[Title 40 CFR ]
[Code of Federal Regulations (annual edition) - July 1, 2017 Edition]
[From the U.S. Government Publishing Office]
[[Page i]]
Title 40
Protection of Environment
________________________
Parts 72 to 79
Revised as of July 1, 2017
Containing a codification of documents of general
applicability and future effect
As of July 1, 2017
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 OFFICIAL EDITION NOTICE
Legal Status and Use of Seals and Logos
The seal of the National Archives and Records Administration
(NARA) authenticates the Code of Federal Regulations (CFR) as
the official codification of Federal regulations established
under the Federal Register Act. Under the provisions of 44
U.S.C. 1507, the contents of the CFR, a special edition of the
Federal Register, shall be judicially noticed. The CFR is
prima facie evidence of the original documents published in
the Federal Register (44 U.S.C. 1510).
It is prohibited to use NARA's official seal and the stylized Code
of Federal Regulations logo on any republication of this
material without the express, written permission of the
Archivist of the United States or the Archivist's designee.
Any person using NARA's official seals and logos in a manner
inconsistent with the provisions of 36 CFR part 1200 is
subject to the penalties specified in 18 U.S.C. 506, 701, and
1017.
Use of ISBN Prefix
This is the Official U.S. Government edition of this publication
and is herein identified to certify its authenticity. Use of
the 0-16 ISBN prefix is for U.S. Government Publishing Office
Official Editions only. The Superintendent of Documents of the
U.S. Government Publishing Office requests that any reprinted
edition clearly be labeled as a copy of the authentic work
with a new ISBN.
U . S . G O V E R N M E N T P U B L I S H I N G O F F I C E
------------------------------------------------------------------
U.S. Superintendent of Documents Washington, DC 20402-
0001
http://bookstore.gpo.gov
Phone: toll-free (866) 512-1800; DC area (202) 512-1800
[[Page iii]]
Table of Contents
Page
Explanation................................................. v
Title 40:
Chapter I--Environmental Protection Agency
(Continued) 3
Finding Aids:
Table of CFR Titles and Chapters........................ 605
Alphabetical List of Agencies Appearing in the CFR...... 625
List of CFR Sections Affected........................... 635
[[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, 2017), 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.
PAST PROVISIONS OF THE CODE
Provisions of the Code that are no longer in force and effect as of
the revision date stated on the cover of each volume are not carried.
Code users may find the text of provisions in effect on any given date
in the past by using the appropriate List of CFR Sections Affected
(LSA). For the convenience of the reader, a ``List of CFR Sections
Affected'' is published at the end of each CFR volume. For changes to
the Code prior to the LSA listings at the end of the volume, consult
previous annual editions of the LSA. For changes to the Code prior to
2001, consult the List of CFR Sections Affected compilations, published
for 1949-1963, 1964-1972, 1973-1985, and 1986-2000.
``[RESERVED]'' TERMINOLOGY
The term ``[Reserved]'' is used as a place holder within the Code of
Federal Regulations. An agency may add regulatory information at a
``[Reserved]'' location at any time. Occasionally ``[Reserved]'' is used
editorially to indicate that a portion of the CFR was left vacant and
not accidentally dropped due to a printing or computer error.
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.
What if the material incorporated by reference cannot be found? If
you have any problem locating or obtaining a copy of material listed 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, 8601 Adelphi Road, College Park, MD 20740-6001,
or call 202-741-6010.
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 Authorities
and Rules. A list of CFR titles, chapters, subchapters, and parts and an
alphabetical list of agencies publishing in the CFR are also included in
this volume.
[[Page vii]]
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.
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 202-741-6000
or write to the Director, Office of the Federal Register, National
Archives and Records Administration, 8601 Adelphi Road, College Park, MD
20740-6001 or e-mail [email protected].
SALES
The Government Publishing Office (GPO) processes all sales and
distribution of the CFR. For payment by credit card, call toll-free,
866-512-1800, or DC area, 202-512-1800, M-F 8 a.m. to 4 p.m. e.s.t. or
fax your order to 202-512-2104, 24 hours a day. For payment by check,
write to: US Government Publishing Office - New Orders, P.O. Box 979050,
St. Louis, MO 63197-9000.
ELECTRONIC SERVICES
The full text of the Code of Federal Regulations, the LSA (List of
CFR Sections Affected), The United States Government Manual, the Federal
Register, Public Laws, Public Papers of the Presidents of the United
States, Compilation of Presidential Documents and the Privacy Act
Compilation are available in electronic format via www.ofr.gov. For more
information, contact the GPO Customer Contact Center, U.S. Government
Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free). E-
mail, [email protected].
The Office of the Federal Register also offers a free service on the
National Archives and Records Administration's (NARA) World Wide Web
site for public law numbers, Federal Register finding aids, and related
information. Connect to NARA's web site at www.archives.gov/federal-
register.
The e-CFR is a regularly updated, unofficial editorial compilation
of CFR material and Federal Register amendments, produced by the Office
of the Federal Register and the Government Publishing Office. It is
available at www.ecfr.gov.
Oliver A. Potts,
Director,
Office of the Federal Register.
July 1, 2017.
[[Page ix]]
THIS TITLE
Title 40--Protection of Environment is composed of thirty-seven
volumes. The parts in these volumes are arranged in the following order:
Parts 1-49, parts 50-51, part 52 (52.01-52.1018), part 52 (52.1019-
52.2019), part 52 (52.2020-end of part 52), parts 53-59, part 60 (60.1-
60.499) , part 60 (60.500-end of part 60, sections), part 60
(Appendices), parts 61-62, part 63 (63.1-63.599), part 63 (63.600-
63.1199), part 63 (63.1200-63.1439), part 63 (63.1440-63.6175), part 63
(63.6580-63.8830), part 63 (63.8980-end of part 63), parts 64-71, parts
72-79, part 80, part 81, parts 82-86, parts 87-95, parts 96-99, parts
100-135, parts 136-149, parts 150-189, parts 190-259, parts 260-265,
parts 266-299, parts 300-399, parts 400-424, parts 425-699, parts 700-
722, parts 723-789, parts 790-999, parts 1000-1059, and part 1060 to
end. The contents of these volumes represent all current regulations
codified under this title of the CFR as of July 1, 2017.
Chapter I--Environmental Protection Agency appears in all thirty-
seven volumes. Regulations issued by the Council on Environmental
Quality, including an Index to Parts 1500 through 1508, appear in the
volume containing parts 1060 to end. The OMB control numbers for title
40 appear in Sec. 9.1 of this chapter.
For this volume, Susannah C. Hurley was Chief Editor. The Code of
Federal Regulations publication program is under the direction of John
Hyrum Martinez, assisted by Stephen J. Frattini.
[[Page 1]]
TITLE 40--PROTECTION OF ENVIRONMENT
(This book contains parts 72 to 79)
--------------------------------------------------------------------
Part
chapter i--Environmental Protection Agency (Continued)...... 72
[[Page 3]]
CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
--------------------------------------------------------------------
Editorial Note: Nomenclature changes to chapter I appear at 65 FR
47324, 47325, Aug. 2, 2000; 66 FR 34375, 34376, June 28, 2001; and 69 FR
18803, Apr. 9, 2004.
SUBCHAPTER C--AIR PROGRAMS (CONTINUED)
Part Page
72 Permits regulation.......................... 5
73 Sulfur dioxide allowance system............. 91
74 Sulfur dioxide opt-ins...................... 177
75 Continuous emission monitoring.............. 204
76 Acid rain nitrogen oxides emission reduction
program................................. 460
77 Excess emissions............................ 485
78 Appeal procedures........................... 491
79 Registration of fuels and fuel additives.... 507
[[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.
72.26 Delegation by designated representative and alternate designated
representative.
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 Acceptance of State Acid Rain programs--general.
72.72 Criteria for State operating permit program.
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. 7401, 7403, 7410, 7411, 7426, 7601, et seq.
Source: 58 FR 3650, Jan. 11, 1993, unless otherwise noted.
[[Page 6]]
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 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 parts 70
and 71 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.
[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55475, Oct. 24, 1997]
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 purposes of sulfur dioxide emissions:
(i) The tonnage equivalent of the allowances authorized to be
allocated to the affected units at a source for use in a calendar year
under section 404(a)(1), (a)(3), and (h) of the Act, or 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 account for
that source 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 under part 76 of this chapter.
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, including any permit revisions,
that is issued by a permitting authority under this part and specifies
the Acid Rain Program requirements applicable to 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 reduction program established
in accordance with title IV of the Act, this
[[Page 7]]
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 source 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 States means any affected States as defined in part 71 of
this chapter.
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.
Air Emission Testing Body (AETB) means a company or other entity
that provides to the owner or operator the certification required by
section 6.1.2(b) of appendix A to part 75 of this chapter.
Allocate or allocation means the initial crediting of an allowance
by the Administrator to an Allowance Tracking System compliance 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 account to account for the number
of tons of SO2 emissions from the affected units at an
affected source 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
[[Page 8]]
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 Administrator for purposes of
allocating, holding, transferring, and using allowances.
Allowance transfer deadline means midnight of March 1 (or February
29 in any leap year) or, if such day 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 source's
compliance account for the purposes of meeting the source'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 compliance
account, the designated representative of the owners and operators of
the affected source and the affected units at the source.
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, moisture 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:
[[Page 9]]
Baseline = BASE8587 x {26280 / (26280 - OUTAGEHR){time} x {36 / (36 -
months not on line){time} x 10\6\
``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 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.
Bypass 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 a 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 standard reference material-equivalent compressed gas primary
reference material;
(3) A NIST traceable reference material;
(4) NIST/EPA-approved certified reference materials;
(5) A gas manufacturer's intermediate standard;
(6) An EPA protocol gas;
(7) Zero air material; or
(8) A research gas mixture.
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 (or maximum observed hourly
gross load (in MWe/hr) if greater than the 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
rated hourly heat input rate (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
[[Page 10]]
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, 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 that meets the
definition of ``very low sulfur fuel'' in this section), 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, except for
purposes of applying part 76 of this chapter, 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 ``PRIMEFUEL''.
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
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 pipe means an oil or gas supply line through which the same
type of fuel is distributed to two or more affected units.
Common pipe operating time means the portion of a clock hour during
which fuel flows through a common pipe. The common pipe operating time,
in hours, is expressed as a decimal fraction, with valid values ranging
from 0.00 to 1.00.
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 account means an Allowance Tracking System account,
established by the Administrator under Sec. 73.31(a) or (b) of this
chapter or Sec. 74.40(a) of this chapter for an affected source and for
each affected unit at the source.
[[Page 11]]
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 use date means the first calendar year for which an
allowance may be used for purposes of meeting a source's Acid Rain
emissions limitation for sulfur dioxide.
Conditionally valid data means data from a continuous monitoring
system that are not quality-assured, but which may become quality-
assured if certain conditions are met. Examples of data that may qualify
as conditionally valid are: data recorded by an uncertified monitoring
system prior to its initial certification; or data recorded by a
certified monitoring system following a significant change to the system
that may affect its ability to accurately measure and record emissions.
A monitoring system must pass a probationary calibration error test, in
accordance with section 2.1.1 of appendix B to part 75 of this chapter,
to initiate the conditionally valid data status. In order for
conditionally valid emission data to become quality-assured, one or more
quality assurance tests or diagnostic tests must be passed within a
specified time period in accordance with Sec. 75.20(b)(3).
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 means of readings recorded at least once every 15
minutes (using an automated data acquisition and handling system
(DAHS)), a permanent record of SO2, NOX, or
CO2 emissions or stack gas volumetric flow rate. The
following are the principal types of continuous emission monitoring
systems required under part 75 of this chapter. Sections 75.10 through
75.18, and Sec. 75.71(a) of this chapter indicate which type(s) of CEMS
is required for specific applications:
(1) A sulfur dioxide monitoring system, consisting of an
SO2 pollutant concentration monitor and an automated DAHS. An
SO2 monitoring system provides a permanent, continuous record
of SO2 emissions in units of parts per million (ppm);
(2) A flow monitoring system, consisting of a stack flow rate
monitor and an automated DAHS. A flow monitoring system provides a
permanent,
[[Page 12]]
continuous record of stack gas volumetric flow rate, in units of
standard cubic feet per hour (scfh);
(3) A nitrogen oxides (NOX) emission rate (or
NOX-diluent) monitoring system, consisting of a
NOX pollutant concentration monitor, a diluent gas
(CO2 or O2) monitor, and an automated DAHS. A
NOX-diluent monitoring system provides a permanent,
continuous record of: NOX concentration in units of parts per
million (ppm), diluent gas concentration in units of percent
O2 or CO2 (% O2 or CO2), and
NOX emission rate in units of pounds per million British
thermal units (lb/mmBtu);
(4) A nitrogen oxides concentration monitoring system, consisting of
a NOX pollutant concentration monitor and an automated DAHS.
A NOX concentration monitoring system provides a permanent,
continuous record of NOX emissions in units of parts per
million (ppm). This type of CEMS is used only in conjunction with a flow
monitoring system to determine NOX mass emissions (in lb/hr)
under subpart H of part 75 of this chapter;
(5) A carbon dioxide monitoring system, consisting of a
CO2 pollutant concentration monitor (or an oxygen monitor
plus suitable mathematical equations from which the CO2
concentration is derived) and the automated DAHS. A carbon dioxide
monitoring system provides a permanent, continuous record of
CO2 emissions in units of percent CO2 (%
CO2); and
(6) A moisture monitoring system, as defined in Sec. 75.11(b)(2) of
this chapter. A moisture monitoring system provides a permanent,
continuous record of the stack gas moisture content, in units of percent
H2O (% H2O)
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 components are
included in a continuous opacity monitoring system:
(1) Opacity monitor; and
(2) An automated 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.
