Express Terms Part 245, CAIR SO2 Trading Program
Subpart 245-1 CAIR SO2 Trading Program General Provisions
245-1.1 Purpose.
245-1.2 Definitions.
245-1.3 Measurements, abbreviations, and acronyms.
245-1.4 Applicability.
245-1.5 Retired unit exemption.
245-1.6 Standard requirements.
245-1.7 Computation of time.
245-1.8 Appeal procedures.
Subpart 245-2 CAIR Designated Representative for CAIR SO2 Sources
245-2.1 Authorization and responsibilities of CAIR designated representative.
245-2.2 Alternate CAIR designated representative.
245-2.3 Changing CAIR designated representative and alternate CAIR designated representative; changes in owners and operators.
245-2.4 Certificate of representation.
245-2.5 Objections concerning CAIR designated representative.
245-2.6 Delegation by CAIR designated representative and alternate CAIR designated representative.
Subpart 245-3 Permits
245-3.1 General CAIR SO2 Trading Program permit requirements.
245-3.2 Submission of CAIR permit applications.
245-3.3 Information requirements for CAIR permit applications.
245-3.4 CAIR permit contents.
245-3.5 CAIR permit revisions.
Subpart 245-4 Reserved.
Subpart 245-5 Reserved.
Subpart 245-6 CAIR SO2 Allowance Tracking System
245-6.1 Reserved.
245-6.2 Establishment of accounts.
245-6.3 Responsibilities of CAIR authorized account representative.
245-6.4 Recordation of CAIR SO2 allowances.
245-6.5 Compliance with CAIR SO2 emissions limitation.
245-6.6 Banking.
245-6.7 Account error.
245-6.8 Closing of general accounts.
Subpart 245-7 CAIR SO2 Allowance Transfers
245-7.1 Submission of CAIR SO2 allowance transfers.
245-7.2 EPA recordation.
245-7.3 Notification.
Subpart 245-8 Monitoring and Reporting
245-8.1 General requirements.
245-8.2 Initial certification and recertification procedures.
245-8.3 Out of control periods.
245-8.4 Notifications.
245-8.5 Recordkeeping and reporting.
245-8.6 Petitions.
Subpart 245-9 CAIR SO2 Opt-in Units
245-9.1 Applicability.
245-9.2 General.
245-9.3 CAIR designated representative.
245-9.4 Applying for CAIR opt-in permit.
245-9.5 Opt-in process.
245-9.6 CAIR opt-in permit contents.
245-9.7 Withdrawal from CAIR SO2 Trading Program.
245-9.8 Change in regulatory status.
245-9.9 SO2 allowance allocations to CAIR SO2 opt-in units.
Subpart 245-1 CAIR SO2 Trading Program General Provisions
245-1.1 Purpose.
This part establishes the Clean Air Interstate Rule (CAIR) SO2 Trading Program, which is designed to mitigate interstate transport of fine particulates and sulfur dioxide. Emissions of NOx and SO2 contribute to the formation of particulate matter with a mass median diameter of less than 2.5 microns. The department authorizes the Administrator to assist the department in implementing the CAIR SO2 Trading Program by performing the functions set forth for the Administrator in this Part.
245-1.2 Definitions.
(a) To the extent that they are not inconsistent with the specific definitions in subdivision (b) of this section, the general definitions of Part 200 of this Title apply to this Part.
(b) For the purposes of this Part, the following specific definitions apply:
(1) 'Account number.' The identification number given by the Administrator to each CAIR SO2 Allowance Tracking System account.
(2) 'Acid Rain emissions limitation.' A limitation on emissions of sulfur dioxide or nitrogen oxides under the Acid Rain Program.
(3) 'Acid Rain Program.' A multi-state sulfur dioxide and nitrogen oxides air pollution control and emission reduction program established by the Administrator under title IV of the Act and 40 CFR Parts 72 through 78.
(4) 'Allocate or allocation.' With regard to CAIR SO2 allowances issued under the Acid Rain Program, the determination by the Administrator of the amount of such CAIR SO2 allowances to be initially credited to a CAIR SO2 unit or other entity and, with regard to CAIR SO2 allowances issued under provisions of a State implementation plan that are approved under 40 CFR 51.124(o)(1) or (2) or (r) or 40 CFR 97.288, the determination by a permitting authority of the amount of such CAIR SO2 allowances to be initially credited to a CAIR SO2 unit or other entity.
(5) 'Allowance transfer deadline.' For a control period, midnight of March 1 (if it is a business day), or midnight of the first business day thereafter (if March 1 is not a business day), immediately following the control period and is the deadline by which a CAIR SO2 allowance transfer must be submitted for recordation in a CAIR SO2 source's compliance account in order to be used to meet the source's CAIR SO2 emissions limitation for such control period in accordance with section 245-6.5.
(6) 'Alternate CAIR designated representative.' For a CAIR SO2 source and each CAIR SO2 unit at the source, the natural person who is authorized by the owners and operators of the source and all such units at the source, in accordance with Subparts 245-2 and 245-9, to act on behalf of the CAIR designated representative in matters pertaining to the CAIR SO2 Trading Program. If the CAIR SO2 source is also a CAIR NOx source, then this natural person shall be the same person as the alternate CAIR designated representative under the CAIR NOx Annual Trading Program. If the CAIR SO2 source is also a CAIR NOx Ozone Season source, then this natural person shall be the same person as the alternate CAIR designated representative under the CAIR NOx Ozone Season Trading Program. If the CAIR SO2 source is also subject to the Acid Rain Program, then this natural person shall be the same person as the alternate designated representative under the Acid Rain Program. If the CAIR SO2 source is subject to the Mercury Reduction Program for Coal-Fired Electric Utility Steam Generating Units (6 NYCRR Part 246), then this natural person shall be the same person as the owner or operator required to submit monitoring and compliance data pursuant to Part 246.
(7) 'Automated data acquisition and handling system or DAHS.' That component of the continuous emission monitoring system, or other emissions monitoring system approved for use under Subpart 245-8, designed to interpret and convert individual output signals from pollutant concentration monitors, flow monitors, diluent gas monitors, and other component parts of the monitoring system to produce a continuous record of the measured parameters in the measurement units required by Subpart 245-8.
(8) 'Boiler.' An enclosed fossil- or other-fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium.
(9) 'Bottoming-cycle cogeneration unit.' A cogeneration unit in which the energy input to the unit is first used to produce useful thermal energy and at least some of the reject heat from the useful thermal energy application or process is then used for electricity production.
(10) 'CAIR authorized account representative.' With regard to a general account, a responsible natural person who is authorized, in accordance with Subparts 245-2, 245-6, and 245-9, to transfer and otherwise dispose of CAIR SO2 allowances held in the general account and, with regard to a compliance account, the CAIR designated representative of the source.
(11) 'CAIR designated representative.' For a CAIR SO2 source and each CAIR SO2 unit at the source, the natural person who is authorized by the owners and operators of the source and all such units at the source, in accordance with Subparts 245-2 and 245-9, to represent and legally bind each owner and operator in matters pertaining to the CAIR SO2 Trading Program. If the CAIR SO2 source is also a CAIR NOx source, then this natural person shall be the same person as the CAIR designated representative under the CAIR NOx Annual Trading Program. If the CAIR SO2 source is also a CAIR NOx Ozone Season source, then this natural person shall be the same person as the CAIR designated representative under the CAIR NOx Ozone Season Trading Program. If the CAIR SO2 source is also subject to the Acid Rain Program, then this natural person shall be the same person as the designated representative under the Acid Rain Program. If the CAIR SO2 source is subject to the Mercury Reduction Program for Coal-Fired Electric Utility Steam Generating Units (6 NYCRR Part 246), then this natural person shall be the same person as the owner or operator required to submit monitoring and compliance data pursuant to Part 246.
(12) 'CAIR NOx Annual Trading Program.' A multi-state nitrogen oxides air pollution control and emission reduction program established pursuant to Part 244 of this Title and corresponding regulations in other States promulgated in accordance with 40 CFR 51.123(o)(1) or (2), along with any Federal Implementation Plan imposed by the Administrator in accordance with 40 CFR 97.101-188, 40 CFR 51.123(p), and 40 CFR 52.35, as a means of mitigating interstate transport of fine particulates and nitrogen oxides.
(13) 'CAIR NOx Ozone Season source.' A source that is subject to the CAIR NOx Ozone Season Trading Program.
(14) 'CAIR NOx Ozone Season Trading Program.' A multi-state nitrogen oxides air pollution control and emission reduction program established pursuant to Part 243 of this Title and corresponding regulations in other States promulgated in accordance with 40 CFR 51.123(aa)(1) or (2)(and(bb)(1)), (bb)(2), or (dd) along with any Federal Implementation Plan imposed by the Administrator in accordance with 40 CFR 97.301-388, 40 CFR 51.123(ee), and 40 CFR 52.35, as a means of mitigating interstate transport of ozone and nitrogen oxides.
(15) 'CAIR NOx source.' A source that is subject to the CAIR NOx Annual Trading Program.
(16) 'CAIR permit.' The portion of the legally binding and federally enforceable written permit issued by the department under Subpart 245-3 and Parts 201 and 621 of this Title, including any permit revisions, specifying the CAIR SO2 Trading Program requirements applicable to a CAIR SO2 source, to each CAIR SO2 unit at the source, and to the owners and operators and the CAIR designated representative of the source and each such unit.
(17) 'CAIR SO2 allowance.' A limited authorization issued by the Administrator under the Acid Rain Program, or by a permitting authority under provisions of a State implementation plan that are approved under 40 CFR 51.124(o)(1) or (2) or (r) or 40 CFR 97.288, to emit sulfur dioxide during the control period of the specified calendar year for which the authorization is allocated or of any calendar year thereafter under the CAIR SO2 Trading Program as follows:
(i) For one CAIR SO2 allowance allocated for a control period in a year before 2010, one ton of sulfur dioxide, except as provided in section 245-6.5(b);
(ii) For one CAIR SO2 allowance allocated for a control period in 2010 through 2014, 0.50 ton of sulfur dioxide, except as provided in section 245-6.5(b); and
(iii) For one CAIR SO2 allowance allocated for a control period in 2015 or later, 0.35 ton of sulfur dioxide, except as provided in section 245-6.5(b).
(iv) An authorization to emit sulfur dioxide that is not issued under the Acid Rain Program, provisions of a State implementation plan that are approved under 40 CFR 51.124(o)(1) or (2) or (r) or 40 CFR 97.288, shall not be a CAIR SO2 allowance.
(18) 'CAIR SO2 allowance deduction or deduct CAIR SO2 allowances.' The permanent withdrawal of CAIR SO2 allowances by the Administrator from a compliance account, e.g., in order to account for a specified number of tons of total sulfur dioxide emissions from all CAIR SO2 units at a CAIR SO2 source for a control period, determined in accordance with Subpart 245-8, or to account for excess emissions.
(19) 'CAIR SO2 Allowance Tracking System.' The system by which the Administrator records allocations, deductions, and transfers of CAIR SO2 allowances under the CAIR SO2 Trading Program. This is the same system as the Allowance Tracking System under 40 CFR 72.2 by which the Administrator records allocations, deductions, and transfers of Acid Rain SO2 allowances under the Acid Rain Program.
(20) 'CAIR SO2 Allowance Tracking System account.' An account in the CAIR SO2 Allowance Tracking System established by the Administrator for purposes of recording the allocation, holding, transferring, or deducting of CAIR SO2 allowances. Such allowances will be allocated, held, deducted, or transferred only as whole allowances.
(21) 'CAIR SO2 allowances held or hold CAIR SO2 allowances.' The CAIR SO2 allowances recorded by the Administrator, or submitted to the Administrator for recordation, in accordance with Subparts 245-6, 245-7, and 245-9, or 40 CFR Part 73, in a CAIR SO2 Allowance Tracking System account.
(22) 'CAIR SO2 emissions limitation.' For a CAIR SO2 source, the tonnage equivalent, in SO2 emissions in a control period, of the CAIR SO2 allowances available for deduction for the source under sections 245-6.5(a) and (b) for the control period.
(23) 'CAIR SO2 source.' A source that includes one or more CAIR SO2 units.
