
compensating unit) shall surrender allowances, and the Administrator
will deduct or return allowances, in accordance with paragraph (d)(2) of
this section and subpart I of this part.
[[Page 57]]
(2) Reporting requirements. The designated representative of any
Phase I unit (including a unit governed by a reduced utilization plan
relying on energy conservation, improved unit efficiency, sulfur-free
generation, or a compensating unit) shall comply with the special
reporting requirements under Secs. 72.91 and 72.92.
(3) Liability. The owners and operators of a unit governed by an
approved reduced utilization plan shall be liable for any violation of
the plan or this section at that or any other unit governed by the plan,
including liability for fulfilling the obligations specified in part 77
of this chapter and section 411 of the Act.
(4) Termination. (i) A reduced utilization plan shall be in effect
only in Phase I for the calendar years specified in the plan or until
the calendar year for which a termination of the plan takes effect;
provided that no reduced utilization plan that designates a compensating
unit that serves as a control unit under a Phase I extension plan shall
be terminated, and no such unit shall be de-designated as a compensating
unit, before the end of Phase I.
(ii) To terminate a reduced utilization plan for a given calendar
year prior to its last year for which the plan was approved:
(A) A notification to terminate in accordance with Sec. 72.40(d)
shall be submitted no later than 60 days before the allowance transfer
deadline applicable to the given year; and
(B) In the notification to terminate, the designated representative
of any compensating unit governed by the plan shall state that he or she
surrenders for deduction from the unit's Allowance Tracking System
account allowances equal in number to, and with the same or an earlier
compliance use date as, those allocated under paragraph (d) of this
section to each compensating unit for the calendar years for which the
plan is to be terminated. The designated representative may identify the
serial numbers of the allowances to be deducted. In the absence of such
identification, allowances will be deducted on a first-in, first-out
basis under Sec. 73.35(c)(2) of this chapter.
(iii) If the requirements of paragraph (f)(3)(ii) are met and upon
revision of the permit to terminate the reduced utilization plan, the
Administrator will deduct the allowances specified in paragraph
(f)(3)(ii)(B) of this section. No reduced utilization plan shall be
terminated, and no unit shall be de-designated as a Phase I unit, unless
such deduction is made.
[58 FR 3650, Jan. 11, 1993, as amended at 59 FR 60230, Nov. 22, 1994; 60
FR 18470, Apr. 11, 1995]
Sec. 72.44 Phase II repowering extensions.
(a) Applicability. (1) This section shall apply to the designated
representative of:
(i) Any existing affected unit that is a coal-fired unit and has a
1985 actual SO2 emissions rate equal to or greater than 1.2
lbs/mmBtu.
(ii) Any new unit that will be a replacement unit, as provided in
paragraph (b)(2) of this section, for a unit meeting the requirements of
paragraph (a)(1)(i) of this section.
(iii) Any oil and/or gas-fired unit that has been awarded clean coal
technology demonstration funding as of January 1, 1991 by the Secretary
of Energy.
(2) A repowering extension does not exempt the owner or operator for
any unit governed by the repowering plan from the requirement to comply
with such unit's Acid Rain emissions limitations for sulfur dioxide.
(b) The designated representative of any unit meeting the
requirements of paragraph (a)(1)(i) of this section may include in the
unit's Phase II Acid Rain permit application a repowering extension plan
that includes a demonstration that:
(1) The unit will be repowered with a qualifying repowering
technology in order to comply with the Phase II emissions limitations
for sulfur dioxide; or
(2) The unit will be replaced by a new utility unit that has the
same designated representative and that is located at a different site
using a qualified repowering technology and the existing unit will be
permanently retired from service on or before the date on which the new
utility unit commences commercial operation.
[[Page 58]]
(c) In order to apply for a repowering extension, the designated
representative of a unit under paragraph (a) of this section shall:
(1) Submit to the permitting authority, by January 1, 1996, a
complete repowering extension plan;
(2) Submit to the Administrator, before June 1, 1997, a complete
petition for approval of repowering technology; and
(3) If the repowering extension plan is submitted for conditional
approval, submit by December 31, 1997, a notification to activate the
plan in accordance with Sec. 72.40(c).
(d) Contents and Review of Petition for Approval of Repowering
Technology. (1) A complete petition for approval of repowering
technology shall include the following elements, in a format prescribed
by the Administrator, concerning the technology to be used in a plan
under paragraph (b) of this section and may follow the repowering
technology demonstration protocol issued by the Administrator:
(i) Identification and description of the technology.
(ii) Vendor certification of the guaranteed performance
characteristics of the technology, including:
(A) Percent removal and emission rate of each pollutant being
controlled;
(B) Overall generation efficiency; and
(C) Information on the state, chemical constituents, and quantities
of solid waste generated (including information on land-use requirements
for disposal) and on the availability of a market to which any by-
products may be sold.
(iii) If the repowering technology is not listed in the definition
of a qualified repowering technology in Sec. 72.2, a vendor
certification of the guaranteed performance characteristics that
demonstrate that the technology meets the criteria specified for non-
listed technologies in Sec. 72.2; provided that the existence of such
guarantee shall not be a defense against the failure to meet the
criteria for non-listed technologies.
(2) The Administrator may request any supplemental information that
is deemed necessary to review the petition for approval of repowering
technology.
(3) The Administrator shall review the petition for approval of
repowering technology and, in consultation with the Secretary of Energy,
shall make a conditional determination of whether the technology
described in the petition is a qualifying repowering technology.
(4) Based on the petition for approval of repowering technology and
the information provided under paragraph (d)(2) of this section and
Sec. 72.94(a), the Administrator will make a final determination of
whether the technology described in the petition is a qualifying
repowering technology.
(e) Contents of repowering extension plan. A complete repowering
extension plan shall include the following elements in a format
prescribed by the Administrator:
(1) Identification of the existing unit governed by the plan.
(2) The unit's federally-approved State Implementation Plan sulfur
dioxide emissions limitation.
(3) The unit's 1995 actual SO2 emissions rate.
(4) A schedule for construction, installation, and commencement of
operation of the repowering technology approved or submitted for
approval under paragraph (d) of this section, with dates for the
following milestones:
(i) Completion of design engineering;
(ii) For a plan under paragraph (b)(1) of this section, removal of
the existing unit from operation to install the qualified repowering
technology;
(iii) Commencement of construction;
(iv) Completion of construction;
(v) Start-up testing;
(vi) For a plan under paragraph (b)(2) of this section, shutdown of
the existing unit; and
(vii) Commencement of commercial operation of the repowering
technology.
(5) For a plan under paragraph (b)(2) of this section:
(i) Identification of the new unit. A new unit shall not be included
in more than one repowering extension plan.
(ii) Certification that the new unit will replace the existing unit.
(iii) Certification that the new unit has the same designated
representative as the existing unit.
[[Page 59]]
(iv) Certification that the existing unit will be permanently
retired from service on or before the date the new unit commences
commercial operation.
(6) The special provisions of paragraph (h) of this section.
(f) Permitting authority's action on repowering extension plan. (1)
The permitting authority shall not approve a repowering extension plan
until the Administrator makes a conditional determination that the
technology is a qualified repowering technology, unless the permitting
authority conditionally approves such plan subject to the conditional
determination of the Administrator.
(2) Permit issuance. (i) Upon a conditional determination by the
Administrator that the technology to be used in the repowering extension
plan is a qualified repowering technology and a determination by the
permitting authority that such plan meets the requirements of this
section, the permitting authority shall issue the Acid Rain portion of
the operating permit including:
(A) The approved repowering extension plan; and
(B) A schedule of compliance with enforceable milestones for
construction, installation, and commencement of operation of the
repowering technology and other requirements necessary to ensure that
Phase II emission reduction requirements under this section will be met.
(ii) Except as otherwise provided in paragraph (g) of this section,
the repowering extension shall be in effect starting January 1, 2000 and
ending on the day before the date (specified in the Acid Rain permit) on
which the existing unit will be removed from operation to install the
qualifying repowering technology or will be permanently removed from
service for replacement by a new unit with such technology; provided
that the repowering extension shall end no later than December 31, 2003.
(iii) The portion of the operating permit specifying the repowering
extension and other requirements under paragraph (f)(2)(i) of this
section shall be subject to the Administrator's final determination,
under paragraph (d)(4) of this section, that the technology to be used
in the repowering extension plan is a qualifying repowering technology.
(3) Allowance allocation. The Administrator will allocate allowances
after issuance of an operating permit containing the repowering
extension plan (or, if the plan is conditionally approved, after the
revision of the Acid Rain permit under Sec. 72.40(c)) and of the
Administrator's final determination, under paragraph (d)(4) of this
section, that the technology to be used in such plan is a qualifying
repowering technology. Allowances will be allocated (including a pro
rata allocation for any fraction of a year), as follows:
(i) To the existing unit under the approved plan, in accordance with
Sec. 73.21 of this chapter during the repowering extension under
paragraph (f)(2)(ii) of this section; and
(ii) To the existing unit under the approved plan under paragraph
(b)(1) of this section or, in lieu of any further allocations to the
existing unit, to the new unit under the approved plan under paragraph
(b)(2) of this section, in accordance with Sec. 73.21 of this chapter,
after the repowering extension under paragraph (f)(2)(ii) of this
section ends.
(g) Failed repowering projects. (1)(i) If, at any time before the
end of the repowering extension under paragraph (f)(2)(ii) of this
section, the designated representative of a unit governed by an approved
repowering extension plan notifies the Administrator in writing that the
owners and operators have decided to terminate efforts to properly
design, construct, and test the repowering technology specified in the
plan before completion of construction or start-up testing and
demonstrates, in a proposed permit revision, to the Administrator's
satisfaction that such efforts were in good faith, the unit shall not be
deemed in violation of the Act because of such a termination. Where the
preceding requirements of this paragraph are met, the permitting
authority shall revise the operating permit in accordance with this
paragraph and paragraph (g)(1)(ii) of this section and Sec. 72.81
(permit modification).
(ii) Regardless of whether notification under paragraph (g)(1)(i) of
this
[[Page 60]]
section is given, the repowering extension will end beginning on the
earlier of the date of such notification or the date by which the
designated representative was required to give such notification under
Sec. 72.94(d). The Administrator will deduct allowances (including a pro
rata deduction for any fraction of a year) from the Allowance Tracking
System account of the existing unit to the extent necessary to ensure
that, beginning the day after the extension ends, allowances are
allocated in accordance with Sec. 73.21(c)(1) of this chapter.
(2) If the designated representative of a unit governed by an
approved repowering extension plan demonstrates to the satisfaction of
the Administrator, in a proposed permit revision, that the repowering
technology specified in the plan was properly constructed and tested on
such unit but was unable to achieve the emissions reduction limitations
specified in the plan and that it is economically or technologically
infeasible to modify the technology to achieve such limits, the unit
shall not be deemed in violation of the Act because of such failure to
achieve the emissions reduction limitations. In order to be properly
constructed and tested, the repowering technology shall be constructed
at least to the extent necessary for direct testing of the multiple
combustion emissions (including sulfur dioxide and nitrogen oxides) from
such unit while operating the technology at nameplate capacity. Where
the preceding requirements of this paragraph are met:
(i) The permitting authority shall revise the Acid Rain portion of
the operating permit in accordance with paragraphs (g)(2) (ii) and (iii)
and Sec. 72.81 (permit modification).
(ii) The existing unit may be retrofitted or repowered with another
clean coal or other available control technology.
(iii) The repowering extension will continue in effect until the
earlier of the date the existing unit commences commercial operation
with such control technology or December 21, 2003. The Administrator
will allocate or deduct allowances as necessary to ensure that
allowances are allocated in accordance with paragraph (f)(3) of this
section applying the repowering extension under this paragraph.
(h) Special provisions. (1) Emissions Limitations. (i) Sulfur
Dioxide. Allowances allocated during the repowering extension under
paragraphs (f)(3) and (g)(2)(iii) of this section to a unit governed by
an approved repowering extension plan shall not be transferred to any
Allowance Tracking System account other than the unit accounts of other
units at the same source as that unit.
(ii) Nitrogen oxides. Any existing unit governed by an approved
repowering extension plan shall be subject to the Acid Rain emissions
limitations for nitrogen oxides in accordance with section 407 of the
Act and regulations implementing section 407 of the Act beginning on the
date that the unit is removed from operation to install the repowering
technology or is permanently removed from service.
(iii) No existing unit governed by an approved repowering extension
plan shall be eligible for a waiver under section 111(j) of the Act.
(iv) No new unit governed by an approved repowering extension plan
shall receive an exemption from the requirements imposed under section
111 of the Act.
(2) Reporting requirements. Each unit governed by an approved
repowering extension plan shall comply with the special reporting
requirements of Sec. 72.94.
(3) Liability. (i) The owners and operators of a unit governed by an
approved repowering plan shall be liable for any violation of the plan
or this section at that or any other unit governed by the plan,
including liability for fulfilling the obligations specified in part 77
of this chapter and section 411 of the Act.
(ii) The units governed by the plan under paragraph (b)(2) of this
section shall continue to have a common designated representative until
the existing unit is permanently retired under the plan.
(4) Terminations. Except as provided in paragraph (g) of this
section, a repowering extension plan shall not be terminated after
December 31, 1999.
[58 FR 3650, Jan. 11, 1993, as amended at 58 FR 15649, Mar. 23, 1993]
[[Page 61]]
Subpart E--Acid Rain Permit Contents
Sec. 72.50 General.
(a) Each Acid Rain permit (including any draft or proposed Acid Rain
permit) will contain the following elements in a format prescribed by
the Administrator:
(1) All elements required for a complete Acid Rain permit
application under Sec. 72.31 of this part, as approved or adjusted by
the permitting authority;
(2) The applicable Acid Rain emissions limitation for sulfur
dioxide; and
(3) The applicable Acid Rain emissions limitation for nitrogen
oxides.
(b) Each Acid Rain permit is deemed to incorporate the definitions
of terms under Sec. 72.2 of this part.
Sec. 72.51 Permit shield.
Each affected unit operated in accordance with the Acid Rain permit
that governs the unit and that was issued in compliance with title IV of
the Act, as provided in this part and parts 73, 75, 77, and 78 of this
chapter, and the regulations implementing section 407 of the Act, shall
be deemed to be operating in compliance with the Acid Rain Program,
except as provided in Sec. 72.9(g)(6) of this part.
Subpart F--Federal Acid Rain Permit Issuance Procedures
Sec. 72.60 General.
(a) Scope. This subpart contains the procedures for federal issuance
of Acid Rain permits for Phase I of the Acid Rain Program and Phase II
for sources in States or geographic areas where the Administrator is the
permitting authority as provided under regulations implementing title V
of the Act. The procedures in this subpart do not apply to the issuance
of Acid Rain permits by State permitting authorities with operating
permit programs approved under part 70 of this chapter, except as
expressly provided in subpart G of this part.
(b) Permit Decision Deadlines. The Administrator will issue or deny
an Acid Rain permit under Sec. 72.69(a) within 6 months of receipt of a
complete Acid Rain permit application submitted for a unit, in
accordance with Sec. 72.21, at the U.S. EPA Regional Office for the
Region in which the source is located.
Sec. 72.61 Completeness.
(a) Determination of Completeness. The Administrator will determine
whether the Acid Rain permit application is complete within 30 days of
receipt by the U.S. EPA Regional Office for the Region in which the
source is located. The permit application shall be deemed to be complete
if the Administrator fails to notify the designated representative to
the contrary within 30 days of receipt.
(b) Supplemental Information. (1) Regardless of whether the Acid
Rain permit application is complete under paragraph (a) of this section,
the Administrator may require submission of any additional information
that the Administrator determines to be necessary in order to review the
Acid Rain permit application and issue an Acid Rain permit.
(2)(i) The designated representative shall submit the information
required under paragraph (b)(1) of this section within 30 days after he
or she is notified of the requirement for supplemental information
unless the Administrator allows for additional time to collect and
submit the information.
(ii) If the designated representative fails to submit the
supplemental information within the required time period, the
Administrator may disapprove that portion of the Acid Rain permit
application for the review of which the information was necessary and
may deny the source an Acid Rain permit.
Sec. 72.62 Draft permit.
(a) After the Administrator receives a complete Acid Rain permit
application and any supplemental information, the Administrator will
issue a draft permit that incorporates in whole, in part, or with
changes or conditions as appropriate, the permit application or deny the
source a draft permit.
(b) The draft permit will be based on the information submitted by
the designated representative of the affected source and other relevant
information.
[[Page 62]]
(c) The Administrator will serve a copy of the draft permit and the
statement of basis on the designated representative of the affected
source.
(d) The Administrator will provide a 30-day period for public
comment, and opportunity to request a public hearing, on the draft
permit or denial of a draft permit, in accordance with the public notice
required under Sec. 72.65(a)(1)(i) of this part.
Sec. 72.63 Administrative record.
(a) Contents of the Administrative Record. The Administrator will
prepare an administrative record for an Acid Rain permit or denial of an
Acid Rain permit. The administrative record will contain:
(1) The permit application and any supporting or supplemental data
submitted by the designated representative;
(2) The draft permit;
(3) The statement of basis;
(4) Copies of any documents cited in the statement of basis and any
other documents relied on by the Administrator in issuing or denying the
draft permit (including any records of discussions or conferences with
owners, operators, or the designated representative of affected units at
the source or interested persons regarding the draft permit), or, for
any such documents that are readily available, a statement of their
location;
(5) Copies of all written public comments submitted on the draft
permit or denial of a draft permit;
(6) The record of any public hearing on the draft permit or denial
of a draft permit;
(7) The Acid Rain permit; and
(8) Any response to public comments submitted on the draft permit or
denial of a draft permit and copies of any documents cited in the
response and any other documents relied on by the Administrator to issue
or deny the Acid Rain permit, or, for any such documents that are
readily available, a statement of their location.
(b) [Reserved]
Sec. 72.64 Statement of basis.
(a) The statement of basis will briefly set forth significant
factual, legal, and policy considerations on which the Administrator
relied in issuing or denying the draft permit.
(b) The statement of basis will include:
(1) The reasons, and supporting authority, for approval or
disapproval of any compliance options requested in the permit
application, including references to applicable statutory or regulatory
provisions and to the administrative record; and
(2) The name, address, and telephone, and facsimile numbers of the
EPA office processing the issuance or denial of the draft permit.
Sec. 72.65 Public notice of opportunities for public comment.
(a)(1) The Administrator will give public notice of the following:
(i) The draft permit or denial of a draft permit and the opportunity
for public review and comment and to request a public hearing; and
(ii) Date, time, location, and procedures for any scheduled hearing
on the draft permit or denial of a draft permit.
(2) Any public notice given under this section may be for the
issuance or denial of one or more draft permits.
(b) Methods. The Administrator will give the public notice required
by this section by:
(1) Serving written notice on the following persons (except where
such person has waived his or her right to receive such notice):
(i) The designated representative;
(ii) The State or local air pollution agency and any State or local
utility regulatory authority with jurisdiction over the owners of any
source or any unit covered by the Acid Rain permit application;
(iii) The State or local air pollution agency for any contiguous
State whose air quality may be affected by, or for any State located
within a 50-mile radius of, any source covered by the Acid Rain permit
application; and
(iv) Any interested person.
(2) Giving notice by publication in the Federal Register and in a
newspaper of general circulation in the area where the source covered by
the Acid Rain permit application is located or in a State publication
designed to give general public notice.
[[Page 63]]
(c) Contents. All public notices issued under this section will
contain the following information:
(1) Identification of the EPA office processing the issuance or
denial of the draft permit for which the notice is being given.
(2) Identification of the designated representative for the affected
source.
(3) Identification of each unit covered by the Acid Rain permit
application and the draft permit.
(4) Any compliance options proposed for approval in the draft permit
or for disapproval and the total allowances (including any under the
compliance options) allocated to each unit if the Acid Rain permit
application is approved.
(5) The address and office hours of a public location where the
administrative record is available for public inspection and a statement
that all information submitted by the designated representative and not
protected as confidential under section 114(c) of the Act is available
for public inspection as part of the administrative record.
(6) For public notice under paragraph (a)(1)(i) of this section, a
brief description of the public comment procedures, including:
(i) A 30-day period for public comment beginning the date of
publication of the notice or, in the case of an extension or reopening
of the public comment period, such period as the Administrator deems
appropriate;
(ii) The address where public comments should be sent;
(iii) Required formats and contents for public comment;
(iv) An opportunity to request a public hearing to occur not earlier
than 15 days after public notice is given and the location, date, time,
and procedures of any scheduled public hearing; and
(v) Any other means by which the public may participate.
(d) Extensions and Reopenings of the Public Comment Period. On the
Administrator's own motion or on the request of any person, the
Administrator may, at his or her discretion, extend or reopen the public
comment period where he or she finds that doing so will contribute to
the decision-making process by clarifying one or more significant issues
affecting the draft permit or denial of a draft permit. Notice of any
such extension or reopening shall be given under paragraph (a)(1)(i) of
this section.
Sec. 72.66 Public comments.
(a) General. During the public comment period, any person may submit
written comments on the draft permit or the denial of a draft permit.
(b) Form. (1) Comments shall be submitted in duplicate.
(2) The submission shall clearly indicate the draft permit issuance
or denial to which the comments apply.
(3) The submission shall clearly indicate the name of the person
commenting, his or her interest in the matter, and his or her
affiliation, if any, to owners and operators of any unit covered by the
Acid Rain permit application.
(c) Contents. Timely comments on any aspect of the draft permit or
denial or a draft permit will be considered unless they concern:
(1) Any standard requirement under Sec. 72.9;
(2) Issues that are not relevant, such as:
(i) The environmental effects of acid rain, acid deposition, sulfur
dioxide, or nitrogen oxides generally; and
(ii) Permit issuance procedures, or actions on other permit
applications, that are not relevant to the draft permit issuance or
denial in question.
(d) Persons who do not wish to raise issues concerning the issuance
or denial of the draft permit, but who wish to be notified of any
subsequent actions concerning such matter may so indicate in writing
during the public comment period or at any other time. The Administrator
will place their names on a list of interested persons.
Sec. 72.67 Opportunity for public hearing.
(a) During the public comment period, any person may request a
public hearing. A request for a public hearing shall be made in writing
and shall state the issues proposed to be raised in the hearing.
(b) On the Administrator's own motion or on the request of any
person, the Administrator may, at his or her
[[Page 64]]
discretion, hold a pubic hearing whenever the Administrator finds that
such a hearing will contribute to the decision-making process by
clarifying one or more significant issues affecting the draft permit or
denial of a draft permit. Public hearings will not be held on issues
under Sec. 72.66(c) (1) and (2).
(c) During a public hearing under this section, any person may
submit oral or written comments concerning the draft permit or denial of
a draft permit. The Administrator may set reasonable limits on the time
allowed for oral statements and will require the submission of a written
summary of each oral statement.
(d) The Administrator will assure that a record is made of the
hearing.
Sec. 72.68 Response to comments.
(a) The Administrator will consider comments on the draft permit or
denial of a draft permit that are received during the public comment
period and any public hearing. The Administrator is not required to
consider comments otherwise received.
(b) In issuing or denying an Acid Rain permit, the Administrator
will:
(1) Identify any permit provision or portion of the statement of
basis that has been changed and the reasons for the change; and
(2) Briefly describe and respond to relevant comments under
paragraph (a) of this section.
Sec. 72.69 Issuance and effective date of acid rain permits.
(a) After the close of the public comment period, the Administrator
will issue or deny an Acid Rain permit. The Administrator will serve a
copy of any Acid Rain permit and the response to comments on the
designated representative for the source covered by the issuance or
denial and serve written notice of the issuance or denial on any persons
who are entitled to written notice under Sec. 72.65(b)(1) (ii), (iii),
and (iv) of this part. The Administrator will also give notice in the
Federal Register.
(b)(1) The term of every Acid Rain permit shall be 5 years
commencing on its effective date.
(2) Every Acid Rain permit for Phase I shall take effect on January
1, 1995.
Subpart G--Acid Rain Phase II Implementation
Sec. 72.70 Relationship to title V operating permit program.
(a) Scope. This subpart sets forth criteria for approval of State
operating permit programs and the requirements with which State
permitting authorities with approved programs shall comply, and with
which the Administrator will comply in the absence of an approved State
program, to issue Phase II Acid Rain permits.