Coverage Factor k means, in general, a value chosen on the basis of
the desired level of confidence to be associated with the interval
defined by U = kuc. Typically, k is in the range 2 to 3. When
the normal distribution applies and uc is a reliable estimate
of the standard deviation of y, U = 2 uc (i.e., k = 2)
defines an interval having a level of confidence of approximately 95%,
and U = 3 uc (i.e., k = 3) defines an interval having a level
of confidence greater than 99%.
Customer means a purchaser of electricity not for the purposes of
retransmission or resale. For generating rural electrical cooperatives,
the customers of the distribution cooperatives served by the generating
cooperative will be considered customers of the generating cooperative.
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 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
[[Page 13]]
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 D396-90a,
``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 cap value means a default value of percent CO2 or
O2 which may be used to calculate the hourly NOX
emission rate, when the measured hourly average percent CO2
is below the default value or when the measured hourly average percent
O2 is above the default value. The diluent cap values for
boilers are 5.0 percent CO2 and 14.0 percent O2.
For combustion turbines, the diluent cap values are 1.0 percent
CO2 and 19.0 percent O2.
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.
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.
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.
Eligible Indian tribe means any eligible Indian tribe as defined in
part 71 of this chapter.
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
[[Page 14]]
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 a federally-enforceable permit for a plant and
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.
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 Protocol Gas means a calibration gas mixture prepared and
analyzed according to section 2 of the ``EPA Traceability Protocol for
Assay and Certification of Gaseous Calibration Standards,'' September
1997, as amended August 25, 1999, EPA-600/R-97/121 (incorporated by
reference, see Sec. 72.13) or such revised procedure as approved by the
Administrator.
EPA Protocol Gas Production Site means a site that produces or
blends calibration gas mixtures prepared and analyzed according to
section 2 of the ``EPA Traceability Protocol for Assay and Certification
of Gaseous Calibration Standards,'' September 1997, as amended August
25, 1999, EPA-600/R-97/121 (incorporated by reference, see Sec. 72.13)
or such revised procedure as approved by the Administrator.
EPA Protocol Gas Verification Program or PGVP means a calibration
gas audit program described in Sec. 75.21(g) of this chapter and
implemented by EPA in cooperation with the National Institute of
Standards and Technology (NIST).
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 1-1
in section 12.2 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 Sec. 75.15 of this chapter, Sec.
75.19 of this chapter, Sec. 75.81(b) of this chapter or of appendix D,
or E to part 75 for approved exceptions to the use of continuous
emission monitoring systems.
Excess emissions means:
(1) Any tonnage of sulfur dioxide emitted by the affected units at
an affected source during a calendar year that exceeds the Acid Rain
emissions limitation for sulfur dioxide for the source; and
(2) Any tonnage of nitrogen oxide emitted by an affected unit during
a calendar year that exceeds the annual
[[Page 15]]
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.''
Expanded uncertainty means a measure of uncertainty that defines an
interval about the measurement result y within which the value of the
measurand Y can be confidently asserted to lie. Although the combined
standard uncertainty uc is used to express the uncertainty of
many measurement results, for some commercial, industrial, and
regulatory applications (e.g., when health and safety are concerned),
what is often required is an expanded uncertainty, suggested symbol U,
and is obtained by multiplying uc(y) by a coverage factor,
suggested symbol k. Thus U = kuc(y) and it is confidently
believed that Y is greater than or equal to y - U, and is less than or
equal to y + U, which is commonly written as Y = y U.
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 Sec. Sec.
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 flowmeter QA operating quarter means a unit operating quarter
in which the unit combusts the fuel measured by the fuel flowmeter for
at least 168 unit operating hours (as defined in this section).
Fuel flowmeter system means an excepted monitoring system (as
defined in this section) which provides a continuous record of the flow
rate of fuel oil or gaseous fuel, in accordance with appendix D to part
75 of this chapter. A fuel flowmeter system consists of one or more fuel
flowmeter components, all necessary auxiliary components (e.g.,
transmitters, transducers, etc.), and a data acquisition and handling
system (DAHS).
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
[[Page 16]]
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.
Fuel usage time means the portion of a clock hour during which a
unit combusts a particular type of fuel. The fuel usage time, in hours,
is expressed as a decimal fraction, with valid values ranging from 0.00
to 1.00.
Gas-fired means:
(1) For all purposes under the Acid Rain Program, except for part 75
of this chapter, 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
(ii) Any fuel, except coal or solid or liquid coal-derived fuel, for
the remaining heat input, if any.
(2) For purposes of part 75 of this chapter, 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
(ii) Fuel oil, for the remaining heat input, if any.
(3) For purposes of part 75 of this chapter, a unit may initially
qualify as gas-fired if the designated representative demonstrates to
the satisfaction of the Administrator that the requirements of paragraph
(2) of this definition are met, or will in the future be met, through
one of the following submissions:
(i) For a unit for which a monitoring plan has not been submitted
under Sec. 75.62 of this chapter, the designated representative submits
either:
(A) Fuel usage data for the unit for the three calendar years
immediately preceding the date of initial submission of the monitoring
plan for the unit under Sec. 75.62; or
(B) If a unit does not have fuel usage data for one or more of the
three calendar years immediately preceding the date of initial
submission of the monitoring plan for the unit under Sec. 75.62, the
unit's designated fuel usage; all available fuel usage data (including
the percentage of the unit's heat input derived from the combustion of
gaseous fuels), beginning with the date on which the unit commenced
commercial operation; and the unit's projected fuel usage.
(ii) For a unit for which a monitoring plan has already been
submitted under Sec. 75.62, that has not qualified as gas-fired under
paragraph (3)(i) of this definition, and whose fuel usage changes, the
designated representative submits either:
(A) Three calendar years of data following the change in the unit's
fuel usage, showing that no less than 90.0 percent of the unit's average
annual heat input during the previous three calendar years, and no less
than 85.0 percent of the unit's annual heat input during any one of the
previous three calendar years, is from the combustion of gaseous fuels
and the remaining heat input is from the combustion of fuel oil; or
(B) A minimum of 720 hours of unit operating data following the
change in the unit's fuel usage, showing that no less than 90.0 percent
of the unit's heat input is from the combustion of gaseous fuels and the
remaining heat input is from the combustion of fuel oil, and a statement
that this changed pattern of fuel usage is considered permanent and is
projected to continue for the foreseeable future.
(iii) If a unit qualifies as gas-fired under paragraph (3)(i) or
(ii) of this definition, the unit is classified as gas-
[[Page 17]]
fired as of the date of the submission under such paragraph.
(4) For purposes of part 75 of this chapter, a unit that initially
qualifies as gas-fired under paragraph (3)(i) or (ii) of this definition
must meet the criteria in paragraph (2) of this definition each year in
order to continue to qualify as gas-fired. If such a unit combusts only
gaseous fuel and fuel oil but fails to meet such criteria for a given
year, the unit no longer qualifies as gas-fired starting January 1 of
the year after the first year for which the criteria are not met. If
such a unit combusts fuel other than gaseous fuel or fuel oil and fails
to meet such criteria in a given year, the unit no longer qualifies as
gas-fired starting the day after the first day for which the criteria
are not met. If a unit failing to meet the criteria in paragraph (2) of
this definition initially qualified as a gas-fired unit under paragraph
(3) of this definition, the unit may qualify as a gas-fired unit for a
subsequent year only if the designated representative submits the data
specified in paragraph (3)(ii)(A) of this definition.
Gas manufacturer's intermediate standard (GMIS) means a compressed
gas calibration standard that has been assayed and certified by direct
comparison to a standard reference material (SRM), an SRM-equivalent
PRM, a NIST/EPA-approved certified reference material (CRM), or a NIST
traceable reference material (NTRM), in accordance with section 2.1.2.1
of the ``EPA Traceability Protocol for Assay and Certification of
Gaseous Calibration Standards,'' September 1997, EPA-600/R-97/121.
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 compliance 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 rate means the product (expressed in mmBtu/hr) of the
gross calorific value of the fuel (expressed in mmBtu/mass of fuel) and
the fuel feed rate into the combustion device (expressed in mass of
fuel/hr) and does not include the heat derived from preheated combustion
air, recirculated flue gases, or exhaust from other sources.
Hour before and hour 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,
hourly NOX concentration, hourly moisture, hourly
O2 concentration, or hourly NOX emission rate (as
applicable) recorded by a certified monitor during the unit or stack
operating hour immediately before and the unit or stack 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.
Investor-owned utility means a utility that is organized as a tax-
paying for-profit business.
[[Page 18]]
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.
Long-term cold storage means the complete shutdown of a unit
intended to last for an extended period of time (at least two calendar
years) where notice for long-term cold storage is provided under Sec.
75.61(a)(7).
Low mass emissions unit means an affected unit that is ``gas-fired''
or ``oil-fired'' (as defined in this section), and that qualifies to use
the low mass emissions excepted methodology in Sec. 75.19 of this
chapter.
Mail or serve by mail means to submit or serve by means other than
personal service.
Maximum potential hourly heat input means an hourly heat input used
for reporting purposes when a unit lacks certified monitors to report
heat input. If the unit intends to use appendix D of part 75 of this
chapter to report heat input, this value should be calculated, in
accordance with part 75 of this chapter, using the maximum fuel flow
rate and the maximum gross calorific value. If the unit intends to use a
flow monitor and a diluent gas monitor, this value should be reported,
in accordance with part 75 of this chapter, using the maximum potential
flow rate and either the maximum carbon dioxide concentration (in
percent CO2) or the minimum oxygen concentration (in percent
O2).
Maximum potential NOX emission rate or MER means the emission rate
of nitrogen oxides (in lb/mmBtu) calculated in accordance with section 3
of appendix F to part 75 of this chapter, using the maximum potential
nitrogen oxides concentration (MPC), as defined in section 2.1.2.1 of
appendix A to 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. The diluent
cap value, as defined in this section, may be used in lieu of the
maximum O2 or minimum CO2 concentration to
calculate the MER. As a second alternative, when the NOX MPC
is determined from emission test results or from historical CEM data, as
described in section 2.1.2.1 of appendix A to part 75 of this chapter,
quality-assured diluent gas (i.e., O2 or CO2) data
recorded concurrently with the MPC may be used to calculate the MER. For
the purposes of Sec. Sec. 75.4(f), 75.19(b)(3), and 75.33(c)(7) in part
75 of this chapter and section 2.5 in appendix E to part 75 of this
chapter, the MER is specific to the type of fuel combusted in the unit.
Maximum rated hourly heat input rate means a unit-specific maximum
hourly heat input rate (mmBtu/hr) which is the higher of the
manufacturer's maximum rated hourly heat input rate or the highest
observed hourly heat input rate.
Missing data period means the total number of consecutive hours
during which any 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 to the reference value of the emissions
[[Page 19]]
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.
Multiple stack configuration refers to an exhaust configuration in
which the flue gases from a particular unit discharge to the atmosphere
through two or more stacks. The term also refers to a unit for which
emissions are monitored in two or more ducts leading to the exhaust
stack, in lieu of monitoring at the stack.
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) produced in geological
formations beneath the Earth's surface that maintains a gaseous state at
standard atmospheric temperature and pressure under ordinary conditions.
Natural gas contains 20.0 grains or less of total sulfur per 100
standard cubic feet. Additionally, natural gas must either be composed
of at least 70 percent methane by volume or have a gross calorific value
between 950 and 1100 Btu per standard cubic foot. Natural gas does not
include the following gaseous fuels: landfill gas, digester gas,
refinery gas, sour gas, blast furnace gas, coal-derived gas, producer
gas, coke oven gas, or any gaseous fuel produced in a process which
might result in highly variable sulfur content or heating value.
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
[[Page 20]]
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 source in any calendar year.
Oil-fired means:
(1) For all purposes under the Acid Rain Program, except part 75 of
this chapter, 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 solid or liquid
fuel, for the remaining heat input, if any.
(2) For purposes of part 75 of this chapter, combustion of only fuel
oil and gaseous fuels, provided that the unit involved does not meet the
definition of gas-fired.
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.
[[Page 21]]
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 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 season means the period of time beginning May 1 of a year and
ending on September 30 of the same year, inclusive.
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 if the designated representative demonstrates
to the satisfaction of the Administrator that the requirements of
paragraph (1) of this definition are met, or will in the future be met,
through one of the following submissions:
(i) For a unit for which a monitoring plan has not been submitted
under Sec. 75.62, the designated representative submits either:
(A) Capacity factor data for the unit for the three calendar years
immediately preceding the date of initial submission of the monitoring
plan for the unit under Sec. 75.62; or
(B) If a unit does not have capacity factor data for one or more of
the three calendar years immediately preceding the date of initial
submission of the monitoring plan for the unit under Sec. 75.62, all
available capacity factor data, beginning with the date on which the
unit commenced commercial operation; and projected capacity factor data.
(ii) For a unit for which a monitoring plan has already been
submitted under Sec. 75.62, that has not qualified as a peaking unit
under paragraph (2)(i) of this definition, and where capacity factor
changes, the designated representative submits either:
(A) Three calendar years of data following the change in the unit's
capacity factor showing an average capacity factor of no more than 10.0
percent during the three previous calendar years and a capacity factor
of no more than 20.0 percent in each of those calendar years; or
(B) One calendar year of data following the change in the unit's
capacity factor showing a capacity factor of no more than 10.0 percent
and a statement that this changed pattern of operation resulting in a
capacity factor less than 10.0 percent is considered permanent and is
projected to continue for the foreseeable future.
(3) For purposes of part 75 of this chapter, a unit that initially
qualifies as a peaking unit must meet the criteria in paragraph (1) of
this definition
[[Page 22]]
each year in order to continue to qualify as a peaking unit. If such a
unit fails to meet such criteria for a given year, the unit no longer
qualifies as a peaking unit starting January 1 of the year after the
year for which the criteria are not met. If a unit failing to meet the
criteria in paragraph (1) of this definition initially qualified as a
peaking unit under paragraph (2) of this definition, the unit may
qualify as a peaking unit for a subsequent year only if the designated
representative submits the data specified in paragraph (2)(ii)(A) of
this definition.
