CCLME.ORG - 40 CFR PART 73ЧSULFUR DIOXIDE ALLOWANCE SYSTEM

(continued)

(v) The owners and operators of the unit shall ensure that sufficient allowances are available to make the full deductions required under paragraphs (f)(3)(ii), (iii), and (iv) of this section. The designated representative may specify the serial number of each allowance to be deducted.

(4) ERC Units. Any unit to which allowances are allocated under paragraph (f)(3)(i) of this section shall be considered an ERC unit for purposes of applying the restrictions in paragraph (e)(6) of this section.

[58 FR 15711, Mar. 23, 1993, as amended at 62 FR 34150, June 24, 1997]

з 73.21 Phase II repowering allowances.
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(a) Repowering allowances. In addition to allowances allocated under з73.10(b), the Administrator will allocate, to each existing unit (under з72.44(b)(1) of this chapter) with an approved repowering extension plan, allowances for use during the repowering extension period approved under з72.44(f)(2)(ii) of this chapter (including a prorated allocation for any fraction of a year) equal to:

where:

1995 SIP = Most stringent federally enforceable State implementation plan SO2 emissions limitation for 1995.

1995 Actual Rate = 1995 actual SO2 emissions rate

Unit's Adjusted Basic Allowances are as listed in the following table

------------------------------------------------------------------------
Year 2000
adjusted
Unit basic
allowances
------------------------------------------------------------------------
RE Burger 1................................................ 1273
RE Burger 2................................................ 1245
RE Burger 3................................................ 1286
RE Burger 4................................................ 1316
RE Burger 5................................................ 1336
RE Burger 6................................................ 1332
New Castle 1............................................... 1334
New Castle 2............................................... 1485
New Castle 3............................................... 2935
New Castle 4............................................... 2686
New Castle 5............................................... 5481
------------------------------------------------------------------------

(b) Upon commencement of commercial operation of a new unit (under з72.44(b)(2) of this chapter) with an approved repowering extension plan, allowances for use during the repowering extension period approved will end and allocations under з73.10(b) for the existing unit will be transferred to the subaccounts for the new unit.

(c)(1) If the designated representative for a repowering unit terminates the repowering extension plan in accordance with з72.44(g)(1) of this chapter, the repowering allowances allocated to that unit by paragraph (a) of this section will be terminated and any necessary allowances from that unit's account forfeited, calculated in the following manner:

where:

Forfeiture Period = difference (as a portion of a year) between the end of the approved repowering extension and the end of the repowering extension under з72.44(g)(1)(ii)

1995 SIP = Most stringent federally enforceable State implementation plan SO2 emissions limitation for 1995.

1995 Actual Rate = 1995 actual SO2 emissions rate

Unit's Adjusted Basic Allowances are as listed in the table in paragraph (a) of this section.

(c)(2) The Administrator will reallocate any allowances forfeited in paragraph (c)(1) of this section with a compliance use date of 2000 or any allowances remaining in the repowering reserve to all Table 2 units' years 2000 through 2009 subaccounts in the following manner:

[53 FR 15713, Mar. 23, 1993, as amended at 63 FR 51765, Sept. 28, 1998]

зз 73.22-73.24 [Reserved]
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з 73.25 Phase I extension reserve.
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The Administrator will initially allocate 3.5 million allowances to the Phase I Extension Reserve account of the Allowance Tracking System. Allowances from this Reserve will be allocated to units under з72.42 of this chapter. Allowances remaining in the Phase I Extension Reserve account following allocation of all extension allowances under з72.42 of this chapter will remain in the Reserve.

[58 FR 3687, Jan. 11, 1993]

з 73.26 Conservation and renewable energy reserve.
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The Administrator will allocate 300,000 allowances to the Conservation and Renewable Energy Reserve subaccount of the Acid Rain Data System. Allowances from this Reserve will be allocated to units under subpart F of this part. Termination of this Reserve and reallocation of allowances will be made under з73.80(c).

[53 FR 15714, Mar. 23, 1993]

з 73.27 Special allowance reserve.
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Link to an amendment published at 70 FR 25335, May 12, 2005.

(a) Establishment of Reserve. (1) The Administrator will allocate 150,000 allowances annually for calendar years 1995 through 1999 to the Auction Subaccount of the Special Allowance Reserve.

(2) The Administrator will allocate 250,000 allowances annually for calendar year 2000 and each year thereafter to the Auction Subaccount of the Special Allowance Reserve.