(24) 'CAIR SO2 Trading Program.' A multi-state sulfur dioxide air pollution control and emission reduction program established pursuant to this subpart and corresponding regulations in other States promulgated in accordance with 40 CFR 51.124(o)(1) or (2) along with any Federal Implementation Plan imposed by the Administrator in accordance with 40 CFR 97.201-288 and 40 CFR Part 51.124(r) and 52.36, as a means of mitigating interstate transport of fine particulates and sulfur dioxide.
(25) 'CAIR SO2 unit.' A unit that is subject to the CAIR SO2 Trading Program under section 245-1.4 and, except for purposes of section 245-1.5, a CAIR SO2 opt-in unit under Subpart 245-9.
(26) 'Coal.' Any solid fuel classified as anthracite, bituminous, subbituminous, or lignite.
(27) 'Coal-derived fuel.' Any fuel (whether in a solid, liquid, or gaseous state) produced by the mechanical, thermal, or chemical processing of coal.
(28) 'Coal-fired.' Combusting any amount of coal or coal-derived fuel, alone, or in combination with any amount of any other fuel, during any year.
(29) 'Cogeneration unit.' A stationary, fossil fuel-fired boiler or stationary, fossil fuel-fired combustion turbine:
(i) Having equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy; and
(ii) Producing during the 12-month period starting on the date the unit first produces electricity and during any calendar year after the calendar year in which the unit first produces electricity -
(a) For a topping-cycle cogeneration unit,
(1) Useful thermal energy not less than five percent of total energy output; and
(2) Useful power that, when added to one-half of useful thermal energy produced, is not less then 42.5 percent of total energy input, if useful thermal energy produced is 15 percent or more of total energy output, or not less than 45 percent of total energy input, if useful thermal energy produced is less than 15 percent of total energy output.
(b) For a bottoming-cycle cogeneration unit, useful power not less than 45 percent of total energy input.
(30) 'Combustion turbine':
(i) An enclosed device comprising a compressor, a combustor, and a turbine and in which the flue gas resulting from the combustion of fuel in the combustor passes through the turbine, rotating the turbine; and
(ii) If the enclosed device under subparagraph (i) of this paragraph is combined cycle, any associated duct burner, heat recovery steam generator and steam turbine.
(31) 'Commence Commercial Operation.' With regard to a unit:
(i) To have begun to produce steam, gas, or other heated medium used to generate electricity for sale or use, including test generation, except as provided in sections 245-1.5 and 245-9.5(h).
(a) For a unit that is a CAIR SO2 unit under section 245-1.4 on the later of November 15, 1990 or the date the unit commences commercial operation as defined in subparagraph (i) of this paragraph and that subsequently undergoes a physical change (other than replacement of the unit by a unit at the same source), such date shall remain the date of commencement of commercial operation of the unit, which shall continue to be treated as the same unit.
(b) For a unit that is a CAIR SO2 unit under section 245-1.4 on the later of November 15, 1990 or the date the unit commences commercial operation as defined in subparagraph (i) of this paragraph and that is subsequently replaced by a unit at the same source (e.g., repowered), such date shall remain the replaced unit's date of commencement of commercial operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in subparagraph (i) or (ii) of this paragraph as appropriate.
(ii) Notwithstanding subparagraph (i) of this paragraph and except as provided in section 245-1.5, for a unit that is not a CAIR SO2 unit under section 245-1.4 on the later of November 15, 1990 or the date the unit commences commercial operation as defined in subparagraph (i) of this paragraph, the unit's date for commencement of commercial operation shall be the date on which the unit becomes a CAIR SO2 unit under section 245-1.4.
(a) For a unit with a date for commencement of commercial operation as defined in subparagraph (ii) of this paragraph and that subsequently undergoes a physical change (other than replacement of the unit by a unit at the same source), such date shall remain the date of commencement of commercial operation of the unit, which shall continue to be treated as the same unit.
(b) For a unit with a date for commencement of commercial operation as defined in subparagraph (ii) of this paragraph and that is subsequently replaced by a unit at the same source (e.g., repowered), such date shall remain the replaced unit's date of commencement of commercial operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of commercial operation as defined in subparagraph (i) or (ii) of this paragraph as appropriate.
(32) 'Commence operation.'
(i) To have begun any mechanical, chemical, or electronic process, including, with regard to a unit, start-up of a unit's combustion chamber, except as provided in section 245-9.5(h).
(ii) For a unit that undergoes a physical change (other than replacement of the unit by a unit at the same source) after the date the unit commences operation as defined in subparagraph (i) of this paragraph, such date shall remain the date of commencement of operation of the unit, which shall continue to be treated as the same unit.
(iii) For a unit that is replaced by a unit at the same source (e.g., repowered) after the date the unit commences operation as defined in subparagraph (i) of this paragraph, such date shall remain the replaced unit's date of commencement of operation, and the replacement unit shall be treated as a separate unit with a separate date for commencement of operation as defined in subparagraph (i), (ii), or (iii) of this paragraph as appropriate, except as provided in section 245-9.5(h).
(33) 'Common stack.' A single flue through which emissions from two or more units are exhausted.
(34) 'Compliance account.' A CAIR SO2 Allowance Tracking System account, established by the Administrator for a CAIR SO2 source subject to an Acid Rain emissions limitations under 40 CFR 73.31(a) or (b) or for any other CAIR SO2 source under Subpart 245-6 or 245-9, in which any CAIR SO2 allowance allocations for the CAIR SO2 units at the source are initially recorded and in which are held any CAIR SO2 allowances available for use during a control period in order to meet the source's CAIR SO2 emissions limitation in accordance with section 245-6.5.
(35) 'Continuous emission monitoring system or CEMS.' The equipment required under Subpart 245-8 to sample, analyze, measure, and provide, by means of readings recorded at least once every 15 minutes (using an automated data acquisition and handling system (DAHS)), a permanent record of sulfur dioxide emissions, stack gas volumetric flow rate, stack gas moisture content, and oxygen or carbon dioxide concentration (as applicable), in a manner consistent with 40 CFR Part 75. The following systems are the principal types of continuous emission monitoring systems required under Subpart 245-8:
(i) a flow monitoring system, consisting of a stack flow rate monitor and an automated data acquisition and handling system and providing a permanent, continuous record of stack gas volumetric flow rate, in standard cubic feet per hour (scfh);
(ii) a sulfur dioxide monitoring system, consisting of a SO2 pollutant concentration monitor and an automated data acquisition handling system and providing a permanent, continuous record of SO2 emissions, in parts per million (ppm);
(iii) a moisture monitoring system, as defined in 40 CFR 75.11(b)(2) and providing a permanent, continuous record of the stack gas moisture content, in percent H2O;
(iv) a carbon dioxide monitoring system, consisting of a CO2 pollutant concentration monitor (or an oxygen monitor plus suitable mathematical equations from which the CO2 concentration is derived) and an automated data acquisition and handling system and providing a permanent, continuous record of CO2 emissions, in percent CO2; and
(v) an oxygen monitoring system, consisting of an O2 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of O2 in percent O2.
(36) 'Control period.' The period beginning January 1 of a calendar year, except as provided in section 245-1.6(c)(2), and ending on December 31 of the same year, inclusive.
(37) 'Emissions.' Air pollutants exhausted from a unit or source into the atmosphere, as measured, recorded, and reported to the Administrator by the CAIR designated representative and as determined by the Administrator in accordance with Subpart 245-8.
(38) 'Excess emissions.' Any ton, or portion of a ton, of sulfur dioxide emitted by the CAIR SO2 units at a CAIR SO2 source during a control period that exceeds the CAIR SO2 emissions limitation for the source, provided that any portion of a ton of excess emissions shall be treated as one ton of excess emissions.
(39) 'Fossil fuel.' Natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such material.
(40) 'Fossil fuel-fired.' With regard to a unit, combusting any amount of fossil fuel in any calendar year.
(41) 'General account.' A CAIR SO2 Allowance Tracking System account, established under Subpart 245-6, that is not a compliance account.
(42) 'Generator.' A device that produces electricity.
(43) 'Heat input.' With regard to a specified period of time, the product (in mmBtu/time) of the gross calorific value of the fuel (in Btu/lb) divided by 1,000,000 Btu/mmBtu and multiplied by the fuel feed rate into a combustion device (in lb of fuel/time), as measured, recorded, and reported to the Administrator by the CAIR designated representative and determined by the Administrator in accordance with Subpart 245-8 and excluding the heat derived from preheated combustion air, recirculated flue gases, or exhaust from other sources.
(44) 'Heat input rate.' The amount of heat input (in mmBtu) divided by unit operating time (in hr) or, with regard to a specific fuel, the amount of heat input attributed to the fuel (in mmBtu) divided by the unit operating time (in hr) during which the unit combusts the fuel.
(45) 'Life-of-the-unit, firm power contractual arrangement.' A unit participation power sales agreement under which a utility or industrial customer reserves, or is entitled to receive, a specified amount or percentage of nameplate capacity and associated energy generated by any specified unit and pays its proportional amount of such unit's total costs, pursuant to a contract:
(i) for the life of the unit;
(ii) for a cumulative term of no less than 30 years, including contracts that permit an election for early termination; or
(iii) for a period no less than 25 years or 70 percent of the economic useful life of the unit determined as of the time the unit is built, with option rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end of the period.
(46) 'Maximum design heat input.' The maximum amount of fuel per hour (in Btu/hr) that a unit is capable of combusting on a steady state basis as of the initial installation of the unit as specified by the manufacturer of the unit.
(47) 'Monitoring system.' Any monitoring system that meets the requirements of Subpart 245-8, including a continuous emissions monitoring system, an alternative monitoring system, or an excepted monitoring system under 40 CFR Part 75.
(48) 'Most stringent State or Federal SO2 emissions limitation.' With regard to a unit, the lowest SO2 emissions limitation (in terms of lb/mmBtu) that is applicable to the unit under State or Federal law, regardless of the averaging period to which the emissions limitation applies.
(49) 'Nameplate capacity.' Starting from the initial installation of a generator, the maximum electrical generating output (in MWe) that the generator is capable of producing on a steady state basis and during continuous operation (when not restricted by seasonal or other deratings) as of such installation as specified by the manufacturer of the generator or, starting from the completion of any subsequent physical change in the generator resulting in an increase in the maximum electrical generating output (in MWe) that the generator is capable of producing on a steady state basis and during continuous operation (when not restricted by seasonal or other deratings), such increased maximum amount as of such completion as specified by the person conducting the physical change.
(50) 'Operator.' Any person who operates, controls, or supervises a CAIR SO2 unit or a CAIR SO2 source and shall include, but not be limited to, any holding company, utility system, or plant manager of such a unit or source.
(51) 'Owner.' Any of the following persons:
(i) With regard to a CAIR SO2 source or a CAIR SO2 unit at a source, respectively:
(a) any holder of any portion of the legal or equitable title in a CAIR SO2 unit at the source or the CAIR SO2 unit;
(b) any holder of a leasehold interest in a CAIR SO2 unit at the source or the CAIR SO2 unit; or
(c) any purchaser of power from a CAIR SO2 unit at the source or the CAIR SO2 unit under a life-of-the-unit, firm power contractual arrangement; provided that, unless expressly provided for in a leasehold agreement, owner shall not include a passive lessor, or a person who has an equitable interest through such lessor, whose rental payments are not based (either directly or indirectly) on the revenues or income from such CAIR SO2 unit; or
(ii) With regard to any general account, any person who has an ownership interest with respect to the CAIR SO2 allowances held in the general account and who is subject to the binding agreement for the CAIR authorized account representative to represent the person's ownership interest with respect to CAIR SO2 allowances.
(52) 'Permitting Authority.' The Department or, for other states, the State air pollution control agency, local agency, other State agency, or other agency authorized by the Administrator to issue or revise permits to meet the requirements of the CAIR SO2 Trading Program as implemented in other States or, if no such agency has been so authorized, the Administrator.
(53) 'Potential electrical output capacity.' 33 percent of a unit's maximum design heat input, divided by 3,413 Btu/kWh, divided by 1,000 kWh/MWh, and multiplied by 8,760 hr/yr.