(4) A unit required to comply with the provisions of subpart H of
part 75 of this chapter, under a State or Federal NOX mass
emissions reduction program, may, pursuant to Sec. 75.74(c)(11) in part
75 of this chapter, qualify as a peaking unit on an ozone season basis
rather than an annual basis, if the owner or operator reports
NOX mass emissions and heat input data only during the ozone
season.
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) When the Administrator is responsible for administering Acid
Rain permits under subpart G of this part, the Administrator or a
delegatee agency authorized by the Administrator; or
(2) The State air pollution control agency, local agency, other
State agency, or other agency authorized by the Administrator to
administer Acid Rain permits under subpart G of this part and part 70 of
this chapter.
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 limitation beginning in
Phase I; or any unit exempt under Sec. 72.8 that, but for such
exemption, would be subject to an Acid Rain emissions reduction
requirement or Acid Rain emissions limitation 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 a naturally occurring fluid mixture of
hydrocarbons (e.g., methane, ethane, or propane) produced in geological
formations beneath the Earth's surface that maintains a gaseous state at
standard atmospheric temperature and pressure under ordinary conditions,
and which is provided by a supplier through a pipeline. Pipeline natural
gas contains 0.5 grains or less of total sulfur per 100 standard cubic
feet. Additionally, pipeline natural gas must either be composed of at
least 70 percent methane by volume or have a gross calorific value
between 950 and 1100 Btu per standard cubic foot.
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.
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
[[Page 23]]
(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, 1993 or, where the letter of intent does not specify a time
frame, a power sale agreement applicable to the source is executed on or
before November 15, 1993; 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.
Probationary calibration error test means an on-line calibration
error test performed in accordance with section 2.1.1 of appendix B to
part 75 of this chapter that is used to initiate a conditionally valid
data period.
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.
QA operating quarter means a calendar quarter in which there are at
least 168 unit operating hours (as defined in this section) or, for a
common stack or bypass stack, a calendar quarter in which there are at
least 168 stack operating hours (as defined in this section).
Qualified individual (QI) means an individual who is identified by
an AETB as meeting the requirements described in ASTM D 7036-04
``Standard Practice for Competence of Air Emission Testing Bodies''
(incorporated by reference, see Sec. 72.13), as of the date of testing.
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 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
[[Page 24]]
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 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 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 or moisture concentration or volumetric
flow measured by the pollutant concentration or flow monitor or moisture
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 mixture (RGM) means a calibration gas mixture developed
by agreement of a requestor and NIST that NIST analyzes and certifies as
``NIST traceable.'' RGMs may have concentrations different from those of
standard reference materials.
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.
[[Page 25]]
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, provided that one or more combustion or process sources that have,
under Sec. 74.4(c) of this chapter, a different designated
representative than the designated representative for one or more
affected utility units at a source shall be treated as being included in
a separate source from the source that includes such utility units for
purposes of parts 72 through 78 of this chapter, but shall be treated as
being included in the same source as the source that includes such
utility units for purposes of section 502(c) of 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 highest pollutant or diluent concentration or flow
rate that a monitor component is required to be capable of measuring
under part 75 of this chapter.
Specialty Gas Company means an organization that wholly or partially
owns or operates one or more EPA Protocol gas production sites.
Spot allowance means an allowance that may be used for purposes of
compliance with a source'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.
Stack operating hour means a clock hour during which flue gases flow
through a particular stack or duct (either for the entire hour or for
part of the hour) while the associated unit(s) are combusting fuel.
Stack operating time means the portion of a clock hour during which
flue gases flow through a particular stack or duct while the associated
unit(s) are combusting fuel. The stack operating time, in hours, is
expressed as a decimal fraction, with valid values ranging from 0.00 to
1.00.
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.
Standard reference material-equivalent compressed gas primary
reference material (SRM-equivalent PRM) means those gas mixtures listed
in a declaration of equivalence in accordance with section 2.1.2 of the
``EPA Traceability Protocol for Assay and Certification of Gaseous
Calibration Standards,'' September 1997, EPA-600/R-97/121.
State means one of the 48 contiguous States and the District of
Columbia, any non-federal authorities in or including such States or the
District of Columbia (including local agencies,
[[Page 26]]
interstate associations, and State-wide agencies), and any eligible
Indian tribe in an area in such State or the District of Columbia. 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 under part 70 of this chapter.
Stationary gas turbine means a turbine that is not self-propelled
and that combusts natural gas, other gaseous fuel with a total sulfur
content no greater than the total sulfur content of 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 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; or
(3) By other equivalent means of dispatch, or transmission, and
delivery. Compliance with any ``submission'', ``service'', or
``mailing'' deadline shall be determined by the date of dispatch,
transmission, or mailing and not the date of receipt.
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.
[[Page 27]]
Unit means a fossil fuel-fired combustion device.
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
(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 a clock hour during which a unit combusts
any fuel, either for part of the hour or for the entire hour.
Unit operating quarter means a calendar quarter in which a unit
combusts any fuel.
Unit operating time means the portion of a clock hour during which a
unit combusts any fuel. The unit operating time, in hours, is expressed
as a decimal fraction, with valid values ranging from 0.00 to 1.00.
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.
Very low sulfur fuel means either:
(1) A fuel with a total sulfur content no greater than 0.05 percent
sulfur by weight;
(2) Natural gas or pipeline natural gas, as defined in this section;
or
(3) Any gaseous fuel with a total sulfur content no greater than 20
grains of sulfur per 100 standard cubic feet.
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 SO2, NOX, or total hydrocarbons
above 0.1 parts per million (ppm), a concentration of CO above 1 ppm, or
a concentration of CO2 above 400 ppm;
(2) Ambient air conditioned and purified by a CEMS for which the
CEMS manufacturer or vendor certifies that the particular CEMS model
produces conditioned gas that does not contain concentrations of
SO2, NOX, or total hydrocarbons above 0.1 ppm, a
concentration of CO above 1 ppm, or a concentration of CO2
above 400 ppm;
[[Page 28]]
(3) For dilution-type CEMS, conditioned and purified ambient air
provided by a conditioning system concurrently supplying dilution air to
the CEMS; or
(4) A multicomponent mixture certified by the supplier of the
mixture that the concentration of the component being zeroed is less
than or equal to the applicable concentration specified in paragraph (1)
of this definition, and that the mixture's other components do not
interfere with the CEM readings.
[58 FR 3650, Jan. 11, 1993]
Editorial Note: For Federal Register citations affecting Sec. 72.2,
see the List of CFR Sections Affected, which appears in the Finding Aids
section of the printed volume and at www.fdsys.gov.
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).
CEMS--continuous emission monitoring system.
cfm--cubic feet per minute.
cm--centimeter.
dcf--dry cubic feet.
DOE--Department of Energy.
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.
kacfm--thousands of cubic feet per minute at actual conditions.
kscfh--thousands of cubic feet per hour at standard conditions.
Kwh--kilowatt hour.
lb--pounds.
m--meter.
mmBtu--million Btu.
min--minute.
mol. wt.--molecular weight.
MWe--megawatt electrical.
MWge--gross megawatt electrical.
NIST--National Institute of Standards and Technology.
ppm--parts per million.
psi--pounds per square inch.
deg.R--degree Rankine.
RATA--relative accuracy test audit.
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.
[58 FR 3650, Jan. 11, 1993, as amended at 64 FR 28588, May 26, 1999]
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
[[Page 29]]
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 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 commercial 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
[[Page 30]]
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.
(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.
(9) A unit for which an exemption under Sec. 72.7 or Sec. 72.8 is
in effect. Although such a unit is not an affected unit, the unit shall
be subject to the requirements of Sec. 72.7 or Sec. 72.8, as
applicable to the exemption.
(c) A certifying official of an owner or operator 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 facts about the unit. In the
petition, the certifying official shall certify, by his or her
signature, the statement set forth at Sec. 72.21(b)(2). Within 10
business days of receipt of any written determination by the
Administrator covering the unit, 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 may be submitted to the Administrator at
any time but, if possible, should be submitted prior to the issuance
(including renewal) of a Phase II Acid Rain permit for the unit.
(3) Submission. All submittals under this section shall be made by
the certifying official to the Director, Acid Rain Division, (6204J),
1200 Pennsylvania Ave., NW., 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; 62
FR 55475, Oct. 24, 1997; 64 FR 28588, May 26, 1999; 66 FR 12978, Mar. 1,
2001]
[[Page 31]]
Sec. 72.7 New units exemption.
(a) Applicability. This section applies to any new utility unit that
has not previously lost an exemption under paragraph (f)(4) of this
section and that, in each year starting with the first year for which
the unit is to be exempt under this section:
(1) Serves during the entire year (except for any period before the
unit commenced commercial operation) one or more generators with total
nameplate capacity of 25 MWe or less;
(2) Burns fuel that does not include any coal or coal-derived fuel
(except coal-derived gaseous fuel with a total sulfur content no greater
than natural gas); and
(3) Burns gaseous fuel with an annual average sulfur content of 0.05
percent or less by weight (as determined under paragraph (d) of this
section) and nongaseous fuel with an annual average sulfur content of
0.05 percent or less by weight (as determined under paragraph (d) of
this section).
(b)(1) Any new utility unit that meets the requirements of paragraph
(a) of this section and that is not allocated any allowances under
subpart B of part 73 of this chapter shall be exempt from the Acid Rain
Program, except for the provisions of this section, Sec. Sec. 72.2
through 72.6, and Sec. Sec. 72.10 through 72.13.
(2) The exemption under paragraph (b)(1) of this section shall be
effective on January 1 of the first full calendar year for which the
unit meets the requirements of paragraph (a) of this section. By
December 31 of the first year for which the unit is to be exempt under
this section, a statement signed by the designated representative
(authorized in accordance with subpart B of this part) or, if no
designated representative has been authorized, a certifying official of
each owner of the unit shall be submitted to permitting authority
otherwise responsible for administering a Phase II Acid Rain permit for
the unit. If the Administrator is not the permitting authority, a copy
of the statement shall be submitted to the Administrator. The statement,
which shall be in a format prescribed by the Administrator, shall
identify the unit, state the nameplate capacity of each generator served
by the unit and the fuels currently burned or expected to be burned by
the unit and their sulfur content by weight, and state that the owners
and operators of the unit will comply with paragraph (f) of this
section.
(3) After receipt of the statement under paragraph (b)(2) of this
section, the permitting authority shall amend under Sec. 72.83 the
operating permit covering the source at which the unit is located, if
the source has such a permit, to add the provisions and requirements of
the exemption under paragraphs (a), (b)(1), (d), and (f) of this
section.
(c)(1) Any new utility unit that meets the requirements of paragraph
(a) of this section and that is allocated one or more allowances under
subpart B of part 73 of this chapter shall be exempt from the Acid Rain
Program, except for the provisions of this section, Sec. Sec. 72.2
through 72.6, and Sec. Sec. 72.10 through 72.13, if each of the
following requirements are met:
(i) The designated representative (authorized in accordance with
subpart B of this part) or, if no designated representative has been
authorized, a certifying official of each owner of the unit submits to
the permitting authority otherwise responsible for administering a Phase
II Acid Rain permit for the unit a statement (in a format prescribed by
the Administrator) that:
(A) Identifies the unit and states the nameplate capacity of each
generator served by the unit and the fuels currently burned or expected
to be burned by the unit and their sulfur content by weight;
(B) States that the owners and operators of the unit will comply
with paragraph (f) of this section;
(C) Surrenders allowances equal in number to, and with the same or
earlier compliance use date as, all of those allocated to the unit under
subpart B of part 73 of this chapter for the first year that the unit is
to be exempt under this section and for each subsequent year; and
(D) Surrenders any proceeds for allowances under paragraph
(c)(1)(i)(C) or this section withheld from the unit
[[Page 32]]
under Sec. 73.10 of this chapter. If the Administrator is not the
permitting authority, a copy of the statement shall be submitted to the
Administrator.
(ii) The Administrator deducts from the compliance account of the
source that includes the unit allowances under paragraph (c)(1)(i)(C) of
this section and receives proceeds under paragraph (c)(1)(i)(D) of this
section. Within 5 business days of receiving a statement in accordance
with paragraph (c)(1)(i) of this section, the Administrator shall either
deduct the allowances under paragraph (c)(1)(i)(C) of this section or
notify the owners and operators that there are insufficient allowances
to make such deductions.
(2) The exemption under paragraph (c)(1) of this section shall be
effective on January 1 of the first full calendar year for which the
requirements of paragraphs (a) and (c)(1) of this section are met. After
notification by the Administrator under the third sentence of paragraph
(c)(1)(ii) of this section, the permitting authority shall amend under
Sec. 72.83 the operating permit covering the source at which the unit
is located, if the source has such a permit, to add the provisions and
requirements of the exemption under paragraphs (a), (c)(1), (d), and (f)
of this section.
(d) Compliance with the requirement that fuel burned during the year
have an annual average sulfur content of 0.05 percent by weight or less
shall be determined as follows using a method of determining sulfur
content that provides information with reasonable precision,
reliability, accessibility, and timeliness:
(1) For gaseous fuel burned during the year, if natural gas is the
only gaseous fuel burned, the requirement is assumed to be met;
(2) For gaseous fuel burned during the year where other gas in
addition to or besides natural gas is burned, the requirement is met if
the annual average sulfur content is equal to or less than 0.05 percent
by weight. The annual average sulfur content, as a percentage by weight,
for the gaseous fuel burned shall be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TR24OC97.001
where:
%Sannual = annual average sulfur content of the fuel burned
during the year by the unit, as a percentage by weight;
%Sn = sulfur content of the nth sample of the fuel delivered
during the year to the unit, as a percentage by weight;
Vn = volume of the fuel in a delivery during the year to the
unit of which the nth sample is taken, in standard cubic feet;
or, for fuel delivered during the year to the unit
continuously by pipeline, volume of the fuel delivered
starting from when the nth sample of such fuel is taken until
the next sample of such fuel is taken, in standard cubic feet;
dn = density of the nth sample of the fuel delivered during
the year to the unit, in lb per standard cubic foot; and
n = each sample taken of the fuel delivered during the year to the unit,
taken at least once for each delivery; or, for fuel that is
delivered during the year to the unit continuously by
pipeline, at least once each quarter during which the fuel is
delivered.
