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National
United States Regulations
40 CFR PART 74—SULFUR DIOXIDE OPT-INS



Title 40: Protection of Environment



PART 74—SULFUR DIOXIDE OPT-INS



Authority: 42 U.S.C. 7601 and 7651 et seq.

Source: 60 FR 17115, Apr. 4, 1995, unless otherwise noted.

Subpart A—Background and Summary
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§ 74.1 Purpose and scope.
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The purpose of this part is to establish the requirements and procedures for:

(a) The election of a combustion or process source that emits sulfur dioxide to become an affected unit under the Acid Rain Program, pursuant to section 410 of title IV of the Clean Air Act, 42 U.S.C. 7401, et seq., as amended by Public Law 101–549 (November 15, 1990); and

(b) Issuing and modifying operating permits; certifying monitors; and allocating, tracking, transferring, surrendering and deducting allowances for combustion or process sources electing to become affected units.

§ 74.2 Applicability.
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Combustion or process sources that are not affected units under §72.6 of this chapter and that are operating and are located in the 48 contiguous States or the District of Columbia may submit an opt-in permit application to become opt-in sources upon issuance of an opt-in permit. Units for which an exemption under §72.7 or §72.8 of this chapter is in effect and combustion or process sources that are not operating are not eligible to submit an opt-in permit application to become opt-in sources.

[60 FR 17115, Apr. 4, 1995, as amended at 62 FR 55487, Oct. 24, 1997; 66 FR 12978, Mar. 1, 2001]

§ 74.3 Relationship to the Acid Rain program requirements.
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(a) General. (1) For purposes of applying parts 72, 73, 75, 77 and 78, each opt-in source shall be treated as an affected unit.

(2) Subpart A, B, G, and H of part 72 of this chapter, including §§72.2 (definitions), 72.3 (measurements, abbreviations, and acronyms), 72.4 (Federal authority), 72.5 (State authority), 72.6 (applicability), 72.7 (New units exemption), 72.8 (Retired units exemption), 72.9 (Standard Requirements), 72.10 (availability of information), and 72.11 (computation of time), shall apply to this part.

(b) Permits. The permitting authority shall act in accordance with this part and parts 70, 71, and 72 of this chapter in issuing or denying an opt-in permit and incorporating it into a combustion or process source's operating permit. To the extent that any requirements of this part, part 72, and part 78 of this chapter are inconsistent with the requirements of parts 70 and 71 of this chapter, the requirements of this part, part 72, and part 78 of this chapter shall take precedence and shall govern the issuance, denials, revision, reopening, renewal, and appeal of the opt-in permit.

(c) Appeals. The procedures for appeals of decisions of the Administrator under this part are contained in part 78 of this chapter.

(d) Allowances. A combustion or process source that becomes an affected unit under this part shall be subject to all the requirements of subparts C and D of part 73 of this chapter, consistent with subpart E of this part.

(e) Excess emissions. A combustion or process source that becomes an affected unit under this part shall be subject to the requirements of part 77 of this chapter applicable to excess emissions of sulfur dioxide and shall not be subject to the requirements of part 77 of this chapter applicable to excess emissions of nitrogen oxides.

(f) Monitoring. A combustion or process source that becomes an affected unit under this part shall be subject to all the requirements of part 75, consistent with subparts F and G of this part.

[60 FR 17115, Apr. 4, 1995, as amended at 63 FR 18841, Apr. 16, 1998]

§ 74.4 Designated representative.
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Link to an amendment published at 70 FR 25336, May 12, 2005.

(a) The provisions of subpart B of part 72 of this chapter shall apply to the designated representative of an opt-in source.

(b) If a combustion or process source is located at the same source as one or more affected units, the combustion or process source shall have the same designated representative as the other affected units at the source.