(b) Relationship to Operating Permit Program. Each State permitting
authority with an affected source shall act in accordance with this part
and part 70, and part 78 of this chapter for the purpose of
incorporating Acid Rain Program requirements into each affected source's
operating permit or for issuing written exemptions under Secs. 72.7 and
72.8. To the extent that any requirements of this part and part 78 of
this chapter are inconsistent with the requirements of part 70 of this
chapter, this part and part 78 of this chapter shall take precedence and
shall govern the issuance, denial, revision, reopening, renewal, and
appeal of the Acid Rain portion of an operating permit. For purposes of
applying this subpart, the provisions of this subpart and of part 70
applicable to Acid Rain permit applications and draft, proposed, and
final Acid Rain permits shall also apply to petitions for exemption and
draft, proposed, and final written exemptions respectively for new or
retired units to the extent consistent with Secs. 72.7 and 72.8 of this
chapter.
Sec. 72.71 Approval of state programs--general.
(a) Each State shall submit, to the Administrator for approval, a
proposed operating permit program meeting the requirements of this
subpart and part 70 of this chapter.
(b) The Administrator will act on State submissions of an operating
permit program in accordance with the schedule and procedures set forth
in Sec. 70.4(e) of this chapter. The Administrator will approve State
programs that conform to the applicable requirements of this subpart and
Sec. 70.4(b) of this chapter.
[[Page 65]]
(c)(1) After approval of a State operating permit program, the
Administrator will suspend, in accordance with this part and part 70 of
this chapter, federal issuance of Acid Rain permits for Phase II for
sources and units subject to the State program.
(2) The Administrator will issue all Acid Rain permits for Phase I.
However, the Administrator reserves the right to delegate the remaining
administration of Acid Rain permits for Phase I to approved State
operating permit programs.
Sec. 72.72 State permit program approval criteria.
A State operating permit program shall meet the following criteria
concerning the Acid Rain Program. Any aspect of the State program or any
implementation of the State program that is inconsistent with these
criteria shall be grounds for disapproval or withdrawal of approval of
the State program by the Administrator:
(a) Non-Interference with Acid Rain Program. The State operating
permit program shall not include or implement any measures that would
interfere with the Acid Rain Program. In particular, the State program
shall not restrict or interfere with allowance trading and shall not
interfere with the Administrator's decision on an offset plan. Aspects
and implementation of the State program that would constitute
interference with the Acid Rain Program, and are thus prohibited,
include but are not limited to:
(1) Prohibitions, inconsistent with the Acid Rain Program, on the
acquisition or transfer of allowances by an affected unit under the
jurisdiction of the State permitting authority;
(2) Restrictions, inconsistent with the Acid Rain Program, on an
affected unit's ability to sell or otherwise obligate its allowances;
(3) Requirements that an affected unit maintain a balance of
allowances in excess of the level determined to be prudent by any
utility regulatory authority with jurisdiction over the owners of the
affected unit;
(4) Failing to notify the Administrator of any State administrative
or judicial appeals of, or decisions covering, Acid Rain permit
provisions that might affect Acid Rain Program requirements;
(5) Issuing an order, inconsistent with the Acid Rain Program,
interpreting Acid Rain Program requirements as not applicable to an
affected source or an affected unit in whole or in part or otherwise
adjusting the requirements;
(6) Withholding approval of any compliance option that meets the
requirements of the Acid Rain Program; or
(7) Any other aspect of implementation that the Administrator
determines would hinder the operation of the Acid Rain Program.
(b) The State operating permit program shall require the following:
(1) Acid Rain Permit Issuance. Issuance or denial of Acid Rain
permits shall follow the procedures under this part, part 70 of this
chapter, and, for combustion or process sources, part 74, including:
(i) Permit application--(A) Requirement to comply. (1) The owners
and operators and the designated representative for each affected
source, except for combustion or process sources, under jurisdiction of
the State permitting authority shall be required to comply with subparts
B, C, and D of this part.
(2) The owners and operators and the designated representative for
each combustion or process source under jurisdiction of the State
permitting authority shall be required to comply with subpart B of this
part and subparts B, C, D, and E of part 74 of this chapter.
(B) Effect of an Acid Rain permit application. A complete Acid Rain
permit application, except for a permit application for a combustion or
process source, shall be binding on the owners and operators and the
designated representative of the affected source, all affected units at
the source, and any other unit governed by the permit application and
shall be enforceable as an Acid Rain permit, from the date of submission
of the permit application until the issuance or denial of the Acid Rain
permit under paragraph (b)(1)(vii) of this section.
(C) Submission to the Administrator. The State permitting authority
shall submit a written notice of application completeness to the
Administrator
[[Page 66]]
within 10 working days following a determination by the State permitting
authority that the Acid Rain permit application is complete.
(ii) Draft permit. (A) The State permitting authority shall prepare
the draft Acid Rain permit in accordance with subpart E of this part or,
for a combustion or process source, subpart B of part 74 of this
chapter, or deny a draft Acid Rain permit.
(B) The State permitting authority shall prepare a statement of
basis in accordance with the requirements for a statement of basis under
Sec. 72.64 of this part.
(C) Prior to issuance of a draft permit for a combustion or process
source, the State permitting authority shall provide the designated
representative of a combustion or process source an opportunity to
confirm its intention to opt-in, in accordance with Sec. 74.14 of this
chapter.
(iii) Notice to Administrator. The State permitting authority shall
submit a copy of the draft Acid Rain permit and the statement of basis
to the Administrator and all other relevant portions of the operating
permit that may affect the draft Acid Rain permit. This submission
requirement will not be waived.
(iv) Public Notice and Comment Period. Public notice of the issuance
or denial of the draft Acid Rain permit and the opportunity to comment
and request a public hearing shall be given by publication in a
newspaper of general circulation in the area where the source is located
or in a State publication designed to give general public notice. A
notice shall be served on those persons required to receive notice under
Secs. 70.7(h) and 70.8(b) of this chapter.
(v) Proposed Permit. Following the public notice and comment period
on a draft Acid Rain permit, the permitting authority shall incorporate
all changes necessary and issue a proposed Acid Rain permit in
accordance with subpart E of this part or, for combustion or process
sources, in accordance with subpart B of part 74 of this chapter or deny
a proposed Acid Rain permit.
(vi) Submittal to Administrator. (A) The State permitting authority
shall submit the proposed Acid Rain permit or denial of a proposed Acid
Rain permit to the Administrator in accordance with Sec. 70.8(a) of this
chapter, the provisions of which shall be treated as applying to the
issuance or denial of a proposed Acid Rain permit.
(B) The Administrator will review the proposed Acid Rain permit or
denial of a proposed Acid Rain permit in accordance with Sec. 70.8(c) of
this chapter, the provisions of which shall be treated as applying to
the issuance or denial of a proposed Acid Rain permit.
(vii) Acid Rain Permit Issuance. Following the Administrator's
review of the proposed Acid Rain permit or denial of a proposed Acid
Rain permit, the State permitting authority shall or, under Sec. 70.8(c)
of this chapter (treated as applying to the issuance or denial of an
Acid Rain permit), the Administrator will, incorporate any required
changes and issue or deny the Acid Rain permit in accordance with
subpart E of this part.
(viii) Effective Date of Acid Rain Permit. Each source's Acid Rain
permit issued by a State permitting authority under this section shall
be effective for a period of 5 years.
(ix) New Owners. An Acid Rain permit shall be binding on any new
owner or operator or designated representative of any source or unit
governed by the permit.
(x) Each Acid Rain permit (including a draft or proposed permit)
shall contain all applicable Acid Rain requirements, shall be a complete
and segregable portion of the operating permit, and shall not
incorporate information contained in any other documents, other than
documents that are readily available.
(xi) Invalidation of the Acid Rain portion of an operating permit
shall not affect the continuing validity of the rest of the operating
permit, nor shall invalidation of any other portion of the operating
permit affect the continuing validity of the Acid Rain portion of the
permit.
(xii) No Acid Rain permit (including a draft or proposed permit)
shall be issued unless the Administrator has received a certificate of
representation for the designated representative of the source in
accordance with subpart B of this part.
[[Page 67]]
(xiii) Notwithstanding any State law providing that a permit must be
issued by default after a specified time, no Acid Rain permit shall be
issued until the Administrator and other States have had an opportunity
to review a proposed Acid Rain permit as provided in this section and
Sec. 70.8(b) of this chapter.
(xiv) Except as provided in Sec. 72.73(b) and, with regard to
combustion or process sources, in Sec. 74.14(c)(6) of this chapter, the
State permitting authority shall issue or deny an Acid Rain permit
within 18 months of receiving a complete Acid Rain permit application
submitted in accordance with Sec. 72.21 or such lesser time approved
under part 70 of this chapter.
(2) Permit Revisions. In acting on any Acid Rain permit revision,
the State permitting authority shall follow the provisions and
procedures set forth at subpart H of this part.
(3) Permit Renewal. The renewal of an Acid Rain permit for an
affected source shall be subject to all the requirements of this subpart
pertaining to the issuance of permits.
(4) Acid Rain Program Forms. In developing the Acid Rain portion of
the operating permit, the permitting authority shall use the applicable
forms or other formats prescribed by the Administrator under the Acid
Rain Program; provided that the Administrator may waive this requirement
in whole or in part.
(5) Acid Rain Appeal Procedures. (i) Appeals of the Acid Rain
portion of an operating permit issued by the State permitting authority
that do not challenge or involve decisions or actions of the
Administrator under this part, parts 73, 74, 75, 76, 77 and 78 of this
chapter, shall be conducted according to procedures established by the
State under Sec. 70.4(b)(3)(x) of this chapter. Appeals of the Acid Rain
portion of such a permit that challenge or involve such decisions or
actions of the Administrator shall follow the procedures under part 78
of this chapter and section 307 of the Act. Such decisions or actions
include, but are not limited to, allowance allocations, determinations
concerning alternative monitoring systems, and determinations of whether
a technology is a qualifying repowering technology.
(ii) Under no circumstances shall a State administrative appeal or
judicial appeal of the Acid Rain portion of an operating permit be
allowed more than 90 days (or such shorter period as provided by the
applicable State appeals procedures) following respectively issuance of
the Acid Rain portion that is subject to administrative appeal or
issuance of the final agency action subject to judicial appeal.
(iii) The State permitting authority shall serve written notice on
the Administrator of any State administrative or judicial appeal
concerning as Acid Rain provision of any operating permit or denial of
an Acid Rain portion of any operating permit within 30 days of the
filing of the appeal.
(iv) Any State administrative permit appeals procedures shall ensure
that the Administrator may intervene as a matter of right in any permit
appeal involving an Acid Rain permit provision or denial of an Acid Rain
permit.
(v) The State permitting authority shall serve written notice on the
Administrator of any determination or order in a State administrative or
judicial proceeding that interprets, modifies, voids, or otherwise
relates to any portion of an Acid Rain permit. Following any such
determination or order, the Administrator will have an opportunity to
review and veto the Acid Rain permit or revoke the permit for cause in
accordance with Sec. 70.8 of this chapter.
(vi) A failure of the State permitting authority to issue an Acid
Rain permit in accordance with Sec. 72.73(b)(1)(i) or, with regard to
combustion or process sources, Sec. 74.14(c)(6) of this chapter shall be
ground for filing an appeal.
(vii) No appeal concerning an Acid Rain requirement shall result in
a stay of any provision of the Acid Rain permit for which a stay is
barred under part 78 of this chapter.
(6) Cooperation with Utility Regulatory Authority. In considering
any Acid Rain permit application, the State permitting authority shall
ensure coordination with any utility regulatory authority with
jurisdiction over the owners of the affected unit.
[[Page 68]]
(7) New Units and Retired Units Exemptions. The State permitting
authority shall act in accordance with Secs. 72.7 and 72.8 on any
petition for exemption of a new unit or retired unit from requirements
of the Acid Rain Program.
(8) State Permit Evaluation. The State permitting authority shall
periodically evaluate the extent to which its operating permit program
meets the Acid Rain Program requirements and supports a cost-effective
implementation of the program. The permit fee rates set by the State
permitting authority shall be adequate to cover such evaluation.
[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 17113, Apr. 4, 1995]
Sec. 72.73 State issuance of Phase II permits.
(a) State Permit Issuance. (1) A State with an operating permit
program that has been approved by the Administrator under this part and
part 70 of this chapter on or before July 1, 1996, shall be responsible
for issuing Acid Rain permits for Phase II to all affected sources in
that State.
(2) A State that has obtained interim operating permit program
approval (as defined in Sec. 70.4(d) of this chapter) on or before July
1, 1996 shall be responsible for issuing Acid Rain permits for Phase II
to all affected sources in that State.
(3) A State that has obtained partial operating permit program
approval (as defined in Sec. 70.4(c) of this chapter) on or before July
1, 1996 shall be responsible for issuing Acid Rain permits for Phase II
to all affected sources in the geographic area to which the partial
approval applies.
(4) The State permitting authority shall comply with the procedures
for issuance, revision, renewal, and appeal of Acid Rain permits under
this subpart.
(b) Permit Issuance Deadline. (1)(i) On or before December 31, 1997,
a State with an approved operating permit program shall issue an Acid
Rain permit for Phase II to each affected source in the geographic area
for which the program is approved as set forth in paragraph (a) of this
section; provided that the designated representative of the source
submitted a timely and complete Acid Rain permit application in
accordance with Sec. 72.21 of this part and meets the requirements of
this subpart and part 70 of this chapter.
(ii) Each Acid Rain permit issued in accordance with this section
shall have a term of 5 years commencing on its effective date. Each Acid
Rain permit issued in accordance with paragraph (b)(1)(i) of this
section shall take effect by the later of January 1, 2000, or, where the
permit governs a unit under Sec. 72.6(a)(3) of this part, the deadline
for monitor certification under part 75 of this chapter.
(2) Nitrogen Oxides. Not later than January 1, 1999, the State
permitting authority shall reopen the Acid Rain permit to add the Acid
Rain Program nitrogen oxides requirements; provided that the designated
representative of the affected source submitted a timely and complete
Acid Rain permit application for nitrogen oxides in accordance with
Sec. 72.21. Such reopening shall not affect the term of the Acid Rain
portion of an operating permit.
Sec. 72.74 Federal issuance of Phase II permits.
(a) The Administrator will be responsible for issuing Acid Rain
permits for Phase II for any affected sources in a geographic area
(including a State) that does not have an operating permit program with
full, partial, or interim approval by the Administrator on or before
July 1, 1996, under part 70 of this chapter. After approval of a State
program, the Administrator will suspend, in accordance with this part
and part 70 of this chapter, federal issuance of such permits for
sources in the geographic area covered by the State program and the
State shall be responsible for issuing such permits in accordance with
Sec. 72.73 of this part.
(b) Permit Issuance Deadline. (1)(i) On or before January 1, 1998,
the Administrator will issue an Acid Rain permit for Phase II governing
Acid Rain Program sulfur dioxide requirements to each affected source in
a geographic area that, on July 1, 1996, did not have an approved
operating permit program under part 70 of this chapter; provided that
the designated representative for the source submitted a timely and
complete Acid Rain permit application in accordance with Sec. 72.21 of
this part.
[[Page 69]]
The failure by the Administrator to issue a permit in accordance with
this paragraph shall be grounds for the filing of an appeal under part
78 of this chapter.
(ii) Notwithstanding paragraph (b)(1)(i) of this section, the
Administrator may delegate to any State that obtains operating permit
program approval after July 1, 1996, responsibility for permit review
and implementation.
(iii) Each Acid Rain permit issued in accordance with this section
shall have a term of 5 years commencing on its effective date. Each Acid
Rain permit issued in accordance with paragraph (b)(1) shall take effect
by the later of January 1, 2000 or, where a permit governs a unit under
Sec. 72.6(a)(3) of this part, the deadline for monitor certification
under part 75 of this chapter.
(2) Nitrogen Oxides. Not later than 6 months following submission by
the designated representative of a timely and complete Acid Rain permit
application for nitrogen oxides, the Administrator shall reopen the Acid
Rain permit for Phase II to add the Acid Rain Program nitrogen oxides
requirements. Such reopening shall not affect the term of the Acid Rain
permit.
(c) Permit Issuance. The Administrator will issue Acid Rain permits
for Phase II in accordance with subparts E and F of this part and the
regulations implementing title V of the Act.
[58 FR 3650, Jan. 11, 1993; 58 FR 40747, July 30, 1993]
Subpart H--Permit Revisions
Sec. 72.80 General.
(a) This subpart shall govern revisions to any Acid Rain permit
issued by the Administrator and to the Acid Rain portion of any
operating permit issued by a State with an approved operating permit
program under part 70 of this chapter.
(b) The provisions of this subpart shall supersede the operating
permit revision procedures specified in part 70 of this chapter with
regard to revision of any Acid Rain Program permit provision.
(c) A permit revision may be submitted for approval at any time. No
permit revision shall affect the term of the Acid Rain permit to be
revised. No permit revision shall excuse any violation of an Acid Rain
Program requirement that occurred prior to the effective date of the
revision.
(d) The terms of the Acid Rain permit shall apply while the permit
revision is pending.
(e) Any determination or interpretation by a State (including a
State court) modifying or voiding any Acid Rain permit provision shall
be subject to review by the Administrator in accordance with
Sec. 70.8(c) of this chapter as applied to permit modifications, unless
the determination or interpretation is an administrative amendment
approved in accordance with Sec. 72.83 of this part.
(f) The standard requirements of Sec. 72.9 of this part shall not be
modified or voided by a permit revision.
(g) Any permit revision involving incorporation of a compliance
option that was not submitted for approval and comment during the permit
issuance process, or involving a change in a compliance option that was
previously submitted, shall meet the requirements for applying for such
compliance option under subpart D and section 407 of the Act and
regulations implementing section 407 of the Act.
(h) For permit revisions not described in Secs. 72.81 and 72.82 of
this part, the permitting authority may, in its discretion, determine
which of these sections is applicable.
Sec. 72.81 Permit modifications.
(a) Permit revisions that shall follow the permit modification
procedures are:
(1) Relaxation of an excess emission offset requirement after
approval of the offset plan by the Administrator;
(2) Incorporation of a final nitrogen oxides alternative emission
limitation following a demonstration period;
(3) Determinations concerning failed repowering projects under
Sec. 72.44(g)(1)(i) and (2) of this part.
(b) The following permit revisions shall follow, at the option of
the designated representative submitting the permit revision, either the
permit modification procedures or the fast-track modification procedures
under Sec. 72.82 of this part:
[[Page 70]]
(1) Consistent with paragraph (a) of this section, incorporation of
a compliance option that the designated representative did not submit
for approval and comment during the permit issuance process; except that
incorporation of a reduced utilization plan that was not submitted
during the permit issuance process, that does not designate a
compensating unit, and that meets the requirements of Sec. 72.43 of this
part, may use the administrative permit amendment procedures under
Sec. 72.83 of this part;
(2) Changes in a substitution plan or reduced utilization plan that
result in the addition of a new substitution unit or a new compensating
unit under the plan;
(3) Addition of a nitrogen oxides averaging plan to a permit;
(4) Changes in a Phase I extension plan, repowering plan, nitrogen
oxides averaging plan, or nitrogen oxides compliance deadline extension;
and
(5) Changes in a thermal energy plan that result in any addition or
subtraction of a replacement unit or any change affecting the number of
allowances transferred for the replacement of thermal energy.
(c)(1) Permit modifications shall follow the permit issuance
requirements of:
(i) Subparts E, F, and G of this part, where the Administrator is
the permitting authority; or
(ii) Subpart G of this part and Sec. 70.7(e)(4)(ii) of this chapter,
where the State is the permitting authority.
(2) For purposes of applying paragraph (c)(1) of this section, a
permit modification shall be treated as an Acid Rain permit application,
to the extent consistent with this subpart.
[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 17114, Apr. 4, 1995]
Sec. 72.82 Fast-track modifications.
The following procedures shall apply to all fast-track
modifications.
(a) The designated representative shall serve a copy of the fast-
track modification on the Administrator, the permitting authority, and
any person entitled to a written notice under Sec. 72.65(b)(1) (ii),
(iii) and (iv) of this part. Within 5 business days of serving such
copies, the designated representative shall also give public notice by
publication in a newspaper of general circulation in the area where the
source is located or in a State publication designed to give general
public notice.
(b) The public shall have a period of 30 days, commencing on the
date of publication of the notice, to comment on the fast-track
modification. Comments shall be submitted in writing to the permitting
authority and to the designated representative.
(c) The designated representative shall submit the fast-track
modification to the permitting authority on or before commencement of
the public comment period.
(d) Within 30 days of the close of the public comment period, the
permitting authority shall consider the fast-track modification and the
comments received and approve, in whole or in part or with changes or
conditions as appropriate, or disapprove the modification. A fast-track
modification shall be effective immediately upon issuance, in accordance
with Sec. 70.7(a)(1)(v) of this chapter as applied to significant permit
modifications.
Sec. 72.83 Administrative permit amendment.
(a) Acid Rain permit revisions that shall follow the administrative
permit amendment procedures are:
(1) Activation of a compliance option conditionally approved by the
permitting authority; provided that all requirements for activation
under subpart D of this part are met;
(2) Changes in the designated representative or alternative
designated representative; provided that a new certificate of
representation is submitted;
(3) Correction of typographical errors;
(4) Changes in names, addresses, or telephone or facsimile numbers;
(5) Changes in the owners or operators; provided that a new
certificate of representation is submitted within 30 days;
(6)(i) Termination of a compliance option in the permit; provided
that all requirements for termination under subpart D of this part are
met and this
[[Page 71]]
procedure shall not be used to terminate a repowering plan after
December 31, 1999 or a Phase I extension plan;
(ii) For opt-in sources, termination of a compliance option in the
permit; provided that all requirements for termination under Sec. 74.47
of this chapter are met.
(7) Changes in a substitution or reduced utilization plan that do
not result in the addition of a new substitution unit or a new
compensating unit under the plan;
(8) Changes in the date, specified in a unit's Acid Rain permit, of
commencement of operation of qualifying Phase I technology, provided
that they are in accordance with Sec. 72.42 of this part;
(9) Changes in the date, specified in a new unit's Acid Rain permit,
of commencement of operation or the deadline for monitor certification,
provided that they are in accordance with Sec. 72.9 of this part;
(10) The addition of or change in a nitrogen oxides alternative
emissions limitation demonstration period, provided that the
requirements of regulations implementing section 407 of the Act are met;
and
(11) Changes in a thermal energy plan that do not result in the
addition or subtraction of a replacement unit or any change affecting
the number of allowances transferred for the replacement of thermal
energy.
(12) Incorporation of changes that the Administrator has determined
to be similar to those in paragraphs (a)(1) through (11) of this
section.
(b) Administrative amendments shall follow the procedures set forth
at Sec. 70.7(d)(3) of this chapter. Where the State is the permitting
authority, the permitting authority shall submit the revised portion of
the permit to the Administrator within 10 working days after the date of
final action on the request for an administrative amendment.
[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 17114, Apr. 4, 1995]
Sec. 72.84 Automatic permit amendment.
The following permit revisions shall be deemed to amend
automatically, and become a part of the affected unit's Acid Rain permit
by operation of law without any further review:
(a) Upon recordation by the Administrator under part 73 of this
chapter, all allowance allocations to, transfers to, and deductions from
an affected unit's Allowance Tracking System account; and
(b) Incorporation of an offset plan that has been approved by the
Administrator under part 77 of this chapter.
Sec. 72.85 Permit reopenings.
(a) As provided in Sec. 70.7(f) of this chapter, the permitting
authority shall reopen an Acid Rain permit for cause, including whenever
additional requirements become applicable to any affected unit governed
by the permit.
(b) In reopening an Acid Rain permit for cause, the permitting
authority shall issue a draft permit changing the provisions, or adding
the requirements, for which the reopening was necessary. The draft
permit shall be subject to the requirements of subparts E, F, and G of
this part.
(c) As provided in Secs. 72.73(b)(2) and 72.74(b)(2) of this part,
the permitting authority shall reopen an Acid Rain permit to incorporate
nitrogen oxides requirements, consistent with section 407 of the Act and
regulations implementing section 407 of the Act.