(3) For nongaseous fuel burned during the year, the requirement is
met if the annual average sulfur content is equal to or less than 0.05
percent by weight. The annual average sulfur content, as a percentage by
weight, shall be calculated using the equation in paragraph (d)(2) of
this section. In lieu of the factor, volume times density (Vn
dn), in the equation, the factor, mass (Mn), may
be used, where Mn is: mass of the nongaseous fuel in a
delivery during the year to the unit of which the nth sample is taken,
in lb; or, for fuel delivered during the year to the unit continuously
by pipeline, mass of the nongaseous fuel delivered starting from when
the nth sample of such fuel is taken until the next sample of such fuel
is taken, in lb.
(e)(1) A utility unit that was issued a written exemption under this
section and that meets the requirements of paragraph (a) of this section
shall be exempt from the Acid Rain Program, except for the provisions of
this section, Sec. Sec. 72.2 through 72.6, and Sec. Sec. 72.10 through
72.13 and shall be subject to the requirements of paragraphs (a), (d),
[[Page 33]]
(e)(2), and (f) of this section in lieu of the requirements set forth in
the written exemption. The permitting authority shall amend under Sec.
72.83 the operating permit covering the source at which the unit is
located, if the source has such a permit, to add the provisions and
requirements of the exemption under this paragraph (e)(1) and paragraphs
(a), (d), (e)(2), and (f) of this section.
(2) If a utility unit under paragraph (e)(1) of this section is
allocated one or more allowances under subpart B of part 73 of this
chapter, the designated representative (authorized in accordance with
subpart B of this part) or, if no designated representative has been
authorized, a certifying official of each owner of the unit shall submit
to the permitting authority that issued the written exemption a
statement (in a format prescribed by the Administrator) meeting the
requirements of paragraph (c)(1)(i)(C) and (D) of this section. The
statement shall be submitted by June 31, 1998 and, if the Administrator
is not the permitting authority, a copy shall be submitted to the
Administrator.
(f) Special Provisions. (1) The owners and operators and, to the
extent applicable, the designated representative of a unit exempt under
this section shall:
(i) Comply with the requirements of paragraph (a) of this section
for all periods for which the unit is exempt under this section; and
(ii) Comply with the requirements of the Acid Rain Program
concerning all periods for which the exemption is not in effect, even if
such requirements arise, or must be complied with, after the exemption
takes effect.
(2) For any period for which a unit is exempt under this section:
(i) For purposes of applying parts 70 and 71 of this chapter, the
unit shall not be treated as an affected unit under the Acid Rain
Program and shall continue to be subject to any other applicable
requirements under parts 70 and 71 of this chapter.
(ii) The unit shall not be eligible to be an opt-in source under
part 74 of chapter.
(3) For a period of 5 years from the date the records are created,
the owners and operators of a unit exempt under this section shall
retain at the source that includes the unit records demonstrating that
the requirements of paragraph (a) of this section are met. The 5-year
period for keeping records may be extended for cause, at any time prior
to the end of the period, in writing by the Administrator or the
permitting authority.
(i) Such records shall include, for each delivery of fuel to the
unit or for fuel delivered to the unit continuously by pipeline, the
type of fuel, the sulfur content, and the sulfur content of each sample
taken.
(ii) The owners and operators bear the burden of proof that the
requirements of paragraph (a) of this section are met.
(4) Loss of exemption. (i) On the earliest of the following dates, a
unit exempt under paragraphs (b), (c), or (e) of this section shall lose
its exemption and for purposes of applying parts 70 and 71 of this
chapter, shall be treated as an affected unit under the Acid Rain
Program:
(A) The date on which the unit first serves one or more generators
with total nameplate capacity in excess of 25 MWe;
(B) The date on which the unit burns any coal or coal-derived fuel
except for coal-derived gaseous fuel with a total sulfur content no
greater than natural gas; or
(C) January 1 of the year following the year in which the annual
average sulfur content for gaseous fuel burned at the unit exceeds 0.05
percent by weight (as determined under paragraph (d) of this section) or
for nongaseous fuel burned at the unit exceeds 0.05 percent by weight
(as determined under paragraph (d) of this section).
(ii) Notwithstanding Sec. 72.30(b) and (c), the designated
representative for a unit that loses its exemption under this section
shall submit a complete Acid Rain permit application on the later of
January 1, 1998 or 60 days after the first date on which the unit is no
longer exempt.
(iii) For the purpose of applying monitoring requirements under part
75 of this chapter, a unit that loses its exemption under this section
shall be treated as a new unit that commenced
[[Page 34]]
commercial operation on the first date on which the unit is no longer
exempt.
[62 FR 55476, Oct. 24, 1997, as amended at 71 FR 25377, Apr. 28, 2006;
70 FR 25334, May 12, 2005]
Sec. 72.8 Retired units exemption.
(a) This section applies to any affected unit (except for an opt-in
source) that is permanently retired.
(b)(1) Any affected unit (except for an opt-in source) that is
permanently retired shall be exempt from the Acid Rain Program, except
for the provisions of this section, Sec. Sec. 72.2 through 72.6,
Sec. Sec. 72.10 through 72.13, and subpart B of part 73 of this
chapter.
(2) The exemption under paragraph (b)(1) of this section shall
become effective on January 1 of the first full calendar year during
which the unit is permanently retired. By December 31 of the first year
that the unit is to be exempt under this section, the designated
representative (authorized in accordance with subpart B of this part),
or, if no designated representative has been authorized, a certifying
official of each owner of the unit shall submit a statement to the
permitting authority otherwise responsible for administering a Phase II
Acid Rain permit for the unit. If the Administrator is not the
permitting authority, a copy of the statement shall be submitted to the
Administrator. The statement shall state (in a format prescribed by the
Administrator) that the unit is permanently retired and will comply with
the requirements of paragraph (d) of this section.
(3) After receipt of the notice under paragraph (b)(2) of this
section, the permitting authority shall amend under Sec. 72.83 the
operating permit covering the source at which the unit is located, if
the source has such a permit, to add the provisions and requirements of
the exemption under paragraphs (b)(1) and (d) of this section.
(c) A unit that was issued a written exemption under this section
and that is permanently retired shall be exempt from the Acid Rain
Program, except for the provisions of this section, Sec. Sec. 72.2
through 72.6, Sec. Sec. 72.10 through 72.13, and subpart B of part 73
of this chapter, and shall be subject to the requirements of paragraph
(d) of this section in lieu of the requirements set forth in the written
exemption. The permitting authority shall amend under Sec. 72.83 the
operating permit covering the source at which the unit is located, if
the source has such a permit, to add the provisions and requirements of
the exemption under this paragraph (c) and paragraph (d) of this
section.
(d) Special Provisions. (1) A unit exempt under this section shall
not emit any sulfur dioxide and nitrogen oxides starting on the date
that the exemption takes effect. The owners and operators of the unit
will be allocated allowances in accordance with subpart B of part 73 of
this chapter. If the unit is a Phase I unit, for each calendar year in
Phase I, the designated representative of the unit shall submit a Phase
I permit application in accordance with subparts C and D of this part 72
and an annual certification report in accordance with Sec. Sec. 72.90
through 72.92 and is subject to Sec. Sec. 72.95 and 72.96.
(2) A unit exempt under this section shall not resume operation
unless the designated representative of the source that includes the
unit submits a complete Acid Rain permit application under Sec. 72.31
for the unit not less than 24 months prior to the later of January 1,
2000 or the date on which the unit is first to resume operation.
(3) The owners and operators and, to the extent applicable, the
designated representative of a unit exempt under this section shall
comply with the requirements of the Acid Rain Program concerning all
periods for which the exemption is not in effect, even if such
requirements arise, or must be complied with, after the exemption takes
effect.
(4) For any period for which a unit is exempt under this section:
(i) For purposes of applying parts 70 and 71 of this chapter, the
unit shall not be treated as an affected unit under the Acid Rain
Program and shall continue to be subject to any other applicable
requirements under parts 70 and 71 of this chapter.
(ii) The unit shall not be eligible to be an opt-in source under
part 74 of chapter.
(5) For a period of 5 years from the date the records are created,
the owners and operators of a unit exempt
[[Page 35]]
under this section shall retain at the source that includes the unit
records demonstrating that the unit is permanently retired. The 5-year
period for keeping records may be extended for cause, at any time prior
to the end of the period, in writing by the Administrator or the
permitting authority. The owners and operators bear the burden of proof
that the unit is permanently retired.
(6) Loss of exemption. (i) On the earlier of the following dates, a
unit exempt under paragraph (b) or (c) of this section shall lose its
exemption and for purposes of applying parts 70 and 71 of this chapter,
shall be treated as an affected unit under the Acid Rain Program:
(A) The date on which the designated representative submits an Acid
Rain permit application under paragraph (d)(2) of this section; or
(B) The date on which the designated representative is required
under paragraph (d)(2) of this section to submit an Acid Rain permit
application.
(ii) For the purpose of applying monitoring requirements under part
75 of this chapter, a unit that loses its exemption under this section
shall be treated as a new unit that commenced commercial operation on
the first date on which the unit resumes operation.
[62 FR 55477, Oct. 24, 1997; 62 FR 66279, Dec. 18, 1997, as amended at
71 FR 25377, Apr. 28, 2006]
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.
(2) The emissions measurements recorded and reported in accordance
with part 75 of this chapter shall be used to determine compliance by
the source or unit, as appropriate, 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 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
source's compliance account (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 affected units at the source;
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);
[[Page 36]]
(ii) Starting on or after January 1, 1995 in accordance with
Sec. Sec. 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 an exemption
under Sec. Sec. 72.7 or 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 source 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 source 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; provided that to the extent that part 75 provides
for a 3-year period for recordkeeping, the 3-year period shall apply.
(iii) Copies of all reports, compliance certifications, and other
submissions and all records made or required under the 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.
(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 an exemption under Sec. 72.7 or
Sec. 72.8, including any requirement for the payment of any penalty
owed to the United States,
[[Page 37]]
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.
(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 an
exemption under Sec. 72.7 or Sec. 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 source can hold; provided,
that the number of allowances held by the source 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; 62
FR 55478, Oct. 24, 1997; 66 FR 12978, Mar. 1, 2001; 70 FR 25334, May 12,
2005]
Sec. 72.10 Availability of information.
The availability to the public of information provided to, or
otherwise obtained by, the Administrator under the 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.
[[Page 38]]
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 Public Information Reference Unit of
the U.S. EPA, 401 M St., SW., Washington, DC and at the Library (MD-35),
U.S. EPA, Research Triangle Park, North Carolina or at the National
Archives and Records Administration (NARA). For information on the
availability of this material at NARA, call 202-741-6030, or go to:
http://www.archives.gov/federal--register/code--of--federal--
regulations/ibr--locations.html.
(a) The following materials are available for purchase from the
following address: American Society for Testing and Material (ASTM)
International, 100 Barr Harbor Drive, P.O. Box C700, West Conshohocken,
Pennsylvania 19428-2959, phone: 610-832-9585, http://www.astm.org/
DIGITAL--LIBRARY/index.shtml.
(1) ASTM D388-92, Standard Classification of Coals by Rank for Sec.
72.2 of this chapter.
(2) ASTM D396-90a, Standard Specification for Fuel Oils, for Sec.
72.2 of this chapter.
(3) ASTM D975-91, Standard Specification for Diesel Fuel Oils, for
Sec. 72.2 of this chapter.
(4) ASTM D2880-90a, Standard Specification for Gas Turbine Fuel
Oils, for Sec. 72.2 of this part.
(5) ASTM D 7036-04, Standard Practice for Competence of Air Emission
Testing Bodies, for Sec. 72.2.
(b) A copy of the following material is available from http://
www.epa.gov/ttn/emc/news.html (see postings for Sections 1, 2, 3, 4,
Appendices, Spreadsheets, and the ``Read before downloading Section 2''
revision posted August 27, 1999): EPA-600/R-97/121, EPA Traceability
Protocol for Assay and Certification of Gaseous Calibration Standards,
September 1997, as amended August 25, 1999, U.S. Environmental
Protection Agency, for Sec. 72.2.
[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 26526, May 17, 1995; 62
FR 55478, Oct. 24, 1997; 76 FR 17306, Mar. 28, 2011]
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 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 representations, 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.
[58 FR 3650, Jan. 11, 1993, as amended at 71 FR 25378, Apr. 28, 2006]
[[Page 39]]
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 source or 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 compliance account.
[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 17113, Apr. 4, 1995; 70
FR 25334, May 12, 2005]
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
representation, action, inaction, or submission 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.
[[Page 40]]
(e)(1) Notwithstanding paragraph (a) of this section, the
certification of representation may designate two alternate designated
representatives for a unit if:
(i) The unit and at least one other unit, which are located in two
or more of the contiguous 48 States or the District of Columbia, each
have a utility system that is a subsidiary of the same company; and
(ii) The designated representative for the units under paragraph
(e)(1)(i) of this section submits a NOX averaging plan under
Sec. 76.11 of this chapter that covers such units and is approved by
the permitting authority, provided that the approved plan remains in
effect.
(2) Except in this paragraph (e), whenever the term ``alternate
designated representative'' is used under the Acid Rain Program, the
term shall be construed to include either of the alternate designated
representatives authorized under this paragraph (e). 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 either of the alternate designated representatives
authorized under this paragraph (e).
[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55480, Oct. 24, 1997; 71
FR 25378, Apr. 28, 2006]
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 representations, actions,
inactions, and submissions 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 representations, actions,
inactions, and submissions 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 an 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 owner or operator shall be deemed to be subject to
and bound by the certificate of representation, the representations,
actions, inactions, and submissions of the 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 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.