(c)(1) Notwithstanding paragraph (b) of this section, a certifying official of a combustion or process source that is located at the same source as one or more affected utility units and that, on the date on which an initial opt-in permit application is submitted for such combustion or process source and thereafter, does not serve a generator that produces electricity for sale may elect to designate, for such combustion or process source, a different designated representative than the designated representative for the affected utility units.

(2) In order to make such an election, the certifying official shall submit to the Administrator, in a format prescribed by the Administrator: a certification that the combustion or process source for which the election is made meets each of the requirements for election in paragraph (c)(1) of this section; and a certificate of representation for the designated representative of the combustion or process source in accordance with §72.24 of this chapter. The Administrator will rely on such certificate of representation in accordance with §72.25 of this chapter, unless the Administrator determines that the requirements for election in paragraph (c)(1) of this section are not met. If, after the election is made, the requirements for election in paragraph (c)(1) of this section are no longer met, the election shall automatically terminate on the first date on which the requirements are no longer met and, within 30 days of that date, a certificate of representation for the designated representative of the combustion or process source shall be submitted consistent with paragraph (b) of this section.

[60 FR 17115, Apr. 4, 1995, as amended at 63 FR 18841, Apr. 16, 1998]

Subpart B—Permitting Procedures
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§ 74.10 Roles—EPA and permitting authority.
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(a) Administrator responsibilities. The Administrator shall be responsible for the following activities under the opt-in provisions of the Acid Rain Program:

(1) Calculating the baseline or alternative baseline and allowance allocation, and allocating allowances for combustion or process sources that become affected units under this part;

(2) Certifying or recertifying monitoring systems for combustion or process sources as provided under §74.20 of this chapter;

(3) Establishing allowance accounts, tracking allowances, assessing end-of-year compliance, determining reduced utilization, approving thermal energy transfer and accounting for the replacement of thermal energy, closing accounts for opt-in sources that shut down, are reconstructed, become affected under §72.6 of this chapter, or fail to renew their opt-in permit, and deducting allowances as provided under subpart E of this part; and

(4) Ensuring that the opt-in source meets all withdrawal conditions prior to withdrawal from the Acid Rain Program as provided under §74.18; and

(5) Approving and disapproving the request to withdraw from the Acid Rain Program.

(b) Permitting authority responsibilities. The permitting authority shall be responsible for the following activities:

(1) Issuing the draft and final opt-in permit;

(2) Revising and renewing the opt-in permit; and

(3) Terminating the opt-in permit for an opt-in source as provided in §74.18 (withdrawal), §74.46 (shutdown, reconstruction or change in affected status) and §74.50 (deducting allowances).

[60 FR 17115, Apr. 4, 1995, as amended at 63 FR 18841, Apr. 16, 1998]

§ 74.12 Opt-in permit contents.
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(a) The opt-in permit shall be included in the Acid Rain permit.

(b) Scope. The opt-in permit provisions shall apply only to the opt-in source and not to any other affected units.

(c) Contents. Each opt-in permit, including any draft or proposed opt-in permit, shall contain the following elements in a format specified by the Administrator:

(1) All elements required for a complete opt-in permit application as provided under §74.16 for combustion sources or under §74.17 for process sources or, if applicable, all elements required for a complete opt-in permit renewal application as provided in §74.19 for combustion sources or under §74.17 for process sources;

(2) The allowance allocation for the opt-in source as determined by the Administrator under subpart C of this part for combustion sources or subpart D of this part for process sources;

(3) The standard permit requirements as provided under §72.9 of this chapter, except that the provisions in §72.9(d) of this chapter shall not be included in the opt-in permit; and

(4) Termination. The provision that participation of a combustion or process source in the Acid Rain Program may be terminated only in accordance with §74.18 (withdrawal), §74.46 (shutdown, reconstruction, or change in affected status), and §74.50 (deducting allowances).

(d) Each opt-in permit is deemed to incorporate the definitions of terms under §72.2 of this chapter.