(54) 'Receive or receipt of.' When referring to the Department or the Administrator, to come into possession of a document, information, or correspondence (whether sent in hard copy or by authorized electronic transmission), as indicated in an official log, or by a notation made on the document, information, or correspondence, by the Department or the Administrator in the regular course of business.
(55) 'Recordation, record, or recorded.' With regard to CAIR SO2 allowances, the movement of CAIR SO2 allowances by the Administrator into or between CAIR SO2 Allowance Tracking System accounts, for purposes of allocation, transfer, or deduction.
(56) 'Reference method.' Any direct test method of sampling and analyzing for an air pollutant as specified in 40 CFR 75.22.
(57) 'Replacement, replace, or replaced.' With regard to a unit, the demolishing of a unit, or the permanent shutdown and permanent disabling of a unit, and the construction of another unit (the replacement unit) to be used instead of the demolished or shutdown unit (the replaced unit).
(58) 'Repowered.' With regard to a unit, replacement of a coal-fired boiler with one of the following coal-fired technologies at the same source as the coal-fired boiler:
(i) atmospheric or pressurized fluidized bed combustion;
(ii) integrated gasification combined cycle;
(iii) magnetohydrodynamics;
(iv) direct and indirect coal-fired turbines;
(v) integrated gasification fuel cells; or
(vi) as determined by the Administrator in consultation with the Secretary of Energy, a derivative of one or more of the technologies under subparagraphs (i) through (v) of this paragraph and any other coal-fired technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste reduction relative to the performance of technology in widespread commercial use as of January 1, 2005.
(59) 'Sequential use of energy':
(i) For a topping-cycle cogeneration unit, the use of reject heat from electricity production in a useful thermal energy application or process; or
(ii) For a bottoming-cycle cogeneration unit, the use of reject heat from useful thermal energy application or process in electricity production.
(60) 'Serial number.' For a CAIR SO2 allowance, the unique identification number assigned to each CAIR SO2 allowance by the Administrator.
(61) 'Solid waste incineration unit.' A stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine that is a "solid waste incineration unit" as defined in section 129(g)(1) of the Act.
(62) 'Source.' All buildings, structures, or installations located in one or more contiguous or adjacent properties under common control of the same person or persons. For purposes of section 502(c) of the Act, a "source," including a "source" with multiple units, shall be considered a single "facility."
(63) 'State.' One of the States or the District of Columbia that adopts the CAIR SO2 Trading Program pursuant to 40 CFR 51.124 (o)(1) or (2).
(64) 'Submit or serve.' To send or transmit a document, information, or correspondence to the person specified in accordance with the applicable regulation:
(i) in person;
(ii) by United States Postal Service; or
(iii) by other means of dispatch or transmission and delivery. Compliance with any "submission" or "service" deadline shall be determined by the date of dispatch, transmission, or mailing and not the date of receipt.
(65) 'Ton.' 2,000 pounds. For the purpose of determining compliance with the CAIR SO2 emissions limitation, total tons of sulfur dioxide emissions for a control period shall be calculated as the sum of all recorded hourly emissions (or the mass equivalent of the recorded hourly emission rates) in accordance with Subpart 245-8, but with any remaining fraction of a ton equal to or greater than 0.50 tons deemed to equal one ton and any remaining fraction of a ton less than 0.50 tons deemed to equal zero tons.
(66) 'Topping-cycle cogeneration unit.' A cogeneration unit in which the energy input to the unit is first used to produce useful power, including electricity, and at least some of the reject heat from the electricity production is then used to provide useful thermal energy.
(67) 'Total energy input.' With regard to a cogeneration unit, total energy of all forms supplied to the cogeneration unit, excluding energy produced by the cogeneration unit itself.
(68) 'Total energy output.' With regard to a cogeneration unit, the sum of useful power and useful thermal energy produced by the cogeneration unit.
(69) 'Unit.' A stationary, fossil fuel-fired boiler or combustion turbine or other stationary, fossil-fuel-fired combustion device.
(70) 'Unit operating day.' A calendar day in which a unit combusts any fuel.
(71) 'Unit operating hour or hour of unit operation.' An hour in which a unit combusts any fuel.
(72) 'Useful power.' With regard to a cogeneration unit, electricity or mechanical energy made available for use, excluding any such energy used in the power production process (which process includes, but is not limited to, any on-site processing or treatment of fuel combusted at the unit and any on-site emission controls).
(73) 'Useful thermal energy.' With regard to a cogeneration unit, thermal energy that is:
(i) made available to an industrial or commercial process (not a power production process), excluding any heat contained in condensate return or makeup water;
(ii) used in a heating application (e.g., space heating or domestic hot water heating); or
(iii) used in a space cooling application (i.e., thermal energy used by an absorption chiller).
(74) 'Utility power distribution system.' The portion of an electricity grid owned or operated by a utility and dedicated to delivering electricity to customers.
245-1.3 Measurements, abbreviations, and acronyms.
Measurements, abbreviations, and acronyms used in this part are defined as follows:
(a) 'Btu' - British thermal unit
(b) 'CO2' - carbon dioxide
(c) 'H2O' - water
(d) 'hr' - hour or hours
(e) 'kW' - kilowatt electrical
(f) 'kWh' - kilowatt hour
(g) 'lb' - pound or pounds
(h) 'mmBtu' - million Btu
(i) 'MWe' - megawatt electrical
(j) 'MWh'- megawatt hour
(k) 'NOx' - nitrogen oxides
(l) 'O2' - oxygen
(m) 'ppm' - parts per million
(n) 'scfh' - standard cubic feet per hour
(o) 'SO2' - sulfur dioxide
(p) 'yr' - year or years
245-1.4 Applicability.
(a) Except as provided in subdivision (b) of this section:
(1) The following units shall be CAIR SO2 units, and any source that includes one or more such units shall be a CAIR SO2 source, subject to the requirements of this subpart and subparts 245-2 through 245-8 of this part: any stationary, fossil fuel-fired boiler or stationary, fossil fuel-fired combustion turbine serving at any time, since the later of November 15, 1990 or the startup of the unit's combustion chamber, a generator with a nameplate capacity of more than 25 MWe producing electricity for sale.
(2) If a stationary boiler or stationary combustion turbine that, under paragraph (a)(1) of this section, is not a CAIR SO2 unit begins to combust fossil fuel or to serve a generator with nameplate capacity of more than 25 MWe producing electricity for sale, the unit shall become a CAIR SO2 unit as provided in paragraph (a)(1) of this section on the first date on which it both combusts fossil fuel and serves such generator.
(b) The units that meet the requirements set forth in subparagraph (b)(1)(i), (b)(2)(i), or (b)(2)(ii) of this section shall not be CAIR SO2 units:
(1) (i) Any unit that is a CAIR SO2 unit under paragraph (a)(1) or (2) of this section:
('a') qualifying as a cogeneration unit during the 12-month period starting on the date the unit first produces electricity and continuing to qualify as a cogeneration unit; and
('b') not serving at any time, since the later of November 15, 1990 or the startup of the unit's combustion chamber, a generator with nameplate capacity of more than 25 MWe supplying in any calendar year more than one-third of the unit's potential electric output capacity or 219,000 MWh, whichever is greater, to any utility power distribution system for sale.
(ii) If a unit qualifies as a cogeneration unit during the 12-month period starting on the date the unit first produces electricity and meets the requirements of subparagraph (b)(1)(i) of this section for at least one calendar year, but subsequently no longer meets all such requirements, the unit shall become a CAIR SO2 unit starting on the earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a cogeneration unit or January 1 after the first calendar year during which the unit no longer meets the requirements of clause (b)(1)(i)('b') of this section.
(2) (i) Any unit that is a CAIR SO2 unit under paragraph (a)(1) or (2) of this section commencing operation before January 1, 1985:
('a') qualifying as a solid waste incineration unit; and
('b') with an average annual fuel consumption of non-fossil fuel for 1985-1987 exceeding 80 percent (on a Btu basis) and an average annual fuel consumption of non-fossil fuel for any three consecutive calendar years after 1990 exceeding 80 percent (on a Btu basis).
(ii) Any unit that is a CAIR SO2 unit under paragraph (a)(1) or (2) of this section commencing operation on or after January 1, 1985:
('a') qualifying as a solid waste incineration unit; and
('b') with an average annual fuel consumption of non-fossil fuel for the first three calendar years of operation exceeding 80 percent (on a Btu basis) and an average annual fuel consumption of non-fossil fuel for any three consecutive calendar years after 1990 exceeding 80 percent (on a Btu basis).
(iii) If a unit qualifies as a solid waste incineration unit and meets the requirements of subparagraph (b)(2)(i) or (ii) of this section for at least three consecutive calendar years, but subsequently no longer meets all such requirements, the unit shall become a CAIR SO2 unit starting on the earlier of January 1 after the first calendar year during which the unit first no longer qualifies as a solid waste incineration unit or January 1 after the first three consecutive calendar years after 1990 for which the unit has an average annual fuel consumption of fossil fuel of 20 percent or more.
245-1.5 Retired unit exemption.
(a) (1) Any CAIR SO2 unit that is permanently retired and is not a CAIR SO2 opt-in unit under Subpart 245-9 of this part shall be exempt from the CAIR SO2 Trading Program, except for the provisions of this section, sections 245-1.2, 245-1.3, 245-1.4, 245-1.6(c)(4) through (7), 245-1.7, 245-1.8, and Subparts 245-2, 245-6, and 245-7.
(2) The exemption under paragraph (a)(1) of this section shall become effective the day on which the CAIR SO2 unit is permanently retired. Within 30 days of the unit's permanent retirement, the CAIR designated representative shall submit a statement to the department and shall submit a copy of the statement to the Administrator. The statement shall state, in a format prescribed by the department, that the unit was permanently retired on a specific date and will comply with the requirements of subdivision (b) of this section.
(3) After receipt of the statement under paragraph (a)(2) of this section, the department will amend any permit under Subpart 245-3 covering the source at which the unit is located to add the provisions and requirements of the exemption under paragraph (a)(1) and subdivision (b) of this section.
(b) 'Special provisions.'
(1) A unit exempt under subdivision (a) of this section shall not emit any sulfur dioxide, starting on the date that the exemption takes effect.
(2) For a period of five years from the date the records are created, the owners and operators of a unit exempt under subdivision (a) of this section shall retain, at the source that includes the unit, records demonstrating that the unit is permanently retired. The five-year period for keeping records may be extended for cause, at any time before the end of the period, in writing by the department or the Administrator. The owners and operators bear the burden of proof that the unit is permanently retired.
(3) The owners and operators and, to the extent applicable, the CAIR designated representative of a unit exempt under subdivision (a) of this section shall comply with the requirements of the CAIR SO2 Trading Program concerning all periods for which the exemption is not in effect, even if such requirements arise, or must be complied with, after the exemption takes effect.
(4) A unit exempt under subdivision (a) of this section and located at a source that is required, or but for this exemption would be required, to have a permit under Part 201 of this Title shall not resume operation unless the CAIR designated representative of the source submits a complete CAIR permit application under section 245-3.3 by the later of January 1, 2009 or the date on which the unit resumes operation.
(5) On the earlier of the following dates, a unit exempt under subdivision (a) of this section shall lose its exemption:
(i) the date on which the CAIR designated representative submits a CAIR permit application for the unit under paragraph (b)(4) of this section;
(ii) the date on which the CAIR designated representative is required under paragraph (b)(4) of this section to submit a CAIR permit application for the unit; or
(iii) the date on which the unit resumes operation, if the CAIR designated representative is not required to submit a CAIR permit application for the unit.
(6) For the purpose of applying monitoring, reporting, and recordkeeping requirements under Subpart 245-8, a unit that loses its exemption under subdivision (a) of this section shall be treated as a unit that commences commercial operation on the first date on which the unit resumes operation.
245-1.6 Standard requirements.
(a) 'Permit Requirements.'
(1) The CAIR designated representative of each CAIR SO2 source shall:
(i) submit to the department a complete CAIR permit application under section 245-3.3 in accordance with the deadlines specified in section 245-3.2; and
(ii) submit in a timely manner any supplemental information that the department determines is necessary in order to review a CAIR permit application and issue or deny a CAIR permit.