(d) Any reopening of an Acid Rain permit shall not affect the term
of the permit.
Subpart I--Compliance Certification
Sec. 72.90 Annual compliance certification report.
(a) Applicability and deadline. For each calendar year in which a
unit is subject to the Acid Rain emissions limitations, the designated
representative of the source at which the unit is located shall submit
to the Administrator, within 60 days after the end of the calendar year,
an annual compliance certification report for the unit.
(b) Contents of report. The designated representative shall include
in the annual compliance certification report under paragraph (a) of
this section the following elements, in a format prescribed by the
Administrator, concerning the unit and the calendar year covered by the
report:
(1) Identification of the unit;
[[Page 72]]
(2) For all Phase I units, the information in accordance with
Secs. 72.91(a) and 72.92(a) of this part;
(3) If the unit is governed by an approved Phase I extension plan,
then the information in accordance with Sec. 72.93 of this part;
(4) At the designated representative's option, the total number of
allowances to be deducted for the year, using the formula in Sec. 72.95
of this part, and the serial numbers of the allowances that are to be
deducted;
(5) At the designated representative's option, for units that share
a common stack and whose emissions of sulfur dioxide are not monitored
separately or apportioned in accordance with part 75 of this chapter,
the percentage of the total number of allowances under paragraph (b)(4)
of this section for all such units that is to be deducted from each
unit's compliance subaccount; and
(6) The compliance certification under paragraph (c) of this
section.
(c) Annual compliance certification. In the annual compliance
certification report under paragraph (a) of this section, the designated
representative shall certify, based on reasonable inquiry of those
persons with primary responsibility for operating the source and the
affected units at the source in compliance with the Acid Rain Program,
whether each affected 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 Acid Rain Program applicable to
the unit, including:
(1) Whether the unit was operated in compliance with the applicable
Acid Rain emissions limitations, including whether the unit held
allowances, as of the allowance transfer deadline, in its compliance
subaccount (after accounting for any allowance deductions under
Sec. 73.34(c) of this chapter) not less than the unit's total sulfur
dioxide emissions during the calendar year covered by the annual report;
(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 monitored emissions
to the unit;
(3) Whether all the 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;
(4) Whether the facts that form the basis for certification of each
monitor at the unit or a group of units (including the unit) using a
common stack or for using an Acid Rain Program excepted monitoring
method or approved alternative monitoring method, 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. 72.91 Phase I unit adjusted utilization.
(a) Annual compliance certification report. The designated
representative for each Phase I unit shall include in the annual
compliance certification report the unit's adjusted utilization for the
calendar year in Phase I covered by the report, calculated as follows:
Adjusted utilization=baseline-actual utilization-plan reductions+
compensating generation provided to other units
where:
(1) ``Baseline'' is as defined in Sec. 72.2 of this part.
(2) ``Actual utilization'' is the actual annual heat input (in
mmBtu) of the unit for the calendar year determined in accordance with
part 75 of this chapter.
(3) ``Plan reductions'' are the reductions in actual utilization,
for the calendar year, below the baseline that are accounted for by an
approved reduced utilization plan. The designated representative for the
unit shall calculate the ``plan reductions'' (in mmBtu) using the
following formula and converting all values in Kwh to mmBtu using the
actual annual average heat rate (Btu/Kwh) of the unit (determined
[[Page 73]]
in accordance with part 75 of this chapter) before the employment of any
improved unit efficiency measures under an approved plan:
Plan reductions=reduction from energy conservation+reduction from
improved unit efficiency improvements+shifts to designated
sulfur-free generators+shifts to designated compensating units
where:
(i) ``Reduction from energy conservation'' is a good faith estimate
of the expected kilowatt hour savings during the calendar year from all
conservation measures under the reduced utilization plan and the
corresponding reduction in heat input (in mmBtu) resulting from those
savings. The verified amount of such reduction shall be submitted in
accordance with paragraph (b) of this section.
(ii) ``Reduction from improved unit efficiency'' is a good faith
estimate of the expected improvement in heat rate during the calendar
year and the corresponding reduction in heat input (in mmBtu) at the
Phase I unit as a result of all improved unit efficiency measures under
the reduced utilization plan. The verified amount of such reduction
shall be submitted in accordance with paragraph (b) of this section.
(iii) ``Shifts to designated sulfur-free generators'' is the
reduction in utilization (in mmBtu), for the calendar year, that is
accounted for by all sulfur-free generators designated under the reduced
utilization plan in effect for the calendar year. This term equals the
sum, for all such generators, of the ``shift to sulfur-free generator.''
``Shift to sulfur-free generator'' shall equal the amount, to the extent
documented under paragraph (a)(6) of this section, calculated for each
generator using the following formula:
Shift to sulfur-free generator=actual sulfur-free utilization-[(average
1985-87 sulfur-free annual utilization) (1+percentage change
in dispatch system sales)]
where:
(A) ``Actual sulfur-free utilization'' is the actual annual
generation (in Kwh) of the designated sulfur-free generator for the
calendar year converted to mmBtus.
(B) ``Average 1985-87 sulfur-free utilization'' is the sum of annual
generation (in Kwh) for 1985, 1986, and 1987 for the designated sulfur-
free generator, divided by three and converted to mmBtus.
(C) ``Percentage change in dispatch system sales'' is calculated as
follows:
[GRAPHIC] [TIFF OMITTED] TC01SE92.000
where:
S=dispatch system sales (in Kwh)
c=calendar year
y=1985, 1986, or 1987
If the result of the formula for percentage change in dispatch
system sales is less than or equal to zero, then percentage change in
dispatch system sales shall be treated as zero only for purposes of
paragraph (a)(3)(iii) of this section.
(D) If the result of the formula for ``shift to sulfur-free
generator'' is less than or equal to zero, then ``shift to sulfur-free
generator'' is zero.
(iv) ``Shifts to designated compensating units'' is the reduction in
utilization (in mmBtu) for the calendar year
that is accounted for by increased generation at compensating units
designated under the reduced utilization plan in effect for the calendar
year. This term equals the heat rate, under paragraph (a)(3) of this
section, of the unit reducing utilization multiplied by the sum, for all
such compensating units, of the ``shift to compensating unit'' for each
compensating unit. ``Shift to compensating unit'' shall equal the amount
of compensating generation (in Kwh), to the extent documented under
paragraph (a)(6) of this section, that the designated representatives of
the unit reducing utilizationand the compensating unit have certified
(in their respective annual compliance certification reports) as the
[[Page 74]]
amount that will be converted to mmBtus and used, in accordance with
paragraph (a)(4) of this section, in calculating the adjusted
utilization for the compensating unit.
(4) ``Compensating generation provided to other units'' is the total
amount of utilization (in mmBtu) necessary to provide the generation (if
any) that was shifted to the unit as a designated compensating unit
under any other reduced utilization plans that were in effect for the
unit and for the calendar year. This term equals the heat rate, under
paragraph (a)(3) of this section, of such unit multiplied by the sum of
each ``shift to compensating unit'' that is attributed to the unit in
the annual compliance certification reports submitted by the Phase I
units under such other plans and that is certified under paragraph
(a)(3)(iv) of this section.
(5) Notwithstanding paragraphs (a)(3) (i), (ii), and (iii) of this
section, where two or more Phase I units include in ``plan reductions'',
in their annual compliance certification reports for the calendar year,
expected kilowatt hour savings or reduction in heat rate from the same
specific conservation or improved unit efficiency measures or increased
utilization of the same sulfur-free generator:
(i) The designated representatives of all such units shall submit
with their annual reports a certification signed by all such designated
representatives. The certification shall apportion the total kilowatt
hour savings, reduction in heat rate, or increased utilization among
such units.
(ii) Each designated representative shall include in the annual
report only the respective unit's share of the total kilowatt hour
savings, reduction in heat rate, or increased utilization, in accordance
with the certification under paragraph (a)(5)(i) of this section.
(6)(i) Where a unit includes in ``plan reductions'' under paragraph
(a)(3) of this section the increase in utilization of any sulfur-free
generator, the designated representative of the unit shall submit, with
the annual compliance certification report, documentation demonstrating
that an amount of electrical energy at least equal to the ``shift to
sulfur-free generator'' attributed to the sulfur-free generator in the
annual report was actually acquired by the unit's dispatch system from
the sulfur-free generator.
(ii) Where a unit includes in ``plan reductions'' under paragraph
(a)(3) of this section utilization of any compensating unit, the
designated representative of the unit shall submit with the annual
compliance certification report, documentation demonstrating that an
amount of electrical energy at least equal to the ``shift to
compensating unit'' attributed to the compensating unit in the annual
report was actually acquired by the unit's dispatch system from the
compensating unit.
(7) Notwithstanding paragraphs (a)(3)(i), (ii), (iii), and (iv),
(a)(4), and (a)(5) of this section, ``plan reductions'' minus
``compensating generation provided to other units'' shall not exceed
``baseline'' minus ``actual utilization.''
(b) Confirmation report. (1) If a unit's annual compliance
certification report estimates any expected kilowatt hour savings or
improvement in heat rate from energy conservation or improved unit
efficiency measures under a reduced utilization plan, the designated
representative shall submit, by July 1 of the year in which the annual
report was submitted, a confirmation report. The Administrator may
grant, for good cause shown, an extension of the time to file the
confirmation report. The confirmation report shall include the following
elements in a format prescribed by the Administrator:
(i) The verified kilowatt hour savings from each such energy
conservation measure and the verified corresponding reduction in the
unit's heat input resulting from each measure during the calendar year
covered by the annual report. For purposes of this paragraph (b), all
values in Kwh shall be converted to mmBtu using the actual annual heat
rate (Btu/Kwh) of the unit (determined in accordance with part 75 of
this chapter) before the employment of any improved unit measures under
an approved reduced utilization plan.
(ii) The verified reduction in the heat rate achieved by each
improved unit efficiency measure and the verified corresponding
reduction in the unit's heat input resulting from such measure.
[[Page 75]]
(iii) For all figures under paragraphs (b)(1) (i) and (ii) of this
section:
(A) Documentation (which may follow the EPA Conservation
Verification Protocol) verifying specified figures to the satisfaction
of the Administrator; or
(B) Certification, by a State utility regulatory authority that has
ratemaking jurisdiction over the utility system that paid for the
measures in accordance with Sec. 72.43(b)(2) of this part and over rates
reflecting any of the amount paid for such measures and that meets the
criteria in Sec. 73.82(c)(1) (i) and (ii) of this chapter, that such
authority verified specified figures related to demand-side measures;
and
(C) Certification, by a utility regulatory authority that has
ratemaking jurisdiction over the utility system that paid for the
measures in accordance with Sec. 72.43(b)(2) of this part and over rates
reflecting any of the amount paid for such measures, that such authority
verified specified figures related to supply-side measures.
(2) Notwithstanding paragraph (b)(1)(i) of this section, where two
or more Phase I units include in the confirmation report the verified
kilowatt hour savings or reduction in heat rate from the same specific
conservation or improved unit efficiency measures:
(i) The designated representatives of all such units shall submit
with their confirmation reports a certification signed by all such
designated representatives. The certification shall apportion the total
kilowatt hour savings or reduction in heat rate among such units.
(ii) Each designated representative shall include in the
confirmation report only the respective unit's share of the total
savings or reduction in heat rate in accordance with the certification
under paragraph (b)(2)(i) of this section.
(3) If the total, included in the confirmation report, of the
amounts of verified reduction in the unit's heat input from energy
conservation and unit efficiency measures equals the total estimated in
the unit's annual compliance certification report from such measures for
the calendar year, then the designated representatives shall include in
the confirmation report a statement indicating that is true.
(4) If the total, included in the confirmation report, of the
amounts of verified reduction in the units's heat input from energy
conservation and improved unit efficiency measures is greater than the
total estimated in the unit's annual compliance certification report
from such measures for the calendar year, then the designated
representative shall include in the confirmation report the number of
allowances to be credited to the unit's compliance subaccount calculated
using the following formula:
Allowances credited=(verified heat input reduction-estimated hear input
reduction) x emissions rate 2000 lbs/ton
where:
(i) ``Verified heat input reduction'' is the total of the amounts of
verified reduction in the units' heat input (in mmBtu) from energy
conservation and improved unit efficiency measures included in the
confirmation report.
(ii) ``Estimated heat input reduction'' is the total of the amounts
of reduction in the unit's heat input (in mmBtu) accounted for by energy
conservation and improved efficiency measures as estimated in the unit's
annual compliance certification report for the calendar year.
(iii) ``Emissions rate'' is the ``emissions rate'' under
Sec. 72.92(c)(2)(v) of this part.
(5) If the total, included in the confirmation report, of the
amounts of verified reduction in the unit's heat input from energy
conservation and improved unit efficiency measures is less than the
total estimated in the unit's annual compliance certification report for
such measures for the calendar year, then the designated representative
shall include in the confirmation report the number of allowances to be
deducted from the unit's compliance subaccount, which equals the
absolute value of the result of the formula for allowances credited
under paragraph (b)(4) of this section.
(6) Unless paragraph (b)(3) of this section applies, the designated
representative shall include in the confirmation report the adjusted
amount of allowances that would have held in the
[[Page 76]]
unit's compliance subaccount if the deductions made under Sec. 73.35(b)
of this chapter had been based on the verified, rather than the
estimated, reduction in the unit's heat input from energy conservation
and improved efficiency measures, calculated as follows:
Adjusted amount of allowances=allowances held after deduction-excess
emissions + allowances credited-allowances deducted
where:
(i) ``Allowances held after deductions'' is the amount of allowances
held in the unit's compliance subaccount after deductions were made
under Sec. 73.35(b) of this chapter based on the annual compliance
certification report.
(ii) ``Excess emission'' is the amount (if any) of excess emissions
determined under Sec. 73.35(b) for the calendar year based on the annual
compliance certification report.
(iii) ``Allowances credited'' is the amount of allowances calculated
under paragraph (b)(4) of this section.
(iv) ``Allowances deducted'' is the amount of allowances calculated
under paragraph (b)(5) of this section.
(v) If the result of the formula for ``adjusted amount of
allowances'' is negative, the absolute value of the result constitutes
excess emissions of sulfur dioxide. If the result is positive, there are
no excess emissions of sulfur dioxide.
(7) If the amount of excess emissions of sulfur dioxide calculated
under paragraph (b)(6) of this section differs from the amount of excess
emissions of sulfur dioxide determined under Sec. 73.35(b) of this
chapter based on the annual compliance certification report, then the
designated representative shall include in the confirmation report a
demonstration of: The number of allowances that should be deducted to
offset any increase in excess emissions or returned to account for any
decrease in excess emissions; and the amount of the excess emissions
penalty (excluding interest) that should be paid or returned to account
for the change in excess emissions. The Administrator will deduct
immediately from the unit's compliance subaccount the amount of
allowances that he or she determines is necessary to offset any increase
in excess emissions or will return immediately to the unit's compliance
subaccount the amount of allowances that he or she determines is
necessary to account for any decrease in excess emissions. The
designated representative may identify the serial numbers of the
allowances to be deducted or returned. In the absence of such
identification, the deduction will be on a first-in, first-out basis
under Sec. 73.35(c)(2) of this chapter and the return will be at the
Administrator's discretion.
(8) If the designated representative of a unit fails to submit on a
timely basis a confirmation report (in accordance with paragraph (b) of
this section) with regard to the estimate of expected kilowatt hour
savings or improvement in heat rate from any energy conservation or
improved unit efficiency measure under the reduced utilization plan,
then the Administrator will reject such estimate and correct it to equal
zero in the unit's annual compliance certification report that includes
that estimate. The Administrator will deduct immediately, on a first-in,
first-out basis under Sec. 73.35(c)(2) of this chapter, the amount of
allowances that he or she determines is necessary to offset any increase
in excess emissions of sulfur dioxide that results from the correction
and require the owners and operators to pay an excess emission penalty
in accordance with part 77 of this chapter.
[58 FR 3650, Jan. 11, 1993, as amended at 58 FR 40747, July 30, 1993; 59
FR 60231, Nov. 22, 1994; 60 FR 18470, Apr. 11, 1995]
Sec. 72.92 Phase I unit allowance surrender.
(a) Annual compliance certification report. If a Phase I unit's
adjusted utilization for the calendar year in Phase I under
Sec. 72.91(a) is greater than zero, then the designated representative
shall include in the annual compliance certification report the number
of allowances that shall be surrendered for adjusted utilization using
the formula in paragraph (c) of this section and the calculations that
were performed to obtain that number.
(b) Other submissions.
(1) [Reserved]
(2)(i) If any Phase I unit in a dispatch system is governed during
the calendar
[[Page 77]]
year by an approved reduced utilization plan relying on sulfur-free
generation, then the designated representatives of all affected units in
such dispatch system shall jointly submit, within 60 days of the end of
the calendar year, a dispatch system data report that includes the
following elements in a format prescribed by the Administrator:
(A) The name of the dispatch system as reported under Sec. 72.33;
(B) The calculation of ``percentage change in dispatch system
sales'' under Sec. 72.91(a)(3)(iii)(C);
(C) A certification that each designated representative will use
this figure, as appropriate, in its annual compliance certification
report and will submit upon request the data supporting the calculation;
and
(D) The signatures of all the designated representatives.
(ii) If any Phase I unit in a dispatch system has adjusted
utilization greater than zero for the calendar year, then the designated
representatives of all Phase I units in such dispatch system shall
jointly submit, within 60 days of the end of the calendar year, a
dispatch system data report that includes the following elements in a
format prescribed by the Administrator:
(A) The name of the dispatch system as reported under Sec. 72.33;
(B) The calculation of ``percentage change in dispatch system
sales'' under Sec. 72.91(a)(3)(iii)(C);
(C) The calculation of ``dispatch system adjusted utilization''
under paragraph (c)(2)(i) of this section;
(D) The calculation of ``dispatch system aggregate baseline'' under
paragraph (c)(2)(ii) of this section;
(E) The calculation of ``fraction of generation within dispatch
system'' under paragraph (c)(2)(v)(A) of this section;
(F) The calculation of ``dispatch system emissions rate'' under
paragraph (c)(2)(v)(B) of this section;
(G) The calculation of ``fraction of generation from non-utility
generators'' under paragraph (c)(2)(v)(C) of this section;
(H) The calculation of ``non-utility generator average emissions
rate `` under paragraph (c)(2)(v)(F) of this section;
(I) A certification that each designated representative will use
these figures, as appropriate, in its annual compliance certification
report and will submit upon request the data supporting these
calculations; and
(J) The signatures of all the designated representatives.
(c) Allowance surrender formula. (1) As provided under the allowance
surrender formula in paragraph (c)(2) of this section:
(i) Allowances are not surrendered for deduction for the portion of
adjusted utilization accounted for by:
(A) Shifts in generation from the unit to other Phase I units;
(B) A dispatch-system-wide sales decline;
(C) Plan reductions under a reduced utilization plan as calculated
under Sec. 72.91; and
(D) Foreign generation.
(ii) Allowances are surrendered for deduction for the portion of
adjusted utilization that is not accounted for under paragraph (c)(1)(i)
of this section.
(2) The designated representative shall surrender for deduction the
number of allowances calculated using the following formula:
Allowances surrendered = [dispatch system adjusted utilization +
(dispatch system aggregate baseline x percentage change in
dispatch system sales)] x unit's share x emissions rate
2000 lbs/ton.
If the result of the formula for ``allowances surrendered'' is less
than or equal to zero, then no allowances are surrendered.
(i) Calculating dispatch system adjusted utilization. ``Dispatch
system adjusted utilization'' (in mmBtu) is the sum of the adjusted
utilization under Sec. 72.91(a) for all Phase I units in the dispatch
system. If ``dispatch system adjusted utilization'' is less than or
equal to zero, then no allowances are surrendered by any unit in that
dispatch system.
(ii) Calculating dispatch system aggregate baseline. ``Dispatch
system aggregate baseline'' is the sum of the baselines (as defined in
Sec. 72.2 of this chapter) for all Phase I units in the dispatch system.
(iii) Calculating percentage change in dispatch system sales.
``Percentage
[[Page 78]]
change in dispatch system sales'' is the ``percentage change in dispatch
system sales'' under Sec. 72.91 (a)(3)(iii)(C); provided that if result
of the formula in Sec. 72.91(a)(3)(iii)(C) is greater than or equal to
zero, the value shall be treated as zero only for purposes of paragraph
(c)(2) of this section.
(iv) Calculating unit's share. ``Unit's share'' is the unit's
adjusted utilization divided by the sum of the adjusted utilization for
all Phase I units within the dispatch system that have adjusted
utilization of greater than zero and is calculated as follows:
[GRAPHIC] [TIFF OMITTED] TC01SE92.001
where:
(A) Uunit = the unit's adjusted utilization for the calendar
year;
(B) Ui = the adjusted utilization of a Phase I unit in the
dispatch system for the calendar year; and
(C) m = all Phase I units in the dispatch system having an adjusted
utilization greater than 0 for the calendar year.
(v) Calculating emissions rate. ``Emissions rate'' (in lbs/mmBtu) is
the weighted average emissions rate for sulfur dioxide of all units and
generators, within and outside the dispatch system, that contributed to
the dispatch system's electrical output for the year, calculated as
follows:
Emissions rate = [fraction of generation within dispatch system x
dispatch system emissions rate] + [fraction of generation from
non-utility generators x non-utility generator average
emissions rate] + [fraction of generation outside dispatch
system x fraction of non-Phase 1 and non-foreign generation
in NERC region x NERC region emissions rate]
Where:
(A) ``Fraction of generation within dispatch system'' is the
fraction of the dispatch system's total sales accounted for by
generation from units and generators within the dispatch system, other
than generation from non-utility generators. This term equals the total
generation (in Kwh) by all units and generators within the dispatch
system for the calendar year minus the total non-utility generation from
non-utility generators within the dispatch system for the calendar year
and divided by the total sales (in Kwh) by the dispatch system for the
calendar year.
(B) Dispatch system emissions rate'' is the weighted average rate
(in lbs/mmBtu) for the dispatch system calculated as follows:
Dispatch system emissions rate =
[GRAPHIC] [TIFF OMITTED] TR11AP95.000
[[Page 79]]
Where:
gi = the difference between a Phase II unit's actual
utilization for the calendar year and that Phase II unit's
baseline. If that difference is less than or equal to zero,
then the difference shall be treated as zero only for purposes
of paragraph (c)(2)(v) of this section and that unit will be
excluded from the calculation of dispatch system emissions
rate. Notwithstanding the prior sentence, if the actual
utilization of each Phase II unit for the year is equal to or
less than the baseline, then gi shall equal a Phase
II unit's actual utilization for the year. Notwithstanding any
provision in this paragraph (c)(2)(v)(B) to the contrary, if
the actual utilization of each Phase II unit in the dispatch
system is zero or there are no Phase II units in the dispatch
system, then the dispatch system emissions rate shall equal
the fraction of non-Phase I and non-foreign generation in the
NERC region multiplied by the NERC region emissions rate.
ri = a Phase II unit's emissions rate (in lbs/mmBtu),
determined in accordance with part 75 of this chapter, for the
calendar year.
k = number of Phase II units in the dispatch system.
(C) ``Fraction of generation from non-utility generators'' is the
fraction of the dispatch system's total sales accounted for by
generation acquired from non-utility generators within or outside the
dispatch system. This term equals the total non-utility generation from
non-utility generators (within or outside the dispatch system) for the
calendar year divided by the total sales (in Kwh) by the dispatch system
for the calendar year.
(D) ``Non-utility generator'' is a power production facility (within
or outside the dispatch system) that is not an affected unit or a
sulfur-free generator and that has a ``non-utility generator emissions
rate'' for the calendar year under paragraph (c)(2)(v)(F) of this
section.
(E) ``Non-utility generation'' is the generation (in Kwh) that the
dispatch system acquired from a non-utility generator during the
calendar year as required by federal or State law or an order of a
utility regulatory authority or under a contract awarded as the result
of a power purchase solicitation required by federal or State law or an
order of a utility regulatory authority.