(b) Distribution of proceeds. (1) Monetary proceeds from the auctions and sales of allowances from the Special Allowance Reserve (under subpart E of this part) for use in calendar years 1995 through 1999 will be distributed to the designated representative of the unit according to the following equation:

unit proceeds = (Column B of table 1 of section 73.10/150,000) ╫ total proceeds

(2) Until June 1, 1998, monetary proceeds from the auctions of allowances from the Special Allowance Reserve (under subpart E of this part) for use in calendar years 2000 through 2009 will be distributed to the designated representative of each unit listed in Table 2 according to the following equation:

(3) On or after June 1, 1998, monetary proceeds from the auctions of allowances from the Special Allowance Reserve (under subpart E of this part) for use in calendar years 2000 through 2009 will be distributed to the designated representative of each unit listed in Table 2 according to the following equation:

(4) Monetary proceeds from the auctions of allowances from the Special Allowance Reserve (under subpart E of this part) from years of purchase from 1993 through 1998, remaining in the U.S. Treasury as a result of the surrender of allowances and return of proceeds under з73.10(b)(3), will be distributed to the designated representative of each unit listed in Table 2 according to the following equation:

(5) Monetary proceeds from the auctions of allowances from the Special Allowance Reserve (under subpart E of this part) for use in calendar years 2010 and thereafter will be distributed to the designated representative of each unit listed in Table 2 according to the following equation:

(c) Reallocation of allowances. (1) Allowances remaining in the Special Allowance Reserve following the annual auctions and sales (under subpart E of this part) for use in calendar years 1995 through 1999 will be reallocated to the unit's Allowance Tracking System Account according to the following equation:

unit allowances = (Column B of table 1 of section 73.10/150,000) ╫ Allowances remaining

(2) Until June 1, 1998, allowances, for use in calendar years 2000 through 2009, remaining in the Special Allowance Reserve at the end of each year, following that year's auction (under subpart E of this part), will be reallocated to the unit's Allowance Tracking System account according to the following equation:

(3) On or after June 1, 1998, allowances, for use in calendar years 2000 through 2009, remaining in the Special Allowance Reserve at the end of each year, following that year's auction (under subpart E of this part), will be reallocated to the unit's Allowance Tracking System account according to the following equation:

(4)[Reserved]

(5) Allowances, for use in calendar years 2010 and thereafter, remaining in the Special Allowance Reserve at the end of each year, following that year's auction (under subpart E of this part), will be reallocated to the unit's Allowance Tracking System account according to the following equation:

(d) Calculation rounding. All proceeds under this section shall be distributed as whole dollars. All calculations for such allowances shall be rounded down for decimals less than .5 and up for decimals of .5 or greater.

(e) Achieving exact totals. (1) If the sum of the proceeds to be distributed under paragraph (b) of this section exceeds the total proceeds or the allowances to be reallocated under paragraph (c) of this section exceeds the allowances remaining, then the Administrator will withdraw one dollar or allowance from each unit, beginning with the unit receiving the largest number of dollars or allowances, in descending order, until the distribution balances with the proceeds and the reallocated allowances balance with the remaining allowances.

(2) If the sum of the proceeds to be distributed under paragraph (b) of this section is less than the total proceeds or the allowances to be reallocated under paragraph (c) of this section is less than the allowances remaining, then EPA will distribute one dollar or allowance for each unit, beginning with the unit receiving the largest number of dollars or allowances, in descending order, until the distribution balances with the proceeds and the reallocated allowances balance with the remaining allowances.

[58 FR 3687, Jan. 11, 1993, as amended at 58 FR 15714, Mar. 23, 1993; 63 FR 51765, Sept. 28, 1998]

Subpart CЧAllowance Tracking System
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Source: 58 FR 3691, Jan. 11, 1993, unless otherwise noted.

з 73.30 Allowance tracking system accounts.
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Link to an amendment published at 70 FR 25335, May 12, 2005.

(a) Nature and function of unit accounts. The Administrator will establish accounts for all affected units pursuant to з73.31 (a) and (b). All allocations of allowances pursuant to subparts B, E, and F of this part and part 72 of this chapter, transfers of allowances made pursuant to subparts C and D, and deductions of allowances made for purposes of offsetting emissions pursuant to з73.35 (b) and (d) and parts 72, 75, and 77 of this chapter will be recorded in the unit's Allowance Tracking System account.

(b) Nature and function of general accounts. Transfers of allowances held for any person other than an affected unit, made pursuant to subparts C, D, E, F, and G of this part will be recorded in that person's Allowance Tracking System account established pursuant to з73.31(c).

[58 FR 3687, Jan. 11, 1993; 58 FR 40747, July 30, 1993]

з 73.31 Establishment of accounts.
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Link to an amendment published at 70 FR 25335, May 12, 2005.

(a) Existing affected units. The Administrator will establish an Allowance Tracking System account and allocate allowances for each unit that is, or will become, an existing affected unit pursuant to sections 404(a) or 405 of the Act and з72.6 of this chapter.

(b) New units. Upon receipt of a complete certificate of representation for the designated representative for a new unit pursuant to part 72, subpart B of this chapter, the Administrator will establish an Allowance Tracking System account for the unit.