(2) The owners and operators of each CAIR SO2 source shall have a CAIR permit issued by the department under Subpart 245-3 for the source and operate the source and the unit in compliance with such CAIR permit.
(b) 'Monitoring requirements.'
(1) The owners and operators, and the CAIR designated representative, of each CAIR SO2 source and each CAIR SO2 unit at the source shall comply with the requirements of Subpart 245-8.
(2) The emissions measurements recorded and reported in accordance with Subpart 245-8 shall be used to determine compliance by each CAIR SO2 source with the CAIR SO2 emissions limitation under subdivision (c) of this section.
(c) 'Sulfur dioxide emission requirements.'
(1) As of the allowance transfer deadline for a control period, the owners and operators of each CAIR SO2 source and each CAIR SO2 unit at the source shall hold, in the source's compliance account, a tonnage equivalent in CAIR SO2 allowances available for compliance deductions for the control period, as determined in accordance with section 245-6.5(a) and (b), not less than the tons of total sulfur dioxide emissions for the control period from all CAIR SO2 units at the source, as determined in accordance with Subpart 245-8.
(2) A CAIR SO2 unit shall be subject to the requirements under paragraph (c)(1) of this section for the control period starting on the later of January 1, 2010 or the deadline for meeting the unit's monitor certification requirements under sections 245-8.1(b)(1), (2), or (5) and for each control period thereafter.
(3) A CAIR SO2 allowance shall not be deducted, for compliance with the requirements under paragraph (c)(1) of this section, for a control period in a calendar year before the year for which the CAIR SO2 allowance was allocated.
(4) CAIR SO2 allowances shall be held in, deducted from, or transferred into or among CAIR SO2 Allowance Tracking System accounts in accordance with Subparts 245-6, 245-7, and 245-9.
(5) A CAIR SO2 allowance is a limited authorization to emit sulfur dioxide in accordance with the CAIR SO2 Trading Program. No provision of the CAIR SO2 Trading Program, the CAIR permit application, the CAIR permit, or an exemption under section 245-1.5 and no provision of law shall be construed to limit the authority of the State or the United States to terminate or limit such authorization.
(6) A CAIR SO2 allowance does not constitute a property right.
(7) Upon recordation by the Administrator under Subpart 245-6, 245-7, or 245-9, every allocation, transfer, or deduction of a CAIR SO2 allowance to or from a CAIR SO2 source's compliance account is incorporated automatically in any CAIR permit of the source.
(d) 'Excess emissions requirements.' If a CAIR SO2 source emits sulfur dioxide during any control period in excess of the CAIR SO2 emissions limitation, then:
(1) the owners and operators of the source and each CAIR SO2 unit at the source shall surrender the CAIR SO2 allowances required for deduction under section 245-6.5(d)(1) and pay any fine, penalty, or assessment or comply with any other remedy imposed, for the same violations, under the Act or applicable State law; and
(2) each ton of such excess emissions and each day of such control period shall constitute a separate violation of this Subpart, the Act, and applicable State law.
(e) 'Recordkeeping and reporting requirements.'
(1) Unless otherwise provided, the owners and operators of the CAIR SO2 source and each CAIR SO2 unit at the source shall keep on site at the source each of the following documents for a period of five years from the date the document is created. This period may be extended for cause, at any time before the end of five years, in writing by the department or the Administrator.
(i) The certificate of representation under section 245-2.4 for the CAIR designated representative for the source and each CAIR SO2 unit at the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents shall be retained on site at the source beyond such five-year period until such documents are superseded because of the submission of a new certificate of representation under section 245-2.4 changing the CAIR designated representative.
(ii) All emissions monitoring information, in accordance with Subpart 245-8, provided that to the extent that Subpart 245-8 provides for a three-year period for recordkeeping, the three-year period shall apply.
(iii) Copies of all reports, compliance certifications, and other submissions and all records made or required under the CAIR SO2 Trading Program.
(iv) Copies of all documents used to complete a CAIR permit application and any other submission under the CAIR SO2 Trading Program or to demonstrate compliance with the requirements of the CAIR SO2 Trading Program.
(2) The CAIR designated representative of a CAIR SO2 source and each CAIR SO2 unit at the source shall submit the reports required under the CAIR SO2 Trading Program, including those under Subpart 245-8.
(f) 'Liability.'
(1) Each CAIR SO2 source and each CAIR SO2 unit shall meet the requirements of the CAIR SO2 Trading Program.
(2) Any provision of the CAIR SO2 Trading Program that applies to a CAIR SO2 source or the CAIR designated representative of a CAIR SO2 source shall also apply to the owners and operators of such source and of the CAIR SO2 units at the source.
(3) Any provision of the CAIR SO2 Trading Program that applies to a CAIR SO2 unit or the CAIR designated representative of a CAIR SO2 unit shall also apply to the owners and operators of such unit.
(g) 'Effect on other authorities.' No provision of the CAIR SO2 Trading Program, a CAIR permit application, a CAIR permit, or an exemption under section 245-1.5 shall be construed as exempting or excluding the owners and operators, and the CAIR designated representative, of a CAIR SO2 source or CAIR SO2 unit from compliance with any other provision of applicable State or federal laws and regulations, or a federally enforceable permit.
245-1.7 Computation of time.
(a) Unless otherwise stated, any time period scheduled, under the CAIR SO2 Trading Program, to begin on the occurrence of an act or event shall begin on the day the act or event occurs.
(b) Unless otherwise stated, any time period scheduled, under the CAIR SO2 Trading Program, to begin before the occurrence of an act or event shall be computed so that the period ends the day before the act or event occurs.
(c) Unless otherwise stated, if the final day of any time period, under the CAIR SO2 Trading Program, falls on a weekend or a State or Federal holiday, the time period shall be extended to the next business day.
245-1.8 Appeal procedures.
The appeal procedures for decisions of the Administrator under the CAIR SO2 Trading Program are set forth in 40 CFR Part 78.
Subpart 245-2 CAIR designated representative for CAIR SO2 sources
245-2.1 Authorization and responsibilities of CAIR designated representative.
(a) Except as provided under section 245-2.2, each CAIR SO2 source, including all CAIR SO2 units at the source, shall have one and only one CAIR designated representative, with regard to all matters under the CAIR SO2 Trading Program concerning the source or any CAIR SO2 unit at the source.
(b) The CAIR designated representative of the CAIR SO2 source shall be selected by an agreement binding on the owners and operators of the source and all CAIR SO2 units at the source and shall act in accordance with the certification statement in section 245-2.4(a)(4)(iv).
(c) Upon receipt by the Administrator of a complete certificate of representation under section 245-2.4, the CAIR designated representative of the source shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the CAIR SO2 source represented and each CAIR SO2 unit at the source in all matters pertaining to the CAIR SO2 Trading Program, notwithstanding any agreement between the CAIR designated representative and such owners and operators. The owners and operators shall be bound by any decision or order issued to the CAIR designated representative by the department, the Administrator, or a court regarding the source or unit.
(d) No CAIR permit will be issued, no emissions data reports will be accepted, and no CAIR SO2 Allowance Tracking System account will be established for a CAIR SO2 unit at a source, until the Administrator has received a complete certificate of representation under section 245-2.4 for a CAIR designated representative of the source and the CAIR SO2 units at the source.
(e) (1) Each submission under the CAIR SO2 Trading Program shall be submitted, signed, and certified by the CAIR designated representative for each CAIR SO2 source on behalf of which the submission is made. Each such submission shall include the following certification statement by the CAIR designated representative: "I am authorized to make this submission on behalf of the owners and operators of the source or units for which the submission is made. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment."
(2) The department and the Administrator will accept or act on a submission made on behalf of the owners or operators of a CAIR SO2 source or a CAIR SO2 unit only if the submission has been made, signed, and certified in accordance with paragraph (e)(1) of this section.
245-2.2 Alternate CAIR designated representative.
(a) A certificate of representation under section 245-2.4 may designate one and only one alternate CAIR designated representative, who may act on behalf of the CAIR designated representative. The agreement by which the alternate CAIR designated representative is selected shall include a procedure for authorizing the alternate CAIR designated representative to act in lieu of the CAIR designated representative.
(b) Upon receipt by the Administrator of a complete certificate of representation under section 245-2.4, any representation, action, inaction, or submission by the alternate CAIR designated representative shall be deemed to be a representation, action, inaction, or submission by the CAIR designated representative.
(c) Except in this section and sections 245-1.2, 245-2.1(a) and (d), 245-2.3, 245-2.4, 245-2.6, 245-6.1, and 245-9.3, whenever the term "CAIR designated representative" is used in Subparts 245-1 through 245-9, the term shall be construed to include the CAIR designated representative or any alternate CAIR designated representative.
245-2.3 Changing CAIR designated representative and alternate CAIR designated representative; changes in owners and operators.
(a) 'Changing CAIR designated representative.' The CAIR designated representative may be changed at any time upon receipt by the Administrator of a superseding complete certificate of representation under section 245-2.4. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous CAIR designated representative before the time and date when the Administrator receives the superseding certificate of representation shall be binding on the new CAIR designated representative and the owners and operators of the CAIR SO2 source and the CAIR SO2 units at the source.
(b) 'Changing alternate CAIR designated representative.' The alternate CAIR designated representative may be changed at any time upon receipt by the Administrator of a superseding complete certificate of representation under section 245-2.4. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous alternate CAIR designated representative before the time and date when the Administrator receives the superseding certificate of representation shall be binding on the new alternate CAIR designated representative and the owners and operators of the CAIR SO2 source and the CAIR SO2 units at the source.
(c) 'Changes in owners and operators.'
(1) In the event an owner or operator of a CAIR SO2 source or a CAIR SO2 unit is not included in the list of owners and operators in the certificate of representation under section 245-2.4, such owner or operator shall be deemed to be subject to and bound by the certificate of representation, the representations, actions, inactions, and submissions of the CAIR designated representative and any alternate CAIR designated representative of the source or unit, and the decisions and orders of the Department, the Administrator, or a court, as if the owner or operator were included in such list.
(2) Within 30 days following any change in the owners and operators of a CAIR SO2 source or a CAIR SO2 unit, including the addition of a new owner or operator, the CAIR designated representative or any alternate CAIR designated representative shall submit a revision to the certificate of representation under section 245-2.4 amending the list of owners and operators to include the change.
245-2.4 Certificate of representation.
(a) A complete certificate of representation for a CAIR designated representative or an alternate CAIR designated representative shall include the following elements in a format prescribed by the Administrator:
(1) Identification of the CAIR SO2 source, and each CAIR SO2 unit at the source, for which the certificate of representation is submitted, including identification and nameplate capacity of each generator served by each such unit.
(2) The name, address, e-mail address, telephone number, and facsimile transmission number (if any) of the CAIR designated representative and any alternate CAIR designated representative.
(3) A list of the owners and operators of the CAIR SO2 source and of each CAIR SO2 unit at the source.
(4) The following certification statements by the CAIR designated representative and any alternate CAIR designated representative:
(i) "I certify that I was selected as the CAIR designated representative or alternate CAIR designated representative, as applicable, by an agreement binding on the owners and operators of the source and each CAIR SO2 unit at the source."
(ii) "I certify that I have all the necessary authority to carry out my duties and responsibilities under the CAIR SO2 Trading Program on behalf of the owners and operators of the source and of each CAIR SO2 unit at the source and that each such owner and operator shall be fully bound by my representations, actions, inactions, or submissions."
(iii) "I certify that the owners and operators of the source and of each CAIR SO2 unit at the source shall be bound by any order issued to me by the Administrator, the department, or a court regarding the source or unit."
(iv) "Where there are multiple holders of a legal or equitable title to, or a leasehold interest in, a CAIR SO2 unit, or where a utility or industrial customer purchases power from a CAIR SO2 unit under a life-of-the-unit, firm power contractual arrangement, I certify that: I have given a written notice of my selection as the 'CAIR designated representative' or 'alternate CAIR designated representative', as applicable, and of the agreement by which I was selected to each owner and operator of the source and of each CAIR SO2 unit at the source; and CAIR SO2 allowances and proceeds of transactions involving CAIR SO2 allowances will be deemed to be held or distributed in proportion to each holder's legal, equitable, leasehold, or contractual reservation or entitlement, except that, if such multiple holders have expressly provided for a different distribution of CAIR SO2 allowances by contract, CAIR SO2 allowances and proceeds of transactions involving CAIR SO2 allowances will be deemed to be held or distributed in accordance with the contract."