(F) ``Non-utility generator average emissions rate'' is the weighted
average rate (in lbs/mmBtu) for the non-utility generators calculated as
follows:
Non-utility generator average emissions rate =
[GRAPHIC] [TIFF OMITTED] TR11AP95.001
Where:
Ni = non-utility generation from a non-utility generator;
Ri = non-utility generator emissions rate for the calendar
year for a non-utility generator, which shall equal the most
stringent federally enforceable or State enforceable
SO2 emissions limitation applicable for the
calendar year to such power production facility, as determined
in accordance with paragraphs (c)(2)(v)(F) (1), (2), and (3)
of this section; and
n = number of non-utility generators from which the dispatch system
acquired non-utility generation. If n equals zero, then the
non-utility generator average emissions rate shall be treated
as zero only for purposes of paragraph (c)(2)(v) of this
section.
(1) For purposes of determining the most stringent emissions
limitation, applicable emissions limitations shall be converted to lbs/
mmBtu in accordance with appendix B of this part. If an applicable
emissions limitation cannot be converted to a unit-specific limitation
in lbs/mmBtu under appendix B of this part, then the limitation shall
not be used in determining the most stringent emissions limitation.
Where the power production facility is subject to different emissions
limitations depending on the type of fuel it uses during the calendar
year, the most stringent emissions limitation shall be determined
separately with regard to each type of fuel and the resulting limitation
with the highest amount of lbs/mmBtu shall be treated as the facility's
most stringent federally enforceable or State enforceable emissions
limitation.
(2) If there is no applicable emissions limitation that can be used
in determining the most stringent emissions limitation under paragraph
(c)(2)(v)(F)(1) of this section, then the power production facility has
no non-utility generator emissions rate for
[[Page 80]]
purposes of paragraphs (c)(2)(v) (D) and (F) of this section and the
generation from the facility shall be treated, for purposes of this
paragraph (c)(2)(v) as generation from units and generators within the
dispatch system if the facility is within the dispatch system or as
generation from units and generators outside the dispatch system if the
facility is outside the dispatch system.
(3) Notwithstanding paragraphs (c)(2)(v)(F) (1) and (2) of this
section, if the power production facility is authorized under federal or
State law to use only natural gas as fuel, then the most stringent
emissions limitation for the facility for the calendar year shall be
deemed to be 0.0006 lbs/mmBtu.
(G) ``Fraction of generation outside dispatch system'' = 1-fraction
of generation within dispatch system-fraction of generation from non-
utility generators.
(H) ``Fraction of non-Phase I and non-foreign generation in NERC
region'' is the portion of the NERC region's total sales generated by
units and generators other than Phase I units or foreign sources in the
unit's NERC region in 1985, as set forth in Table 1 of this section.
(I) ``NERC region emissions rate'' is the weighted average emission
rate (in lbs/mmBtu) for the unit's NERC region in 1985, as set forth in
Table 1 of this section.
Table 1--NERC Region Generation and Emissions Rate in 1985
------------------------------------------------------------------------
Fraction
of non- NERC
phase I weighted
and non- average
NERC region foreign emissions
generation rate (lbs/
in NERC mmBtu)
region
------------------------------------------------------------------------
WSCC............................................. 0.847 0.466
SPP.............................................. 0.948 0.647
SERC............................................. 0.749 1.315
NPCC............................................. 0.423 1.058
MAPP............................................. 0.725 1.171
MAIN............................................. 0.682 1.495
MAAC............................................. 0.750 1.599
ERCOT............................................ 1.000 0.491
ECAR............................................. 0.549 1.564
------------------------------------------------------------------------
[58 FR 3650, Jan. 11, 1993, as amended at 58 FR 40747, July 30, 1993; 60
FR 18470, Apr. 11, 1995]
Sec. 72.93 Units with Phase I extension plans.
Annual compliance certification report. The designated
representative for a control unit governed by a Phase I extension plan
shall include in the unit's annual compliance certification report for
calendar year 1997, the start-up test results upon which the vendor is
released from liability under the vendor certification of guaranteed
sulfur dioxide removal efficiency under Sec. 72.42(c)(12).
Sec. 72.94 Units with repowering extension plans.
(a) Design and engineering and contract requirements. No later than
January 1, 2000, the designated representative of a unit governed by an
approved repowering plan shall submit to the Administrator and the
permitting authority:
(1) Satisfactory documentation of a preliminary design and
engineering effort.
(2) A binding letter agreement for the executed and binding contract
(or for each in a series of executed and binding contracts) for the
majority of the equipment to repower the unit using the technology
conditionally approved by the Administrator under Sec. 72.44(d)(3).
(3) The letter agreement under paragraph (a)(2) of this section
shall be signed and dated by each party and specify:
(i) The parties to the contract;
(ii) The date each party executed the contract;
(iii) The unit to which the contract applies;
(iv) A brief list identifying each provision of the contract;
(v) Any dates to which the parties agree, including construction
completion date;
(vi) The total dollar amount of the contract; and
(vii) A statement that a copy of the contract is on site at the
source and will be submitted upon written request of the Administrator
or the permitting authority.
(b) Removal from operation to repower. The designated representative
of a unit governed by an approved repowering plan shall notify the
Administrator in writing at least 60 days in advance of
[[Page 81]]
the date on which the existing unit is to be removed from operation so
that the qualified repowering technology can be installed, or is to be
replaced by another unit with the qualified repowering technology, in
accordance with the plan.
(c) Commencement of operation. Not later than 60 days after the unit
repowered under an approved repowering plan commences operation at full
load, the designated representative of the unit shall submit a report
comparing the actual hourly emissions and percent removal of each
pollutant controlled at the unit to the actual hourly emissions and
percent removal at the existing unit under the plan prior to repowering,
determined in accordance with part 75 of this chapter.
(d) Decision to terminate. If at any time before the end of the
repowering extension the owners and operators decide to terminate good
faith efforts to design, construct, and test the qualified repowering
technology on the unit to be repowered under an approved repowering
plan, then the designated representative shall submit a notice to the
Administrator by the earlier of the end of the repowering extension or a
date within 30 days of such decision, stating the date on which the
decision was made.
Sec. 72.95 Allowance deduction formula.
The following formula shall be used to determine the total number of
allowances to be deducted for the calendar year from the allowances held
in an affected unit's compliance subaccount as of the allowance transfer
deadline applicable to that year:
Total allowances deducted=Tons emitted + Allowances surrendered for
underutilization+Allowances deducted for Phase I extensions
where:
(a) ``Tons emitted'' is the total tons of sulfur dioxide emitted by
the unit during the calendar year, as reported in accordance with part
75 of this chapter.
(b) ``Allowances surrendered for underutilization'' is the total
number of allowances calculated in accordance with Sec. 72.92 (a) and
(c).
(c) ``Allowances deducted for Phase I extensions'' is the total
number of allowances calculated in accordance with Sec. 72.42(f)(1)(i).
Sec. 72.96 Administrator's action on compliance certifications.
(a) The Administrator may review, and conduct independent audits
concerning, any compliance certification and any other submission under
the Acid Rain Program and make appropriate adjustments of the
information in the compliance certifications and other submissions.
(b) The Administrator may deduct allowances from or return
allowances to a unit's Allowance Tracking System account in accordance
with part 73 of this chapter based on the information in the compliance
certifications and other submissions, as adjusted.
Appendix A to Part 72--Methodology for Annualization of Emissions Limits
For the purposes of the Acid Rain Program, 1985 emissions limits
must be expressed in pounds of SO2 per million British
Thermal Unit of heat input (lb/mmBtu) and expressed on an annual basis.
Annualization factors are used to develop annual equivalent
SO2 limits as required by section 402(18) of the CAA. Many
emission limits are enforced on a shorter term basis (or averaging
period) than annually. Because of the variability of sulfur in coal and,
in some cases, scrubber performance, meeting a particular limit with an
averaging period of less than a year and at a specified statutory
emissions level would require a lower annual average SO2
emission rate (or annual equivalent SO2 limit) than would the
shorter term statutory limit. EPA has selected a compliance level of one
exceedance per 10 years. For example, an SO2 emission limit
of 1.2 lbs/MMBtu, enforced for a scrubbed unit over a 7-day averaging
period, would result in an annualized SO2 emission limit of
1.16 lbs/MMBtu. In general, the shorter the averaging period, the lower
the annual equivalent would be. Thus, the annualization of limits is
established by multiplying each federally enforceable limit by an
annualization factor that is determined by the averaging period and
whether or not it's a scrubbed unit.
[[Page 82]]
Table A-1.--SO2 Emission Averaging Periods and Annualization Factors
------------------------------------------------------------------------
Annualization factor
---------------------
Definition Scrubbed Unscrubbed
---------------------
Unit Unit
------------------------------------------------------------------------
Oil/gas unit...................................... 1.00 1.00
=1 day............................................ 0.93 0.89
1 week............................................ 0.97 0.92
30 days........................................... 1.00 0.96
90 days........................................... 1.00 1.00
1 year............................................ 1.00 1.00
Not specified..................................... 0.93 0.89
At all times...................................... 0.93 0.89
Coal unit: No Federal limit or limit unknown...... 1.00 1.00
------------------------------------------------------------------------
Appendix B to Part 72--Methodology for Conversion of Emissions Limits
For the purposes of the Acid Rain Program, all emissions limits must
be expressed in pounds of SO2 per million British Thermal
Unit of heat input (lb/mmBtu).
The factor for converting pounds of sulfur to pounds of
SO2 is based on the molecular weights of sulfur (32) and
SO2 (64). Limits expressed as percentage of sulfur or parts
per million (ppm) depend on the energy content of the fuel and thus may
vary, depending on several factors such as fuel heat content and
atmospheric conditions. Generic conversions for these limits are based
on the assumed average energy contents listed in Table A-2. In addition,
limits in ppm vary with boiler operation (e.g., load and excess air);
generic conversions for these limits assume, conservatively, very low
excess air. The remaining factors are based on site-specific heat rates
and capacities to develop conversions for Btu per hour. Standard
conversion factors for residual oil are 42 gal/bbl and 7.88 lbs/gal.
Table B-1.--Conversion Factors
[Emission limits converted to lbs SO2/MMBtu by multiplying as below]
----------------------------------------------------------------------------------------------------------------
Plant fuel type
-------------------------------------------------
Unit measurement Bituminous Subbituminous Lignite
coal coal coal Oil
----------------------------------------------------------------------------------------------------------------
Lbs sulfur/ MMBtu............................................. 2.0 2.0 2.0 2.0
% sulfur in fuel.............................................. 1.66 2.22 2.86 1.07
Ppm SO2....................................................... 0.00287 0.00384 ....... 0.00167
Ppm sulfur in fuel............................................ ........... ............. ....... 0.00334
Tons SO2/hour ................................................ 2,000,000/(HEATRATE*SUMNDCAP*capacity factor)
\1\
............................................................
Lbs SO2/hour ................................................. 1,000/(HEATRATE*SUMNDCAP*capacity factor) \1\
----------------------------------------------------------------------------------------------------------------
\1\ In these cases, if the limit was specified as the ``site'' limit, the summer net dependable capability for
the entire plant is used; otherwise, the summer net dependable capability for the unit is used. For units
listed in the NADB, ``HEATRATE'' shall be that listed in the NADB under that field and ``SUMNDCAP'' shall be
that listed in the NADB under that field. For units not listed in the NADB, ``HEATRATE'' is the generator net
full load heat rate reported on Form EIA-860 and ``SUMNDCAP'' is the summer net dependable capability of the
generator (in MWe) as reported on Form EIA-860.
[[Page 83]]
Table B-2.--Assumed Average Energy Contents
------------------------------------------------------------------------
Fuel type Average heat content
------------------------------------------------------------------------
Bituminous Coal........................ 24 MMBtu/ton.
Subbituminous Coal..................... 18 MMBtu/ton.
Lignite Coal........................... 14 MMBtu/ton.
Residual Oil........................... 6.2 MMBtu/bbl.
------------------------------------------------------------------------
Appendix C to Part 72--Actual 1985 Yearly SO2 Emissions
Calculation
The equation used to calculate the yearly SO2 emissions
(SO2) is as follows:
SO2 = (coal SO2 emissions) + (oil SO2 emissions)
(in tons)
If gas is the only fuel, gas emissions are defaulted to 0.
Each fuel type SO2 emissions is calculated on a yearly
basis, using the equation:
fuel SO2 emissions (in tons) = (yrly wtd. av. fuel sulfur %)
x (AP-42 fact.) x (1-scrb. effic. %/100) x (units conver.
fact.) x (yearly fuel burned)
For coal, the yearly fuel burned is in tons/yr and the AP-42 factor
(which accounts for the ash retention of sulfur in coal), in lbs
SO2 ton coal, is by coal type:
------------------------------------------------------------------------
Coal type AP-42 factor
------------------------------------------------------------------------
Bituminous, anthracite................... 39 lbs/ton
Subbituminous............................ 35
Lignite.................................. 30
------------------------------------------------------------------------
For oil, the yearly fuel burned is in gal/yr. If it is in bbl/yr,
convert using 42 gal/bbl oil. The AP-42 factor (which accounts for the
oil density), in lbs SO2/thousand gal oil, is by oil type:
------------------------------------------------------------------------
Oil type AP-42 factor
------------------------------------------------------------------------
Distillate (light)................... 142 lbs/1,000 gal
Residual (heavy)..................... 157
------------------------------------------------------------------------
For all fuel, the units conversion factor is 1 ton/2000 lbs.
Appendix D to Part 72--Calculation of Potential Electric Output Capacity
The potential electrical output capacity is calculated from the
maximum design heat input from the boiler by the following equation:
[GRAPHIC] [TIFF OMITTED] TC10NO91.003
For example:
(1) Assume a boiler with a maximum design heat input capacity of 340
million Btu/hr.
(2) One-third of the maximum design heat input capacity is 113.3
mmBtu/hr. The one-third factor relates to the thermodynamic efficiency
of the boiler.
(3) To express this in MWe, the standards conversion of 3413 Btu to
1 kw-hr is used: 113.3 x 10\6\ Btu/hr x 1 kw-hr / 3413 Btu x 1 MWe /
1000 kw=33.2 MWe
[58 FR 15649, Mar. 23, 1993]
PART 73--SULFUR DIOXIDE ALLOWANCE SYSTEM--Table of Contents
Subpart A--Background and Summary
Sec.
73.1 Purpose and scope.
73.2 Applicability.
73.3 General.
Subpart B--Allowance Allocations
73.10 Initial allocations for phase I and II.
73.11 Revision of allocations.
73.12 Rounding procedures.
73.13 Procedures for submittals.
73.14--73.15 [Reserved]
73.16 Phase I early reduction credits.
73.17 [Reserved]
73.18 Submittal procedures for units commencing commercial operation
during the period from January 1, 1993, through December 31,
1995.
73.19 Certain units with declining SO2 rates.
73.20 Phase II early reduction credits.
73.21 Phase II repowering allowances.
73.22--73.24 [Reserved]
73.25 Phase I extension reserve.
73.26 Conservation and renewable energy reserve.
73.27 Special allowance reserve.
Subpart C--Allowance Tracking System
73.30 Allowance tracking system accounts.
73.31 Establishment of accounts.
73.32 Allowance account contents.
73.33 Authorized account representative.
73.34 Recordation in accounts.
73.35 Compliance.
73.36 Banking.
73.37 Account error and dispute resolution.
[[Page 84]]
73.38 Closing of accounts.
Subpart D--Allowance Transfers
73.50 Scope and submission of transfers.
73.51 Prohibition.
73.52 EPA recordation.
73.53 Notification.
Subpart E--Auctions, Direct Sales, and Independent Power Producers
Written Guarantee
73.70 Auctions.
73.71 Bidding.
73.72 Direct sales.
73.73 Delegation of auctions and sales and termination of auctions and
sales.
Subpart F--Energy Conservation and Renewable Energy Reserve
73.80 Operation of allowance reserve program for conservation and
renewable energy.
73.81 Qualified conservation measures and renewable energy generation.
73.82 Application for allowances from reserve program.
73.83 Secretary of Energy's action on net income neutrality
applications.
73.84 Administrator's action on applications.
73.85 Administrator review of the reserve program.
73.86 State regulatory autonomy.
Appendix A to Subpart F--List of Qualified Energy Conservation Measures,
Qualified Renewable Generation, and Measures Applicable for
Reduced Utilization
Subpart G--Small Diesel Refineries
73.90 Allowance allocations for small diesel refineries.
Authority: 42 U.S.C. 7601 and 7651 et seq.
Subpart A--Background and Summary
Source: 58 FR 3687, Jan. 11, 1993, unless otherwise noted.
Sec. 73.1 Purpose and scope.
The purpose of this Part is to establish the requirements and
procedures for the following:
(a) The allocation of sulfur dioxide emissions allowances;
(b) The tracking, holding, and transfer of allowances;
(c) The deduction of allowances for purposes of compliance and for
purposes of offsetting excess emissions pursuant to parts 72 and 77 of
this chapter;
(d) The sale of allowances through EPA-sponsored auctions and a
direct sale, including the independent power producers written guarantee
program; and
(e) The application for, and distribution of, allowances from the
Conservation and Renewable Energy Reserve.
(f) The application for, and distribution of, allowances for
desulfurization of fuel by small diesel refineries.
[58 FR 3687, Jan. 11, 1993, as amended at 58 FR 15650, Mar. 23, 1993]
Sec. 73.2 Applicability.
The following parties shall be subject to the provisions of this
Part:
(a) Owners, operators, and designated representatives of affected
sources and affected units pursuant to Sec. 72.6 of this chapter;
(b) Any new independent power producer as defined in section 416 of
the Act and Sec. 72.2 of this chapter, except as provided in section
405(g)(6) of the Act;
(c) Any owner of an affected unit who may apply to receive
allowances under the Energy Conservation and Renewable Energy Reserve
Program established in accordance with section 404(f) of the Act;
(d) Any small diesel refinery as defined in Sec. 72.2 of this
chapter, and
(e) Any other person, as defined in Sec. 72.2 of this chapter, who
chooses to purchase, hold, or transfer allowances as provided in section
403(b) of the Act.
Sec. 73.3 General.
Part 72 of this chapter, including Secs. 72.2 (definitions), 72.3
(measurements, abbreviations, and acronyms), 72.4 (Federal authority),
72.5 (State authority), 72.6 (applicability), 72.7 (new units
exemption), 72.8 (retired unit exemption), 72.9 (standard requirements),
72.10 (availability of information), and 72.11 (computation of time) of
part 72, subpart A of this chapter, shall apply to this part. The
procedures for appeals of decisions of the Administrator under this part
are contained in part 78 of this chapter. Sections 73.3 (Definitions)
and 73.4 (Deadlines), which were previously published with subpart E of
this part--``Auctions, Direct Sales, and
[[Page 85]]
Independent Power Producers Written Guarantee'', are codified at
Secs. 72.2 and 72.12 of this chapter, respectively.
Subpart B--Allowance Allocations
Source: 58 FR 3687, Jan. 11, 1993, unless otherwise noted.
Sec. 73.10 Initial allocations for phase I and II.
(a) Phase I allowances. The Administrator will allocate allowances
to the unit account for each unit listed in Table 1 of this section in
the amount listed in Column A to be held in each future year subaccount
for the years 1995 through 1999.
Table 1.--Phase I Allowance Allocations
----------------------------------------------------------------------------------------------------------------
Column B
Column A final auction and
State name Plant name Boiler phase 1 sales
allocation reserve
----------------------------------------------------------------------------------------------------------------
Alabama........................... Colbert........................ 1 13213 357
2 14907 403
3 14995 405
4 15005 405
5 36202 978
E.C. Gaston.................... 1 17624 476
2 18052 488
3 17828 482
4 18773 507
5 58265 1575
Florida........................... Big Bend....................... BB01 27662 748
BB02 26387 713
BB03 26036 704
Crist.......................... 6 18695 505
7 30846 834
Georgia........................... Bowen.......................... 1BLR 54838 1482
2BLR 53329 1441
3BLR 69862 1888
4BLR 69852 1888
Hammond........................ 1 8549 231
2 8977 243
3 8676 234
4 36650 990
Jack McDonough................. MB1 19386 524
MB2 20058 542
Wansley........................ 1 68908 1862
2 63708 1722
Yates.......................... Y1BR 7020 190
Y2BR 6855 185
Y3BR 6767 183
Y4BR 8676 234
Y5BR 9162 248
Y6BR 24108 652
Y7BR 20915 565
Illinois.......................... Baldwin........................ 1 46052 1245
2 48695 1316
3 46644 1261
Coffeen........................ 01 12925 349
02 39102 1057
Grand Tower.................... 09 6479 175
Hennepin....................... 2 20182 545
Joppa Steam.................... 1 12259 331
2 10487 283
3 11947 323
4 11061 299
5 11119 301
6 10341 279
Kincaid........................ 1 34564 934
2 37063 1002
Meredosia...................... 05 15227 411
Vermilion...................... 2 9735 263
Indiana........................... Bailly......................... 7 12256 331
8 17134 463
Breed.......................... 1 20280 548
Cayuga......................... 1 36581 989
2 37415 1011
Clifty Creek................... 1 19620 530
[[Page 85A]]
2 19289 521
3 19873 537
4 19552 528
5 18851 509
6 19844 536
Elmer W. Stout................. 50 4253 115
60 5229 141
70 25883 699
F.B. Culley.................... 2 4703 127
3 18603 503
Frank E. Ratts................. 1SG1 9131 247
2SG1 9296 251
Gibson......................... 1 44288 1197
2 44956 1215
3 45033 1217
4 44200 1195
H.T. Pritchard................. 6 6325 171
Michigan City.................. 12 25553 691
Petersburg..................... 1 18011 487
2 35496 959
R. Gallagher................... 1 7115 192
2 7980 216
3 7159 193
4 8386 227
Tanners Creek.................. U4 27209 735
Wabash River................... 1 4385 118
2 3135 85
3 4111 111
5 4023 109
6 13462 364
Warrick........................ 4 29577 799
Iowa.............................. Burlington..................... 1 10428 282
Des Moines..................... 11 2259 61
George Neal.................... 1 2571 69
Milton L. Kapp................. 2 13437 363
Prairie Creek.................. 4 7965 215
Riverside...................... 9 3885 105
Kansas............................ Quindaro....................... 2 4109 111
Kentucky.......................... Coleman........................ C1 10954 296
C2 12502 338
C3 12015 325
Cooper......................... 1 7254 196
2 14917 403
E.W. Brown..................... 1 6923 187
2 10623 287
3 25413 687
Elmer Smith.................... 1 6348 172
2 14031 379
Ghent.......................... 1 27662 748
Green River.................... 5 7614 206
H.L. Spurlock.................. 1 22181 599
HMP&L Station 2................ H1 12989 351
H2 11986 324
Paradise....................... 3 57613 1557
Shawnee........................ 10 9902 268
Maryland.......................... C.P. Crane..................... 1 10058 272
2 8987 243
Chalk Point.................... 1 21333 577
2 23690 640
Morgantown..................... 1 34332 928
2 37467 1013
Michigan.......................... J.H. Campbell.................. 1 18773 507
2 22453 607
Minnesota......................... High Bridge.................... 6 4158 112
Mississippi....................... Jack Watson.................... 4 17439 471
5 35734 966
Missouri.......................... Asbury......................... 1 15764 426
James River.................... 5 4722 128
LaBadie........................ 1 39055 1055
2 36718 992
[[Page 85B]]
3 39249 1061
4 34994 946
Montrose....................... 1 7196 194
2 7984 216
3 9824 266
New Madrid..................... 1 27497 743
2 31625 855
Sibley......................... 3 15170 410
Sioux.......................... 1 21976 594
2 23067 623
Thomas Hill.................... MB1 9980 270
MB2 18880 510
New Hampshire..................... Merrimack...................... 1 9922 268
2 21421 579
New Jersey........................ B.L. England................... 1 8822 238
2 11412 308
New York.......................... Dunkirk........................ 3 12268 332
4 13690 370
Greenidge...................... 6 7342 198
Milliken....................... 1 10876 294
2 12083 327
Northport...................... 1 19289 521
2 23476 634
3 25783 697
Port Jefferson................. 3 10194 276
4 12006 324
Ohio.............................. Ashtabula...................... 7 18351 496
Avon Lake...................... 11 12771 345
12 33413 903
Cardinal....................... 1 37568 1015
2 42008 1135
Conesville..................... 1 4615 125
2 5360 145
3 6029 163
4 53463 1445
Eastlake....................... 1 8551 231
2 9471 256
3 10984 297
4 15906 430
5 37349 1009
Edgewater...................... 13 5536 150
Gen. J.M. Gavin................ 1 86690 2343
2 88312 2387
Kyger Creek.................... 1 18773 507
2 18072 488
3 17439 471
4 18218 492
5 18247 493
Miami Fort..................... 5-1 417 11
5-2 417 11
6 12475 337
7 42216 1141
Muskingum River................ 1 16312 441
2 15533 420
3 15293 413
4 12914 349
5 44364 1199
Niles.......................... 1 7608 206
2 9975 270
Picway......................... 9 5404 146
R.E. Burger.................... 5 3371 91
6 3371 91
7 11818 319
8 13626 368
W.H. Sammis.................... 5 26496 716
6 43773 1183
7 47380 1280
Walter C. Beckjord............. 5 9811 265
6 25235 682
Pennsylvania...................... Armstrong...................... 1 14031 379
[[Page 85C]]
2 15024 406
Brunner Island................. 1 27030 730
2 30282 818
3 52404 1416
Cheswick....................... 1 38139 1031
Conemaugh...................... 1 58217 1573
2 64701 1749
Hatfield's Ferry............... 1 36835 995
2 36338 982
3 39210 1060
Martins Creek.................. 1 12327 333
2 12483 337
Portland....................... 1 5784 156
2 9961 269
Shawville...................... 1 10048 272
2 10048 272
3 13846 374
4 13700 370
Sunbury........................ 3 8530 230
4 11149 301
Tennessee......................... Allen.......................... 1 14917 403
2 16329 441
3 15258 412
Cumberland..................... 1 84419 2281
2 92344 2496
Gallatin....................... 1 17400 470
2 16855 455
3 19493 527
4 20701 559
Johnsonville................... 1 7585 205
10 7351 199
2 7828 212
3 8189 221
4 7780 210
5 8023 217
6 7682 208
7 8744 236
8 8471 229
9 6894 186
West Virginia..................... Albright....................... 3 11684 316
Fort Martin.................... 1 40496 1094
2 40116 1084
Harrison....................... 1 47341 1279
2 44936 1214
3 40408 1092
Kammer......................... 1 18247 493
2 18948 512
3 16932 458
Mitchell....................... 1 42823 1157
2 44312 1198
M.T. Storm..................... 1 42570 1150
2 34644 936
3 41314 1116
Wisconsin......................... Edgewater...................... 4 24099 651
Genoa.......................... 1 22103 597
Nelson Dewey................... 1 5852 158
2 6504 176
North Oak Creek................ 1 5083 137
2 5005 135
3 5229 141
4 6154 166
Pulliam........................ 8 7312 198
South Oak Creek................ 5 9416 254
6 11723 317
7 15754 426
8 15375 415
----------------------------------------------------------------------------------------------------------------
[[Page 85D]]
(b) Phase II allowances. (1) The Administrator will allocate
allowances to the unit account for each unit listed in Table 2 of this
section in the amount specified in Table 2 Column E to be held in the
future year subaccounts representing calendar years 2000 through 2009,
except that units listed in both Table 2 and 4 will be allocated
allowances as specified in Table 4 Column C, multiplied by .9011,
reduced by 1.3185 times Table 2 Column B, and increased by Table 2
Columns C and D.