(c) General accounts. (1) Any person may apply to open an Allowance Tracking System account for the purpose of holding and transferring allowances. Such application shall be submitted to the Administrator in a format to be specified by the Administrator by means of the Allowance Account Information Form, or by providing the following information in a similar format:

(i) Name and title of the authorized account representative and alternate authorized account representative (if any) pursuant to з73.33;

(ii) Mailing address, telephone number and facsimile transmission number (if any) of the authorized account representative and alternate authorized account representative (if any);

(iii) Organization or company name (if applicable) and type of organization (if applicable);

(iv) A list of all persons subject to a binding agreement for the authorized account representative to represent their ownership interest with respect to the allowances held in the general account and which shall be amended and resubmitted within 30 days following any transaction giving rise to any change of the list of persons subject to the binding agreement;

(v) A certification statement by the authorized account representative and alternate authorized account representative (if any) that reads УI certify that I was selected under the terms of an agreement that is binding on all persons who have an ownership interest with respect to allowances held in the Allowance Tracking System account. I certify that I have all necessary authority to carry out my duties and responsibilities on behalf of the persons with an ownership interest and that they shall be fully bound by my actions, inactions, or submissions under 40 CFR part 73. I shall abide by any fiduciary responsibilities assigned pursuant to the binding agreement. I am authorized to make this submission on behalf of the persons with an ownership interest for whom this submission is made. I certify under penalty of law that I have personally examined and am familiar with the information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the information is to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false material information, or omitting material information, including the possibility of fine or imprisonment for violations.Ф;

(vi) The signature of the authorized account representative and the alternate authorized account representative (if any); and

(vii) The date of the signature of the authorized account representative and the alternate authorized account representative (if any).

(2) Upon receipt of such complete application, the Administrator will establish an Allowance Tracking System account for the person or persons identified in the application.

(3) No allowance transfers will be recorded for a general account until the Administrator has established the new account.

(d) Account identification. The Administrator will assign a unique identifying number to each account established pursuant to this section.

[58 FR 3687, Jan. 11, 1993; 58 FR 40747, July 30, 1993]

з 73.32 Allowance account contents.
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Link to an amendment published at 70 FR 25335, May 12, 2005.

Each allowance account will include, at a minimum, the following:

(a) The name, address, telephone number and facsimile transmission number, if any, of the authorized account representative; and

(1) In the case of a unit account, a list of all persons identified as owners of record of the unit in з72.24(a)(3) of this chapter, or

(2) In the case of a general account, a list of all persons subject to the binding agreement for the authorized account representative to represent their ownership interest with respect to allowances, as identified in accordance with з73.31(c);

(b) A list of transfers of allowances to, and from, the account, including the identity of the transferror and transferee accounts;

(c) In the case of a unit account for an existing affected unit, beginning in 1995, a compliance subaccount;

(d) In the case of a unit account for a new unit, a compliance subaccount;

(e) In the case of a general account, a current year subaccount;

(f) Future year subaccounts for each of the 30 calendar years following the later of 1995 or the current calendar year;

(g) In the case of a unit account, the current total of sulfur dioxide emissions in tons for the current calendar year as reported to date pursuant to part 75 of this chapter.

[58 FR 3687, Jan. 11, 1993; 58 FR 40747, July 30, 1993]

з 73.33 Authorized account representative.
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Link to an amendment published at 70 FR 25335, May 12, 2005.

(a) Following the establishment of an Allowance Tracking System account, all matters pertaining to the account, including, but not limited to, the deduction and transfer of allowances in the account, shall be undertaken only by the authorized account representative.

(b) Authorized account representative identification. The Administrator will assign a unique identifying number to each authorized account representative or alternate authorized account representative identified pursuant to з73.31(c).

(c) Notification of parties subject to the binding agreement. The authorized account representative for a general account shall notify, in writing, all persons who have an ownership interest with respect to the allowances held in the account of any Acid Rain Program submission required by this part or in a procedure under part 78 of this chapter, by the date of submission. Each person who has an ownership interest with respect to the allowances held in the account may expressly waive his or her right to receive such notification.

(d) General account alternate authorized account representative. Any application for opening a general account may designate one alternate authorized account representative to act on behalf of the certifying authorized account representative, in the event the authorized account representative is absent or otherwise not available to perform actions and duties under this part. The alternate shall be a natural person and shall be authorized, provided that the conditions and procedures specified in з73.31(c)(1) are met.

(1) The alternate authorized account representative may be changed at any time by the authorized account representative upon receipt by the Administrator of a new complete application as required in з73.31(c);

(2) The alternate authorized account representative shall be subject to the provisions of this part applicable to authorized account representatives;

(3) Whenever the term Уauthorized account representativeФ is used in this part it shall be construed to include the alternate authorized account representative, unless such a construction would be illogical from the context; and

(4) Any action, representation or failure to act by the alternate authorized account representative when acting in that capacity shall be deemed to be an action of the authorized account representative, with all the rights, duties, and responsibilities pertaining thereto.