(5) The signature of the CAIR designated representative and any alternate CAIR designated representative and the dates signed.
(b) Unless otherwise required by the department or the Administrator, documents of agreement referred to in the certificate of representation shall not be submitted to the department or the Administrator. Neither the department nor the Administrator shall be under any obligation to review or evaluate the sufficiency of such documents, if submitted.
245-2.5 Objections concerning CAIR designated representative.
(a) Once a complete certificate of representation under section 245-2.4 has been submitted and received, the department and the Administrator will rely on the certificate of representation unless and until a superseding complete certificate of representation under section 245-2.4 is received by the Administrator.
(b) Except as provided in section 245-2.3(a) or (b), no objection or other communication submitted to the department or the Administrator concerning the authorization, or any representation, action, inaction, or submission, of the CAIR designated representative shall affect any representation, action, inaction, or submission of the CAIR designated representative or the finality of any decision or order by the department or the Administrator under the CAIR SO2 Trading Program.
(c) Neither the department nor the Administrator will adjudicate any private legal dispute concerning the authorization or any representation, action, inaction, or submission of any CAIR designated representative, including private legal disputes concerning the proceeds of CAIR SO2 allowance transfers.
245-2.6 Delegation by CAIR designated representative and alternate CAIR designated representative.
(a) A CAIR designated representative may delegate, to one or more natural persons, his or her authority to make an electronic submission to the Administrator provided for or required under this part.
(b) An alternate CAIR designated representative may delegate, to one or more natural persons, his or her
authority to make an electronic submission to the Administrator provided for or required under this part.
(c) In order to delegate authority to make an electronic submission to the Administrator in accordance with subdivision (a) or (b) of this section, the CAIR designated representative or alternate CAIR designated
representative, as appropriate, must submit to the Administrator a notice of delegation, in a format prescribed by the Administrator, that includes the following elements:
(1) the name, address, e-mail address, telephone number, and facsimile transmission number (if any) of such CAIR designated representative or alternate CAIR designated representative;
(2) the name, address, e-mail address, telephone number, and facsimile transmission number (if any) of each such natural person ''referred to as an ''agent'';
(3) for each such natural person, a list of the type or types of electronic submissions under subdivision (a) or (b) of this section for which authority is delegated to him or her; and
(4) the following certification statements by such CAIR designated representative or alternate CAIR designated representative:
(i) "I agree that any electronic submission to the Administrator that is by an agent identified in this notice of delegation and of a type listed for such agent in this notice of delegation and that is made when I am a CAIR designated representative or alternate CAIR designated representative, as appropriate, and before this notice of delegation is superseded by another notice of delegation under 6 NYCRR section 245-2.6(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 6 NYCRR section 245-2.6(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 6 NYCRR section 245-2.6 is terminated."
(d) A notice of delegation submitted under subdivision (c) of this section shall be effective, with regard to the CAIR designated representative or alternate CAIR designated representative identified in such notice, upon receipt of such notice by the Administrator and until receipt by the Administrator of a superseding notice of delegation submitted by such CAIR designated representative or alternate CAIR designated representative, as
appropriate. The superseding notice of delegation may replace any previously identified agent, add a new agent, or eliminate entirely any delegation of authority.
(e) Any electronic submission covered by the certification in subparagraph (c)(4)(i) of this section and made in accordance with a notice of delegation effective under subdivision (d) of this section shall be deemed to be an electronic submission by the CAIR designated representative or alternate CAIR designated representative submitting such notice of delegation.
Subpart 245-3 Permits
245-3.1 General CAIR SO2 Trading Program permit requirements.
(a) Each CAIR SO2 source must have a permit issued by the department pursuant to Parts 201 and 621 of this title.
(b) Each CAIR permit must contain, with regard to the CAIR SO2 source and the CAIR SO2 units at the source covered by the CAIR permit, all applicable requirements for the CAIR SO2 Trading Program, the CAIR NOX Annual Trading Program, and the CAIR NOX Ozone Season Trading Program requirements and shall be a complete and separable portion of the permit under subdivision (a) of this section.
245-3.2 Submission of CAIR permit applications.
The CAIR designated representative of any CAIR SO2 source must submit to the department a complete CAIR permit application under section 245-3.3 for the source covering each CAIR SO2 unit at the source by the later of January 1, 2008 or the date on which the CAIR SO2 unit commences commercial operation, except as provided in section 245-9.4.
245-3.3 Information requirements for CAIR permit applications.
A complete CAIR permit application must include the following elements concerning the CAIR SO2 source for which the application is submitted, in a format prescribed by the department:
(a) identification of the CAIR SO2 source;
(b) identification of each CAIR SO2 unit at the CAIR SO2 source; and
(c) the standard requirements under section 245-1.6.
245-3.4 CAIR permit contents.
Each CAIR permit will contain, in a format prescribed by the department, all elements required for a complete CAIR permit application under section 243-5.3 and all applicable requirements of this Subpart.
245-3.5 CAIR permit revisions.
Revisions to a CAIR permit shall be done in accordance with Parts 201 and 621 of this Title.
Subpart 245-4 Reserved.
Subpart 245-5 Reserved.
Subpart 245-6 CAIR SO2 Allowance Tracking System
245-6.1 Reserved.
245-6.2 Establishment of accounts.
(a) 'Compliance accounts.' Except as provided in section 245-9.5(e), upon receipt of a complete certificate of representation under section 245-2.4, the Administrator will establish a compliance account for the CAIR SO2 source for which the certificate of representation was submitted, unless the source already has a compliance account.
(b) 'General accounts.'
(1) Application for general account.
(i) Any person may apply to open a general account for the purpose of holding and transferring CAIR SO2 allowances. An application for a general account may designate one and only one CAIR authorized account representative and one and only one alternate CAIR authorized account representative who may act on behalf of the CAIR authorized account representative. The agreement by which the alternate CAIR authorized account representative is selected shall include a procedure for authorizing the alternate CAIR authorized account representative to act in lieu of the CAIR authorized account representative.
(ii) A complete application for a general account shall be submitted to the Administrator and shall include the following elements in a format prescribed by the Administrator:
('a') name, mailing address, e-mail address, telephone number, and facsimile transmission number (if any) of the CAIR authorized account representative and any alternate CAIR authorized account representative;
('b') organization name and type of organization, if applicable;
('c') a list of all persons subject to a binding agreement for the CAIR authorized account representative and any alternate CAIR authorized account representative to represent their ownership interest with respect to the CAIR SO2 allowances held in the general account;
('d') the following certification statement by the CAIR authorized account representative and any alternate CAIR authorized account representative: "I certify that I was selected as the CAIR authorized account representative or the alternate CAIR authorized account representative, as applicable, by an agreement that is binding on all persons who have an ownership interest with respect to CAIR SO2 allowances held in the general account. I certify that I have all the necessary authority to carry out my duties and responsibilities under the CAIR SO2 Trading Program on behalf of such persons and that each such person shall be fully bound by my representations, actions, inactions, or submissions and by any order or decision issued to me by the Administrator or a court regarding the general account."; and
('e') the signature of the CAIR authorized account representative and any alternate CAIR authorized account representative and the dates signed.
(iii) Unless otherwise required by the department or the Administrator, documents of agreement referred to in the application for a general account shall not be submitted to the department or the Administrator. Neither the department nor the Administrator shall be under any obligation to review or evaluate the sufficiency of such documents, if submitted.
(2) 'Authorization of CAIR authorized account representative and alternate CAIR authorized account representative.'
(i) Upon receipt by the Administrator of a complete application for a general account under paragraph (b)(1) of this section:
('a') The Administrator will establish a general account for the person or persons for whom the application is submitted.
('b') The CAIR authorized account representative and any alternate CAIR authorized account representative for the general account shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each person who has an ownership interest with respect to CAIR SO2 allowances held in the general account in all matters pertaining to the CAIR SO2 Trading Program, notwithstanding any agreement between the CAIR authorized account representative or any alternate CAIR authorized account representative and such person. Any such person shall be bound by any order or decision issued to the CAIR authorized account representative or any alternate CAIR authorized account representative by the Administrator or a court regarding the general account.
('c') Any representation, action, inaction, or submission by any alternate CAIR authorized account representative shall be deemed to be a representation, action, inaction, or submission by the CAIR authorized account representative.
(ii) Each submission concerning the general account shall be submitted, signed, and certified by the CAIR authorized account representative or any alternate CAIR authorized account representative for the persons having an ownership interest with respect to CAIR SO2 allowances held in the general account. Each such submission shall include the following certification statement by the CAIR authorized account representative or any alternate CAIR authorized account representative: "I am authorized to make this submission on behalf of the persons having an ownership interest with respect to the CAIR SO2 allowances held in the general account. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment."
(iii) The Administrator will accept or act on a submission concerning the general account only if the submission has been made, signed, and certified in accordance with subparagraph (b)(2)(ii) of this section.
(3) 'Changing CAIR authorized account representative and alternate CAIR authorized account representative; changes in persons with ownership interest.'
(i) The CAIR authorized account representative for a general account may be changed at any time upon receipt by the Administrator of a superseding complete application for a general account under paragraph (b)(1) of this section. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous CAIR authorized account representative before the time and date when the Administrator receives the superseding application for a general account shall be binding on the new CAIR authorized account representative and the persons with an ownership interest with respect to the CAIR SO2 allowances in the general account.
(ii) The alternate CAIR authorized account representative for a general account may be changed at any time upon receipt by the Administrator of a superseding complete application for a general account under paragraph (b)(1) of this section. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous alternate CAIR authorized account representative before the time and date when the Administrator receives the superseding application for a general account shall be binding on the new alternate CAIR authorized account representative and the persons with an ownership interest with respect to the CAIR SO2 allowances in the general account.
(iii) ('a') In the event a person having an ownership interest with respect to CAIR SO2 allowances in the general account is not included in the list of such persons in the application for a general account, such person shall be deemed to be subject to and bound by the application for a general account, the representation, actions, inactions, and submissions of the CAIR authorized account representative and any alternate CAIR authorized account representative of the account, and the decisions and orders of the Administrator or a court, as if the person were included in such list.
('b') Within 30 days following any change in the persons having an ownership interest with respect to CAIR SO2 allowances in the general account, including the addition of a new person, the CAIR authorized account representative or any alternate CAIR authorized account representative shall submit a revision to the application for a general account amending the list of persons having an ownership interest with respect to the CAIR SO2 allowances in the general account to include the change.
(4) 'Objections concerning CAIR authorized account representative and alternate CAIR authorized account representative.'
(i) Once a complete application for a general account under paragraph (b)(1) of this section has been submitted and received, the Administrator will rely on the application unless and until a superseding complete application for a general account under paragraph (b)(1) of this section is received by the Administrator.
(ii) Except as provided in subparagraph (b)(3)(i) or (ii) of this section, no objection or other communication submitted to the Administrator concerning the authorization, or any representation, action, inaction, or submission of the CAIR authorized account representative or any alternate CAIR authorized account representative for a general account shall affect any representation, action, inaction, or submission of the CAIR authorized account representative or any alternate CAIR authorized account representative or the finality of any decision or order by the Administrator under the CAIR SO2 Trading Program.
(iii) The Administrator will not adjudicate any private legal dispute concerning the authorization or any representation, action, inaction, or submission of the CAIR authorized account representative or any alternate CAIR authorized account representative for a general account, including private legal disputes concerning the proceeds of CAIR SO2 allowance transfers.
(5) 'Delegation by CAIR authorized account representative and alternate CAIR authorized account representative.'
(i) A CAIR authorized account representative may delegate, to one or more natural persons, his or her authority to make an electronic submission to the Administrator provided for or required under Subparts 245-6 and 245-7.
(ii) An alternate CAIR authorized account representative may delegate, to one or more natural persons, his or her authority to make an electronic submission to the Administrator provided for or required under Subparts 245-6 and 245-7.