[58 FR 3650, Jan. 11, 1993, as amended at 71 FR 25378, Apr. 28, 2006]
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,
including identification and nameplate capacity of each generator served
by each such unit.
[[Page 41]]
(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.
(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) [Reserved]
(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 representations, actions,
inactions, or submissions.''
(7) [Reserved]
(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 a life-of-the-unit, firm power contractual
arrangement, 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,
except that, 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) [Reserved]
(11) The signature of the designated representative and any
alternate designated representative who is authorized in the certificate
of representation 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.
[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55480, Oct. 24, 1997; 71
FR 25378, Apr. 28, 2006; 70 FR 25334, May 12, 2005; 72 FR 59205, Oct.
19, 2007]
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 received by the Administrator.
(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 representation, action, inaction,
or submission, of the designated representative shall affect any
representation, action, inaction, or submission 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.
[[Page 42]]
(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.
[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55480, Oct. 24, 1997; 71
FR 25378, Apr. 28, 2006]
Sec. 72.26 Delegation by designated representative and alternate
designated representative.
(a) A designated representative may delegate, to one or more natural
persons, his or her authority to make an electronic submission (in a
format prescribed by the Administrator) to the Administrator provided
for or required under this part and parts 73 through 77 of this chapter.
(b) An alternate designated representative may delegate, to one or
more natural persons, his or her authority to make an electronic
submission (in a format prescribed by the Administrator) to the
Administrator provided for or required under this part and parts 73
through 77 of this chapter.
(c) In order to delegate authority to make an electronic submission
to the Administrator in accordance with paragraph (a) or (b) of this
section, the designated representative or alternate designated
representative, as appropriate, must submit to the Administrator a
notice of delegation, in a format prescribed by the Administrator, that
includes the following elements:
(1) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of such designated representative
or alternate designated representative;
(2) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of each such natural person
(referred to as an ``agent'');
(3) For each such natural person, a list of the type or types of
electronic submissions under paragraph (a) or (b) of this section for
which authority is delegated to him or her; and
(4) The following certification statements by such designated
representative or alternate designated representative, as appropriate:
(i) ``I agree that any electronic submission to the Administrator
that is by an agent identified in this notice of delegation and of a
type listed for such agent in this notice of delegation and that is made
when I am a designated representative or alternate designated
representative, as appropriate, and before this notice of delegation is
superseded by another notice of delegation under 40 CFR 72.26(d) shall
be deemed to be an electronic submission by me.''
(ii) ``Until this notice of delegation is superseded by another
notice of delegation under 40 CFR 72.26(d), I agree to maintain an e-
mail account and to notify the Administrator immediately of any change
in my e-mail address unless all delegation of authority by me under 40
CFR 72.26 is terminated.''
(d) A notice of delegation submitted under paragraph (c) of this
section shall be effective, with regard to the designated representative
or alternate designated representative identified in such notice, upon
receipt of such notice by the Administrator and until receipt by the
Administrator of a superseding notice of delegation submitted by such
designated representative or alternate designated representative, as
appropriate. The superseding notice of delegation may replace any
previously identified agent, add a new agent, or eliminate entirely any
delegation of authority.
(e) Any electronic submission covered by the certification in
paragraph (c)(4)(i) of this section and made in accordance with a notice
of delegation effective under paragraph (d) of this section shall be
deemed to be an electronic submission by the designated representative
or alternate designated representative submitting such notice of
delegation.
[71 FR 25378, Apr. 28, 2006]
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
[[Page 43]]
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).
(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).
(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
[[Page 44]]
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.
(e) Where two or more affected units are located at a source, the
permitting authority may, in its sole discretion, allow the designated
representative of the source to submit, under paragraph (a) or (c) of
this section, two or more Acid Rain permit applications covering the
units at the source, provided that each affected unit is covered by one
and only one such application.
[58 FR 3650, Jan. 11, 1993, as amended at 58 FR 15649, Mar. 23, 1993; 60
FR 17113, Apr. 4, 1995; 62 FR 55480, Oct. 24, 1997]
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 affected unit
(except for an opt-in source) 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.
[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55480, Oct. 24, 1997]
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 date on which an Acid Rain permit is issued or
denied, 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.
(d) If agency action concerning a permit is appealed under part 78
of this chapter, issuance or denial of the permit shall occur when the
Administrator takes final agency action subject to judicial review.
[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55480, Oct. 24, 1997]
Sec. 72.33 Identification of dispatch system.
(a) Every Phase I unit shall be treated as part of a dispatch system
for purposes of Sec. Sec. 72.91 and 72.92 in accordance with this
section.
[[Page 45]]
(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. A designated representative may request, and the Administrator
may grant at his or her discretion, an exemption allowing the submission
of an identification of dispatch system after the otherwise applicable
deadline for such submission.
(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
Sec. Sec. 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 Sec. Sec.
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.
(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.
[[Page 46]]
(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 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
[[Page 47]]
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 Sec. Sec. 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 Sec. Sec. 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 Sec. Sec. 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 Sec. Sec.
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;
(ii) The designated representatives make all submissions under
Sec. Sec. 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 Sec. Sec. 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
[[Page 48]]
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 Sec. Sec.
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; 62
FR 55481, Oct. 24, 1997]
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 compliance account of the source where the unit is located (after
deductions under Sec. 73.34(c) of this chapter) not less than the total
annual emissions of sulfur dioxide from the affected units at the
source. 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 emission limitation under Sec. 76.5, Sec. 76.6, or
Sec. 76.7 of this chapter or shall specify one or more Acid Rain
compliance options, in accordance with part 76 of this chapter.
(b) Multi-unit compliance options. (1) A plan for a compliance
option, under Sec. 72.41, Sec. 72.42, Sec. 72.43, or Sec. 72.44 of
this part, under Sec. 74.47 of this chapter, or a NOX
averaging plan under Sec. 76.11 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 the Act may be conditionally proposed only
to the extent provided in part 76 of this chapter.
(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 part 76 of this chapter.
(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
[[Page 49]]
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 part 76 of this chapter.
(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; 62
FR 55481, Oct. 24, 1997; 64 FR 25842, May 13, 1999; 70 FR 25334, May 12,
2005]
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 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 6 months (or 90 days if submitted in accordance with Sec.
72.82), 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:
[[Page 50]]
(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 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
[[Page 51]]
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 section 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, 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
[[Page 52]]
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.
(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
[[Page 53]]
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 part 76 of this chapter.
(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 (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
[[Page 54]]
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 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
[[Page 55]]
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; 62 FR 55481, Oct. 24, 1997]
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 Division, Attn: Early
Ranking, U.S. Environmental Protection Agency, 6204 J, 1200 Pennsylvania
Ave., NW., 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.
[[Page 56]]
(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.
---------------------------------------------------------------------------
(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:
[[Page 57]]
(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 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
[[Page 58]]
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.
(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.
---------------------------------------------------------------------------
[[Page 59]]
(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 achieved · 90%)) 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.
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
[[Page 60]]
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. 72.91(b); 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 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 6 months (or 90 days if sumitted in accordance with Sec.
72.82 or Sec. 72.83), 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:
[[Page 61]]
(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.
(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.
[[Page 62]]
(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
Sec. Sec. 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 part 76 of this chapter.
(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.
(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 Sec. Sec. 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:
[[Page 63]]
(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; 62 FR 55481, Oct. 24, 1997]
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.
(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
[[Page 64]]
(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.
(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
[[Page 65]]
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 requested permit modification, 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. If the
Administrator is not the permitting authority, a copy of the requested
permit modification shall be sumitted to the Administrator. 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 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 requested permit modification, 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. If the
Administrator
[[Page 66]]
is not the permitting authority, a copy of the requested permit
modification shall be sumitted to the Administrator. 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 31, 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 part 76 of this
chapter 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; 62
FR 55481, Oct. 24, 1997]
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
[[Page 67]]
the Act, as provided in this part and parts 73, 74, 75, 76, 77, and 78
of this chapter shall be deemed to be operating in compliance with the
Acid Rain Program, except as provided in Sec. 72.9(g)(6).
[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55481, Oct. 24, 1997]
Subpart F_Federal Acid Rain Permit Issuance Procedures
Sec. 72.60 General.
(a) Scope. This subpart and parts 74, 76, and 78 of this chapter
contain the procedures for federal issuance of Acid Rain permits for
Phase I of the Acid Rain Program and Phase II for sources for which the
Administrator is the permitting authority under Sec. 72.74.
(1) Notwithstanding the provisions of part 71 of this chapter, the
provisions of subparts C, D, E, F, and H of this part and of parts 74,
76, and 78 of this chapter shall govern the following requirements for
Acid Rain permit applications and permits: submission, content, and
effect of permit applications; content and requirements of compliance
plans and compliance options; content of permits and permit shield;
procedures for determining completeness of permit applications; issuance
of draft permits; administrative record; public notice and comment and
public hearings on draft permits; response to comments on draft permits;
issuance and effectiveness of permits; permit revisions; and
administrative appeal procedures. The provisions of part 71 of this
chapter concerning Indian tribes, delegation of a part 71 program,
affected State review of draft permits, and public petitions to reopen a
permit for cause shall apply to Acid Rain permit applications and
permits.
(2) 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. Except as provided in Sec.
72.74(c)(1)(i), 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.
(c) Use of Direct Final Procedures. The Administrator may, in his or
her discretion, issue, as single document, a draft Acid Rain permit in
accordance with Sec. 72.62 and an Acid Rain permit in final form and
may provide public notice of the opportunity for public comment on the
draft Acid Rain permit in accordance with Sec. 72.65. The Administrator
may provide that, if no significant, adverse comment on the draft Acid
Rain permit is timely submitted, the Acid Rain permit will be deemed to
be issued on a specified date without further notice and, if such
significant, adverse comment is timely submitted, an Acid Rain permit or
denial of an Acid Rain permit will be issued in accordance with Sec.
72.69. Any notice provided under this paragraph (c) will include a
description of the procedure in the prior sentence.
[62 FR 55481, Oct. 24, 1997]
Sec. 72.61 Completeness.
(a) Determination of Completeness. The Administrator will determine
whether the Acid Rain permit application is complete within 60 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 60 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) Within a reasonable period determined by the Administrator,
the designated representative shall submit the information required
under paragraph (b)(1) of this section.
[[Page 68]]
(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.
(3) Any designated representative who fails to submit any relevant
information or who has submitted incorrect information in a permit
application shall, upon becoming aware of such failure or incorrect
submittal, promptly submit such supplementary information or corrected
information to the Administrator.
[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55481, Oct. 24, 1997]
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.
(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
[[Page 69]]
(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 air pollution control agencies of affected States; and
(iii) 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. Notwithstanding the prior
sentence, if a draft permit requires the affected units at a source to
comply with Sec. 72.9(c)(1) and to meet any applicable emission
limitation for NOX under Sec. Sec. 76.5, 76.6, 76.7, 76.8,
or 76.11 of this chapter and does not include for any unit a compliance
option under Sec. 72.44, part 74 of this chapter, or Sec. 76.10 of
this chapter, the Administrator may, in his or her discretion, provide
notice of the draft permit by Federal Register publication and may omit
notice by newspaper or State publication.
(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.
[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55482, Oct. 24, 1997]
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.
[[Page 70]]
(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 discretion, hold a public
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 the air
pollution control agencies of affected States and any interested person.
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.
[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55482, Oct. 24, 1997]
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 acceptance of State Acid Rain programs,
the procedure for including State Acid Rain programs in a title V
operating permit program, and the requirements with which State
permitting authorities with accepted programs shall comply,
[[Page 71]]
and with which the Administrator will comply in the absence of an
accepted 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 parts 70, 74, 76, and 78 of this chapter for the purpose of
incorporating Acid Rain Program requirements into each affected source's
operating permit . To the extent that this part or part 74, 76, or 78 of
this chapter is inconsistent with the requirements of part 70 of this
chapter, this part and parts 74, 76, and 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.
[62 FR 55482, Oct. 24, 1997, as amended at 66 FR 12978, Mar. 1, 2001]
Sec. 72.71 Acceptance of State Acid Rain programs--general.
(a) Each State shall submit, to the Administrator for review and
acceptance, a State Acid Rain program meeting the requirements of
Sec. Sec. 72.72 and 72.73.
(b) The Administrator will review each State Acid Rain program or
portion of a State Acid Rain program and accept, by notice in the
Federal Register, all or a portion of such program to the extent that it
meets the requirements of Sec. Sec. 72.72 and 72.73. At his or her
discretion, the Administrator may accept, with conditions and by notice
in the Federal Register, all or a portion of such program despite the
failure to meet requirements of Sec. Sec. 72.72 and 72.73. On the later
of the date of publication of such notice in the Federal Register or the
date on which the State operating permit program is approved under part
70 of this chapter, the State Acid Rain program accepted by the
Administrator will become a portion of the approved State operating
permit program. Before accepting or rejecting all or a portion of a
State Acid Rain Program, the Administrator will provide notice and
opportunity for public comment on such acceptance or rejection.
(c)(1) Except as provided in paragraph (c)(2) of this section, the
Administrator will issue all Acid Rain permits for Phase I. The
Administrator reserves the right to delegate the remaining
administration and enforcement of Acid Rain permits for Phase I to
approved State operating permit programs.
(2) The State permitting authority will issue an opt-in permit for a
combustion or process source subject to its jurisdiction if, on the date
on which the combustion or process source submits an opt-in permit
application, the State permitting authority has opt-in regulations
accepted under paragraph (b) of this section and an approved operating
permits program under part 70 of this chapter.
[62 FR 55482, Oct. 24, 1997]
Sec. 72.72 Criteria for State operating permit program.