(e) Changes to the general account authorized account representative. An authorized account representative for a general account may be succeeded by any person who submits an application pursuant to з73.31(c). The actions of an authorized account representative for a general account shall be binding on any successor.

(f) Objections to the authorized account representative. Except for a certification pursuant to paragraph (e) of this section, no objection or other communication submitted to the Administrator concerning any submission to the Administrator by the authorized account representative shall affect the recordation of transfers submitted by the authorized account representative pursuant to subpart D of this part. Neither the United States, the Administrator, nor any permitting authority will adjudicate any dispute between and among persons concerning any submission to the Administrator by the authorized account representative; any actions of the authorized account representative; or any other matter arising directly or indirectly from the certification, actions or representations of the authorized account representative.

з 73.34 Recordation in accounts.
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Link to an amendment published at 70 FR 25335, May 12, 2005.

(a) Recordation in compliance subaccounts. At the beginning of 1995 and, in the case of each year thereafter, after the Administrator has made all deductions from an affected unit's compliance subaccount pursuant to з73.35(b), the Administrator will record in the compliance subaccount the allowances held in the future year subaccount for the year corresponding to the current calendar year. The future year subaccount for the new 30th year will be established at the same time and include the allowances allocated for the unit for that year pursuant to subpart B of this part.

(b) Recordation in current year subaccounts. At the beginning of 1995 and each year thereafter, the Administrator will record in the current year subaccount the allowances held in the future year subaccount for the year corresponding to the current calendar year.

(c) Recordation in subaccounts. Allowances in each compliance, current year, and future year subaccounts will reflect:

(1) All allowances allocated or deducted for the unit for the year pursuant to subpart B of this part;

(2) All allowances allocated or deducted pursuant to зз72.41, 72.42, 72.43, and 72.44 and part 74 of this chapter;

(3) All allowances allocated pursuant to subparts F and G of this part;

(4) All allowances recorded as a result of purchases or returns from the annual auctions;

(5) All allowances recorded or deducted as a result of allowance transfers recorded pursuant to subpart D of this part; and

(6) All allowances deducted or returned pursuant to зз73.35(d), 72.91 and 72.92, part 74, and part 77 of this chapter.

(d) Serial numbers for allocated allowances. Upon the allocation of allowances to an account, including allowances contained in reserves as provided in subpart B of this part, the Administrator will assign each allowance a unique identification number that will include digits identifying the allowance's compliance use date.

[58 FR 3691, Jan. 11, 1993, as amended at 60 FR 17114, Apr. 4, 1995; 63 FR 68404, Dec. 11, 1998]

з 73.35 Compliance.
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Link to an amendment published at 70 FR 25335, May 12, 2005.

(a) Allowance transfer deadline. No allowance shall be deducted for purposes of compliance with an affected unit's sulfur dioxide Acid Rain emissions limitation requirements pursuant to title IV of the Act and paragraph (b) of this section unless:

(1) The compliance use date of the allowance is no later than the year in which the unit's SO2 emissions occurred; and

(2) Such allowance is:

(i) Recorded in the unit's compliance subaccount; or

(ii) Transferred to the unit's compliance subaccount, with the transfer submitted correctly pursuant to subpart D of this part for recordation in the compliance subaccount for the unit by not later than the allowance transfer deadline in the calendar year following the year for which compliance is being established; or

(iii) Held in the compliance subaccount of another affected unit at the same source in accordance with paragraph (b)(3) of this section.

(b) Deductions for compliance. (1) Except as provided in paragraph (d) of this section, following the recordation of transfers submitted correctly for recordation in the compliance subaccount pursuant to paragraph (a) of this section and subpart D of this part, the Administrator will deduct allowances from each affected unit's compliance subaccount in accordance with the allowance deduction formula in з72.95 of this chapter, or, for opt-in sources, the allowance deduction formula in з74.49 of this chapter, and any correction made under з72.96 of this chapter.

(2) The Administrator will make deductions until either the number of allowances deducted is equal to the amount calculated in accordance with з72.95 of this chapter, or, for opt-in sources, in accordance with з74.49 of this chapter, as modified under з72.96 of this chapter or until no more allowances remain in the compliance subaccount.

(3)(i) If, after the Administrator completes the deductions under paragraph (b)(2) of this section for all affected units at the same source, a unit would otherwise have excess emissions and one or more other affected units at the source would otherwise have unused allowances in their compliance subaccounts and available for such other units under paragraph (a)(1) and (a)(2)(i) and (ii) of this section for the year for which compliance is being established, the Administrator will notify in writing the authorized account representative. The Administrator will state that the authorized account representative may specify in writing which of such allowances to deduct up to the amount calculated as follows, in order to reduce the tons of excess emissions otherwise at the unit:

Maximum deduction from other units = 0.95 ╫ Excess emissions if no deduction from other units

Where:

УMaximum deduction from other unitsФ is the maximum number of allowances that may be deducted for the year for which compliance is being established, for the unit otherwise having excess emissions, from the compliance subaccounts of other units at the same source, rounded to the nearest allowance.