(2) The Administrator will allocate allowances to the unit account
for each unit listed in Table 2 of this section in the amount specified
in Table 2 Column I to be held in the future year subaccounts
representing calendar years 2010 and each year thereafter, except that
units listed in both Table 2 and 4 will be allocated allowances as
specified in Table 4 Column F, multiplied by .8987, reduced by Table 2
Column G, and increased by Table 2 Column H.
[[Page 86]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.002
[[Page 87]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.003
[[Page 88]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.004
[[Page 89]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.005
[[Page 90]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.006
[[Page 91]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.007
[[Page 92]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.008
[[Page 93]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.009
[[Page 94]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.010
[[Page 95]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.011
[[Page 96]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.012
[[Page 97]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.013
[[Page 98]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.014
[[Page 99]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.015
[[Page 100]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.016
[[Page 101]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.017
[[Page 102]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.018
[[Page 103]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.019
[[Page 104]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.020
[[Page 105]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.021
[[Page 106]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.022
[[Page 107]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.023
[[Page 108]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.024
[[Page 109]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.025
[[Page 110]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.026
[[Page 111]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.155
[[Page 112]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.027
[[Page 113]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.028
[[Page 114]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.029
[[Page 115]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.030
[[Page 116]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.031
[[Page 117]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.032
[[Page 118]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.033
[[Page 119]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.034
[[Page 120]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.035
[[Page 121]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.036
[[Page 122]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.037
[[Page 123]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.038
[[Page 124]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.039
[[Page 125]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.040
[[Page 126]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.041
[[Page 127]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.042
[[Page 128]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.043
[[Page 129]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.044
[[Page 130]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.045
[[Page 131]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.046
[[Page 132]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.047
[[Page 133]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.048
[[Page 134]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.049
[[Page 135]]
(c) Allowance allocation for units under Sec. 73.18. Upon adequate
submittal of information under Sec. 73.18(b) and confirmation of unit
eligibility under Sec. 73.18(c), the Administrator will allocate
allowances to the unit account:
(1) In the amount specified in Table 3 Column E to be held in the
future year subaccounts representing calendar years 2000 through 2009;
and
(2) In the amount specified in the Table 3 Column I to be held in
the future year subaccounts representing calendar years 2010 and each
year thereafter.
[GRAPHIC] [TIFF OMITTED] TC01SE92.050
[[Page 136]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.051
[[Page 137]]
(d) Allowance allocation for units under Sec. 73.19. (1) Upon
submittal of adequate information under Sec. 73.19(b) and confirmation
of unit eligibility under Sec. 73.19, the Administrator will allocate
allowances to the unit account:
(i) In the amount specified in Table 2 Column E to be held in the
future year subaccounts representing calendar years 2000 through 2009;
and
(ii) In the amount specified in the Table 2 Column I to be held in
the future year subaccounts representing calendar years 2010 and each
year thereafter.
(2) Units listed in Table 4 which do not submit adequate information
under Sec. 73.19(b) or which are not eligible under Sec. 73.19 will be
allocated allowances as calculated under Sec. 73.11.
[[Page 138]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.052
[58 FR 3687, Jan. 11, 1993, as amended at 58 FR 15650, Mar. 23, 1993; 58
FR 33770, June 21, 1993; 58 FR 40747, July 30, 1993]
[[Page 139]]
Sec. 73.11 Revision of allocations.
No later than June 1, 1998, the Administrator will allocate
allowances to the unit accounts for each unit listed in Table 2 or 3 of
Sec. 73.10, instead of the number of allowances specified in Tables 2,
3, and 4, as follows:
(a) The Administrator will allocate allowances to be held in the
future year subaccounts representing calendar years 2000 through 2009 as
follows:
(1) Units eligible for allowances under Sec. 73.19(a) and that
documentation according to Sec. 73.19(b) will have unadjusted basic
allowances as listed in Table 2 Column A.
(2) The Administrator will calculate unadjusted basic allowances
(Year 2000) for existing units with approved repowering extension plans
under Sec. 72.44 of this chapter according to the following equation,
instead of unadjusted basic allowances listed in Table 2 Column A:
[GRAPHIC] [TIFF OMITTED] TC01SE92.053
(3) Adjustment of basic allowances. The Administrator will adjust
each unit's unadjusted basic allowances as listed in Table 2 Column A,
Table 3 Column A and Table 4 Column C, and as stated in paragraphs (a)
(1) and (2) of this section, as follows:
[GRAPHIC] [TIFF OMITTED] TC01SE92.054
(4) Repowering adjustment. The Administrator will calculate a
repowering deduction according to the following equation:
[GRAPHIC] [TIFF OMITTED] TC01SE92.055
where:
Set Aside=Sum of all repowering allowances for the year 2000 under
40 CFR 73.21
Annual Set Aside=Set Aside/10
(5) Special allowance reserve deduction. The Administrator will
calculate a Special Allowance Deduction according to the following
equation:
[GRAPHIC] [TIFF OMITTED] TC01SE92.056
[[Page 140]]
(6) Conservation and renewable energy reserve. The Administrator
will
calculate the Conservation Deduction according to the following
equation:
[GRAPHIC] [TIFF OMITTED] TC01SE92.057
(7) Final allowance allocations. (i) (A) According to paragraphs (a)
(1) through (6) of this section, the Administrator will revise the
allowances allocated to each unit listed in Table 2 of Sec. 73.10 and
will allocate to each unit's subaccount representing calendar years 2000
through 2009 Final Revised Phase II Allowances according to the
following equation:
[GRAPHIC] [TIFF OMITTED] TC01SE92.058
(B) According to paragraphs (a) (1) through (6) of this section, the
Administrator will revise the allowances allocated to each unit listed
in Table 3 of Sec. 73.10 and will allocate to each unit's subaccount
representing calendar years 2000 through 2009 Final Revised Phase II
Allowances according to the following equation:
[GRAPHIC] [TIFF OMITTED] TC01SE92.059
(C) According to paragraphs (a) (1) through (6) of this section, the
Administrator will revise the allowances allocated to each unit listed
in Table 4 of Sec. 73.10 (and not eligible for allocations under Table
2) and will allocate to each unit's subaccount representing calendar
years 2000 through 2009 Final Revised Phase II Allowances according to
the following equation:
[GRAPHIC] [TIFF OMITTED] TC01SE92.060
(ii) (A) If, as of January 1, 1998, both the auction and sales under
subpart E of this part are terminated as provided for in subpart E,
instead of allowances under paragraph (a)(7)(i) of this section, the
Administrator will revise the allowances allocated to each unit listed
in Table 2 of Sec. 73.10 and will allocate to each unit's subaccount
representing calendar years 2000 through 2009 Final Revised Phase II
Allowances according to the following equation:
[[Page 141]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.061
(B) If, as of January 1, 1998, both the auction and sales under
subpart E of this part are terminated as provided for in subpart E,
instead of allowances under paragraph (a)(7)(i) of this section, the
Administrator will revise the allowances allocated to each unit listed
in Table 3 of Sec. 73.10 and will allocate to each unit's subaccount
representing calendar years 2000 through 2009 Final Revised Phase II
Allowances according to the following equation:
[GRAPHIC] [TIFF OMITTED] TC01SE92.062
(b) The Administrator will allocate allowances to be held in the
future year subaccounts representing calendar years 2010 and each year
thereafter as follows:
(1) Units eligible for allowances under Sec. 73.19(a) and that
documentation according to Sec. 73.19(b) will have unadjusted basic
allowances as listed in Table 2 Column A.
(2) The Administrator will calculate unadjusted basic allowances
(Year 2010) for units with approved repowering extension plans under
Sec. 72.44 of this chapter according to the following equation, instead
of unadjusted basic allowances listed in Table 2 Column F:
[GRAPHIC] [TIFF OMITTED] TC01SE92.063
(3) Adjustment of basic allowances. The Administrator will adjust
each unit's unadjusted basic allowances as listed in Table 2 Column F,
Table 3 Column F, and Table 4 Column F, and as stated in paragraphs (a)
and (b) of this section, as follows:
[GRAPHIC] [TIFF OMITTED] TC01SE92.064
(4) Repowering adjustment. The Administrator will calculate a
repowering
deduction according to the following equation:
[[Page 142]]
[GRAPHIC] [TIFF OMITTED] TC06JA94.000
where:
Set Aside=Sum of all repowering allowances for the year 2000 under
40 CFR Sec. 73.21
Annual Set Aside=Set Aside/10
(5) Special allowance reserve deduction. The Administrator will
calculate a Special Allowance Deduction according to the following
equation:
[GRAPHIC] [TIFF OMITTED] TC06JA94.001
(6) Conservation and renewable energy reserve. The Administrator
will cal-
culate the Conservation Deduction according to the following equation:
[GRAPHIC] [TIFF OMITTED] TC06JA94.002
(7) Final allowance allocations. (i) (A) According to paragraphs (b)
(1) through (6) of this section, the Administrator will revise the
allowances allocated to each unit listed in Table 2 of Sec. 73.10 and
will allocate to each unit's subaccount representing calendar years 2010
and each year thereafter according to the following equation:
[GRAPHIC] [TIFF OMITTED] TC06JA94.003
(B) According to paragraphs (b) (1) through (6) of this section, the
Administrator will revise the allowances allocated to each unit listed
in Table 3 of Sec. 73.10 and will allocate to each unit's subaccount
representing calendar years 2010 and each year thereafter according to
the following equation:
[GRAPHIC] [TIFF OMITTED] TC06JA94.004
(ii)(A) If, as of January 1, 1998, both the auction and sales under
subpart E of this part are terminated as provided for in subpart E,
instead of allowances under paragraph (b)(7)(i) of this section, the
Administrator will revise the allowances allocated to each unit listed
in Table 2 of Sec. 73.10 and will allocate
[[Page 143]]
to unit's subaccount representing calendar years 2010 and each year
thereafter according to the following equation:
[GRAPHIC] [TIFF OMITTED] TC06JA94.005
(B) If, as of January 1, 1998, both the auction and sales under
subpart E of this part are terminated as provided for in subpart E,
instead of allowances under paragraph (b)(7)(i) of this section, the
Administrator will revise the allowances allocated to each unit listed
in Table 3 of Sec. 73.10 and will allocate to each unit's subaccount
representing calendar years 2010 and each year thereafter according to
the following equation:
[GRAPHIC] [TIFF OMITTED] TC06JA94.006
(C) If, as of January 1, 1998, both the auction and sales under
subpart E of this part are terminated as provided for in subpart E,
instead of allowances under paragraph (a)(7)(i) of this section, the
Administrator will revise the allowances allocated to each unit listed
in Table 4 of Sec. 73.10 (and not eligible for allocations under Table
2) and will allocate to each unit's subaccount representing calendar
years 2010 and thereafter according to the following equation:
[GRAPHIC] [TIFF OMITTED] TC06JA94.007
[58 FR 15705, Mar. 23, 1993]
Sec. 73.12 Rounding procedures.
(a) Calculation rounding. All allowances under this part and part 72
of this chapter shall be allocated as whole allowances. All calculations
for such allowances shall be rounded down for decimals less than 0.500
and up for decimals of 0.500 or greater.
(b) Achieving exact allowance reserves and allowance totals. (1) If
the sum of adjusted basic allowances exceeds 8,900,000; the sum of the
deductions for the repowering annual set aside is less than the annual
set aside; the sum of the deductions for the Energy Conservation and
Renewable Energy Reserve is less than 30,000 allowances per year; or the
sum of the deductions for the special allowance reserve is less than
250,000, then the Administrator will withdraw one allowance from each
unit, beginning with the unit receiving the largest number of
allowances, in descending order, until the allocated allowances balance
with the number of allowances available.
[[Page 144]]
(2) If the sum of adjusted basic allowances is less than 8,900,000;
the sum of the deductions for the repowering annual set aside exceeds
the annual set aside; the sum of the deductions for the Energy
Conservation and Renewable Energy Reserve exceeds 30,000 allowances per
year; or the sum of the deductions for the special allowance reserve
exceeds 250,000, then the Administrator will distribute one allowance
for each unit, beginning with the unit receiving the largest number of
allowances, in descending order, until the allocated allowances balance
with the number of allowances required.
[58 FR 15707, Mar. 23, 1993]
Sec. 73.13 Procedures for submittals.
(a) Address for submittal. All submittals under this subpart shall
be made by the designated representative to the Director, Acid Rain
Division, (6204J), 401 M Street, SW., Washington, DC 20460 and shall
meet the requirements specified in 40 CFR 72.21.
(b) Appeals procedures. The designated representative may appeal the
decision as to eligibility or allocation of allowances under
Secs. 73.16, 73.18, 73.19, and 73.20, using the appeals procedures of
part 78 of this chapter.
[58 FR 15708, Mar. 23, 1993]
Secs. 73.14--73.15 [Reserved]
Sec. 73.16 Phase I early reduction credits.
(a) Unit eligibility. Units listed in Table 1 of Sec. 73.10 are
eligible to receive allowance allocations under this section if:
(1) The unit is authorized by the Governor of the State in which the
unit is located to make reductions in emissions of sulfur dioxide prior
to calendar year 1995; and
(2) The unit is part of a utility system (which, for the purposes of
this section only, includes all electrical generators operated by a
utility, including those that are not fossil fuel-fired) that has
decreased its total coal-fired generation, as a percentage of total
system generation, by more than twenty percent between January 1, 1980,
and December 31, 1985; and
(3) The unit is part of a utility system that during calendar years
1985 through 1987 had a weighted capacity factor for all coal-fired
units in the system of less than fifty percent. The weighted capacity
factor is equal to:
[GRAPHIC] [TIFF OMITTED] TC06JA94.008
(b) Emissions reductions eligibility. Sulfur dioxide emissions
reductions eligible for allowance allocations shall:
(1) Be made no earlier than calendar year 1991 and no later than
calendar year 1994; and
(2) Be due to physical changes to the plant or be a result of a
change in the method of operating the plant including but not limited to
changing the type or quality of fuel being burned.
(c) Initial certification of eligibility. The designated
representative for a unit listed in Table 1 of Sec. 73.10 that seeks
allowances under this section shall apply for certification of unit
eligibility prior to or accompanying a request for allowances under
paragraph (d) of this section. A completed application for this
certification shall be submitted according to the requirements of
Sec. 73.13 of this part and shall include the following:
(1) A letter from the Governor of the State in which the unit is
located authorizing the unit to make reductions in emissions of sulfur
dioxide prior to calendar year 1995;
(2) A report listing all units in the utility system, each fossil
fuel-fired unit's fuel consumption and fuel heat content for calendar
year 1980, and each generator's total electrical generation for calendar
years 1980 and 1985 (including all generators whether fossil fuel-fired,
nuclear, hydroelectric, or other.)
[[Page 145]]
(d) Request for allowances. (1) The designated representative for
the requesting unit shall submit the request for allowances according to
the procedures in Sec. 73.13 and shall include the following
information:
(i) The calendar year for which credits for reductions are requested
and the actual SO2 emissions and fuel consumption in that
year. For units that have not installed and received certification of
their SO2 continuous emission monitoring system prior to the
calendar year(s) for which credits for reductions are requested, the
designated representative shall submit photocopies of the units' Form
EIA-767 for the calendar year of the requested reductions in emissions;
and
(ii) A letter signed by the designated representative: (A) Stating
and documenting the specific physical changes to the plant or changes in
the method of operating the plant (including but not limited to changing
the type or quality of fuel being burned) which resulted in the
reduction of emissions; and
(B) Certifying that all photocopies are exact duplicates.
(2) The designated representative shall submit any request for
allowances for years prior to 1993 no later than May 1, 1993. The
designated representative shall submit any request for allowances for
1993 no later than May 1, 1994. For 1994 and after, the designated
representative shall submit any request for allowances no later than
March 1 of the calendar year following the year in which the reductions
were made.
(e) Allowance allocation. The Administrator will allocate allowances
to the eligible unit upon satisfactory submittal of information under
paragraphs (c) and (d) of this section in the amount calculated by the
following equations. Such allowances will be allocated to the eligible
unit's 1995 future year subaccount. The following provisions shall apply
to the allocation:
(1) ``Prior year'' means a single calendar year selected by the
eligible unit from 1991 to 1994 inclusive.
(2) One ``credit'' equals one ton of eligible SO2
emissions reductions.
(3) ``ERC units'' are units eligible for early reduction credits,
and ``non-ERC units'' are fossil fuel-fired units that are part of the
same utility system but are not eligible for early reduction credits.
(4) Calendar year 1990 data will be used as the basis against which
early reduction credits are determined.
(5) Early reduction credits will be calculated at the unit level,
subject to the restrictions in paragraph (e)(6) of this section.
(6) The number of credits for eligible Phase I units will be
calculated as follows:
(i) Comparison of the prior year utilization of ERC units to the
1990 utilization, as a percentage of system utilization. If, as
calculated below, system-wide prior year utilization of ERC units
exceeds systems-wide 1990 utilization of ERC units on a percentage
basis, then paragraphs (e)(6)(ii) and (iii) of this section apply. If
not, the ERC units are eligible to receive early reduction credits as
calculated in paragraph (e)(6)(v)(A) of this section.
[GRAPHIC] [TIFF OMITTED] TC01SE92.065
[[Page 146]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.066
(ii) Comparison of the prior year average emission rate of all ERC
units to the prior year average emission rate of all non-ERC units. If,
as calculated below, the system-wide average SO2 emission
rate of ERC units exceeds that of non-ERC units, then a unit's prior
year utilization will be restricted in accordance with paragraph
(e)(6)(iv) of this section. If not, then paragraph (e)(6)(iii) of this
section applies.
[GRAPHIC] [TIFF OMITTED] TC01SE92.067
(iii) Comparison of the emission rate of the non-ERC units in the
prior year to the emission rate of the non-ERC units in 1990. If, as
calculated in paragraph (ii) of this section, the prior year system
average non-ERC SO2 emission rate increases above the 1990
system average non-ERC SO2 emission rate, as calculated
below, then a unit's prior year utilization will be restricted in
accordance with paragraph (e)(6)(iv) of this section. If not, the ERC
units are eligible to receive early reduction credits as calculated in
paragraph (e)(6)(v)(A) of this section.
[GRAPHIC] [TIFF OMITTED] TC01SE92.068
[[Page 147]]
(iv) Calculation of the utilization limit for restricted units. The
limit on utilization for each unit eligible for early reduction credits
subject to paragraphs (e)(6) (ii) and (iii) of this section will be
calculated as follows:
[GRAPHIC] [TIFF OMITTED] TC01SE92.069
This result, expressed in million Btus, is the restricted
utilization of the ERC unit to be used in the calculation of early
reduction credits in paragraph (e)(6)(v)(B) of this section.
(v)(A) Calculation of the unit's early reduction credits where the
unit's prior year utilization is not restricted.
[GRAPHIC] [TIFF OMITTED] TC01SE92.070
(B) Calculation of the unit's early reduction credits where the
unit's prior year
utilization is restricted.
[GRAPHIC] [TIFF OMITTED] TC01SE92.071
(vi) The Administrator will allocate to the ERC unit allowances
equal to the lesser of the calculated number of
credits in paragraphs (e)(6)(v)(A) or (v)(B) of this section and the
following limitation:
[[Page 148]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.072
[58 FR 15708, Mar. 23, 1993]
Sec. 73.17 [Reserved]
Sec. 73.18 Submittal procedures for units commencing commercial operation during the period from January 1, 1993 through December 31, 1995.
(a) Eligibility. To be eligible for allowances under this section, a
unit shall commence commercial operation between January 1, 1993, and
December 31, 1995, and have commenced construction before December 31,
1990.
(b) Application for allowances. No later than December 31, 1995, the
designated representative for a unit expected to be eligible under this
provision must submit a photocopy of a signed contract for the
construction of the unit.
(c) Commencement of commercial operation. The Administrator will use
EIA information submitted by the utility for the boiler on-line date as
commencement of commercial operation.
[58 FR 15710, Mar. 23, 1993]
Sec. 73.19 Certain units with declining SO2 rates.
(a) Eligibility. A unit is eligible for allowance allocations under
this section if it meets the following requirements:
(1) It is an existing unit that is a utility unit;
(2) It serves a generator with nameplate capacity equal to or
greater than 75 MWe;
(3) Its 1985 actual SO2 emissions rate was equal to or
greater than 1.2 lb/mmBtu;
(4) Its 1990 actual SO2 emissions rate is at least 50
percent less than the lesser of its 1980 actual or allowable
SO2 emissions rate;
(5) Its 1997 actual SO2 emission rate is less than 1.2
lb/mmBtu;
(6) It commenced commercial operation after January 1, 1970;
(7) It is part of a utility system whose combined commercial and
industrial kilowatt-hour sales increased more than 20 percent between
calendar years 1980 and 1990; and
(8) It is part of a utility system whose company-wide fossil-fuel
SO2 emissions rate declined 40 percent or more from 1980 to
1988.
(b) Submittal procedures. Not later than March 1, 1998, in order to
be eligible for allowance allocations under this section, the designated
representative for the unit must submit a photocopy of the unit's 1997
Form EIA-767 and a letter certifying that the photocopy is a true copy.