A State operating permit program (including a State Acid Rain
program) shall meet the following criteria. Any aspect of a State
operating permits program or any implementation of a State operating
permit program that fails to meet these criteria shall be grounds for
nonacceptance or withdrawal of all or part of the Acid Rain portion of
an approved State operating permit program by the Administrator or for
disapproval or withdrawal of approval of the State operating permit
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 or affected
source under the jurisdiction of the State permitting authority;
(2) Restrictions, inconsistent with the Acid Rain Program, on an
affected unit's or an affected source's ability to
[[Page 72]]
sell or otherwise obligate its allowances;
(3) Requirements that an affected unit or affected source 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 or affected source;
(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
provisions, which are adopted to the extent that this paragraph (b) is
incorporated by reference or is otherwise included in the State
operating permit program.
(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.
(ii) Draft Permit. (A) The State permitting authority shall prepare
the draft Acid Rain permit in accordance with subpart E of this part and
part 76 of this chapter or, for a combustion or process source, with
subpart B of part 74 of this chapter, or deny a draft Acid Rain permit.
(B) 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) 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.
Notwithstanding the prior sentence, if a draft permit requires the
affected units at a source to comply with Sec. 72.9(c)(1) and to meet
any applicable emission limitation for NOX under Sec. Sec.
76.5, 76.6, 76.7, 76.8, or 76.11 of this chapter and does not include
for any unit a compliance option under Sec. 72.44, part 74 of this
chapter, or Sec. 76.10 of this chapter, the State permitting authority
may, in its discretion, provide notice by serving notice on persons
entitled to receive a written notice and may omit notice by newspaper or
State publication.
(iv) Proposed permit. The State permitting authority shall
incorporate all changes necessary and issue a proposed Acid Rain permit
in accordance with subpart E of this part and part 76 of this chapter
or, for a combustion or
[[Page 73]]
process source, with subpart B of part 74 of this chapter, or deny a
proposed Acid Rain permit.
(v) Direct proposed procedures. The State permitting authority may,
in its discretion, issue, as a single document, a draft Acid Rain permit
in accordance with paragraph (b)(1)(ii) of this section and a proposed
Acid Rain permit and may provide public notice of the opportunity for
public comment on the draft Acid Rain permit in accordance with
paragraph (b)(1)(iii) of this section. The State permitting authority
may provide that, if no significant, adverse comment on the draft Acid
Rain permit is timely submitted, the proposed Acid Rain permit will be
deemed to be issued on a specified date without further notice and, if
such significant, adverse comment is timely submitted, a proposed Acid
Rain permit or denial of a proposed Acid Rain permit will be issued in
accordance with paragraph (b)(1)(iv) of this section. Any notice
provided under this paragraph (b)(1)(v) shall include a description of
the procedure in the prior sentence.
(vi) Acid Rain Permit Issuance. Following the Administrator's review
of the proposed Acid Rain permit, the State permitting authority shall
or, under part 70 of this chapter, the Administrator will, incorporate
any required changes and issue or deny the Acid Rain permit in
accordance with subpart E of this part and part 76 of this chapter or,
for a combustion or process source, with subpart B of part 74 of this
chapter.
(vii) 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.
(viii) 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.
(ix) 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.
(x) 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 or part 73, 74, 75, 76, 77, or 78 of this
chapter shall be conducted according to procedures established by the
State in accordance with part 70 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) [Reserved]
(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
[[Page 74]]
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.
(vi) A failure of the State permitting authority to issue an Acid
Rain permit in accordance with Sec. 72.73(b)(1) or, with regard to
combustion or process sources, Sec. 74.14(b)(6) of this chapter shall
be ground for filing an appeal.
[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 17113, Apr. 4, 1995; 62
FR 55482, Oct. 24, 1997; 66 FR 12978, Mar. 1, 2001; 70 FR 25334, May 12,
2005]
Sec. 72.73 State issuance of Phase II permits.
(a) State Permit Issuance. (1) A State that is authorized to
administer and enforce an operating permit program under part 70 of this
chapter and that has a State Acid Rain program accepted by the
Administrator under Sec. 72.71 shall be responsible for administering
and enforcing Acid Rain permits effective in Phase II for all affected
sources:
(i) That are located in the geographic area covered by the operating
permits program; and
(ii) To the extent that the accepted State Acid Rain program is
applicable.
(2) In administering and enforcing Acid Rain permits, 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) A State, to the extent that it is
responsible under paragraph (a) of this section as of December 31, 1997
(or such later date as the Administrator may establish) for
administering and enforcing Acid Rain permits, shall:
(i) On or before December 31, 1997, issue an Acid Rain permit for
Phase II covering the affected units (other than opt-in sources) at each
source in the geographic area for which the program is approved;
provided that the designated representative of the source submitted a
timely and complete Acid Rain permit application in accordance with
Sec. 72.21.
(ii) On or before January 1, 1999, for each unit subject to an Acid
Rain NOX emissions limitation, amend the Acid Rain permit
under Sec. 72.83 and add any NOX early election plan that
was approved by the Administrator under Sec. 76.8 of this chapter and
has not been terminated and reopen the Acid Rain permit and add any
other 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.
(2) Each Acid Rain permit issued in accordance with this section
shall have a term of 5 years commencing on its effective date; provided
that, at the discretion of the permitting authority, an Acid Rain permit
for Phase II issued to a source may have a term of less than 5 years
where necessary to coordinate the term of such permit with the term of
an operating permit to be issued to the source under a State operating
permit program. Each Acid Rain permit issued in accordance with
paragraph (b)(1) 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.
[62 FR 55483, Oct. 24, 1997, as amended at 70 FR 25334, May 12, 2005]
Sec. 72.74 Federal issuance of Phase II permits.
(a)(1) The Administrator will be responsible for administering and
enforcing Acid Rain permits for Phase II for any affected sources to the
extent that a State permitting authority is not responsible, as of
January 1, 1997 or such later date as the Administrator may establish,
for administering and enforcing Acid Rain permits for such sources under
Sec. 72.73(a).
(2) After and to the extent the State permitting authority becomes
responsible for administering and enforcing
[[Page 75]]
Acid Rain permits under Sec. 72.73(a), the Administrator will suspend
federal administration of Acid Rain permits for Phase II for sources and
units to the extent that they are subject to the accepted State Acid
Rain program, except as provided in paragraph (b)(4) of this section.
(b)(1) The Administrator will administer and enforce Acid Rain
permits effective in Phase II for sources and units during any period
that the Administrator is administering and enforcing an operating
permit program under part 71 of this chapter for the geographic area in
which the sources and units are located.
(2) The Administrator will administer and enforce Acid Rain permits
effective in Phase II for sources and units otherwise subject to a State
Acid Rain program under Sec. 72.73(a) if:
(i) The Administrator determines that the State permitting authority
is not adequately administering or enforcing all or a portion of the
State Acid Rain program, notifies the State permitting authority of such
determination and the reasons therefore, and publishes such notice in
the Federal Register;
(ii) The State permitting authority fails either to correct the
deficiencies within a reasonable period (established by the
Administrator in the notice under paragraph (b)(2)(i) of this section)
after issuance of the notice or to take significant action to assure
adequate administration and enforcement of the program within a
reasonable period (established by the Administrator in the notice) after
issuance of the notice; and
(iii) The Administrator publishes in the Federal Register a notice
that he or she will administer and enforce Acid Rain permits effective
in Phase II for sources and units subject to the State Acid Rain program
or a portion of the program. The effective date of such notice shall be
a reasonable period (established by the Administrator in the notice)
after the issuance of the notice.
(3) When the Administrator administers and enforces Acid Rain
permits under paragraph (b)(1) or (b)(2) of this section, the
Administrator will administer and enforce each Acid Rain permit issued
under the State Acid Rain program or portion of the program until, and
except to the extent that, the permit is replaced by a permit issued
under this section. After the later of the date for publication of a
notice in the Federal Register that the State operating permit program
is currently approved by the Administrator or that the State Acid Rain
program or portion of the program is currently accepted by the
Administrator, the Administrator will suspend federal administration of
Acid Rain permits effective in Phase II for sources and units to the
extent that they are subject to the State Acid Rain program or portion
of the program, except as provided in paragraph (b)(4) of this section.
(4) After the State permitting authority becomes responsible for
administering and enforcing Acid Rain permits effective in Phase II
under Sec. 72.73(a), the Administrator will continue to administer and
enforce each Acid Rain permit issued under paragraph (a)(1), (b)(1), or
(b)(2) of this section until, and except to the extent that, the permit
is replaced by a permit issued under the State Acid Rain program. The
State permitting authority may replace an Acid Rain permit issued under
paragraph (a)(1), (b)(1), or (b)(2) of this section by issuing a permit
under the State Acid Rain program by the expiration of the permit under
paragraph (a)(1), (b)(1), or (b)(2) of this section. The Administrator
may retain jurisdiction over the Acid Rain permits issued under
paragraph (a)(1), (b)(1), or (b)(2) of this section for which the
administrative or judicial review process is not complete and will
address such retention of jurisdiction in a notice in the Federal
Register.
(c) Permit Issuance Deadline. (1)(i) On or before January 1, 1998,
the Administrator will issue an Acid Rain permit for Phase II setting
forth the Acid Rain Program sulfur dioxide requirements for each
affected unit (other than opt-in sources) at a source not under the
jurisdiction of a State permitting authority that is responsible, as of
January 1, 1997 (or such later date as the Administrator may establish),
under Sec. 72.73(a) of this section for administering and enforcing
Acid Rain permits with such requirements; provided
[[Page 76]]
that the designated representative for the source submitted a timely and
complete Acid Rain permit application in accordance with Sec. 72.21.
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) 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 (c)(1)(i) of this
section shall take effect by the later of January 1, 2000 or, where a
permit governs a unit under Sec. 72.6(a)(3), 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 an Acid Rain permit application for
nitrogen oxides, the Administrator will amend under Sec. 72.83 the Acid
Rain permit and add any NOX early election plan that was
approved under Sec. 76.8 of this chapter and has not been terminated
and reopen the Acid Rain permit for Phase II and add any other Acid Rain
Program nitrogen oxides requirements for each affected source not under
the jurisdiction of a State permitting authority that is responsible, as
of January 1, 1997 (or such later date as the Administrator may
establish), under Sec. 72.73(a) for issuing Acid Rain permits with such
requirements; provided that the designated representative for the source
submitted a timely and complete Acid Rain permit application for
nitrogen oxides in accordance with Sec. 72.21.
(d) Permit Issuance. (1) The Administrator may utilize any or all of
the provisions of subparts E and F of this part to administer Acid Rain
permits as authorized under this section or may adopt by rulemaking
portions of a State Acid Rain program in substitution of or in addition
to provisions of subparts E and F of this part to administer such
permits. The provisions of Acid Rain permits for Phase I or Phase II
issued by the Administrator shall not be applicable requirements under
part 70 of this chapter.
(2) The Administrator may delegate all or part of his or her
responsibility, under this section, for administering and enforcing
Phase II Acid Rain permits or opt-in permits to a State. Such delegation
will be made consistent with the requirements of this part and the
provisions governing delegation of a part 71 program under part 71 of
this chapter.
[62 FR 55483, Oct. 24, 1997]
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 permitting authority.
(b) Notwithstanding the operating permit revision procedures
specified in parts 70 and 71 of this chapter, the provisions of this
subpart shall govern 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, except as provided in Sec. 72.83 for
administrative permit amendments.
(e) The standard requirements of Sec. 72.9 shall not be modified or
voided by a permit revision.
(f) 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 of this part and parts 74 and 76 of
this chapter.
(g) Any designated representative who fails to submit any relevant
information or who has submitted incorrect information in a permit
revision shall, upon becoming aware of such failure or incorrect
submittal, promptly submit such supplementary information or
[[Page 77]]
corrected information to the permitting authority.
(h) For permit revisions not described in Sec. Sec. 72.81 and 72.82
of this part, the permitting authority may, in its discretion, determine
which of these sections is applicable.
[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55484, Oct. 24, 1997]
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:
(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, where the State is the permitting
authority.
(2) For purposes of applying paragraph (c)(1) of this section, a
requested permit modification shall be treated as a permit application,
to the extent consistent with Sec. 72.80 (c) and (d).
[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 17114, Apr. 4, 1995; 62
FR 55485, Oct. 24, 1997]
Sec. 72.82 Fast-track modifications.
The following procedures shall apply to all fast-track
modifications.
(a) If the Administrator is the permitting authority, the designated
representative shall serve a copy of the fast-track modification on the
Administrator and any person entitled to a written notice under Sec.
72.65(b)(1)(ii) and (iii). If a State is the permitting authority, the
designated representative shall serve such a copy on the Administrator,
the permitting authority, and any person entitled to receive a written
notice of a draft permit under the approved State operating permit
program. 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 sources are
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 if the
Administrator is the permitting authority or within 90 days of the close
of the public
[[Page 78]]
comment period if a State is the permitting authority, 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 subject to the same provisions for review by the
Administrator and affected States as are applicable to a permit
modification under Sec. 72.81.
[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55485, Oct. 24, 1997]
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 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 part 76 of this chapter 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) The addition of a NOX early election plan that was
approved by the Administrator under Sec. 76.8 of this chapter;
(13) The addition of an exemption for which the requirements have
been met under Sec. 72.7 or Sec. 72.8 and
(14) Incorporation of changes that the Administrator has determined
to be similar to those in paragraphs (a)(1) through (13) of this
section.
(b)(1) The permitting authority will take final action on an
administrative permit amendment within 60 days, or, for the addition of
an alternative emissions limitation demonstration period, within 90
days, of receipt of the requested amendment and may take such action
without providing prior public notice. The source may implement any
changes in the administrative permit amendment immediately upon
submission of the requested amendment, provided that the requirements of
paragraph (a) of this section are met.
(2) The permitting authority may, on its own motion, make an
administrative permit amendment under paragraph (a)(3), (a)(4), (a)(12),
or (a)(13) of this section at least 30 days after providing notice to
the designated representative of the amendment and without providing any
other prior public notice.