УExcess emissions if no deduction from other unitsФ is the tons of excess emissions that the unit would otherwise have if no allowances were deducted for the unit from other units under this paragraph (b)(3)(i) or paragraph (b)(3)(ii) of this section.

(ii) Notwithstanding paragraph (b)(3)(i) of this section, if the amount calculated results in less than 10 tons of excess emissions, the maximum deduction from other units shall be adjusted so that 10 tons of excess emissions, or the tons of excess emissions that would result if no allowances could be deducted from other units, whichever is less, remain for the unit.

(iii) If the authorized account representative submits within 15 days of receipt of a notification under paragraph (b)(3)(i) of this section a written request specifying allowances to deduct in accordance with paragraphs (b)(3)(i) and (ii) of this section, the Administrator will deduct such allowances, and reduce the tons of excess emissions otherwise at the unit by an equal amount, up to the amount calculated under paragraphs (b)(3)(i) and (ii) of this section.

(c)(1) Identification of allowances by serial number. By no later than sixty days after the end of the calendar year, the authorized account representative for each unit account may identify by serial number the allowances to be deducted from the compliance subaccount for purposes of compliance with the unit's sulfur dioxide emissions limitation requirements. Such identification shall be made pursuant to part 72 of this chapter.

(2) First-in, first-out. In the absence of an identification or in the case of a partial identification of allowances by serial number, as provided for in paragraph (b)(1) or (d) of this section, the Administrator will deduct allowances on a first-in, first-out (FIFO) accounting basis beginning with those allowances with the earliest compliance use date originally allocated for the unit and recorded in its compliance subaccount. Following the deduction of all originally allocated allowances from the compliance subaccount, the Administrator will deduct those allowances that were transferred and recorded in the unit's compliance subaccount pursuant to subpart D of this part, beginning with those with the earliest date of recordation.

(d) Deductions for excess emissions. Pursuant to з77.4 of this chapter, and following the process of recordation set forth in з73.34(a) of this part, the Administrator will deduct allowances for each unit with excess emissions for the preceding calendar year in an amount equal to the unit's excess emissions tonnage.

(e) Deductions for units sharing a common emission stack. In the case of units sharing a common emission stack and have emissions that are not individually monitored pursuant to part 75 of this chapter, the authorized account representative may identify the percentage of allowances to be deducted from each unit's compliance subaccount. Such identification shall be made pursuant to part 72, subpart I of this chapter. In the absence of an identification, the Administrator will deduct an equal percentage of allowances from each unit's compliance subaccount.

[58 FR 3691, Jan. 11, 1993, as amended at 60 FR 17114, Apr. 4, 1995; 64 FR 25842, May 13, 1999]

з 73.36 Banking.
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Link to an amendment published at 70 FR 25336, May 12, 2005.

(a) Unit accounts. Any allowance in a compliance subaccount not deducted pursuant to з73.35 will remain in the compliance subaccount.

(b) General accounts. In the case of a general account, any allowances in the current year subaccount at the end of the current calendar year will remain in the current year subaccount.

з 73.37 Account error and dispute resolution.
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Link to an amendment published at 70 FR 25336, May 12, 2005.

(a) Claim of error. The authorized account representative may notify the Administrator of any claim that the Administrator made an error in recording transfer information that was submitted correctly pursuant to subpart D of this part, provided that such claim of error notification is submitted to the Administrator by no later than 15 business days following the date mark of the notification by the Administrator pursuant to actions taken under з73.37(d) or з73.53. Such claim of error notification shall be in writing and shall include:

(1) A description of the error alleged to have been made by the Administrator;

(2) A proposed correction of the alleged error;

(3) Any supporting documentation or other information concerning the alleged error and proposed correction; and

(4) Certification by the signature of and the date of the signature of the authorized account representative.

The Administrator will not act on claim of error notifications received after the stated deadlines (except as provided under paragraph (f) of this section, or that do not contend that the Administrator made an error in recordation.

(b) EPA action. The Administrator, at the Administrator's sole discretion based on documentation provided, will determine what changes, if any, will be made to the accounts subject to the alleged error. Not later than 20 business days after receipt of a claim of error notification pursuant to paragraph (a) of this section, the Administrator will submit to the authorized account representative a written response stating:

(1) The determination made and any action taken by, the Administrator; and

(2) The reasons for such action.

(c) Administrative appeals procedure. Following the Administrator's action pursuant to paragraph (b) of this section, the authorized account representative may appeal the Administrator's action through the administrative appeals procedure pursuant to part 78 of this chapter.