[58 FR 15710, Mar. 23, 1993]
Sec. 73.20 Phase II early reduction credits.
(a) Unit eligibility. Units listed in Table 2 or 3 of Sec. 73.10 are
eligible for allowances under this section if:
(1) The unit is not a unit subject to emissions limitation
requirements of Phase I and is not a substitution unit (under 40 CFR
72.41) or a compensating unit (under 40 CFR 72.43);
(2) The unit is authorized by the Governor of the State in which the
unit is located;
(3) The unit is part of a utility system (which, for the purposes of
this section only, includes all generators operated by a single utility,
including generators that are not fossil fuel-fired) that has decreased
its total coal-fired generation, as a percentage of total system
generation, by more than twenty percent between January 1, 1980, and
December 31, 1985; and
(4) The unit is part of a utility system that during calendar years
1985 through 1987 had a weighted capacity factor for all coal-fired
units in the system of less than fifty percent. The weighted capacity
factor is equal to:
[[Page 149]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.073
(b) Emissions reductions eligibility. Sulfur dioxide emissions
reductions eligible for allowance credits at units eligible under
paragraph (a) of this section must meet the following requirements:
(1) Be made no earlier than calendar year 1995 and no later than
calendar year 1999; and
(2) Be due to physical changes to the plant or are a result of a
change in the method of operating the plant including but not limited to
changing the type or quality of fuel being burned.
(c) Initial certification of eligibility. The designated
representative of a unit that seeks allowances under this section shall
apply for certification of unit eligibility prior to or accompanying a
request for allowances under paragraph (d) of this section. A completed
application for this certification shall be submitted according to
Sec. 73.13 and shall include the following:
(1) A letter from the Governor of the State in which the unit is
located authorizing the unit to make reductions in sulfur dioxide
emissions; and
(2) A report listing all units in the utility system, each fossil
fuel-fired unit's fuel consumption and fuel heat content for calendar
year 1980, and each generator's total electrical generation for calendar
years 1980 and 1985 (including all generators, whether fossil fuel-
fired, nuclear, hydroelectric or other).
(d) Request for allowances. (1) The designated representative of the
requesting unit shall submit the request for allowances according to the
procedures of Sec. 73.13 and shall include the following information:
(i) The calendar year for which credits for reductions are requested
and the actual SO2 emissions and fuel consumption in that
year;
(ii) A letter signed by the designated representative stating and
documenting the specific physical changes to the plant or changes in the
method of operating the plant (including but not limited to changing the
type or quality of
fuel being burned) which resulted in the reduction of emissions; and
(iii) A letter signed by the designated representative certifying
that all photocopies are exact copies.
(2) The designated representative shall submit each request for
allowances no later than March 1 of the calendar year following the year
in which the reductions were made.
(e) Allowance allocation. The Administrator will allocate allowances
to the eligible unit upon satisfactory submittal of information under
paragraphs (c) and (d) of this section in the amount calculated by the
following equations. Such allowances will be allocated to the unit's
2000 future year subaccount.
(1) ``Prior year'' means a single calendar year selected by the
eligible unit from 1995 to 1999 inclusive.
(2) One ``credit'' equals one ton of eligible SO2
emissions reductions.
(3) ``ERC units'' are units eligible for early reduction credits,
and ``non-ERC units'' are fossil fuel-fired units that are part of the
same operating system but are not eligible for early reduction credits.
(4) For any unit that did not operate during 1990, the unit's 1990
SO2 emission rate will be equal to the weighted average
emission rate of all of the other units at the same source that did
operate during 1990.
(5) Early reduction credits will be calculated at the unit level,
subject to the restrictions in paragraph (e)(6) of this section.
(6) The number of credits for eligible Phase II units will be
calculated as follows:
(i) Comparison of the prior year utilization of ERC units to the
1990 utilization, as a percentage of system utilization. If, as
calculated below, system-wide prior year utilization of ERC units
exceeds systems-wide 1990 utilization of ERC units on a percentage
basis, then paragraphs (e)(6)(ii) and (iii) of this section apply. If
not, the ERC units are eligible to receive early reduction credits as
calculated in paragraph (e)(6)(v)(A) of this section.
[[Page 150]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.074
(ii) Comparison of the prior year average emission rate of all ERC
units to the prior year average emission rate of all non-ERC units. If,
as calculated below, the system-wide average SO2 emission
rate of ERC units exceeds that of non-ERC units, then a unit's prior
year utilization will be restricted in accordance with paragraph
(e)(6)(iv) of this section. If not, then paragraph (iii) of this section
applies.
[GRAPHIC] [TIFF OMITTED] TC01SE92.075
(iii) Comparison of the emission rate of the non-ERC units in the
prior year to the emission rate of the non-ERC units in 1990. If, as
calculated in paragraph (ii) of this section, the prior year system
average non-ERC SO2 emission rate increases above the 1990
system average non-ERC SO2 emission rate, as calculated
below, then a unit's prior year utilization will be restricted in
accordance with paragraph (e)(6)(iv) of this section. If not, the ERC
units are eligible to receive early reduction credits as calculated in
paragraph (e)(6)(v)(A) of this section.
[[Page 151]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.076
(iv) Calculation of the utilization limit for restricted units. The
limit on utilization for each unit eligible for early reduction credits
subject to paragraphs (e)(6) (ii) and (iii) of this section will be
calculated as follows:
[GRAPHIC] [TIFF OMITTED] TC01SE92.077
This result, expressed in million Btus, is the restricted
utilization of the ERC unit to be used in the calculation of early
reduction credits in paragraph (e)(6)(v)(B) of this section.
(v)(A) Calculation of the unit's early reduction credits where the
unit's prior year utilization is not restricted.
[GRAPHIC] [TIFF OMITTED] TC01SE92.078
(B) Calculation of the unit's early reduction credits where the
unit's prior year
utilization is restricted.
[GRAPHIC] [TIFF OMITTED] TC01SE92.079
[[Page 152]]
(vi) The Administrator will allocate to the ERC unit allowances
equal to the lesser of the calculated number of credits in paragraphs
(e)(6)(v) (A) or (B) of this section and the following limitation:
[GRAPHIC] [TIFF OMITTED] TC01SE92.080
(f) Allowance loan program. (1) Eligibility. Units eligible for
Phase II early reduction credits under paragraph (a) of this section are
eligible for allowances under this paragraph (f) if the weighted average
emission rate (based on heat input) for the prior year for all of the
affected units in the unit's dispatch system was less than the system-
wide weighted average emission rate for 1990. The weighted average
emission rate shall be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TR24JN97.000
For the purposes of this calculation, the unit's dispatch system
will be the dispatch system as it existed as of November 15, 1990.
(2) Allowance Calculation. Allowances under this paragraph (f) shall
be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TR24JN97.001
(3) Allowance Loan. (i) The number of allowances calculated under
paragraph (f)(2) of this section shall be allocated to the unit's year
2000 subaccount.
(ii) The number of allowances calculated under paragraph (f)(2) of
this section shall be deducted, contemporaneously with the allocation
under paragraph (f)(3)(i) of this section, from the unit's year 2015
subaccount.
(iii) Notwithstanding paragraph (f)(3)(ii) of this section, if the
number of allowances to be deducted exceeds the amount of allowances
allocated to the unit for the year 2015, allowances in the year 2015
subaccount equal to the amount of allowances allocated to the unit for
the year 2015 shall be deducted. In addition to the deduction from the
year 2015 subaccount, a sufficient amount of allowances in the year 2016
subaccount (up to the amount of allowances allocated to the unit for the
year 2016) shall be deducted contemporaneously, such that the sum of the
allowances deducted from the subaccounts equals the number of allowances
required to be deducted under paragraph (f)(3)(ii) of this section.
(iv) Notwithstanding paragraph (f)(3)(ii) of this section, the
procedure in paragraph (f)(3)(iii) shall be applied as follows to each
year after 2015 (year-by-year in numerical order) for which
[[Page 153]]
the number of allowances to be deducted from that year's subaccount
exceeds the number allocated to the unit for that year: allowances equal
to the number allocated for that year shall be deducted from that year's
subaccount and the remainder (up to the amount allocated) necessary to
equal the number of allowances required to be deducted under paragraph
(f)(3)(ii) of this section shall be deducted from the next year's
subaccount.
(v) The owners and operators of the unit shall ensure that
sufficient allowances are available to make the full deductions required
under paragraphs (f)(3)(ii), (iii), and (iv) of this section. The
designated representative may specify the serial number of each
allowance to be deducted.
(4) ERC Units. Any unit to which allowances are allocated under
paragraph (f)(3)(i) of this section shall be considered an ERC unit for
purposes of applying the restrictions in paragraph (e)(6) of this
section.
[58 FR 15711, Mar. 23, 1993, as amended at 62 FR 34150, June 24, 1997]
Effective Date Note: At 62 FR 34150, June 24, 1997, Sec. 73.20 was
amended by revising paragraph (e)(4) and by adding paragraph (f),
effective Aug. 8, 1997. For the convenience of the user, the superseded
text is set forth as follows:
Sec. 73.20 Phase II early reduction credits.
* * * * *
(e) * * *
(4) Calendar year 1990 data will be used as the basis against which
early reduction credits are determined.
* * * * *
Sec. 73.21 Phase II repowering allowances.
(a) Repowering allowances. In addition to allowances allocated under
Sec. 73.11, the Administrator will allocate, to each existing unit
(under Sec. 72.44(b)(1) of this chapter) with an approved repowering
extension plan, allowances for use during the repowering extension
period approved under Sec. 72.44(f)(2)(ii) of this chapter (including a
prorated allocation for any fraction of a year) equal to:
[GRAPHIC] [TIFF OMITTED] TC01SE92.081
Where:
1995 SIP=Most stringent federally enforceable state implementation
plan SO2 emissions limitation for 1995.
1995 Actual Rate=1995 actual SO2 emissions rate
Unit's Adjusted Basic Allowances = Unit's Year 2000 Adjusted Basic
Allowances as calculated at Sec. 73.11(a)(3)
(b) Upon commencement of commercial operation of a new unit (under
Sec. 72.44(b)(2) of this chapter) with an approved repowering extension
plan, allowances for use during the repowering extension period approved
will end and allocations under Sec. 73.11(a) and (b) for the existing
unit will be transferred to the subaccounts for the new unit.
(c)(1) If the designated representative for a repowering unit
terminates the repowering extension plan in accordance with
Sec. 72.44(g)(1) of this chapter, the repowering allowances allocated to
that unit by paragraph (a) of this section will be terminated and any
necessary allowances from that unit's account forfeited, calculated in
the following manner:
[[Page 154]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.082
[[Page 155]]
Where:
Forfeiture Period=difference (as a portion of a year) between the
end of the approved repowering extension and the end of the repowering
extension under Sec. 72.44(g)(1)(ii)
1995 SIP=Most stringent federally enforceable state implementation
plan SO2 emissions limitation for 1995.
1995 Actual Rate=1995 actual SO2 emissions rate
Unit's Adjusted Basic Allowances = Unit's Year 2000 Adjusted Basic
Allowances as calculated at Sec. 73.11(a)(3)
(2) The Administrator will reallocate the allowances forfeited in
paragraph (b)(1) of this section to all Table 2 and 3 units' years 2000
through 2009 subaccounts in the following manner:
[GRAPHIC] [TIFF OMITTED] TC01SE92.083
[53 FR 15713, Mar. 23, 1993]
Secs. 73.22--73.24 [Reserved]
Sec. 73.25 Phase I extension reserve.
The Administrator will initially allocate 3.5 million allowances to
the Phase I Extension Reserve account of the Allowance Tracking System.
Allowances from this Reserve will be allocated to units under Sec. 72.42
of this chapter. Allowances remaining in the Phase I Extension Reserve
account following allocation of all extension allowances under
Sec. 72.42 of this chapter will remain in the Reserve.
[58 FR 3687, Jan. 11, 1993]
Sec. 73.26 Conservation and renewable energy reserve.
The Administrator will allocate 300,000 allowances to the
Conservation and Renewable Energy Reserve subaccount of the Acid Rain
Data System. Allowances from this Reserve will be allocated to units
under subpart F of this part. Termination of this Reserve and
reallocation of allowances will be made under Sec. 73.80(c).
[53 FR 15714, Mar. 23, 1993]
Sec. 73.27 Special allowance reserve.
(a) Establishment of Reserve. (1) The Administrator will allocate
150,000 allowances annually for calendar years 1995 through 1999 to the
Auction Subaccount of the Special Allowance Reserve.
(2) The Administrator will allocate 200,000 allowances annually for
calendar years 2000 and each year thereafter to the Auction Subaccount
of the Special Allowance Reserve.
(3) The Administrator will allocate 50,000 allowances annually for
calendar years 2000 and each year thereafter to the Direct Sale
Subaccount of the Special Allowance Reserve.
(b) Distribution of proceeds. (1) Monetary proceeds from the
auctions and sales of allowances from the Special Allowance Reserve
(under subpart E of this part) for use in calendar years 1995 through
1999 will be distributed to the designated representative of the unit
according to the following equation:
unit proceeds=(Column B of Table 1 of section 73.10/150,000) x total
proceeds
(2) Until June 1, 1998, monetary proceeds from the auctions and
sales of allowances from the Special Allowance Reserve (under subpart E
of this part) for use in calendar years 2000 through 2009 will be
distributed to the designated representative of each unit listed in
Table 2 or 3 according to the following equations:
[[Page 156]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.084
(3) On or after June 1, 1998, monetary proceeds from the auctions
and sales of allowances from the Special Allowance Reserve (under
subpart E of this part) for use in calendar years 2000 through 2009 will
be distributed to the designated representative of each unit listed in
Table 2 or 3 according to the following equation:
[GRAPHIC] [TIFF OMITTED] TC01SE92.085
(4) Until June 1, 1998, monetary proceeds from the auctions and
sales of allowances from the Special Allowance Reserve (under subpart E
of this part) for use in calendar years 2010 and thereafter will be
distributed to the designated representative of each unit listed in
Table 2 or 3 according to the following equations:
[GRAPHIC] [TIFF OMITTED] TC01SE92.086
(5) On or after June 1, 1998, monetary proceeds from the auctions
and sales of allowances from the Special Allowance Reserve (under
subpart E of this part) for use in calendar years 2010 and thereafter
will be distributed to the designated representative of each unit listed
in Table 2 or 3 according to the following equation:
[[Page 157]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.087
(c) Reallocation of allowances. (1) Allowances remaining in the
Special Allowance Reserve following the annual auctions and sales (under
subpart E of this part) for use in calendar years 1995 through 1999 will
be reallocated to the unit's Allowance Tracking System Account according
to the following equation:
unit allowances = (Column B of Table 1 of section 73.10/150,000) x
Allowances remaining
(2) Until June 1, 1998, allowances, for use in calendar years 2000
through 2009, remaining in the Special Allowance Reserve at the end of
each year, following that year's auction and sale (under subpart E of
this part) will be reallocated to the unit's Allowance Tracking System
Account according to the following equations:
[GRAPHIC] [TIFF OMITTED] TC01SE92.088
(3) On or after June 1, 1998, allowances, for use in calendar years
2000 through 2009, remaining in the Special Allowance Reserve at the end
of each year, following that year's auction and sale (under subpart E of
this part) will be reallocated to the unit's Allowance Tracking System
Account according to the following equation:
[GRAPHIC] [TIFF OMITTED] TC01SE92.089
(4) Until June 1, 1998, allowances, for use in calendar years 2010
and thereafter, remaining in the Special Allowance Reserve at the end of
each year following that year's auction and sale (under subpart E of
this part) will be reallocated to the unit's Allowance Tracking System
Account according to the following equations:
[[Page 158]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.090
(5) On or after June 1, 1998, allowances, for use in calendar years
2010 and thereafter, remaining in the Special Allowance Reserve at the
end of each year, following that year's auction and sale (under subpart
E of this part) will be reallocated to the unit's Allowance Tracking
System Account according to the following equation:
[GRAPHIC] [TIFF OMITTED] TC01SE92.091
(d) Calculation rounding. All proceeds under this section shall be
distributed as whole dollars. All calculations for such allowances shall
be rounded down for decimals less than .5 and up for decimals of .5 or
greater.
(e) Achieving exact totals. (1) If the sum of the proceeds to be
distributed under paragraph (b) of this section exceeds the total
proceeds or the allowances to be reallocated under paragraph (c) of this
section exceeds the allowances remaining, then the Administrator will
withdraw one dollar or allowance from each unit, beginning with the unit
receiving the largest number of dollars or allowances, in descending
order, until the distribution balances with the proceeds and the
reallocated allowances balance with the remaining allowances.
(2) If the sum of the proceeds to be distributed under paragraph (b)
of this section is less than the total proceeds or the allowances to be
reallocated under paragraph (c) of this section is less than the
allowances remaining,
then EPA will distribute one dollar or allowance for each unit,
beginning with the unit receiving the largest number of dollars or
allowances, in descending order, until the distribution balances with
the proceeds and the reallocated allowances balance with the remaining
allowances.
[58 FR 3687, Jan. 11, 1993, as amended at 58 FR 15714, Mar. 23, 1993]
Subpart C--Allowance Tracking System
Source: 58 FR 3691, Jan. 11, 1993, unless otherwise noted.
Sec. 73.30 Allowance tracking system accounts.
(a) Nature and function of unit accounts. The Administrator will
establish accounts for all affected units pursuant to Sec. 73.31 (a) and
(b). All allocations of allowances pursuant to subparts B, E, and F of
this part and part 72 of this chapter, transfers of allowances made
pursuant to subparts C and
[[Page 159]]
D, and deductions of allowances made for purposes of offsetting
emissions pursuant to Sec. 73.35 (b) and (d) and parts 72, 75, and 77 of
this chapter will be recorded in the unit's Allowance Tracking System
account.
(b) Nature and function of general accounts. Transfers of allowances
held for any person other than an affected unit, made pursuant to
subparts C, D, E, F, and G of this part will be recorded in that
person's Allowance Tracking System account established pursuant to
Sec. 73.31(c).
[58 FR 3687, Jan. 11, 1993; 58 FR 40747, July 30, 1993]
Sec. 73.31 Establishment of accounts.
(a) Existing affected units. The Administrator will establish an
Allowance Tracking System account and allocate allowances for each unit
that is, or will become, an existing affected unit pursuant to sections
404(a) or 405 of the Act and Sec. 72.6 of this chapter.
(b) New units. Upon receipt of a complete certificate of
representation for the designated representative for a new unit pursuant
to part 72, subpart B of this chapter, the Administrator will establish
an Allowance Tracking System account for the unit.
(c) General accounts. (1) Any person may apply to open an Allowance
Tracking System account for the purpose of holding and transferring
allowances. Such application shall be submitted to the Administrator in
a format to be specified by the Administrator by means of the Allowance
Account Information Form, or by providing the following information in a
similar format:
(i) Name and title of the authorized account representative and
alternate authorized account representative (if any) pursuant to
Sec. 73.33;
(ii) Mailing address, telephone number and facsimile transmission
number (if any) of the authorized account representative and alternate
authorized account representative (if any);
(iii) Organization or company name (if applicable) and type of
organization (if applicable);
(iv) A list of all persons subject to a binding agreement for the
authorized account representative to represent their ownership interest
with respect to the allowances held in the general account and which
shall be amended and resubmitted within 30 days following any
transaction giving rise to any change of the list of persons subject to
the binding agreement;
(v) A certification statement by the authorized account
representative and alternate authorized account representative (if any)
that reads ``I certify that I was selected under the terms of an
agreement that is binding on all persons who have an ownership interest
with respect to allowances held in the Allowance Tracking System
account. I certify that I have all necessary authority to carry out my
duties and responsibilities on behalf of the persons with an ownership
interest and that they shall be fully bound by my actions, inactions, or
submissions under 40 CFR part 73. I shall abide by any fiduciary
responsibilities assigned pursuant to the binding agreement. I am
authorized to make this submission on behalf of the persons with an
ownership interest for whom this submission is made. I certify under
penalty of law that I have personally examined and am familiar with the
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 information is to the best
of my knowledge and belief true, accurate, and complete. I am aware that
there are significant penalties for submitting false material
information, or omitting material information, including the possibility
of fine or imprisonment for violations.'';
(vi) The signature of the authorized account representative and the
alternate authorized account representative (if any); and
(vii) The date of the signature of the authorized account
representative and the alternate authorized account representative (if
any).
(2) Upon receipt of such complete application, the Administrator
will establish an Allowance Tracking System account for the person or
persons identified in the application.
(3) No allowance transfers will be recorded for a general account
until the Administrator has established the new account.
[[Page 160]]
(d) Account identification. The Administrator will assign a unique
identifying number to each account established pursuant to this section.
[58 FR 3687, Jan. 11, 1993; 58 FR 40747, July 30, 1993]
Sec. 73.32 Allowance account contents.
Each allowance account will include, at a minimum, the following:
(a) The name, address, telephone number and facsimile transmission
number, if any, of the authorized account representative; and
(1) In the case of a unit account, a list of all persons identified
as owners of record of the unit in Sec. 72.24(a)(3) of this chapter, or
(2) In the case of a general account, a list of all persons subject
to the binding agreement for the authorized account representative to
represent their ownership interest with respect to allowances, as
identified in accordance with Sec. 73.31(c);
(b) A list of transfers of allowances to, and from, the account,
including the identity of the transferror and transferee accounts;
(c) In the case of a unit account for an existing affected unit,
beginning in 1995, a compliance subaccount;
(d) In the case of a unit account for a new unit, a compliance
subaccount;
(e) In the case of a general account, a current year subaccount;
(f) Future year subaccounts for each of the 30 calendar years
following the later of 1995 or the current calendar year;
(g) In the case of a unit account, the current total of sulfur
dioxide emissions in tons for the current calendar year as reported to
date pursuant to part 75 of this chapter.
[58 FR 3687, Jan. 11, 1993; 58 FR 40747, July 30, 1993]
Sec. 73.33 Authorized account representative.
(a) Following the establishment of an Allowance Tracking System
account, all matters pertaining to the account, including, but not
limited to, the deduction and transfer of allowances in the account,
shall be undertaken only by the authorized account representative.
(b) Authorized account representative identification. The
Administrator will assign a unique identifying number to each authorized
account representative or alternate authorized account representative
identified pursuant to Sec. 73.31(c).
(c) Notification of parties subject to the binding agreement. The
authorized account representative for a general account shall notify, in
writing, all persons who have an ownership interest with respect to the
allowances held in the account of any Acid Rain Program submission
required by this part or in a procedure under part 78 of this chapter,
by the date of submission. Each person who has an ownership interest
with respect to the allowances held in the account may expressly waive
his or her right to receive such notification.
(d) General account alternate authorized account representative. Any
application for opening a general account may designate one alternate
authorized account representative to act on behalf of the certifying
authorized account representative, in the event the authorized account
representative is absent or otherwise not available to perform actions
and duties under this part. The alternate shall be a natural person and
shall be authorized, provided that the conditions and procedures
specified in Sec. 73.31(c)(1) are met.
(1) The alternate authorized account representative may be changed
at any time by the authorized account representative upon receipt by the
Administrator of a new complete application as required in
Sec. 73.31(c);
(2) The alternate authorized account representative shall be subject
to the provisions of this part applicable to authorized account
representatives;
(3) Whenever the term ``authorized account representative'' is used
in this part it shall be construed to include the alternate authorized
account representative, unless such a construction would be illogical
from the context; and
(4) Any action, representation or failure to act by the alternate
authorized account representative when acting in that capacity shall be
deemed to be an action of the authorized account representative, with
all the rights, duties, and responsibilities pertaining thereto.
[[Page 161]]
(e) Changes to the general account authorized account
representative. An authorized account representative for a general
account may be succeeded by any person who submits an application
pursuant to Sec. 73.31(c). The actions of an authorized account
representative for a general account shall be binding on any successor.
(f) Objections to the authorized account representative. Except for
a certification pursuant to paragraph (e) of this section, no objection
or other communication submitted to the Administrator concerning any
submission to the Administrator by the authorized account representative
shall affect the recordation of transfers submitted by the authorized
account representative pursuant to subpart D of this part. Neither the
United States, the Administrator, nor any permitting authority will
adjudicate any dispute between and among persons concerning any
submission to the Administrator by the authorized account
representative; any actions of the authorized account representative; or
any other matter arising directly or indirectly from the certification,
actions or representations of the authorized account representative.