(c) The permitting authority will designate the permit revision
under paragraph (b) of this section as having been made as an
administrative permit amendment. Where a State is the permitting
authority, the permitting authority shall submit the revised portion of
the permit to the Administrator.
[[Page 79]]
(d) An administrative amendment shall not be subject to the
provisions for review by the Administrator and affected States
applicable to a permit modification under Sec. 72.81.
[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 17114, Apr. 4, 1995; 62
FR 55485, Oct. 24, 1997; 66 FR 12978, Mar. 1, 2001]
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) The permitting authority shall reopen an Acid Rain permit for
cause whenever:
(1) Any additional requirement under the Acid Rain Program becomes
applicable to any affected unit governed by the permit;
(2) The permitting authority determines that the permit contains a
material mistake or that an inaccurate statement was made in
establishing the emissions standards or other terms or conditions of the
permit, unless the mistake or statement is corrected in accordance with
Sec. 72.83; or
(3) The permitting authority determines that the permit must be
revised or revoked to assure compliance with Acid Rain Program
requirements.
(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 Sec. Sec. 72.73(b)(1) and 72.74(c)(2), the
permitting authority shall reopen an Acid Rain permit to incorporate
nitrogen oxides requirements, consistent with part 76 of this chapter.
(d) Any reopening of an Acid Rain permit shall not affect the term
of the permit.
[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55485, Oct. 24, 1997]
Subpart I_Compliance Certification
Sec. 72.90 Annual compliance certification report.
(a) Applicability and deadline. For each calendar year during 1995
through 2005 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;
(2) For all Phase I units, the information in accordance with
Sec. Sec. 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
[[Page 80]]
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, including whether conditionally valid data, as
defined in Sec. 72.2, were reported in the quarterly report. If
conditionally valid data were reported, the owner or operator shall
indicate whether the status of all conditionally valid data has been
resolved and all necessary quarterly report resubmissions have been
made.
(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.
[58 FR 3650, Jan. 11, 1993, as amended at 64 FR 28588, May 26, 1999; 70
FR 25334, May 12, 2005]
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 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
[[Page 81]]
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
utilization and the compensating unit have certified (in their
respective annual compliance certification reports) as the 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
[[Page 82]]
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 efficiency
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.
(iii) For each figure 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, or that
[[Page 83]]
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,
except measures relating to generation efficiency.
(iv) The sum of the verified reductions in a unit's heat input from
all measures implemented at the unit to reduce the unit's heat rate
(whether the measures are treated as supply-side measures or improved
unit efficiency measures) shall not exceed the generation (in kwh)
attributed to the unit for the calendar year times the difference
between the unit's heat rate for 1987 and the unit's heat rate for the
calendar year.
(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 improved 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 unit'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 heat
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 unit's 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.
(iv) The allowances credited shall not exceed the total number of
allowances deducted from the unit's compliance subaccount for the
calendar year in accordance with Sec. Sec. 72.92(a) and (c) and
73.35(b) of this chapter.
(5) If the total, included in the confirmation report, of the amount
of verified reduction in the unit's heat input for 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 calculated in accordance with this
paragraph (b)(5).
[[Page 84]]
(i) If any allowances were deducted from the unit's compliance
subaccount for the calendar year in accordance with Sec. Sec. 72.92(a)
and (c) and 73.35(b) of this chapter, then the number of allowances to
be deducted under paragraph (b)(5) of this section equals the absolute
value of the result of the formula for allowances credited under
paragraph (b)(4) of this section (excluding paragraph (b)(4)(iv) of this
section).
(ii) If no allowances were deducted from the unit's compliance
subaccount for the calendar year in accordance with Sec. Sec. 72.92(a)
and (c) and 73.35(b) of this chapter:
(A) The designated representative shall recalculate the unit's
adjusted utilization in accordance with paragraph (a) of this section,
replacing the amounts for reduction from energy conservation and
reduction from improved unit efficiency by the amount for verified heat
input reduction. ``Verified heat input reduction'' is the total of the
amounts of verified reduction in the unit's heat input (in mmBtu) from
energy conservation and improved unit efficiency measures included in
the confirmation report.
(B) After recalculating the adjusted utilization under paragraph
(b)(5)(ii)(A) of this section for all Phase I units that are in the
unit's dispatch system and to which paragraph (b)(5) of this section is
applicable, the designated representative shall calculate the number of
allowances to be surrendered in accordance with Sec. 72.92(c)(2) using
the recalculated adjusted utilizations of such Phase I units.
(C) The allowances to be deducted under paragraph (b)(5) of this
section shall equal the amount under paragraph (b)(5)(ii)(B) of this
section, provided that if the amount calculated under this paragraph
(b)(5)(ii)(C) is equal to or less than zero, then the amount of
allowances to be deducted is zero.
(6) The Administrator will determine the amount of allowances that
would have been included in the unit's compliance subaccount and the
amount of excess emissions of sulfur dioxide that would have resulted 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 unit efficiency measures.
(7) The Administrator will determine whether the amount of excess
emissions of sulfur dioxide under paragraph (b)(6) of this section
differs from the amount of excess emissions determined under Sec.
73.35(b) of this chapter based on the annual compliance certification
report. If the amounts differ, the Administrator will determine: 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 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(b)(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
[[Page 85]]
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; 62 FR 55485, Oct.
24, 1997]
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 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.
[[Page 86]]
(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 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
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
[[Page 87]]
(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 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
[[Page 88]]
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 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.
[[Page 89]]
(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 source's compliance account 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 +
Allowances deducted for substitution or compensating units
where:
(a) ``Tons emitted'' is the total tons of sulfur dioxide emitted by
the affected units at the source 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).
(d) ``Allowances deducted for substitution or compensating units''
is the total number of allowances calculated in accordance with the
surrender requirements specified under Sec. 72.41(d)(3) or
(e)(1)(iii)(B) or Sec. 72.43(d)(2).
[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55485, Oct. 24, 1997; 70
FR 25334, May 12, 2005]
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 source's compliance account in accordance with part 73
of this chapter based on the information in the compliance
certifications and other submissions, as adjusted.
[58 FR 3650, Jan. 11, 1993, as amended at 70 FR 25334, May 12, 2005]
Sec. 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 90]]
Table A-1--SO2Emission 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
------------------------------------------------------------------------
Sec. 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.
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.
------------------------------------------------------------------------
Sec. 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
------------------------------------------------------------------------
[[Page 91]]
For all fuel, the units conversion factor is 1 ton/2000 lbs.
Sec. 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 phase II.
73.11 [Reserved]
73.12 Rounding procedures.
73.13 Procedures for submittals.
73.14-73.17 [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 [Reserved]
73.33 Authorized account representative.
73.34 Recordation in accounts.
73.35 Compliance.
73.36 Banking.
73.37 Account error.
73.38 Closing of accounts.
Subpart D_Allowance Transfers
73.50 Scope and submission of transfers.
73.51 [Reserved]
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 of Part 73--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.
[[Page 92]]
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 Sec. Sec. 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
Independent Power Producers Written Guarantee'', are codified at
Sec. Sec. 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 phase II.
(a) Phase I allowances. The Administrator will allocate allowances
to the compliance account for each source that includes a unit listed in
table 1 of this section in the amount listed in column A to be held for
the years 1995 through 1999.
Table 1--Phase I Allowance Allocations
----------------------------------------------------------------------------------------------------------------
Column A final
State name Plant name Boiler phase 1 Column B auction
allocation and sales 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
[[Page 93]]
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
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
[[Page 94]]
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
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
[[Page 95]]
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
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
[[Page 96]]
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
----------------------------------------------------------------------------------------------------------------
(b) Phase II allowances. (1) The Administrator will allocate
allowances to the compliance account for each source that includes a
unit listed in table 2 of this section in the amount specified in table
2 column C to be held for the years 2000 through 2009.
(2) The Administrator will allocate allowances to the compliance
account for each source that includes a unit listed in table 2 of this
section in the amount specified in table 2 column F to be held for the
years 2010 and each year thereafter.
[[Page 97]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.001
[[Page 98]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.002
[[Page 99]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.003
[[Page 100]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.004
[[Page 101]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.005
[[Page 102]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.006
[[Page 103]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.007
[[Page 104]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.008
[[Page 105]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.009
[[Page 106]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.010
[[Page 107]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.011
[[Page 108]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.012
[[Page 109]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.013
[[Page 110]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.014
[[Page 111]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.015
[[Page 112]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.016
[[Page 113]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.017
[[Page 114]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.018
[[Page 115]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.019
[[Page 116]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.020
[[Page 117]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.021
[[Page 118]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.022
[[Page 119]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.023
[[Page 120]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.024
[[Page 121]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.025
[[Page 122]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.026
[[Page 123]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.027
[[Page 124]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.028
[[Page 125]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.029
[[Page 126]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.030
[[Page 127]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.031
[[Page 128]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.032
[[Page 129]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.033
[[Page 130]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.034
[[Page 131]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.035
[[Page 132]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.036
[[Page 133]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.037
[[Page 134]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.038
[[Page 135]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.039
[[Page 136]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.040
[[Page 137]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.041
[[Page 138]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.042
[[Page 139]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.043
[[Page 140]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.044
[[Page 141]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.045
[[Page 142]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.046
[[Page 143]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.047
[[Page 144]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.048
[[Page 145]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.049
[[Page 146]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.050
(3) The owner of each unit listed in the following table shall
surrender, for each allowance listed in Column A or B of such table, an
allowance of the same or earlier compliance use date and shall return to
the Administrator any proceeds received from allowances withheld from
the unit, as listed in Column C of such table. The allowances shall be
surrendered and the proceeds shall be returned by December 28, 1998.
----------------------------------------------------------------------------------------------------------------
Allowances for Allowances for
2000 through 2010 and
State Plant name Unit 2009 column thereafter Proceeds
(A) column (B)
----------------------------------------------------------------------------------------------------------------
CA................. El Centro........... 2 285 272 $2749.48
CO................. Valmont............. 11 4 0 0
FL................. Lauderdale.......... PFL4 776 781 7904.74
FL................. Lauderdale.......... PFL5 796 802 7904.74
LA................. R S Nelson.......... 1 30 34 0
LA................. R S Nelson.......... 2 33 32 0
MD................. R P Smith........... 9 0 56 687.37
NM................. Maddox.............. **3 85 85 687.37
SD................. Mobile.............. **2 17 17 0
VA................. Chesterfield........ **8B 409 411 4124.21
WI................. Blount Street....... 7 0 13 343.68
WI................. Blount Street....... 8 0 294 3093.16
WI................. Blount Street....... 9 0 355 3436.84
----------------------------------------------------------------------------------------------------------------
[[Page 147]]
[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; 62 FR 55486, Oct.
24, 1997; 63 FR 51714, Sept. 28, 1998; 70 FR 25335, May 12, 2005]
Sec. 73.11 [Reserved]
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) [Reserved]
[58 FR 3687, Jan. 11, 1993, as amended at 63 FR 51765, Sept. 28, 1998]
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), 1200 Pennsylvania Ave., NW., 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 Sec. Sec.
73.18, 73.19, and 73.20, using the appeals procedures of part 78 of this
chapter.
[58 FR 15708, Mar. 23, 1993, as amended at 63 FR 51765, Sept. 28, 1998]
Sec. Sec. 73.14-73.17 [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 SO &bdi2; 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 actual SO2 emission rate is less than 1.2 lb/
mmBtu in any one calendar year from 1996 through 1999, as reported under
part 75 of this chapter;
(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) [Reserved]
[58 FR 15710, Mar. 23, 1993, as amended at 63 FR 51765, Sept. 28, 1998]
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;
[[Page 148]]
(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:
[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
[[Page 149]]
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.
[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
[[Page 150]]
(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] TC01SE92.076
(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.
[[Page 151]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.079
(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
[[Page 152]]
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 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]
Sec. 73.21 Phase II repowering allowances.
(a) Repowering allowances. In addition to allowances allocated under
Sec. 73.10(b), 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 are as listed in the following table
------------------------------------------------------------------------
Year 2000
adjusted
Unit basic
allowances
------------------------------------------------------------------------
RE Burger 1................................................ 1273
RE Burger 2................................................ 1245
RE Burger 3................................................ 1286
RE Burger 4................................................ 1316
RE Burger 5................................................ 1336
RE Burger 6................................................ 1332
New Castle 1............................................... 1334
New Castle 2............................................... 1485
New Castle 3............................................... 2935
New Castle 4............................................... 2686
New Castle 5............................................... 5481
------------------------------------------------------------------------
(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. 73.10(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 153]]
[GRAPHIC] [TIFF OMITTED] TC01SE92.082
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 are as listed in the table in paragraph
(a) of this section.
(c)(2) The Administrator will reallocate any allowances forfeited in
paragraph (c)(1) of this section with a compliance use date of 2000 or
any allowances remaining in the repowering reserve to all Table 2 units'
years 2000 through 2009 subaccounts in the following manner:
[GRAPHIC] [TIFF OMITTED] TR28SE98.051
[53 FR 15713, Mar. 23, 1993, as amended at 63 FR 51765, Sept. 28, 1998]
Sec. Sec. 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 250,000 allowances annually for
calendar year 2000 and each year thereafter to the Auction 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 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 according
to the following equation:
[[Page 154]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.052
(3) On or after June 1, 1998, monetary proceeds from the auctions 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 according
to the following equation:
[GRAPHIC] [TIFF OMITTED] TR28SE98.053
(4) Monetary proceeds from the auctions of allowances from the
Special Allowance Reserve (under subpart E of this part) from years of
purchase from 1993 through 1998, remaining in the U.S. Treasury as a
result of the surrender of allowances and return of proceeds under Sec.