(d) EPA corrections. The Administrator may, without prior notice of a claim of error and in the Administrator's sole discretion, correct any errors in any account on his or her own motion. The Administrator will notify the authorized account representative by no later than 20 business days following any such corrections.

(e) Excess emissions requirements. The filing of a claim of error notification pursuant to paragraph (a) of this section, or the pendency of the Administrator's action pursuant to paragraph (b) of this section, shall not affect a unit's obligations under part 77 of this chapter.

(f) Waiver of deadline. The Administrator may, in his or her discretion, accept claim of error submissions made following the deadlines imposed in this section upon a demonstration by the authorized account representative of good cause for the delay. The finding of whether good cause exists shall be in the sole discretion of the Administrator. Appeals of a decision by the Administrator under this paragraph will be addressed pursuant to the administrative appeals process in part 78 of this chapter.

з 73.38 Closing of accounts.
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Link to an amendment published at 70 FR 25336, May 12, 2005.

(a) General account. The authorized account representative of a general account may instruct the Administrator to close the general account by submitting an allowance transfer, pursuant to з73.50 and з73.52, requesting the transfer of all allowances held in the account to one or more other accounts in the Allowance Tracking System, and by submitting in writing, with the signature of the authorized account representative, a request to delete the general account from the Allowance Tracking System.

(b) Inactive accounts. If a general account shows no activity for a period of a year or more and does not contain any allowances in its subaccounts, the Administrator will notify the account's authorized account representative that the account will be closed and eliminated from the Allowance Tracking System following 20 business days from the date the notice is sent. The account will be closed following the 20-day period, unless the Administrator receives and records a request for the transfer of allowances into the account pursuant to з73.52 before the end of the 20-day period, or the authorized account representative submits, in writing, demonstration of good cause as to why the inactive account should not be closed. The finding of whether good cause exists shall be in the sole discretion of the Administrator.

Subpart DЧAllowance Transfers
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Source: 58 FR 3694, Jan. 11, 1993, unless otherwise noted.

з 73.50 Scope and submission of transfers.
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Link to an amendment published at 70 FR 25336, May 12, 2005.

(a) Scope of transfers. Except as provided in з73.51 and з73.52, the Administrator will record transfers of an allowance to and from Allowance Tracking System accounts, including, but not limited to, transfers of an allowance to and from contemporaneous future year subaccounts, and transfers of an allowance to and from compliance subaccounts and current year subaccounts, and transfers of all allowances allocated for a unit for each calendar year, in perpetuity.

(b) Submission of transfers. (1) Authorized account representatives seeking recordation of an allowance transfer shall request such transfer by submitting to the Administrator, in a format to be specified by the Administrator, an Allowance Transfer Form. To be considered correctly submitted the request for transfer shall include:

(i) The numbers identifying both the transferror and transferee accounts;

(ii) A specification by serial number of each allowance to be transferred, or correct indication on the allowance transfer where a request involves the transfer of the unit's allowances in perpetuity;

(iii) Signatures of the authorized account representatives of both the transferror and transferee accounts;

(iv) The dates of the signatures of the authorized account representatives;

(v) The numbers identifying the authorized account representatives for both the transferror and transferee account; and

(vi) Where the transferee account has not been established, information as required pursuant to з73.31 (b) or (c).

(2)(i) The authorized account representative for the transferee account can meet the requirements in paragraphs (b)(1)(iii) and (iv) of this section by submitting, in a format prescribed by the Administrator, a statement signed by the authorized account representative and identifying each account into which any transfer of allowances, submitted on or after the date on which the Administrator receives such statement, is authorized. Such authorization shall be binding on any authorized account representative for such account and shall apply to all transfers into the account that are submitted on or after such date of receipt, unless and until the Administrator receives a statement in a format prescribed by the Administrator and signed by the authorized account representative retracting the authorization for the account.

(ii) The statement under paragraph (b)(2)(i) of this section shall include the following: УBy this signature, I authorize any transfer of allowances into each Allowance Tracking System account listed herein, except that I do not waive any remedies under 40 CFR part 73, or any other remedies under State or federal law, to obtain correction of any erroneous transfers into such accounts. This authorization shall be binding on any authorized account representative for such account unless and until a statement signed by the authorized account representative retracting this authorization for the account is received by the Administrator.Ф

(3) Transfers of allowances to or from compliance subaccounts submitted for recordation following the allowance transfer deadline will not be recorded until after completion of the process of recordation set forth in з73.34(a).

[58 FR 3694, Jan. 11, 1993, as amended at 63 FR 68404, Dec. 11, 1998]

з 73.51 Prohibition.
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Link to an amendment published at 70 FR 25336, May 12, 2005.

Except as provided in з73.34(a), the Administrator will not record a transfer of allowances from a future year subaccount to a subaccount for an earlier year.