Sec. 73.34 Recordation in accounts.
(a) Recordation in compliance subaccounts. At the beginning of 1995
and, in the case of each year thereafter, after the Administrator has
made all deductions from an affected unit's compliance subaccount
pursuant to Sec. 73.35(b), the Administrator will record in the
compliance subaccount the allowances held in the future year subaccount
for the year corresponding to the current calendar year. The future year
subaccount for the new 30th year will be established at the same time
and include the allowances allocated for the unit for that year pursuant
to subpart B of this part.
(b) Recordation in current year subaccounts. At the beginning of
1995 and each year thereafter, the Administrator will record in the
current year subaccount the allowances held in the future year
subaccount for the year corresponding to the current calendar year.
(c) Recordation in subaccounts. Allowances in each compliance,
current year, and future year subaccounts will reflect:
(1) All allowances allocated or deducted for the unit for the year
pursuant to subpart B of this part;
(2) All allowances allocated or deducted pursuant to Secs. 72.41,
72.42, 72.43, and 72.44 and part 74 of this chapter;
(3) All allowances allocated pursuant to subparts F and G of this
part;
(4) All allowances recorded as a result of purchases or returns from
the annual auctions or direct sale pursuant to subpart E of this part;
(5) All allowances recorded or deducted as a result of allowance
transfers recorded pursuant to subpart D of this part; and
(6) All allowances deducted or returned pursuant to Secs. 73.35(d),
72.91 and 72.92, part 74, and part 77 of this chapter.
(d) Serial numbers for allocated allowances. Upon the allocation of
allowances to an account, including allowances contained in reserves as
provided in subpart B of this part, the Administrator will assign each
allowance a unique identification number that will include digits
identifying the allowance's compliance use date.
[58 FR 3691, Jan. 11, 1993, as amended at 60 FR 17114, Apr. 4, 1995]
Sec. 73.35 Compliance.
(a) Allowance transfer deadline. No allowance shall be deducted for
purposes of compliance with an affected unit's sulfur dioxide Acid Rain
emissions limitation requirements pursuant to title IV of the Act and
paragraph (b) of this section unless:
(1) The compliance use date of the allowance is no later than the
year in which the unit's SO2 emissions occurred; and
(2) Such allowance is recorded in the compliance subaccount, or its
transfer to the unit's compliance subaccount is submitted correctly
pursuant to subpart D for recordation in the compliance subaccount for
the unit by not later than the allowance transfer deadline of January 30
of the calendar year following the year for which compliance is being
established in accordance with the requirements of subpart D of this
part.
[[Page 162]]
(b) Deductions for compliance. (1) Except as provided in paragraph
(d) of this section, following the recordation of transfers submitted
correctly for recordation in the compliance subaccount pursuant to
paragraph (a) of this section and subpart D of this part, the
Administrator will deduct allowances from each affected unit's
compliance subaccount in accordance with the allowance deduction formula
in Sec. 72.95 of this chapter, or, for opt-in sources, the allowance
deduction formula in Sec. 74.49 of this chapter, and any correction made
under Sec. 72.96 of this chapter.
(2) The Administrator will make deductions until either the number
of allowances deducted is equal to the amount calculated in accordance
with Sec. 72.95 of this chapter, or, for opt-in sources, in accordance
with Sec. 74.49 of this chapter, as modified under Sec. 72.96 of this
chapter or until no more allowances remain in the compliance subaccount.
(c)(1) Identification of allowances by serial number. By no later
than sixty days after the end of the calendar year, the authorized
account representative for each unit account may identify by serial
number the allowances to be deducted from the compliance subaccount for
purposes of compliance with the unit's sulfur dioxide emissions
limitation requirements. Such identification shall be made pursuant to
part 72 of this chapter.
(2) First-in, first-out. In the absence of an identification or in
the case of a partial identification of allowances by serial number, as
provided for in paragraph (b)(1) or (d) of this section, the
Administrator will deduct allowances on a first-in, first-out (FIFO)
accounting basis beginning with those allowances with the earliest
compliance use date originally allocated for the unit and recorded in
its compliance subaccount. Following the deduction of all originally
allocated allowances from the compliance subaccount, the Administrator
will deduct those allowances that were transferred and recorded in the
unit's compliance subaccount pursuant to subpart D of this part,
beginning with those with the earliest date of recordation.
(d) Deductions for excess emissions. Pursuant to Sec. 77.4 of this
chapter, and following the process of recordation set forth in
Sec. 73.34(a) of this part, the Administrator will deduct allowances for
each unit with excess emissions for the preceding calendar year in an
amount equal to the unit's excess emissions tonnage.
(e) Deductions for units sharing a common emission stack. In the
case of units sharing a common emission stack and have emissions that
are not individually monitored pursuant to part 75 of this chapter, the
authorized account representative may identify the percentage of
allowances to be deducted from each unit's compliance subaccount. Such
identification shall be made pursuant to part 72, subpart I of this
chapter. In the absence of an identification, the Administrator will
deduct an equal percentage of allowances from each unit's compliance
subaccount.
[58 FR 3691, Jan. 11, 1993, as amended at 60 FR 17114, Apr. 4, 1995]
Sec. 73.36 Banking.
(a) Unit accounts. Any allowance in a compliance subaccount not
deducted pursuant to Sec. 73.35 will remain in the compliance
subaccount.
(b) General accounts. In the case of a general account, any
allowances in the current year subaccount at the end of the current
calendar year will remain in the current year subaccount.
Sec. 73.37 Account error and dispute resolution.
(a) Claim of error. The authorized account representative may notify
the Administrator of any claim that the Administrator made an error in
recording transfer information that was submitted correctly pursuant to
subpart D of this part, provided that such claim of error notification
is submitted to the Administrator by no later than 15 business days
following the date mark of the notification by the Administrator
pursuant to actions taken under Sec. 73.37(d) or Sec. 73.53. Such claim
of error notification shall be in writing and shall include:
(1) A description of the error alleged to have been made by the
Administrator;
[[Page 163]]
(2) A proposed correction of the alleged error;
(3) Any supporting documentation or other information concerning the
alleged error and proposed correction; and
(4) Certification by the signature of and the date of the signature
of the authorized account representative.
The Administrator will not act on claim of error notifications received
after the stated deadlines (except as provided under paragraph (f) of
this section, or that do not contend that the Administrator made an
error in recordation.
(b) EPA action. The Administrator, at the Administrator's sole
discretion based on documentation provided, will determine what changes,
if any, will be made to the accounts subject to the alleged error. Not
later than 20 business days after receipt of a claim of error
notification pursuant to paragraph (a) of this section, the
Administrator will submit to the authorized account representative a
written response stating:
(1) The determination made and any action taken by, the
Administrator; and
(2) The reasons for such action.
(c) Administrative appeals procedure. Following the Administrator's
action pursuant to paragraph (b) of this section, the authorized account
representative may appeal the Administrator's action through the
administrative appeals procedure pursuant to part 78 of this chapter.
(d) EPA corrections. The Administrator may, without prior notice of
a claim of error and in the Administrator's sole discretion, correct any
errors in any account on his or her own motion. The Administrator will
notify the authorized account representative by no later than 20
business days following any such corrections.
(e) Excess emissions requirements. The filing of a claim of error
notification pursuant to paragraph (a) of this section, or the pendency
of the Administrator's action pursuant to paragraph (b) of this section,
shall not affect a unit's obligations under part 77 of this chapter.
(f) Waiver of deadline. The Administrator may, in his or her
discretion, accept claim of error submissions made following the
deadlines imposed in this section upon a demonstration by the authorized
account representative of good cause for the delay. The finding of
whether good cause exists shall be in the sole discretion of the
Administrator. Appeals of a decision by the Administrator under this
paragraph will be addressed pursuant to the administrative appeals
process in part 78 of this chapter.
Sec. 73.38 Closing of accounts.
(a) General account. The authorized account representative of a
general account may instruct the Administrator to close the general
account by submitting an allowance transfer, pursuant to Sec. 73.50 and
Sec. 73.52, requesting the transfer of all allowances held in the
account to one or more other accounts in the Allowance Tracking System,
and by submitting in writing, with the signature of the authorized
account representative, a request to delete the general account from the
Allowance Tracking System.
(b) Inactive accounts. If a general account shows no activity for a
period of a year or more and does not contain any allowances in its
subaccounts, the Administrator will notify the account's authorized
account representative that the account will be closed and eliminated
from the Allowance Tracking System following 20 business days from the
date the notice is sent. The account will be closed following the 20-day
period, unless the Administrator receives and records a request for the
transfer of allowances into the account pursuant to Sec. 73.52 before
the end of the 20-day period, or the authorized account representative
submits, in writing, demonstration of good cause as to why the inactive
account should not be closed. The finding of whether good cause exists
shall be in the sole discretion of the Administrator.
Subpart D--Allowance Transfers
Source: 58 FR 3694, Jan. 11, 1993, unless otherwise noted.
[[Page 164]]
Sec. 73.50 Scope and submission of transfers.
(a) Scope of transfers. Except as provided in Sec. 73.51 and
Sec. 73.52, the Administrator will record transfers of an allowance to
and from Allowance Tracking System accounts, including, but not limited
to, transfers of an allowance to and from contemporaneous future year
subaccounts, and transfers of an allowance to and from compliance
subaccounts and current year subaccounts, and transfers of all
allowances allocated for a unit for each calendar year, in perpetuity.
(b) Submission of transfers. (1) Authorized account representatives
seeking recordation of an allowance transfer shall request such transfer
by submitting to the Administrator, in a format to be specified by the
Administrator, an Allowance Transfer Form. To be considered correctly
submitted the request for transfer shall include:
(i) The numbers identifying both the transferror and transferee
accounts;
(ii) A specification by serial number of each allowance to be
transferred, or correct indication on the allowance transfer where a
request involves the transfer of the unit's allowances in perpetuity;
(iii) Signatures of the authorized account representatives of both
the transferror and transferee accounts;
(iv) The dates of the signatures of the authorized account
representatives;
(v) The numbers identifying the authorized account representatives
for both the transferror and transferee account; and
(vi) Where the transferee account has not been established,
information as required pursuant to Sec. 73.31 (b) or (c).
(2) Transfers of allowances to or from compliance subaccounts
submitted for recordation following the allowance transfer deadline will
not be recorded until after completion of the process of recordation set
forth in Sec. 73.34(a).
Sec. 73.51 Prohibition.
Except as provided in Sec. 73.34(a), the Administrator will not
record a transfer of allowances from a future year subaccount to a
subaccount for an earlier year.
Sec. 73.52 EPA recordation.
(a) General recordation. Except as provided in Sec. 73.50,
Sec. 73.51, and this paragraph (a), the Administrator will record an
allowance transfer by no later than five business days following receipt
of an allowance transfer request pursuant to Sec. 73.50, by moving each
allowance from the transferror account to the transferee account as
specified by the request pursuant to Sec. 73.50, provided that:
(1) The information submitted pursuant to Sec. 73.50 is complete;
(2) The transferror account includes each allowance identified by
serial number in the allowance transfer request submitted pursuant to
Sec. 73.50, except when a request for transfer of the unit's allowances
in perpetuity is indicated correctly on the allowance transfer
submission;
(3) If the allowances identified by serial number specified pursuant
to Sec. 73.50(b)(1)(ii) are subject to the limitation on transfer
imposed pursuant to Sec. 72.44(h)(1)(i) of this chapter, Sec. 74.42 of
this chapter, or Sec. 74.47(c) of this chapter, the transfer is in
accordance with such limitation; and
(4) The transfer meets all applicable requirements of this subpart.
(b) Where an allowance transfer submitted for recordation fails to
meet the requirements of this subpart, the Administrator will not record
such transfer.
[58 FR 3694, Jan. 11, 1993, as amended at 60 FR 17114, Apr. 4, 1995]
Sec. 73.53 Notification.
(a) Notification of recordation. The Administrator will notify each
party to an allowance transfer within five business days following the
recordation of the transfer. Notice will be given in writing or in a
format to be specified by the Administrator, to the authorized account
representatives of both the transferror and transferee accounts.
(b) Notification of non-recordation. By no later than five business
days following receipt of an allowance transfer request by the
Administrator, the Administrator will notify, in writing or in
[[Page 165]]
a format to be specified by the Administrator, the authorized account
representatives of the accounts subject to the allowance transfer
request submitted for recordation 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 an
allowance transfer request for recordation following notification of
non-recordation.
Subpart E--Auctions, Direct Sales, and Independent Power Producers
Written Guarantee
Source: 56 FR 65601, Dec. 17, 1991, unless otherwise noted.
Sec. 73.70 Auctions.
(a) Allowances to be auctioned. Every year the Administrator will
auction allowances from the Auction Subaccount, established pursuant to
subpart B of this part, according to the following schedule:
Table I.--Allowance Schedule for Auctions
------------------------------------------------------------------------
Spot Advance Advance
Year of purchase auction auction auction*
------------------------------------------------------------------------
1993..................................... 50,000 a 100,000 b
1994..................................... 50,000 a 100,000 b 25,000 c
1995..................................... 50,000 a 100,000 b 25,000 c
1996..................................... 150,000 100,000 b 25,000 c
1997..................................... 150,000 125,000 b 25,000 c
1998..................................... 150,000 125,000 b
1999..................................... 150,000 125,000 b
2000 and after........................... 125,000 125,000 b
------------------------------------------------------------------------
a Not usable until 1995.
b Not usable until 7 years after purchase.
c Not usable until 6 years after purchase.
*These are unsold advance allowances from the direct sale program for
1993, 1994, 1995, and 1996 respectively.
In addition to the allowances listed above, the Administrator will
auction allowances pursuant to paragraph (c) of this section and
Sec. 73.72(q) in the amounts and at the times provided for therein.
(b) Timing of the auctions. The spot auction and the advance
auction, and, if required pursuant to Sec. 73.72(q), an additional
advance auction will be held on the same day, selected each year by the
Administrator, but no later than March 31 of each year. The
Administrator will conduct one spot auction and one advance auction,
and, if required to Sec. 73.72(q), one additional advance auction in
each calendar year.
(c) Submittal for other allowances for auction. Authorized account
representatives may offer allowances for sale at auction, provided that
allowances are dated for the year in which they are offered or for any
previous year or for seven years following the year in which they are
offered. Such authorized account representatives may specify a minimum
price for the allowances offered at the auctions. The authorized account
representative must notify the Administrator fifteen business days prior
to the auctions, using the SO2 Allowance Offer Form published
by the Administrator, or by means of electronic communication if the
Administrator, following public notice, so requires or permits at some
future time. The notification shall include:
(1) The compliance use date of the allowances offered;
(2) The number of allowances to be sold and any other information
identifying the allowances offered that may be required by subpart C of
this part;
(3) Any minimum price in whole dollars; and
(4) Whether the authorized account representative is willing to sell
fewer allowances than the number stated in paragraph (c)(2) of this
section, if the full amount cannot be sold. After notification, the
Administrator will deduct allowances from the appropriate Allowance
Tracking System account from which allowances are being offered and
place them in a separate subaccount for such allowances.
(d) Conduct of the auctions. (1) The Administrator will rank all
bids in descending order of bid price starting with the highest.
Allowances will be sold from the Auction Subaccount in this order at the
amounts specified in the bids until there are no allowances in the
subaccount. If all allowances are sold from the Auction Subaccount,
including unsold allowances transferred from the preceding year's direct
sale, and if bids still remain, the Administrator will sell allowances
offered by the authorized account representatives, beginning with those
offered at the lowest minimum price. Allowances offered at the lowest
minimum price
[[Page 166]]
will be matched with the highest bid remaining after the Auction
Subaccount is exhausted. Sales of offered allowances, including, but not
limited to, allowances offered by more than one offeror at the same
minimum bid price, will continue in ascending order of minimum price,
starting with the lowest, and descending order of remaining bids,
starting with the highest, until:
(i) All allowances are sold,
(ii) No bids remain, or
(iii) Prices of remaining bids do not meet minimum prices required
in remaining offers.
(2) In the event that there is more than one bid submitting the same
price and the total number of allowances requested in all such bids
exceeds the number of allowances remaining, the Administrator will award
the remaining allowances by lottery to such bidders.
(3) In the event that there are more offers of sale at the minimum
price than there are bids meeting that price, allowances from all such
offers will be sold to cover the bids, according to each such offeror's
pro rata share of all allowances so offered.
(4) In the event that fewer allowances remain than are requested in
a bid, the Administrator will sell such remaining allowances to the
bidder provided that, pursuant to Sec. 73.71(b)(4), the bid states the
bidder's willingness to purchase fewer allowances than requested in the
bid.
(5) In the event that fewer than all allowances included in an offer
for sale would be sold to remaining bids based on price, the
Administrator will sell such allowances to the bidder(s), provided that,
pursuant to Sec. 73.70(c)(4), the offer states the offeror's willingness
to sell fewer allowances than were offered for sale.
(e) Announcement of results. Following each auction, the
Administrator will publish the names of winning bidders and their bids,
the amounts of losing bids, and the lowest price at which allowances are
sold. The Administrator will announce the results of each auction
through the Allowance Tracking System. The results will also be
published in the Federal Register and in the Commerce Business Daily.
(f) Transfer of allowances. Allowances will be transferred from the
Auction Subaccount and from the subaccount for allowances offered by
authorized account representatives to the Allowance Tracking System
accounts of successful bidders as soon as payment is collected by the
Administrator.
(g) Return of unsuccessful bids. The Administrator will return
payment to unsuccessful bidders and to bidders unwilling to purchase
fewer allowances than requested following the conclusion of each
auction.
(h) Transfer of proceeds. The Administrator will return all proceeds
from the auction as follows:
(1) Allowances auctioned from the Auction Subaccount. Not later than
90 days following each auction, the Administrator will pay a pro rata
share of the proceeds of each auction to the authorized account
representative of each unit from whose annual allowance allocation
allowances were withheld for the purposes of establishing the Auction
Subaccount. Each unit's pro rata share will be calculated pursuant to
regulations to be promulgated under subpart B.
(2) Allowances contributed from others. Not later than 90 days
following each auction, the Administrator will transfer the full amount
of the proceeds of each sale of allowances offered by authorized account
representatives to such representatives. Proceeds from the sale of
allowances that were offered with the same specified minimum price will
be distributed according to each such offeror's pro rata share of the
sale of such allowances.
(3) The Administrator will pay no interest on any payment made
pursuant to paragraphs (h) (1) and (2) of this section.
(i) Return of unsold allowances. The Administrator will return all
unsold allowances from the auction as follows:
(1) Allowances in the Auction Subaccount. At the conclusion of each
auction, the Administrator will transfer to the Allowance Tracking
System account of each unit specified in paragraph (h)(1) of this
section its pro rata share of any allowances remaining in the Auction
Subaccount. Each unit's
[[Page 167]]
pro rata share will be calculated pursuant to regulations to be
promulgated under subpart B.
(2) Allowances contributed from others. At the conclusion of each
auction, the Administrator will return unsold allowances to the
appropriate offerors' Allowance Tracking System accounts. Any unsold
allowances that were offered with the same specified minimum price will
be distributed according to each such offeror's pro rata share of all
such allowances offered.
[56 FR 65601, Dec. 17, 1991, as amended at 61 FR 28763, June 6, 1996]
Sec. 73.71 Bidding.
(a) Who may participate in the auctions. Any person may participate
in the auctions by submitting a bid or bids pursuant to this section.
(b) Bidding. Sealed bids shall be sent to the Administrator using
the Bid Form for SO2 Allowance Auctions, or some method of
electronic transfer if the Administrator, following public notice, so
requires or permits at some future time. The bid form shall state:
(1) The number of allowances sought and the price;
(2) Whether spot or advance allowances are sought;
(3) Allowance Tracking System account number;
(4) Whether the bidder is willing to purchase fewer allowances than
the number of allowances stated in (b)(1) of this section if the full
amount is not available. Where the bidder holds no Allowance Tracking
System account, a New Account/New Authorized Account Representative Form
must accompany the bid. New account information shall include at a
minimum: Name, address, telephone number, facsimile number, organization
or company name (if applicable), type of organization, and the
authorized account representative for purposes of the account.
(c) Payment. Each bid must include a certified check or letter of
credit for the total bid price, or may specify a method of electronic
transfer or other method of payment, if the Administrator, following
public notice, so requires or permits at some future time. The certified
check should be made payable to the U.S. EPA. To meet the requirements
of this paragraph bidders must submit a completed SO2
Allowance Auction Letter of Credit Form. If such Form is used, the
Administrator must receive full payment for allowances awarded at the
auctions, either by wire transfer or certified check, no later than 2
business days after the results of the auction are announced in the
Allowance Tracking System.
(d) Bid amount and number of bids. Bidders may request any number of
allowances up to the amount of allowances available for auction. Any
person may submit more than one bid in each auction, provided that each
bid meets the requirements of this section.
(e) Submission of bids. The Administrator will publish in the
Federal Register and in the Commerce Business Daily the address of where
to submit bids and payment not later than 60 calendar days before each
auction.
(f) Deadline for bids. All bids must be revised by the Administrator
no later than 3 business days prior to the date of the auctions.
Sec. 73.72 Direct sales.
Allowances that were formerly part of the direct sale program, which
has been terminated under Sec. 73.73(b), will be included in the annual
allowance auctions in accordance with Sec. 73.70(a).
[61 FR 28763, June 6, 1996]
Sec. 73.73 Delegation of auctions and sales and termination of auctions and sales.
(a) Delegation. The Administrator may, in the Administrator's
discretion, by delegation or contract provide for the conduct of sales
or auctions under the Administrator's supervision by other departments
or agencies of the United States Government or by nongovernmental
agencies, groups, or organizations.
(b) Termination of sales. If the Administrator determines that,
during any period of 2 consecutive calendar years, fewer than 20 percent
of the allowances available in the subaccount for direct sales have been
purchased, the Administrator shall terminate the Direct Sale Subaccount
and transfer such allowances to the Auction Subaccount.
[[Page 168]]
(c) Termination of auctions. The Administrator may, in the
Administrator's discretion, terminate the withholding of allowances and
the auctions if the Administrator determines, that, during any period of
3 consecutive years after 2002, fewer than 20 percent of the allowances
available in the Auction Subaccount have been purchased.
Subpart F--Energy Conservation and Renewable Energy Reserve
Source: 58 FR 3695, Jan. 11, 1993, unless otherwise noted.
Sec. 73.80 Operation of allowance reserve program for conservation and renewable energy.
(a) General. The Administrator will allocate allowances from the
Conservation and Renewable Energy Reserve (the ``Reserve'') established
under subpart B based on verified kilowatt hours saved through the use
of one or more qualified energy conservation measures or based on
kilowatt hours generated by qualified renewable energy generation.
Allowances will be allocated to applicants that meet the requirements of
this subpart according to the formulas specified in Sec. 73.82(d), and
in the order in which applications are received, except where provided
for in Sec. 73.84 and Sec. 73.85, until a total of 300,000 allowances
have been allocated.
(b) Period of applicability. Allowances will be allocated under this
subpart for qualified energy conservation measures or renewable energy
generation sources that are operational on or after January 1, 1992, and
before the date on which any unit owned or operated by the applicant
becomes a Phase I unit or a Phase II unit.
(c) Termination of the Reserve. The Administrator will reallocate
any allowances remaining in the Reserve after January 2, 2010 to the
affected units from whom allowances were withheld by the Administrator,
in accordance with section 404(g), for purposes of establishing the
Reserve. Each unit's allocation under this paragraph will be calculated
as follows:
[GRAPHIC] [TIFF OMITTED] TC10NO91.004
(Allowances will be rounded to the nearest allowance)
[58 FR 3695, Jan. 11, 1993; 58 FR 40747, July 30, 1993]
Sec. 73.81 Qualified conservation measures and renewable energy generation.