(iii) In order to delegate authority to make an electronic submission to the Administrator in accordance with subparagraph (b)(5)(i) or (ii) of this section, the CAIR authorized account representative or alternate CAIR authorized account representative, as appropriate, must submit to the Administrator a notice of delegation, in a format prescribed by the Administrator, that includes the following elements:
('a') the name, address, e-mail address, telephone number, and facsimile transmission number (if any) of such CAIR authorized account representative or alternate CAIR authorized account representative;
('b') the name, address, e-mail address, telephone number, and, facsimile transmission number (if any) of each such natural person (referred to as an "agent");
('c') for each such natural person, a list of the type or types of electronic submissions under subparagraph (b)(5)(i) or (ii) of this section for which authority is delegated to him or her;
('d') the following certification statement by such CAIR authorized account representative or alternate CAIR authorized account representative: "I agree that any electronic submission to
the Administrator that is by an agent identified in this notice of delegation and of a type listed for such agent in
this notice of delegation and that is made when I am a CAIR authorized account representative or alternate CAIR authorized representative, as appropriate, and before this notice of delegation is superseded by another notice of delegation under 6 NYCRR 245-6.2(b)(5)(iv) shall be deemed to be an electronic submission by me."; and
('e') the following certification statement by such CAIR authorized account representative or alternate CAIR authorized account representative: "Until this notice of delegation is superseded by another notice of delegation under 6 NYCRR 245-6.2(b)(5)(iv), I agree to maintain an e-mail account and to notify the Administrator immediately of any change in my e-mail address unless all delegation of authority by me under 6 NYCRR 245-6.2(b)(5) is terminated."
(iv) A notice of delegation submitted under subparagraph (b)(5)(iii) of this section shall be effective, with regard to the CAIR authorized account representative or alternate CAIR authorized account representative identified in such notice, upon receipt of such notice by the Administrator and until receipt by the Administrator of a superseding notice of delegation submitted by such CAIR authorized account representative or alternate CAIR authorized account representative, as appropriate. The superseding notice of delegation may replace any previously identified agent, add a new agent, or eliminate entirely any delegation of authority.
(v) Any electronic submission covered by the certification in clause (b)(5)(iii)('d') of this section and made in accordance with a notice of delegation effective under subparagraph (b)(5)(iv) of this section shall be deemed to be an electronic submission by the CAIR designated representative or alternate CAIR designated representative submitting such notice of delegation.
(c) 'Account identification.'
The Administrator will assign a unique identifying number to each account established under subdivision (a) or (b) of this section.
245-6.3 Responsibilities of CAIR authorized account representative.
Following the establishment of a CAIR SO2 Allowance Tracking System account, all submissions to the Administrator pertaining to the account, including, but not limited to, submissions concerning the deduction or transfer of CAIR SO2 allowances in the account, shall be made only by the CAIR authorized account representative for the account.
245-6.4 Recordation of CAIR SO2 allowances.
(a) (1) After a compliance account is established under section 245-6.2(a) or 40 CFR 73.31(a) or (b), the Administrator will record in the compliance account any CAIR SO2 allowance allocated to any CAIR SO2 unit at the source for each of the 30 years starting the later of 2010 or the year in which the compliance account is established and any CAIR SO2 allowance allocated for each of the 30 years starting the later of 2010 or the year in which the compliance account is established and transferred to the source in accordance with Subpart 245-7 or 40 CFR Part 73 Subpart D.
(2) In 2011 and each year thereafter, after the Administrator has completed all deductions under section 245-6.5(b), the Administrator will record in the compliance account any CAIR SO2 allowance allocated to any CAIR SO2 unit at the source for the new 30th year (i.e., the year that is 30 years after the calendar year for which such deductions are or could be made) and any CAIR SO2 allowance allocated for the new 30th year and transferred to the source in accordance with Subpart 245-7 or 40 CFR Part 73 Subpart D.
(b) (1) After a general account is established under section 245-6.2(b) or 40 CFR Part 73(c), the Administrator will record in the general account any CAIR SO2 allowance allocated for each of the 30 years starting the later of 2010 or the year in which the general account is established and transferred to the general account in accordance with Subpart 245-7 or 40 CFR Part 73 Subpart D.
(2) In 2011 and each year thereafter, after the Administrator has completed all deductions under section 245-6.5(b), the Administrator will record in the general account any CAIR SO2 allowance allocated for the new 30th year (i.e., the year that is 30 years after the calendar year for which such deductions are or could be made) and transferred to the general account in accordance with Subpart 245-7 or 40 CFR Part 73 Subpart D.
(c) 'Serial numbers for allocated CAIR SO2 allowances.' When recording the allocation of CAIR SO2 allowances issued by the department under section 245-9.9, the Administrator will assign each such CAIR SO2 allowance a unique identification number that will include digits identifying the year of the control period for which the CAIR SO2 allowance is allocated.
245-6.5 Compliance with CAIR SO2 emissions limitation.
(a) 'Allowance transfer deadline.' The CAIR SO2 allowances are available to be deducted for compliance with a source's CAIR SO2 emissions limitation for a control period in a given calendar year only if the CAIR SO2 allowances:
(1) were allocated for the control period in the year or a prior year; and
(2) are held in the compliance account as of the allowance transfer deadline for the control period or are transferred into the compliance account by a CAIR SO2 allowance transfer correctly submitted for recordation under section 245-7.1 and section 245-7.2 by the allowance transfer deadline for the control period
(b) 'Deductions for compliance.' Following the recordation, in accordance with section 245-7.2, of CAIR SO2 allowance transfers submitted for recordation in a source's compliance account by the allowance transfer deadline for a control period, the Administrator will deduct from the compliance account CAIR SO2 allowances available under subdivision (a) of this section in order to determine whether the source meets the CAIR SO2 emissions limitation for the control period as follows:
(1) For a CAIR SO2 source subject to an Acid Rain emissions limitation, the Administrator will, in the following order:
(i) Deduct the amount of CAIR SO2 allowances, available under subdivision (a) of this section and not originally issued by a permitting authority to a CAIR opt-in unit, that is required under section 40 CFR Part 73.35(b) and (c). If there are sufficient CAIR SO2 allowances to complete this deduction, the deduction will be treated as satisfying the requirements of 40 CFR Part 73.35(b) and (c).
(ii) Deduct the amount of CAIR SO2 allowances, not originally issued by a permitting authority to a CAIR opt-in unit, that is required under 40 CFR Part 73.35(d) and 77.5. If there are sufficient CAIR SO2 allowances to complete this deduction, the deduction will be treated as satisfying the requirements of 40 CFR 73.35(d) and 77.5.
(iii) Treating the CAIR SO2 allowances deducted under subparagraph (b)(1)(i) of this section as also being deducted under this subparagraph (b)(1)(iii), deduct CAIR SO2 allowances available under subdivision (a) of this section (including any originally issued by a permitting authority to a CAIR opt-in unit) in order to determine whether the source meets the CAIR SO2 emissions limitation for the control period, as follows:
('a') until the tonnage equivalent of the CAIR SO2 allowances deducted equals, or exceeds in accordance with paragraphs (c)(1) and (2) of this section, the number of tons of total sulfur dioxide emissions, determined in accordance with Subpart 245-8, from all CAIR SO2 units at the source for the control period; or
('b') if there are insufficient CAIR SO2 allowances to complete the deductions in clause (b)(1)(iii)('a')of this section, until no more CAIR SO2 allowances available under subdivision (a) of this section (including any originally issued by a permitting authority to a CAIR opt-in unit) remain in the compliance account.
(2) For a CAIR SO2 source not subject to an Acid Rain emissions limitation, the Administrator will deduct CAIR SO2 allowances available under subdivision (a) of this section (including any issued by a permitting authority to a CAIR opt-in unit) in order to determine whether the source meets the CAIR SO2 emissions limitation for the control period, as follows:
(i) until the tonnage equivalent of the CAIR SO2 allowances deducted equals, or exceeds in accordance with paragraphs (c)(1) and (2) of this section, the number of tons of total sulfur dioxide emissions, determined in accordance with Subpart 245-8, from all CAIR SO2 units at the source for the control period; or
(ii) if there are insufficient CAIR SO2 allowances to complete the deductions in subparagraph (b)(2)(i) of this section, until no more CAIR SO2 allowances available under subdivision (a) of this section (including any issued by a permitting authority to a CAIR opt-in unit) remain in the compliance account.
(c) (1) Identification of CAIR SO2 allowances by serial number. The CAIR authorized account representative for a source's compliance account may request that specific CAIR SO2 allowances, identified by serial number, in the compliance account be deducted for emissions or excess emissions for a control period in accordance with subdivision (b) or (d) of this section. Such request shall be submitted to the Administrator by the allowance transfer deadline for the control period and include, in a format prescribed by the Administrator, the identification of the CAIR SO2 source and the appropriate serial numbers.
(2) First-in, first-out. The Administrator will deduct CAIR SO2 allowances under subdivision (b) or (d) of this section from the source's compliance account, in the absence of an identification or in the case of a partial identification of CAIR SO2 allowances by serial number under paragraph (c)(1) of this section, on a first-in, first-out (FIFO) accounting basis in the following order:
(i) any CAIR SO2 allowances that were allocated to the units at the source for a control period before 2010, in the order of recordation;
(ii) any CAIR SO2 allowances that were allocated to any entity for a control period before 2010 and transferred and recorded in the compliance account pursuant to Subpart 245-7 or 40 CFR Part 73 Subpart D, in the order of recordation;
(iii) any CAIR SO2 allowances that were allocated to the units at the source for a control period during 2010 through 2014, in the order of recordation;
(iv) any CAIR SO2 allowances that were allocated to any entity for a control period during 2010 through 2014 and transferred and recorded in the compliance account pursuant to Subpart 245-7 or CFR Part 73 Subpart D, in the order of recordation;
(v) any CAIR SO2 allowances that were allocated to the units at the source for a control period in 2015 or later, in the order of recordation; and
(vi) any CAIR SO2 allowances that were allocated to any entity for a control period in 2015 or later and transferred and recorded in the compliance account pursuant to Subpart 245-7 or CFR Part 73 Subpart D, in the order of recordation.
(d) 'Deductions for excess emissions.'
(1) After making the deductions for compliance under subdivision (b) of this section for a control period in a calendar year in which the CAIR SO2 source has excess emissions, the Administrator will deduct from the source's compliance account the tonnage equivalent in CAIR SO2 allowances, allocated for the control period in the immediately following calendar year (including any originally issued by a permitting authority to an opt-in unit), equal to, or exceeding in accordance with paragraphs (c)(1) and (2) of this section, three times the following amount: the number of tons of the source's excess emissions minus, if the source is subject to Acid Rain emissions limitation, the amount of the CAIR SO2 allowances required to be deducted under subparagraph (b)(1)(ii) of this section.
(2) Any allowance deduction required under paragraph (d)(1) of this section shall not affect the liability of the owners and operators of the CAIR SO2 source or the CAIR SO2 units at the source for any fine, penalty, or assessment, or their obligation to comply with any other remedy, for the same violations, as ordered under the Act or applicable State law.
(i) For purposes of determining the number of days of violation, if a CAIR SO2 unit has excess emissions for a control period, each day in the control period constitutes a day in violation.
(ii) Each ton of excess emissions is a separate violation.
(e) 'Recordation of deductions.' The Administrator will record in the appropriate compliance account all deductions from such an account under subdivisions (b) and (d) of this section and Subpart 245-9.
(f) 'Administrator's action on submissions.'
(1) The Administrator may review and conduct independent audits concerning any submission under the CAIR SO2 Trading Program and make appropriate adjustments of the information in the submissions.
(2) The Administrator may deduct CAIR SO2 allowances from or transfer CAIR SO2 allowances to a source's compliance account based on the information in the submissions, as adjusted under paragraph (f)(1) of this section, and record such deductions and transfers.
245-6.6 Banking.
(a) CAIR SO2 allowances may be banked for future use or transfer in a compliance account or a general account in accordance with subdivision (b) of this section.
(b) Any CAIR SO2 allowance that is held in a compliance account or a general account will remain in such account unless and until the CAIR SO2 allowance is deducted or transferred under section 245-6.5, section 245-6.7, or Subpart 245-7 or 245-9.