з 73.52 EPA recordation.
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Link to an amendment published at 70 FR 25336, May 12, 2005.

(a) General recordation. Except as provided in з73.50, з73.51, and this paragraph (a), the Administrator will record an allowance transfer by no later than five business days following receipt of an allowance transfer request pursuant to з73.50, by moving each allowance from the transferror account to the transferee account as specified by the request pursuant to з73.50, provided that:

(1) The information submitted pursuant to з73.50 is complete;

(2) The transferror account includes each allowance identified by serial number in the allowance transfer request submitted pursuant to з73.50, except when a request for transfer of the unit's allowances in perpetuity is indicated correctly on the allowance transfer submission;

(3) If the allowances identified by serial number specified pursuant to з73.50(b)(1)(ii) are subject to the limitation on transfer imposed pursuant to з72.44(h)(1)(i) of this chapter, з74.42 of this chapter, or з74.47(c) of this chapter, the transfer is in accordance with such limitation; and

(4) The transfer meets all applicable requirements of this subpart.

(b) Where an allowance transfer submitted for recordation fails to meet the requirements of this subpart, the Administrator will not record such transfer.

[58 FR 3694, Jan. 11, 1993, as amended at 60 FR 17114, Apr. 4, 1995]

з 73.53 Notification.
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(a) Notification of recordation. The Administrator will notify each party to an allowance transfer within five business days following the recordation of the transfer. Notice will be given in writing or in a format to be specified by the Administrator, to the authorized account representatives of both the transferror and transferee accounts.

(b) Notification of non-recordation. By no later than five business days following receipt of an allowance transfer request by the Administrator, the Administrator will notify, in writing or in a format to be specified by the Administrator, the authorized account representatives of the accounts subject to the allowance transfer request submitted for recordation of:

(1) A decision not to record the transfer, and

(2) The reasons for such non-recordation.

(c) Nothing in this section shall preclude the submission of an allowance transfer request for recordation following notification of non-recordation.

Subpart EЧAuctions, Direct Sales, and Independent Power Producers Written Guarantee
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Source: 56 FR 65601, Dec. 17, 1991, unless otherwise noted.

з 73.70 Auctions.
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Link to an amendment published at 70 FR 25336, May 12, 2005.

(a) Allowances to be auctioned. Every year the Administrator will auction allowances from the Auction Subaccount, established pursuant to subpart B of this part, according to the following schedule:

Table I_Allowance Schedule for Auctions
------------------------------------------------------------------------
Spot Advance Advance
Year of purchase auction auction auction*
------------------------------------------------------------------------
1993..................................... 50,000 a 100,000 b
1994..................................... 50,000 a 100,000 b 25,000 c
1995..................................... 50,000 a 100,000 b 25,000 c
1996..................................... 150,000 100,000 b 25,000 c
1997..................................... 150,000 125,000 b 25,000 c
1998..................................... 150,000 125,000 b
1999..................................... 150,000 125,000 b
2000 and after........................... 125,000 125,000 b
------------------------------------------------------------------------
a Not usable until 1995.
b Not usable until 7 years after purchase.
c Not usable until 6 years after purchase.
*These are unsold advance allowances from the direct sale program for
1993, 1994, 1995, and 1996 respectively.

In addition to the allowances listed above, the Administrator will auction allowances pursuant to paragraph (c) of this section and з73.72(q) in the amounts and at the times provided for therein.

(b) Timing of the auctions. The spot auction and the advance auction will be held on the same day, selected each year by the Administrator, but no later than March 31 of each year. The Administrator will conduct one spot auction and one advance auction in each calendar year.

(c) Submittal for other allowances for auction. Authorized account representatives may offer allowances for sale at auction, provided that allowances are dated for the year in which they are offered or for any previous year or for seven years following the year in which they are offered. Such authorized account representatives may specify a minimum price for the allowances offered at the auctions. The authorized account representative must notify the Administrator fifteen business days prior to the auctions, using the SO2 Allowance Offer Form published by the Administrator, or by means of electronic communication if the Administrator, following public notice, so requires or permits at some future time. The notification shall include:

(1) The compliance use date of the allowances offered;

(2) The number of allowances to be sold and any other information identifying the allowances offered that may be required by subpart C of this part;

(3) Any minimum price; and

(4) Whether the authorized account representative is willing to sell fewer allowances than the number stated in paragraph (c)(2) of this section, if the full amount cannot be sold. After notification, the Administrator will deduct allowances from the appropriate Allowance Tracking System account from which allowances are being offered and place them in a separate subaccount for such allowances.