73.10(b)(3), will be distributed to the designated representative of
each unit listed in Table 2 according to the following equation:
[GRAPHIC] [TIFF OMITTED] TR28SE98.054
(5) Monetary proceeds from the auctions 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 according to the following
equation:
[GRAPHIC] [TIFF OMITTED] TR28SE98.055
(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 (under subpart E of this part),
will be reallocated to the unit's Allowance Tracking System account
according to the following equation:
[[Page 155]]
[GRAPHIC] [TIFF OMITTED] TR28SE98.056
(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 (under subpart E of this
part), will be reallocated to the compliance account of the source that
includes the unit according to the following equation:
[GRAPHIC] [TIFF OMITTED] TR28SE98.057
(4) [Reserved]
(5) 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 (under subpart E of this part), will be
reallocated to the compliance account of the source that includes the
unit according to the following equation:
[GRAPHIC] [TIFF OMITTED] TR28SE98.058
(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; 63
FR 51765, Sept. 28, 1998; 70 FR 25335, May 12, 2005]
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 compliance accounts for all affected sources pursuant to Sec.
73.31 (a) and (b). All allocations of allowances pursuant to subparts B,
E, and F of this
[[Page 156]]
part and part 72 of this chapter, transfers of allowances made pursuant
to subparts C and 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 source's compliance
account.
(b) Nature and function of general accounts. Transfers of allowances
held for any person other than an affected source, made pursuant to
subparts C, D, E, F, and G of this part will be recorded in that
person's general account established pursuant to Sec. 73.31(c).
[58 FR 3687, Jan. 11, 1993; 58 FR 40747, July 30, 1993, as amended at 70
FR 25335, May 12, 2005]
Sec. 73.31 Establishment of accounts.
(a) Existing affected units. The Administrator will establish a
compliance account and allocate allowances for each source that includes
a 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
a compliance account for the source that includes the unit, unless the
source already has a compliance account.
(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 general 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 representations, actions, inactions, or submissions
under 40 CFR part 73. 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
[[Page 157]]
Administrator has established the new account.
(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, as amended at 71
FR 25378, Apr. 28, 2006; 70 FR 25335, May 12, 2005]
Sec. 73.32 [Reserved]
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)-(c) [Reserved]
(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 representation, action, inaction, or submission by the
alternate authorized account representative when acting in that capacity
shall be deemed to be a representation, action, inaction, or submission
of the authorized account representative, with all the rights, duties,
and responsibilities pertaining thereto.
(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 representations, actions, inactions, or
submissions 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
representation, action, inaction, or submission to the Administrator by
the authorized account representative shall affect any representation,
action, inaction, or submission of 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.
(g) Delegation by authorized account representative and alternate
authorized account representative. (1) An authorized account
representative may delegate, to one or more natural persons, his or her
authority to make an electronic submission (in a format prescribed by
the Administrator) to the Administrator provided for or required under
this part.
(2) An alternate authorized account representative may delegate, to
one or more natural persons, his or her authority to make an electronic
submission (in a format prescribed by the Administrator) to the
Administrator provided for or required under this part.
(3) In order to delegate authority to make an electronic submission
to the Administrator in accordance with paragraph (g)(1) or (2) of this
section,
[[Page 158]]
the authorized account representative or alternate authorized account
representative, as appropriate, must submit to the Administrator a
notice of delegation, in a format prescribed by the Administrator, that
includes the following elements:
(i) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of such authorized account
representative or alternate authorized account representative;
(ii) The name, address, e-mail address, telephone number, and,
facsimile transmission number (if any) of each such natural person
(referred to as an ``agent'');
(iii) For each such natural person, a list of the type or types of
electronic submissions under paragraph (g)(1) or (2) of this section for
which authority is delegated to him or her;
(iv) The following certification statements by such authorized
account representative or alternate authorized account representative:
(A) ``I agree that any electronic submission to the Administrator
that is by an agent identified in this notice of delegation and of a
type listed for such agent in this notice of delegation and that is made
when I am a authorized account representative or alternate authorized
representative, as appropriate, and before this notice of delegation is
superseded by another notice of delegation under 40 CFR 73.33(g)(4)
shall be deemed to be an electronic submission by me.''
(B) ``Until this notice of delegation is superseded by another
notice of delegation under 40 CFR 73.33(g)(4), I agree to maintain an e-
mail account and to notify the Administrator immediately of any change
in my e-mail address unless all delegation of authority by me under 40
CFR 73.33(g) is eliminated.''
(4) A notice of delegation submitted under paragraph (g)(3) of this
section shall be effective, with regard to the authorized account
representative or alternate authorized account representative identified
in such notice, upon receipt of such notice by the Administrator and
until receipt by the Administrator of a superseding notice of delegation
submitted by such authorized account representative or alternate
authorized account representative, as appropriate. The superseding
notice of delegation may replace any previously identified agent, add a
new agent, or eliminate entirely any delegation of authority.
(5) Any electronic submission covered by the certification in
paragraph (g)(3)(iv)(A) of this section and made in accordance with a
notice of delegation effective under paragraph (g)(4) of this section
shall be deemed to be an electronic submission by the designated
representative or alternate designated representative submitting such
notice of delegation.
[58 FR 3691, Jan. 11, 1993, as amended at 71 FR 25378, Apr. 28, 2006]
Sec. 73.34 Recordation in accounts.
(a) After a compliance account is established under Sec. 73.31(a)
or (b), the Administrator will record in the compliance account any
allowance allocated to any affected unit at the source for 30 years
starting with the later of 1995 or the year in which the compliance
account is established and any allowance allocated for 30 years starting
with the later of 1995 or the year in which the compliance account is
established and transferred to the source with the transfer submitted in
accordance with Sec. 73.50. In 1996 and each year thereafter, after
Administrator has completed the deductions pursuant to Sec. 73.35(b),
the Administrator will record in the compliance account any allowance
allocated to any affected unit at the source for the new 30th year
(i.e., the year that is 30 years after the calendar year for which such
deductions are made) and any allowance allocated for the new 30th year
and transferred to the source with the transfer submitted in accordance
with Sec. 73.50.
(b) After a general account is established under Sec. 73.31(c), the
Administrator will record in the general account any allowance allocated
for 30 years starting with the later of 1995 or the year in which the
general account is established and transferred to the general account
with the transfer submitted in accordance with Sec. 73.50. In 1996 and
each year thereafter, after the Administrator has completed the
deductions pursuant to Sec. 73.35(b), the Administrator will record in
the general
[[Page 159]]
account any allowance allocated for the new 30th year (i.e., the year
that is 30 years after the calendar year for which such deductions are
made) and transferred to the general account with the transfer submitted
in accordance with Sec. 73.50.
(c) Allowances in each compliance account and general account
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 Sec. Sec.
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;
(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 Sec. Sec.
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; 63
FR 68404, Dec. 11, 1998; 70 FR 25335, May 12, 2005]
Sec. 73.35 Compliance.
(a) Allowance transfer deadline. No allowance shall be deducted for
purposes of compliance with an affected source'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 source's SO2 emissions occurred; and
(2) The allowance is:
(i) Recorded in the source's compliance account; or
(ii) Transferred to the source's compliance account, with the
transfer submitted correctly pursuant to subpart D of this part for
recordation in the source's compliance account by not later than the
allowance transfer deadline in the calendar year following the year for
which compliance is being established; and
(3) The allowance was not previously deducted by the Administrator
in accordance with a State SO2 mass emissions reduction
program under Sec. 51.124(o) of this chapter or otherwise permanently
retired in accordance with Sec. 51.124(p) of this chapter.
(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 account pursuant to
paragraph (a) of this section and subpart D of this part, the
Administrator will deduct allowances available for deduction under
paragraph (a) of this section from each affected source's compliance
account 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 available for deduction under
paragraph (a) of this section remain in the compliance account.
(c)(1) Identification of allowances by serial number. The authorized
account representative for a source's compliance account may request
that specific allowances, identified by serial number, in the compliance
account be deducted for a calendar year in accordance with paragraph (b)
or (d) of this section. Such request shall be submitted to the
Administrator by the allowance transfer deadline for the year and
include, in a format prescribed by the Administrator, the identification
of the source and the appropriate serial numbers.
(2) First-in, first-out. In the absence of an identification or in
the case of a
[[Page 160]]
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 units at the source and recorded in the
source's compliance account. Following the deduction of all originally
allocated allowances from the compliance account, the Administrator will
deduct those allowances that were transferred and recorded in the
source's compliance account 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
source with excess emissions for the preceding calendar year in an
amount equal to the source's excess emissions tonnage.
[58 FR 3691, Jan. 11, 1993, as amended at 60 FR 17114, Apr. 4, 1995; 64
FR 25842, May 13, 1999; 70 FR 25335, May 12, 2005]
Sec. 73.36 Banking.
(a) Compliance accounts. Any allowance in a compliance account not
deducted pursuant to Sec. 73.35 will remain in the compliance account.
(b) General accounts. In the case of a general account, any
allowances in the general account not transferred pursuant to subpart D
to another Allowance Tracking System account will remain in the general
account.
[58 FR 3691, Jan. 11, 1993, as amended at 70 FR 25336, May 12, 2005]
Sec. 73.37 Account error.
The Administrator may, at his or her sole discretion and on his or
her own motion, correct any error in any Allowance Tracking System
account. Within 10 business days of making such correction, the
Administrator will notify the authorized account representative for the
account.
[70 FR 25336, May 12, 2005]
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 close the general account.
(b) Inactive accounts. If a general account shows no activity for a
12-month period or longer and does not contain any allowances, the
Administrator may notify the account's authorized account representative
that the account will be closed 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.
[58 FR 3691, Jan. 11, 1993, as amended at 70 FR 25336, May 12, 2005]
Subpart D_Allowance Transfers
Source: 58 FR 3694, Jan. 11, 1993, unless otherwise noted.
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.
(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;
[[Page 161]]
(ii) A specification by serial number of each allowance to be
transferred;
(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)(i) The authorized account representative for the transferee
account can meet the requirements in paragraphs (b)(1)(iii) and (iv) of
this section by submitting, in a format prescribed by the Administrator,
a statement signed by the authorized account representative and
identifying each account into which any transfer of allowances,
submitted on or after the date on which the Administrator receives such
statement, is authorized. Such authorization shall be binding on any
authorized account representative for such account and shall apply to
all transfers into the account that are submitted on or after such date
of receipt, unless and until the Administrator receives a statement in a
format prescribed by the Administrator and signed by the authorized
account representative retracting the authorization for the account.
(ii) The statement under paragraph (b)(2)(i) of this section shall
include the following: ``By this signature, I authorize any transfer of
allowances into each account listed herein, except that I do not waive
any remedies under State or federal law to obtain correction of any
erroneous transfers into such accounts. This authorization shall be
binding on any authorized account representative for such account unless
and until a statement signed by the authorized account representative
retracting this authorization for the account is received by the
Administrator.''
[58 FR 3694, Jan. 11, 1993, as amended at 63 FR 68404, Dec. 11, 1998; 70
FR 25336, May 12, 2005]
Sec. 73.51 [Reserved]
Sec. 73.52 EPA recordation.
(a) General recordation. Except as provided in this paragraph (a),
the Administrator will record an allowance transfer by no later than
five business days (or longer as necessary to perform a transfer in
perpetuity of allowances allocated to a unit) 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 transfer is correctly submitted under Sec. 73.50;
(2) The transferor account includes each allowance identified by
serial number in the transfer; and
(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.
(b) To the extent an allowance transfer submitted for recordation
after the allowance transfer deadline includes allowances allocated for
any year before the year in which the allowance transfer deadline
occurs, the transfer of such allowance will not be recorded until after
completion of the deductions pursuant to Sec. 73.35(b) for year before
the year in which the allowance transfer deadline occurs.
(c) Where an allowance transfer submitted for recordation fails to
meet the requirements of paragraph (a) of this section, the
Administrator will not record such transfer.
[58 FR 3694, Jan. 11, 1993, as amended at 60 FR 17114, Apr. 4, 1995; 70
FR 25336, May 12, 2005]
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
[[Page 162]]
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 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..................................... 50,000 100,000
\a\ \b\
1994..................................... 50,000 100,000 25,000
\a\ \b\ \c\
1995..................................... 50,000 100,000 25,000
\a\ \b\ \c\
1996..................................... 150,000 100,000 25,000
\b\ \c\
1997..................................... 150,000 125,000 25,000
\b\ \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
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 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; 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
[[Page 163]]
the lowest minimum price. Allowances offered at the lowest minimum price
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.
(f) Transfer of allowances. Allowances will be transferred from the
Auction Subaccount and from the Allowance Tracking System account 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 source that includes a unit specified in
paragraph (h)(1) of this section its pro rata share of any allowances
remaining in the Auction Subaccount. Each unit's pro rata share will be
calculated pursuant to regulations to be promulgated under subpart B.
[[Page 164]]
(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; 63
FR 5735, Feb. 4, 1998; 63 FR 51766, Sept. 28, 1998; 70 FR 25336, May 12,
2005]
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.
(c) Termination of auctions. The Administrator may, in the
Administrator's discretion, terminate the withholding of allowances and
the auctions
[[Page 165]]
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 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
[[Page 166]]
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 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,
[[Page 167]]
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 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
[[Page 168]]
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 for any
calendar year shall be equal to the product of:
[[Page 169]]
[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 170]]
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 171]]
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 the
Reserve. After all Reserve allocations have been made to applicants
[[Page 172]]
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.
Sec. Appendix A to Subpart F of Part 73--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
[[Page 173]]
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
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
Process heat recovery
Deadband thermostat
Timeclocks on circulating pumps
Chiller system
Increase condensing unit efficiency
Separate make-up air for exhaust hoods
Variable air volume system
Direct tower cooling (chiller strainer cycle)
Multiple chiller control
Radiant heating
Evaporative roof surface cooling
Cooling tower flow control
Ceiling fans
Evaporative cooling
Direct expansion cooling system
Heat recovery ventilation (water and air-source)
Set-back controls for heating/cooling
Make-up air control
Manual fan switches
Energy saving exhaust hood
Night flushing
Spot radiant heating
Terminal regulated air volume control scheme
Variable speed motors for HVAC system
Waterside economizers