245-6.7 Account error.
The Administrator may, at his or her sole discretion and on his or her own motion, correct any error in any CAIR SO2 Allowance Tracking System account. Within 10 business days of making such correction, the Administrator will notify the CAIR authorized account representative for the account.
245-6.8 Closing of general accounts.
(a) The CAIR authorized account representative of a general account may submit to the Administrator a request to close the account, which shall include a correctly submitted allowance transfer under sections 245-7.1 and 245-7.2 for any CAIR SO2 allowances in the account to one or more other CAIR SO2 Allowance Tracking System accounts.
(b) If a general account has no allowance transfers in or out of the account for a 12-month period or longer and does not contain any CAIR SO2 allowances, the Administrator may notify the CAIR authorized account representative for the account that the account will be closed following 20 business days after the notice is sent. The account will be closed after the 20-day period unless, before the end of the 20-day period, the Administrator receives a correctly submitted transfer of CAIR SO2 allowances into the account under sections 245-7.1 and 245-7.2 or a statement submitted by the CAIR authorized account representative demonstrating to the satisfaction of the Administrator good cause as to why the account should not be closed.
245-7 CAIR SO2 Allowance Transfers
245-7.1 Submission of CAIR SO2 allowance transfers.
(a) A CAIR authorized account representative seeking recordation of a CAIR SO2 allowance transfer shall submit the transfer to the Administrator. To be considered correctly submitted, the CAIR SO2 allowance transfer shall include the following elements, in a format specified by the Administrator:
(1) the account numbers of both the transferor and transferee accounts;
(2) the serial number of each CAIR SO2 allowance that is in the transferor account and is to be transferred; and
(3) the name and signature of the CAIR authorized account representatives of the transferor and transferee accounts and the dates signed.
(b) (1) The CAIR authorized account representative for the transferee account can meet the requirements in paragraph (a)(3) of this section by submitting, in a format prescribed by the Administrator, a statement signed by the CAIR authorized account representative and identifying each account into which any transfer of allowances, submitted on or after the date on which the Administrator receives such statement, is authorized. Such authorization shall be binding on any CAIR authorized account representative for such account and shall apply to all transfers into the account that are submitted on or after such date of receipt, unless and until the Administrator receives a statement signed by the CAIR authorized account representative retracting the authorization for the account.
(2) The statement under paragraph (b)(1) of this section shall include the following: "By this signature I authorize any transfer of allowances into each account listed herein, except that I do not waive any remedies under State or Federal law to obtain correction of any erroneous transfers into such accounts. This authorization shall be binding on any CAIR authorized account representative for such account unless and until a statement signed by the CAIR authorized account representative retracting this authorization for the account is received by the Administrator."
245-7.2 EPA recordation.
(a) Within five business days (except as necessary to perform a transfer in perpetuity of CAIR SO2 allowances allocated to a CAIR SO2 unit or as provided in subdivision (b) of this section) of receiving a CAIR SO2 allowance transfer, the Administrator will record a CAIR SO2 allowance transfer by moving each CAIR SO2 allowance from the transferor account to the transferee account as specified by the request, provided that:
(1) the transfer is correctly submitted under section 245-7.1;
(2) the transferor account includes each CAIR SO2 allowance identified by serial number in the transfer; and
(3) the transfer is in accordance with the limitation on transfer under 40 CFR 74.42 and 40 CFR 74.47(c), as applicable.
(b) A CAIR SO2 allowance transfer that is submitted for recordation after the allowance transfer deadline for a control period and that includes any CAIR SO2 allowances allocated for any control period before such allowance transfer deadline will not be recorded until after the Administrator completes the deductions under section 245-6.5 for the control period immediately before such allowance transfer deadline.
(c) Where a CAIR SO2 allowance transfer submitted for recordation fails to meet the requirements of subdivision (a) of this section, the Administrator will not record such transfer.
245-7.3 Notification.
(a) 'Notification of recordation.' Within five business days of recordation of a CAIR SO2 allowance transfer under section 245-7.2, the Administrator will notify the CAIR authorized account representatives of both the transferor and transferee accounts.
(b) 'Notification of non-recordation.' Within 10 business days of receipt of a CAIR SO2 allowance transfer that fails to meet the requirements of section 245-7.2(a), the Administrator will notify the CAIR authorized account representatives of both accounts subject to the transfer of:
(1) a decision not to record the transfer, and
(2) the reasons for such non-recordation.
(c) Nothing in this section shall preclude the submission of a CAIR SO2 allowance transfer for recordation following notification of non-recordation.
Subpart 245-8 Monitoring and Reporting
245-8.1 General Requirements.
The owners and operators, and to the extent applicable, the CAIR designated representative, of a CAIR SO2 unit, shall comply with the monitoring, recordkeeping, and reporting requirements as provided in this Subpart and in 40 CFR Part 75, Subparts F and G. For purposes of complying with such requirements, the definitions in section 245-1.2 and 40 CFR 72.2 shall apply, and the terms "affected unit," "designated representative," and "continuous emission monitoring system" (or "CEMS") in 40 CFR Part 75 shall be deemed to refer to the terms "CAIR SO2 unit," "CAIR designated representative," and "continuous emission monitoring system" (or "CEMS") respectively, as defined in section 245-1.2. The owner or operator of a unit that is not a CAIR SO2 unit but that is monitored under 40 CFR 75.16(b)(2) shall comply with the same monitoring, recordkeeping, and reporting requirements as a CAIR SO2 unit.
(a) 'Requirements for installation, certification, and data accounting.' The owner or operator of each CAIR SO2 unit shall:
(1) install all monitoring systems required under this Subpart for monitoring SO2 mass emissions and individual unit heat input (including all systems required to monitor SO2 concentration, stack gas moisture content, stack gas flow rate, CO2 or O2 concentration, and fuel flow rate, as applicable, in accordance with 40 CFR 75.11 and 40 CFR 75.16);
(2) successfully complete all certification tests required under section 245-8.2 and meet all other requirements of this Subpart and 40 CFR Part 75 applicable to the monitoring systems under paragraph (a)(1) of this section; and
(3) record, report, and quality-assure the data from the monitoring systems under paragraph (a)(1) of this section.
(b) 'Compliance deadlines.' Except as provided in subdivision (e) of this section, the owner or operator shall meet the monitoring system certification and other requirements of paragraphs (a)(1) and (2) of this section on or before the following dates. The owner or operator shall record, report, and quality-assure the data from the monitoring systems under paragraph (a)(1) of this section on and after the following dates.
(1) For the owner or operator of a CAIR SO2 unit that commences commercial operation before July 1, 2008, by January 1, 2009.
(2) For the owner or operator of a CAIR SO2 unit that commences commercial operation on or after July 1, 2008, by the later of the following dates:
(i) January 1, 2009; or
(ii) 90 unit operating days or 180 calendar days, whichever occurs first, after the date on which the unit commences commercial operation.
(3) For the owner or operator of a CAIR SO2 unit for which construction of a new stack or flue or installation of add-on SO2 emission controls is completed after the applicable deadline under paragraph (b)(1), (2), (4), or (5) of this section, by 90 unit operating days or 180 calendar days, whichever occurs first, after the date on which emissions first exit to the atmosphere through the new stack or flue or add-on SO2 emissions controls.
(4) Notwithstanding the dates in paragraphs (b)(1) and (2) of this section, for the owner or operator of a unit for which a CAIR opt-in permit application is submitted and not withdrawn and a CAIR opt-in permit is not yet issued or denied under Subpart 245-9, by the date specified in section 245-9.5(b).
(5) Notwithstanding the dates in paragraphs (b)(1) and (2) of this section, for the owner or operator of a CAIR SO2 opt-in unit under Subpart 245-9, by the date on which the CAIR SO2 opt-in unit enters the CAIR SO2 Trading Program as provided in section 245-9.5(g).
(c) 'Reporting data.'
The owner or operator of a CAIR SO2 unit that does not meet the applicable compliance date set forth in subdivision (b) of this section for any monitoring system under paragraph (a)(1) of this section shall, for each such monitoring system, determine, record, and report maximum potential (or, as appropriate, minimum potential) values for SO2 concentration, stack gas flow rate, stack gas moisture content, fuel flow rate, and any other parameters required to determine SO2 mass emissions and heat input in accordance with 40 CFR 75.31(b)(2) or (c)(3) or 40 CFR Part 75, appendix D, section 2.4, as applicable.
(d) 'Prohibitions.'
(1) No owner or operator of a CAIR SO2 unit shall use any alternative monitoring system, alternative reference method, or any other alternative to any requirement of this Subpart without having obtained prior written approval in accordance with section 245-8.6.
(2) No owner or operator of a CAIR SO2 unit shall operate the unit so as to discharge, or allow to be discharged, SO2 emissions to the atmosphere without accounting for all such emissions in accordance with the applicable provisions of this Subpart and 40 CFR Part 75.
(3) No owner or operator of a CAIR SO2 unit shall disrupt the continuous emission monitoring system, any portion thereof, or any other approved emission monitoring method, and thereby avoid monitoring and recording SO2 mass emissions discharged into the atmosphere or heat input, except for periods of recertification or periods when calibration, quality assurance testing, or maintenance is performed in accordance with the applicable provisions of this Subpart and 40 CFR Part 75.
(4) No owner or operator of a CAIR SO2 unit shall retire or permanently discontinue use of the continuous emission monitoring system, any component thereof, or any other approved monitoring system under this Subpart, except under any one of the following circumstances:
(i) during the period that the unit is covered by an exemption under section 245-1.5 that is in effect;
(ii) the owner or operator is monitoring emissions from the unit with another certified monitoring system approved, in accordance with the applicable provisions of this Subpart and 40 CFR Part 75, by the Department for use at that unit that provides emission data for the same pollutant or parameter as the retired or discontinued monitoring system; or
(iii) the CAIR designated representative submits notification of the date of certification testing of a replacement monitoring system for the retired or discontinued monitoring system in accordance with section 245-8.2(d)(3)(i).
(e) 'Long-term cold storage.' The owner or operator of a CAIR SO2 unit is subject to the applicable provisions of 40 CFR Part 75 concerning units in long-term cold storage.
245-8.2 Initial certification and recertification procedures.
(a) The owner or operator of a CAIR SO2 unit shall be exempt from the initial certification requirements of this section for a monitoring system under section 245-8.1(a)(1) if the following conditions are met:
(1) the monitoring system has been previously certified in accordance with 40 CFR Part 75; and
(2) the applicable quality-assurance and quality-control requirements of 40 CFR 75.21 and appendix B and appendix D to 40 CFR Part 75 are fully met for the certified monitoring system described in paragraph (a)(1) of this section.
(b) The recertification provisions of this section shall apply to a monitoring system under section 245-8.1(a)(1) exempt from initial certification requirements under subdivision (a) of this section.
(c) Reserved.
(d) Except as provided in subdivision (a) of this section, the owner or operator of a CAIR SO2 unit shall comply with the following initial certification and recertification procedures, for a continuous monitoring system (i.e., a continuous emission monitoring system and an excepted monitoring system under appendix D to 40 CFR Part 75) under section 245-8.1(a)(1). The owner or operator of a unit that qualifies to use the low mass emissions excepted monitoring methodology under 40 CFR 75.19 or that qualifies to use an alternative monitoring system under Subpart E of 40 CFR Part 75 shall comply with the procedures in subdivision (e) or (f) of this section respectively.
(1) Requirements for initial certification. The owner or operator shall ensure that each continuous monitoring system under section 245-8.1(a)(1) (including the automated data acquisition and handling system) successfully completes all of the initial certification testing required under 40 CFR 75.20 by the applicable deadline in section 245-8.1(b). In addition, whenever the owner or operator installs a monitoring system to meet the requirements of this Subpart in a location where no such monitoring system was previously installed, initial certification in accordance with 40 CFR 75.20 is required.