(d) Conduct of the auctions. (1) The Administrator will rank all bids in descending order of bid price starting with the highest. Allowances will be sold from the Auction Subaccount in this order at the amounts specified in the bids until there are no allowances in the subaccount. If all allowances are sold from the Auction Subaccount, including unsold allowances transferred from the preceding year's direct sale, and if bids still remain, the Administrator will sell allowances offered by the authorized account representatives, beginning with those offered at the lowest minimum price. Allowances offered at the lowest minimum price will be matched with the highest bid remaining after the Auction Subaccount is exhausted. Sales of offered allowances, including, but not limited to, allowances offered by more than one offeror at the same minimum bid price, will continue in ascending order of minimum price, starting with the lowest, and descending order of remaining bids, starting with the highest, until:

(i) All allowances are sold,

(ii) No bids remain, or

(iii) Prices of remaining bids do not meet minimum prices required in remaining offers.

(2) In the event that there is more than one bid submitting the same price and the total number of allowances requested in all such bids exceeds the number of allowances remaining, the Administrator will award the remaining allowances by lottery to such bidders.

(3) In the event that there are more offers of sale at the minimum price than there are bids meeting that price, allowances from all such offers will be sold to cover the bids, according to each such offeror's pro rata share of all allowances so offered.

(4) In the event that fewer allowances remain than are requested in a bid, the Administrator will sell such remaining allowances to the bidder provided that, pursuant to з73.71(b)(4), the bid states the bidder's willingness to purchase fewer allowances than requested in the bid.

(5) In the event that fewer than all allowances included in an offer for sale would be sold to remaining bids based on price, the Administrator will sell such allowances to the bidder(s), provided that, pursuant to з73.70(c)(4), the offer states the offeror's willingness to sell fewer allowances than were offered for sale.

(e) Announcement of results. Following each auction, the Administrator will publish the names of winning bidders and their bids, the amounts of losing bids, and the lowest price at which allowances are sold. The Administrator will announce the results of each auction through the Allowance Tracking System. The results will also be published in the Federal Register and in the Commerce Business Daily.

(f) Transfer of allowances. Allowances will be transferred from the Auction Subaccount and from the subaccount for allowances offered by authorized account representatives to the Allowance Tracking System accounts of successful bidders as soon as payment is collected by the Administrator.

(g) Return of unsuccessful bids. The Administrator will return payment to unsuccessful bidders and to bidders unwilling to purchase fewer allowances than requested following the conclusion of each auction.

(h) Transfer of proceeds. The Administrator will return all proceeds from the auction as follows:

(1) Allowances auctioned from the Auction Subaccount. Not later than 90 days following each auction, the Administrator will pay a pro rata share of the proceeds of each auction to the authorized account representative of each unit from whose annual allowance allocation allowances were withheld for the purposes of establishing the Auction Subaccount. Each unit's pro rata share will be calculated pursuant to regulations to be promulgated under subpart B.

(2) Allowances contributed from others. Not later than 90 days following each auction, the Administrator will transfer the full amount of the proceeds of each sale of allowances offered by authorized account representatives to such representatives. Proceeds from the sale of allowances that were offered with the same specified minimum price will be distributed according to each such offeror's pro rata share of the sale of such allowances.

(3) The Administrator will pay no interest on any payment made pursuant to paragraphs (h) (1) and (2) of this section.

(i) Return of unsold allowances. The Administrator will return all unsold allowances from the auction as follows:

(1) Allowances in the Auction Subaccount. At the conclusion of each auction, the Administrator will transfer to the Allowance Tracking System account of each unit specified in paragraph (h)(1) of this section its pro rata share of any allowances remaining in the Auction Subaccount. Each unit's pro rata share will be calculated pursuant to regulations to be promulgated under subpart B.

(2) Allowances contributed from others. At the conclusion of each auction, the Administrator will return unsold allowances to the appropriate offerors' Allowance Tracking System accounts. Any unsold allowances that were offered with the same specified minimum price will be distributed according to each such offeror's pro rata share of all such allowances offered.

[56 FR 65601, Dec. 17, 1991, as amended at 61 FR 28763, June 6, 1996; 63 FR 5735, Feb. 4, 1998; 63 FR 51766, Sept. 28, 1998]

з 73.71 Bidding.
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(a) Who may participate in the auctions. Any person may participate in the auctions by submitting a bid or bids pursuant to this section.

(b) Bidding. Sealed bids shall be sent to the Administrator using the Bid Form for SO2 Allowance Auctions, or some method of electronic transfer if the Administrator, following public notice, so requires or permits at some future time. The bid form shall state:

(1) The number of allowances sought and the price;

(2) Whether spot or advance allowances are sought;

(3) Allowance Tracking System account number;

(4) Whether the bidder is willing to purchase fewer allowances than the number of allowances stated in (b)(1) of this section if the full amount is not available. Where the bidder holds no Allowance Tracking System account, a New Account/New Authorized Account Representative Form must accompany the bid. New account information shall include at a minimum: Name, address, telephone number, facsimile number, organization or company name (if applicable), type of organization,and the authorized account representative for purposes of the account. (continued)