(a) Qualified energy conservation measures. A qualified energy
conservation measure is a demand-side measure not operational until the
period of applicability, implemented in the residence or facility of a
customer to whom the utility sells electricity, that:
(1) Is specified in appendix A(1) of this subpart; or
(2) In the case of a device or material that is not included in
appendix A(1) of this subpart,
(i) Is a cost-effective demand-side measure consistent with an
applicable least-cost plan or least-cost planning process that increases
the efficiency of the customer's use of electricity (as measured in
accordance with Sec. 73.82(c)) without increasing the use by the
customer of any fuel other than qualified renewable energy, industrial
waste heat, or, pursuant to paragraph (b)(5) of this section, industrial
waste gases;
(ii) Is implemented pursuant to a conservation program approved by
the utility regulatory authority, which certifies that it meets the
requirements of paragraph (a)(2)(i) of this section and is not excluded
by paragraph (b) of this section; and
(iii) Is reported by the applicant in its application to the
Reserve.
(b) Non-qualified energy conservation measures. The following energy
conservation measures shall not qualify for Allowance Reserve
allocations:
(1) Demand-side measures that were operational before January 1,
1992;
(2) Supply-side measures;
(3) Conservation programs that are exclusively informational or
educational in nature;
(4) Load management measures that lead to economic reduction of
electric energy demand during a utility's peak generating periods,
unless kilowatt
[[Page 169]]
hour savings can be verified by the utility pursuant to Sec. 73.82(c);
or
(5) Utilization of industrial waste gases, unless the applicant has
certified that there is no net increase in sulfur dioxide emissions from
such utilization.
(c) Qualified renewable energy generation. Qualified renewable
energy generation is electrical energy generation, not operational until
the period of applicability, that:
(1) Is specified in appendix A(3) of this subpart; or
(2) In the case of renewable energy generation that is not included
in appendix A(3) of this subpart is:
(i) Consistent with a least cost plan or a least cost planning
process and derived from biomass (i.e., combustible energy-producing
materials from biological sources which include wood, plant residues,
biological wastes, landfill gas, energy crops, and eligible components
of municipal solid waste), solar, geothermal, or wind resources;
(ii) Implemented pursuant to approval by the utility regulatory
authority, which certifies that it meets the requirements of paragraphs
(c)(2)(i) and (c)(2)(ii) of this section and is not excluded by
paragraph (d) of this section; and
(iii) Is reported by the applicant in its application to the
Reserve.
(d) Non-qualified renewable energy generation. The following
renewable energy generation shall not qualify for Allowance Reserve
allocations:
(1) Renewable energy generation that was operational before January
1, 1992;
(2) Measures that reduce electricity demand for a utility's
customers without providing electric generation directly for sale to
customers; and
(3) Measures that appear on the list of qualified energy
conservation measures in Appendix A(1) of this subpart.
[58 FR 3695, Jan. 11, 1993; 58 FR 40747, July 30, 1993]
Sec. 73.82 Application for allowances from reserve program.
(a) Application Requirements. Each application for Conservation and
Renewable Energy Reserve allowances, shall:
(1) Certify that the applicant is a utility;
(2) Demonstrate that the applicant, any subsidiary of the applicant,
or any subsidiary of the applicant's holding company, is an owner or
operator, in whole or in part, of at least one Phase I or Phase II unit
by including in the application the name and Allowance Tracking System
account number of a Phase I or Phase II unit which it owns or operates
and for which it is listed as an owner or operator on the certificate of
representation submitted by the designated representative for the unit
pursuant to Sec. 72.20 of this chapter;
(3) Through certification, demonstrate that the applicant is paying
in whole or in part for one or more qualified energy conservation
measures or qualified renewable energy generation (that became
operational during the period of applicability) either directly or
through payment to another person that purchases the qualified energy
conservation measure or qualified renewable energy generation;
(4) Demonstrate that the applicant is subject to a least cost plan
or a least cost planning process that:
(i) provides an opportunity for public notice and comment or other
public participation processes;
(ii) evaluates the full range of existing and incremental resources
in order to meet expected future demand at lowest system cost;
(iii) treats demand-side resources and supply-side resources on a
consistent and integrated basis;
(iv) takes into account necessary features for system operation such
as diversity, reliability, dispatchability, and other factors of risk;
(v) may take into account other factors, including the social and
environmental costs and benefits of resource investments; and
(vi) is being implemented by the applicant to the maximum extent
practicable.
(5) Demonstrate that the qualified energy conservation measure
adopted or qualified renewable energy generated, or both, are consistent
with the least cost plan or least cost planning process;
(6) If the applicant is subject to the rate-making jurisdiction of a
State or local utility regulatory authority, its least cost plan or
least cost planning
[[Page 170]]
process has been approved or accepted by the utility regulatory
authority in the State or locality in which the qualified conservation
measure(s) are adopted or in which the qualified renewable energy
generation is utilized, and such State or local utility regulatory
authority certifies that the least-cost plan or least-cost planning
process meets the requirements of paragraph (a)(4) of this section;
(7) If the applicant is not subject to the rate-making jurisdiction
of a State or local regulatory authority, its least cost plan or least
cost planning process has been approved or has been accepted by the
utility regulatory authority with rate-making jurisdiction over the
applicant, and such utility regulatory authority certifies that the
least cost plan or least cost planning process meets the requirements of
paragraph (a)(4) of this section;
(8) If the applicant is an independent power production facility
that sells qualified renewable energy generation to another utility, the
applicant has enclosed documentation that such qualified renewable
energy generation was purchased pursuant to the purchasing utility's
least cost plan or least cost planning process, which has been approved
or accepted by the purchasing utility's utility regulatory authority.
(9)(i) If the applicant is an investor-owner utility subject to the
ratemaking jurisdiction of a State utility regulatory authority and is
submitting an application on the basis of one or more qualified energy
conservation measures, such State utility regulatory authority has
established a procedure for determining rates and charges ensuring net
income neutrality, as defined in Sec. 72.2 of this chapter, including a
provision that the utility's net income is compensated in full
(considering factors such as risk) for lost sales attributable to the
utility's conservation programs, which may include:
(A) General ratemaking for formulas that decouple utility profits
from actual utility sales;
(B) Specific rate adjustment formulas that allow a utility to
recover in its retail rates the full costs of conservation measures plus
any associated net revenues lost as a result of reduced sales resulting
from conservation initiatives; or
(C) Conservation incentive mechanisms designed to provide positive
financial rewards to a utility to encourage implementation of cost-
effective measures;
(ii) Provided that the existence of any one of the categories of
ratemaking or rate adjustment formulas or conservation incentive
mechanisms specified in paragraph (a)(9)(i) of this section shall not
necessarily constitute fulfillment of the net income neutrality
requirement unless, pursuant to Sec. 73.83, the Secretary of Energy has
certified the establishment of such net income neutrality;
(10) Demonstrate that the applicant has implemented the qualified
energy conservation measures or used the qualified renewable energy
generation specified in the application during the period of
applicability;
(11) Demonstrate the extent to which installation of the qualified
conservation measure(s) has achieved actual energy savings, by stating,
on the basis of the performance of the measure(s) following
installation:
(i) The amount of kilowatt hour savings resulting from the
measure(s) in the given year(s);
(ii) Pursuant to paragraph (c) of this section, the methodology used
to calculate the kilowatt hour savings; and
(iii) The name, address, and phone number of the person who
performed the calculation of kilowatt hour savings;
(12) Report the type and amount of yearly qualified renewable energy
generation, by stating (and submitting documentation, including copies
of plant operation records, supporting such statements) the kilowatt
hours of qualified renewable energy generated during a previous calendar
year or years; and
(13) Report the extent to which qualified renewable energy
generation was produced in combination with other energy sources
(hereafter ``hybrid generation'') by stating (and submitting
documentation, including copies of plant operation records, supporting
such statements) the heat input and heat rate of the non-qualified
renewable generation, the total annual kilowatt
[[Page 171]]
hours generated, and the kilowatt hours that can be attributed to
qualified renewable energy generation;
(14) Demonstrate the extent to which the implementation of qualified
energy conservation measures or the use of qualified renewable energy
generation has resulted in avoided tons of sulfur dioxide emissions by
the utility during the period of applicability, pursuant to paragraph
(d) of this section.
(b) Application to the Secretary of Energy. For purposes of
paragraph (a)(9) of this section, the applicant shall fulfill the
following requirements:
(1) If a utility applying for allowances from the Reserve has not
received certification of net income neutrality from the Secretary of
Energy or such certification is no longer applicable, the applicant
shall submit to the Secretary of Energy:
(i) A copy of the relevant State utility regulatory authority's
final order or decision setting forth the approved ratemaking mechanisms
that ensure that a utility's net income will be at least as high upon
implementation of energy conservation measures as such net income would
have been if the energy conservation measures has not been implemented;
(ii) A description of how the State utility regulatory authority's
order or decision meets the definition of net income neutrality as
defined in Sec. 72.2; and
(iii) Any additional information necessary for Secretary of Energy
to certify that the State regulatory authority has established rates and
charges that ensure net income neutrality.
(2) If a utility applying for allowances from the Reserve has
already received certification of net income neutrality from the
Secretary of Energy in connection with a previous application for
allowances, and the ratemaking methods or procedures that ensure net
income neutrality have not been altered, the applicant shall certify
that the ratemaking methods and procedures that led to the original
certification are still in place.
(c) Verification of energy savings methodology. For the purposes of
paragraph (a)(11) of this section:
(1) Applicants subject to the ratemaking jurisdiction of a State
utility regulatory authority shall use the energy conservation
verification methodology approved by such authority in support of energy
conservation applications under this subpart and part 72 of this
chapter, provided that
(i) The authority in question uses this methodology to determine the
applicant's entitlement to performance-based rate adjustments, which
permit a utility's rates to be adjusted for additional kilowatt hours
saved due to the utility's energy conservation programs;
(ii) Such performance based rate adjustments are subject to
modification either prospectively or retrospectively to reflect periodic
evaluations of energy savings secured by the applicant; and
(iii) The applicant has provided the Administrator with a
description of the State utility regulatory authority's verification
methodology and documentation that the requirements of this paragraph
(e) have been met.
(2) All other applicants, including applicants whose rates are not
subject to the ratemaking jurisdiction of a State utility regulatory
authority shall demonstrate to the satisfaction of the Administrator
through submission of documentation that savings have been achieved and
may use the EPA Conservation Verification Protocol.
(3) All records of verification of energy savings shall be kept on
file by the applicant for a period of 3 years. The Administrator may
extend this period for cause at any time prior to the end of 3 years by
notifying the applicant in writing.
(4) The Administrator reserves the right to conduct independent
reviews, analyses, or audits to ascertain that the verification is valid
and correct. If the Administrator determines that the verification is
not valid or correct, the Administrator may revise the allocation of
allowances to an applicant or require the surrender of allowances from
the applicant's Allowance Tracking System account.
(d) Calculation of allowances to be allocated.
(1) In the case of an application submitted on the basis of
qualified energy conservation measures, the sulfur dioxide emissions
tonnage deemed avoided
[[Page 172]]
for any calendar year shall be equal to the product of:
[GRAPHIC] [TIFF OMITTED] TC10NO91.005
(Rounded to the nearest ton)
Where:
(A)=the kilowatt hours that were not, but would otherwise have been,
supplied by the utility during such year in the absence of such
qualified energy conservation measures.
(B)=0.004 1bs. of sulfur dioxide per kilowatt hour.
(2) In the case of an application submitted on the basis of
qualified renewable energy generation, the sulfur dioxide emissions
tonnage deemed avoided for any calendar year shall be equal to the
product of:
[GRAPHIC] [TIFF OMITTED] TC10NO91.006
(Rounded to the nearest ton)
Where:
(A)=the actual kilowatt hours of qualified renewable energy generated or
purchased by the applicant (based on the qualified renewable
energy generation portion for hybrid generation).
(B)=0.004 lbs. of sulfur dioxide per kilowatt hour.
(e) Certification by Applicant's Certifying Official.
(1) Certification of all application requirements, including the net
income neutrality requirements, shall be made by a certifying official
of the applicant upon such official's verification of all information
and documentation submitted.
(2) The applicant shall submit a certification statement signed by
the applicant's certifying official that reads ``I certify under penalty
of law that I have personally examined and am familiar with the
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 information is to the best
of my knowledge and belief true, accurate, and complete. I am aware that
there are significant penalties for submitting false material
information, or omitting material information, including the possibility
of fine or imprisonment for violations.''
(f) Certification by State Utility Regulatory Authority. Applicants
subject to the ratemaking jurisdiction of a State utility regulatory
authority shall include in their applications a certification by the
State utility regulatory authority's certifying official that it has
reviewed the application, including supporting documentation, and finds
it to be accurate, complete, and consistent with all applicable
requirements of this subpart.
(g) Time period to apply. (1) Beginning no earlier than July 1,
1993, and no earlier than July 1 of each subsequent year, applicants may
apply to the Administrator for allowances from the Reserve for emissions
avoided in a previous year or years by use of qualified energy
conservation measures or qualified renewable energy generation that
became operational during the period of applicability; and
(2) Beginning no earlier than January 1, 1993, any applicant may
apply to the Secretary of Energy for the Secretary's certification of
net income neutrality where the application is based on the use of one
or more qualified energy conservation measures.
(3) Applications will be received by the Administrator and the
Secretary of Energy until January 2, 2010, pursuant to Sec. 73.80(c), or
until no allowances remain in the Reserve.
(h) Submittal location. Applicants shall submit one copy of the
completed Reserve application, not including the net income neutrality
application, via registered mail to the Administrator at an address to
be specified in later guidance. Applicants shall submit 10 copies of the
net income neutrality application via registered mail to the Department
of Energy at the following address: Department of Energy, Office of
Conservation and Renewable Energy, Mail Stop CE-10, Room 6c-036, 1000
Independence Avenue, SW., Washington, DC 20585, Attn: Net Income
Neutrality Certification.
[58 FR 3695, Jan. 11, 1993; 58 FR 40747, July 30, 1993]
[[Page 173]]
Sec. 73.83 Secretary of Energy's action on net income neutrality applications.
(a) First come, first served. The Secretary of Energy will process
and certify net income neutrality applications on a ``first-come, first
served'' basis, according to the order, by date and time, in which they
are received from either the applicant or, in the case of an application
submitted to the Administrator and then forwarded to the Secretary, from
the Administrator.
(b) Deficient applications. If the Secretary of Energy determines
that the net income neutrality certification application does not meet
the requirements of Sec. 73.82 (a)(9) and (b), the Secretary will notify
the applicant and the Administrator in writing of the deficiency. The
applicant may then supply additional information or a new revised
application as necessary for the Secretary to make a determination that
the applicant meets the requirements of Sec. 73.28(a)(9) and (b).
Additional information or revised applications will be processed
according to the date of receipt of such information or revisions.
(c) Notification of approval. The Secretary of Energy will review
the net income neutrality application to determine whether it meets the
requirements of Sec. 73.82 (a)(9) and (b) and will certify this finding
in writing to the applicant and to the Administrator within 60 calendar
days of receipt of the net income neutrality application or a revised
application, except that the Secretary may specify a later date for
certification.
Sec. 73.84 Administrator's action on applications.
(a) First come, first served. The Administrator will process and
approve Allowance Reserve applications, in whole or in part, on a
``first-come, first-served'' basis as established by the order of date
of receipt, provided that the Administrator shall not allocate more than
a total of 30,000 allowances in connection with applications based on
any one of the four categories of qualified renewable energy generation
enumerated in Sec. 73.81(c)(2)(i) and Appendix A(3.1-3.4).
(b) Deficient applications. An application is deficient and will be
returned by the Administrator if it fails to meet the requirements set
forth in this subpart, including those set forth in Sec. 73.82. A
revised application that is submitted after being returned for failure
to meet the requirements of this subpart will be processed according to
the date of receipt of the revised application.
(c) Notification of approval. Applications that the Administrator
determines to be complete and correct will be conditionally approved,
subject to notification to EPA of a net income neutrality certification
from the Department of Energy, within 120 calendar days of receipt.
Allowances from the Reserve will be awarded subject to the Department of
Energy certification, or, if a DOE certification has already been issued
to the applicant, allocated to applicants from such applications
depending on the availability of allowances in the Reserve. In the event
the initial application approval is conditioned upon the Secretary of
Energy's certification, final approval will be granted upon notification
of certification by the Secretary of Energy pursuant to Sec. 73.83. The
Administrator will notify applicants of final approval in writing.
(d) Allocation of allowances. Beginning in 1995, the Administrator
will allocate allowances from the Reserve for each approved application
into the applicant's account or accounts in the Allowance Tracking
System. If the applicant does not have an account in the Allowance
Tracking System, or wishes to open a new account for the allowances from
the Reserve, an application pursuant to Sec. 73.31(c) must accompany the
application for Reserve allowances.
(e) Partial fulfillment of requests. (1) In the event that the
allowances available in the Reserve are less than the number that could
otherwise be allocated to an approved applicant's account under the
application as approved, the applicant will receive the allowances
remaining in the Reserve.
(2) In the event that a subaccount is established by EPA, pursuant
to Sec. 73.85, and the applicant is making a request for allowances not
included in the subaccount, the Allowance Reserve allocations for the
approved applicant will be made, in addition to any that may be
allocated pursuant to paragraph (f)(3)
[[Page 174]]
of this section, from any allowances remaining in the Reserve that are
not contained in the subaccount.
(f) Oversubscription of the Reserve.
(1) In the event that the Reserve becomes oversubscribed by more
than one applicant on a single day, the allowances remaining in the
Reserve will be distributed on a pro rata basis to applicants meeting
the requirements of Sec. 73.82.
(2) If Reserve applications are received by the Administrator after
all allowances from the Reserve have been allocated, the Administrator
will so notify the applicant within 5 business days after receipt of the
application.
(3) In the event that applications meeting the requirements pursuant
to Sec. 73.82 are received by the Administrator prior to February 1,
1998, and
(i) All remaining allowances in the Reserve have been placed in a
subaccount pursuant to Sec. 73.85; and
(ii) The applicant is not eligible for an allocation of allowances
from the subaccount; the application will be placed on a waiting list in
order of receipt.
(iii) The Administrator will notify the applicant of such action
within 5 business days after receipt of the application.
(4) If any allowances are returned to the Reserve after February 1,
1998 pursuant to Sec. 73.85(c), the Administrator will review the wait-
listed applications in order of receipt and allocate any remaining
allowances to the approved applicants in the order of their receipt
until no more allowances remain in the Reserve.
(g) Applications for allowances based on the same avoided emissions
from the same energy conservation measures or renewable energy
generation.
(1) The Administrator will not award allowances to more than one
applicant for the same avoided emissions from the same energy
conservation measure or the same qualified renewable energy generation,
and will process and act on such duplicative applications on a ``first-
come, first-serve'' basis as determined by the order of date of receipt.
(2) Any allowances awarded pursuant to two or more applications
received on the same date based on the same avoided emissions from the
same energy conservation measure or the same renewable electric
generation will be divided equally between all such applicants unless
the Administrator is otherwise directed by all such applicants.
Sec. 73.85 Administrator review of the reserve program.
(a) Administrator review of the Reserve and creation of a
subaccount. In the event that an allocation of allowances from the
Reserve pursuant to a pending application would bring the total number
of allowances allocated to a number greater than 240,000, the
Administrator will review the distribution of all allowances allocated
as follows:
(1) If at least 60,000 allowances have been allocated from the
Reserve for each of
(i) Qualified energy conservation measures, and
(ii) Qualified renewable energy generation, allocations of
allowances will continue pursuant to Sec. 73.82, until no more
allowances remain in the Reserve.
(2) If fewer than 60,000 allowances have been allocated for either
qualified energy conservation measures or qualified renewable energy
generation, the Administrator will establish a subaccount for the
allocation of allowances for applications based on the category for
which fewer than 60,000 allowances have been allocated. The subaccount
will contain allowances equal to 60,000 less the number of allowances
previously allocated for such category.
(b) Allocation of allowances from the subaccount. The Administrator
will allocate allowances from the subaccount established pursuant to
paragraph (a) of this section to approved and DOE certified applicants
that fulfill the requirements of this subpart, including Sec. 73.82 and
Sec. 73.83, on a ``first-come, first-served basis'', pursuant to
Sec. 73.84(a), until the subaccount is depleted or closed pursuant to
paragraph (c) of this section.
(c) Closure of the subaccount. Unless all allowances in the
subaccount have been previously allocated, the Administrator will
terminate the subaccount not later than February 1, 1998 and return any
allowances remaining in the subaccount to the general account of
[[Page 175]]
the Reserve. After all Reserve allocations have been made to applicants
with approved and DOE certified applications subject to
Sec. 73.84(f)(3), the Administrator will allocate any remaining
allowances to any applicants that meet the requirements of this subpart,
including Sec. 73.82 and Sec. 73.83, on a ``first-come, first-served''
basis, pursuant to Sec. 73.84.
Sec. 73.86 State regulatory autonomy.
Nothing in this Subpart shall preclude a state or state regulatory
authority from providing additional incentives to utilities to encourage
investment in any conservation measures or renewable energy generation.
Appendix A to Subpart F--List of Qualified Energy Conservation Measures,
Qualified Renewable Generation, and Measures Applicable for Reduced
Utilization
1. Demand-side Measures Applicable for the Conservation and Renewable
Energy Reserve Program or Reduced Utilization
The following listed measures are approved as ``qualified energy
conservation measures'' for purposes of the Conservation and Renewable
Energy Reserve Program or reduced utilization qualified energy
conservation plans under Sec. 72.43 of this chapter. Measures not
appearing on the list may also be qualified conservation measures if
they meet the requirements specified in Sec. 73.81(a) of this part.
1.1 Residential
1.1.1 Space Conditioning
Electric furnace improvements (intermittent ignition,
automatic vent dampers, and heating element change-outs)
Air conditioner (central and room) upgrades/replacements
Heat pump (ground source, solar assisted, and conventional)
upgrades/replacements
Cycling of air conditioners and heat pumps
Natural ventilation
Heat recovery ventilation
Clock thermostats
Setback thermostats
Geothermal steam direct use
Improved equipment controls
Solar assisted space conditioning (ventilation, air-
conditioning, and desiccant cooling)
Passive solar designs
Air conditioner and heat pump clean and tune-up
Heat pipes
Whole house fans
High efficiency fans and motors
Hydronic pump insulation
Register relocation
Register size and blade configuration
Return air location
Duct sizing
Duct insulation
Duct sealing
Duct cleaning
Shade tree planting
1.1.2 Water Heating
Electric water heater upgrades/replacements
Electric water heater tank wraps/blankets
Low-flow showerheads and fittings
Solar heating and pre-heat units
Geothermal heating and pre-heat units
Heat traps
Water heater heat pumps
Recirculation pumps
Setback thermostats
Water heater cycling control
Solar heating for swimming pools
Pipe wrap insulation
1.1.3 Lighting
Lamp replacement
Dimmers
Motion detectors and occupancy sensors
Photovoltaic lighting
Fixture replacement
Outdoor lighting controls
1.1.4 Building Envelope
Attic, basement, ceiling, and wall insulation
Passive solar building systems
Exterior roof insulation
Exterior wall insulation
Exterior wall insulation bordering unheated space (e.g., a
garage)
Knee wall insulation in attic
Floor insulation
Perimeter insulation
Storm windows/doors
Caulking/weatherstripping
Multi-glazed inserts for sliding glass doors
Sliding door replacements
Installation of French doors
Hollow core door replacement
Radiant barriers
Window vent conversions
Window replacement
Window shade screens
Low-e windows
Window reduction
Attic ventilation
Whole house fan
Passive solar design
1.1.5 Other Appliances
Refrigerator replacements
Freezer replacements
Oven/range replacements
Dishwasher replacements
Clothes washer replacements
Clothes dryer replacements
Customer located power generation based on photovoltaic,
solar thermal, biomass, wind or geothermal resources
[[Page 176]]
Swimming pool pump replacements
Gasket replacements
Maintenance/coil cleaning
1.2 Commercial
1.2.1 Heating/Ventilation/Air Conditioning (HVAC)
Heat pump replacement
Fan motor efficiency
Resizing of chillers
Heat pipe retrofits in air conditioning units
Dehumidifiers
Steam trap insulation
Radiator thermostatic valves
Variable speed drive on fan motor
Solar assisted HVAC including ventilation, chillers, heat
pumps, and desiccants
HVAC piping insulation
HVAC ductwork insulation
Boiler insulation
Automatic night setback
Automatic economizer cooling
Outside air control
Hot and cold deck automatic reset
Reheat system primary air optimization