(2) Requirements for recertification. Whenever the owner or operator makes a replacement, modification, or change in any certified continuous emission monitoring system under section 245-8.1(a)(1) that may significantly affect the ability of the system to accurately measure or record SO2 mass emissions or heat input rate or to meet the quality-assurance and quality-control requirements of 40 CFR 75.21 or appendix B to 40 CFR Part 75, the owner or operator shall recertify the monitoring system in accordance with 40 CFR 75.20(b). Furthermore, whenever the owner or operator makes a replacement, modification, or change to the flue gas handling system or the unit's operation that may significantly change the stack flow or concentration profile, the owner or operator shall recertify each continuous emission monitoring system whose accuracy is potentially affected by the change, in accordance with 40 CFR 75.20(b). Examples of changes to a continuous emission monitoring system that require recertification include: replacement of the analyzer, complete replacement of an existing continuous emission monitoring system, or change in location or orientation of the sampling probe or site. Any fuel flowmeter system under section 245-8.1(a)(1) is subject to the recertification requirements in 40 CFR 75.20(g)(6).
(3) Approval process for initial certification and recertification. Subparagraphs (d)(3)(i) through (iv) of this section apply to both initial certification and recertification of a continuous monitoring system under section 245-8.1(a)(1). For recertifications, replace the words "certification" and "initial certification" with the word "recertification", replace the word "certified" with the word "recertified," and follow the procedures in 40 CFR 75.20(b)(5) and (g)(7) in lieu of the procedures in subparagraph (d)(3)(v) of this section.
(i) Notification of certification. The CAIR designated representative shall submit to the department, the appropriate EPA Regional Office, and the Administrator written notice of the dates of certification testing, in accordance with section 245-8.4.
(ii) Certification application. The CAIR designated representative shall submit to the department a certification application for each monitoring system. A complete certification application shall include the information specified in 40 CFR 75.63.
(iii) Provisional certification date. The provisional certification date for a monitoring system shall be determined in accordance with 40 CFR 75.20(a)(3). A provisionally certified monitoring system may be used under the CAIR SO2 Trading Program for a period not to exceed 120 days after receipt by the Department of the complete certification application for the monitoring system under subparagraph (d)(3)(ii) of this section. Data measured and recorded by the provisionally certified monitoring system, in accordance with the requirements of 40 CFR Part 75, will be considered valid quality-assured data (retroactive to the date and time of provisional certification), provided that the department does not invalidate the provisional certification by issuing a notice of disapproval within 120 days of the date of receipt of the complete certification application by the department.
(iv) Certification application approval process. The department will issue a written notice of approval or disapproval of the certification application to the owner or operator within 120 days of receipt of the complete certification application under subparagraph (d)(3)(ii) of this section. In the event the department does not issue such a notice within such 120-day period, each monitoring system that meets the applicable performance requirements of 40 CFR Part 75 and is included in the certification application will be deemed certified for use under the CAIR SO2 Trading Program.
('a') Approval notice. If the certification application is complete and shows that each monitoring system meets the applicable performance requirements of 40 CFR Part 75, then the department will issue a written notice of approval of the certification application within 120 days of receipt.
('b') Incomplete application notice. If the certification application is not complete, then the department will issue a written notice of incompleteness that sets a reasonable date by which the CAIR designated representative must submit the additional information required to complete the certification application. If the CAIR designated representative does not comply with the notice of incompleteness by the specified date, then the department may issue a notice of disapproval under clause (d)(3)(iv)('c') of this section. The 120-day review period shall not begin before receipt of a complete certification application.
('c') Disapproval notice. If the certification application shows that any monitoring system does not meet the performance requirements of 40 CFR Part 75 or if the certification application is incomplete and the requirement for disapproval under clause (d)(3)(iv)('b') of this section is met, then the department will issue a written notice of disapproval of the certification application. Upon issuance of such notice of disapproval, the provisional certification is invalidated by the department and the data measured and recorded by each uncertified monitoring system shall not be considered valid quality-assured data beginning with the date and hour of provisional certification (as defined under 40 CFR 75.20(a)(3)). The owner or operator shall follow the procedures for loss of certification in subparagraph (d)(3)(v) of this section for each monitoring system that is disapproved for initial certification.
('d') Audit decertification. The department or, for a CAIR SO2 opt-in unit or a unit for which a CAIR opt-in permit application is submitted and not withdrawn and a CAIR opt-in permit is not yet issued or denied under Subpart 245-9, the Administrator may issue a notice of disapproval of the certification status of a monitor in accordance with section 245-8.3(b).
(v) Procedures for loss of certification. If the department or the Administrator issues a notice of disapproval of a certification application under clause (d)(3)(iv)('c') of this section or a notice of disapproval of certification status under clause (d)(3)(iv)('d') of this section, then:
('a') The owner or operator shall substitute the following values, for each disapproved monitoring system, for each hour of unit operation during the period of invalid data specified under 40 CFR 75.20(a)(4)(iii), 75.20(g)(7), or 75.21(e) and continuing until the applicable date and hour specified under 40 CFR 75.20(a)(5)(i) or (g)(7):
('1') For a disapproved SO2 pollutant concentration monitor and disapproved flow monitor, respectively, the maximum potential concentration of SO2 and the maximum potential flow rate, as defined in sections 2.1.1.1 and 2.1.4.1 of appendix A to 40 CFR Part 75.
('2') For a disapproved moisture monitoring system and disapproved diluent gas monitoring system, respectively, the minimum potential moisture percentage and either the maximum potential CO2 concentration or the minimum potential O2 concentration (as applicable), as defined in sections 2.1.5, 2.1.3.1, and 2.1.3.2 of appendix A to 40 CFR Part 75.
('3') For a disapproved fuel flowmeter system, the maximum potential fuel flow rate, as defined in section 2.4.2.1 of appendix D to 40 CFR Part 75.
('b') The CAIR designated representative shall submit a notification of certification retest dates and a new certification application in accordance with subparagraphs (d)(3)(i) and (ii) of this section.
('c') The owner or operator shall repeat all certification tests or other requirements that were failed by the monitoring system, as indicated in the department's or the Administrator's notice of disapproval, no later than 30 unit operating days after the date of issuance of the notice of disapproval.
(e) 'Initial certification and recertification procedures for units using the low mass emission excepted methodology under 40 CFR 75.19.' The owner or operator of a unit qualified to use the low mass emissions (LME) excepted methodology under 40 CFR 75.19 shall meet the applicable certification and recertification requirements in 40 CFR 75.19(a)(2) and 75.20(h). If the owner or operator of such a unit elects to certify a fuel flowmeter system for heat input determination, the owner or operator shall also meet the certification and recertification requirements in 40 CFR 75.20(g).
(f) 'Certification/recertification procedures for alternative monitoring systems.' The CAIR designated representative of each unit for which the owner or operator intends to use an alternative monitoring system approved by the Administrator and, if applicable, the department under Subpart E of 40 CFR part 75 shall comply with the applicable notification and application procedures of 40 CFR 75.20(f).
245-8.3 Out of control periods.
(a) Whenever any monitoring system fails to meet the quality-assurance and quality-control requirements or data validation requirements of 40 CFR Part 75, data shall be substituted using the applicable missing data procedures in Subpart D of or appendix D to 40 CFR Part 75.
(b) 'Audit decertification.' Whenever both an audit of a monitoring system and a review of the initial certification or recertification application reveal that any monitoring system should not have been certified or recertified because it did not meet a particular performance specification or other requirement under section 245-8.2 or the applicable provisions of 40 CFR Part 75, both at the time of the initial certification or recertification application submission and at the time of the audit, the department or, for a CAIR SO2 opt-in unit or a unit for which a CAIR opt-in permit application is submitted and not withdrawn and a CAIR opt-in permit is not yet issued or denied under Subpart 245-9, the Administrator will issue a notice of disapproval of the certification status of such monitoring system. For the purposes of this subdivision, an audit shall be either a field audit or an audit of any information submitted to the department or the Administrator. By issuing the notice of disapproval, the department or the Administrator revokes prospectively the certification status of the monitoring system. The data measured and recorded by the monitoring system shall not be considered valid quality-assured data from the date of issuance of the notification of the revoked certification status until the date and time that the owner or operator completes subsequently approved initial certification or recertification tests for the monitoring system. The owner or operator shall follow the applicable initial certification or recertification procedures in section 245-8.2 for each disapproved monitoring system.
245-8.4 Notifications.
The CAIR designated representative for a CAIR SO2 unit shall submit written notice to the department and the Administrator in accordance with 40 CFR 75.61.
245-8.5 Recordkeeping and reporting.
(a) 'General provisions.' The CAIR designated representative shall comply with all recordkeeping and reporting requirements in this section, the applicable recordkeeping and reporting requirements in Subparts F and G of 40 CFR Part 75, and the requirements of section 245-2.1(e)(1).
(b) Monitoring plans. The owner or operator of a CAIR SO2 unit shall comply with requirements of 40 CFR 75.62, for a unit for which a CAIR opt-in permit application is submitted and not withdrawn and a CAIR opt-in permit is not yet issued or denied under Subpart 245-9, sections 245-9.4 and 245-9.5(a).
(c) 'Certification applications.' The CAIR designated representative shall submit an application to the department within 45 days after completing all initial certification or recertification tests required under section 245-8.2, including the information required under 40 CFR 75.63.
(d) 'Quarterly reports.' The CAIR designated representative shall submit quarterly reports, as follows:
(1) The CAIR designated representative shall report the SO2 mass emissions data and heat input data for the CAIR SO2 unit, in an electronic quarterly report in a format prescribed by the Administrator, for each calendar quarter beginning with:
(i) for a unit that commences commercial operation before July 1, 2008, the calendar quarter covering January 1, 2009 through March 31, 2009;
(ii) for a unit that commences commercial operation on or after July 1, 2008, the calendar quarter corresponding to the earlier of the date of provisional certification or the applicable deadline for initial certification under section 245-8.1(b), unless that quarter is the third or fourth quarter of 2008, in which case reporting shall commence in the quarter covering January 1, 2009 through March 31, 2009;
(iii) notwithstanding subparagraphs (i) and (ii) of this paragraph, for a unit for which a CAIR opt-in permit application is submitted and not withdrawn and a CAIR opt-in permit is not yet issued or denied under Subpart 245-9, the calendar quarter corresponding to the date specified in section 245-9.5(b); and
(iv) notwithstanding subparagraphs (i) and (ii) of this paragraph, for a CAIR SO2 opt-in unit under subpart 245-9 of this part, the calendar quarter corresponding to the date on which the CAIR SO2 opt-in unit enters the CAIR SO2 Trading Program as provided in section 245-9.5(g).
(2) The CAIR designated representative shall submit each quarterly report to the Administrator within 30 days following the end of the calendar quarter covered by the report. Quarterly reports shall be submitted in the manner specified in 40 CFR 75.64.
(3) For CAIR SO2 units that are also subject to an Acid Rain emissions limitation or the CAIR NOX Annual Trading Program, CAIR NOX Ozone Season Trading Program, or the Mercury Reduction Program for Coal-Fired Electric Utility Steam Generating Units (6 NYCRR Part 246), quarterly reports shall include the applicable data and information required by Subparts F through I of 40 CFR Part 75 as applicable, in addition to the SO2 mass emission data, heat input data, and other information required by this Subpart.
(e) 'Compliance certification.' The CAIR designated representative shall submit to the Administrator a compliance certification (in a format prescribed by the Administrator) in support of each quarterly report based on reasonable inquiry of those persons with primary responsibility for ensuring that all of the unit's emissions are correctly and fully monitored. The certification shall state that:
(1) the monitoring data submitted were recorded in accordance with the applicable requirements of this Subpart and 40 CFR Part 75, including the quality assurance procedures and specifications; and
(2) for a unit with add-on SO2 emission controls and for all hours where SO2 data are substituted in accordance with 40 CFR 75.34(a)(1), the add-on emission controls were operating within the range of parameters listed in the quality assurance/quality control program under appendix B to 40 CFR Part 75 and the substitute data values do not systematically underestimate SO2 emissions.
245-8.6 Petitions.
(a) The CAIR designated representative of a CAIR SO2 unit that is subject to an Acid Rain emissions limitation may submit a petition under 40 CFR 75.66 to the Administrator requesting approval to apply an alternative to any requirement of this Subpart. Application of an alternative to any requirement of this Subpart is in accordance with this Subpart only to the extent that the petition is approved in writing by the Administrator, in consultation with the department.
(b) The CAIR designated representative of a CAIR SO