(e) Permit shield. Each opt-in source operated in accordance with the opt-in permit that governs the opt-in source and that was issued in compliance with title IV of the Act, as provided in this part and parts 72, 73, 75, 77, and 78 of this chapter, shall be deemed to be operating in compliance with the Acid Rain Program, except as provided in §72.9(g)(6) of this chapter.

(f) Term of opt-in permit. An opt-in permit shall be issued for a period of 5 years and may be renewed in accordance with §74.19; provided

(1) If an opt-in permit is issued prior to January 1, 2000, then the opt-in permit may, at the option of the permitting authority, expire on December 31, 1999; and

(2) If an affected unit with an Acid Rain permit is located at the same source as the combustion source, the combustion source's opt-in permit may, at the option of the permitting authority, expire on the same date as the affected unit's Acid Rain permit expires.

§ 74.14 Opt-in permit process.
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(a) Submission. The designated representative of a combustion or process source may submit an opt-in permit application and a monitoring plan to the Administrator at any time for any combustion or process source that is operating.

(b) Issuance or denial of opt-in permits. The permitting authority shall issue or deny opt-in permits or revisions of opt-in permits in accordance with the procedures in parts 70 and 71 of this chapter and subparts F and G of part 72 of this chapter, except as provided in this section.

(1) Supplemental information. Regardless of whether the opt-in permit application is complete, the Administrator or the permitting authority may request submission of any additional information that the Administrator or the permitting authority determines to be necessary in order to review the opt-in permit application or to issue an opt-in permit.

(2) Interim review of monitoring plan. The Administrator will determine, on an interim basis, the sufficiency of the monitoring plan, accompanying the opt-in permit application. A monitoring plan is sufficient, for purposes of interim review, if the plan appears to contain information demonstrating that all SO2 emissions, NOX emissions, CO2 emissions, and opacity of the combustion or process source are monitored and reported in accordance with part 75 of this chapter. This interim review of sufficiency shall not be construed as the approval or disapproval of the combustion or process source's monitoring system.

(3) Issuance of draft opt-in permit. After the Administrator determines whether the combustion or process source's monitoring plan is sufficient under paragraph (b)(2) of this section, the permitting authority shall serve the draft opt-in permit or the denial of a draft permit or the draft opt-in permit revisions or the denial of draft opt-in permit revisions on the designated representative of the combustion or process source submitting an opt-in permit application. A draft permit or draft opt-in permit revision shall not be served or issued if the monitoring plan is determined not to be sufficient.

(4) Confirmation by source of intention to opt-in. Within 21 calendar days from the date of service of the draft opt-in permit or the denial of the draft opt-in permit, the designated representative of a combustion or process source submitting an opt-in permit application must submit to the Administrator, in writing, a confirmation or recision of the source's intention to become an opt-in source under this part. The Administrator shall treat the failure to make a timely submission as a recision of the source's intention to become an opt-in source and as a withdrawal of the opt-in permit application.

(5) Issuance of draft opt-in permit. If the designated representative confirms the combustion or process source's intention to opt in under paragraph (b)(4) of this section, the permitting authority will give notice of the draft opt-in permit or denial of the draft opt-in permit and an opportunity for public comment, as provided under §72.65 of this chapter with regard to a draft permit or denial of a draft permit if the Administrator is the permitting authority or as provided in accordance with part 70 of this chapter with regard to a draft permit or the denial of a draft permit if the State is the permitting authority.

(6) Permit decision deadlines. (i) If the Administrator is the permitting authority, an opt-in permit will be issued or denied within 12 months of receipt of a complete opt-in permit application.

(ii) If the State is the permitting authority, an opt-in permit will be issued or denied within 18 months of receipt of a complete opt-in permit application or such lesser time approved for operating permits under part 70 of this chapter.

(7) Withdrawal of opt-in permit application. A combustion or process source may withdraw its opt-in permit application at any time prior to the issuance of the final opt-in permit. Once a combustion or process source withdraws its application, in order to re-apply, it must submit a new opt-in permit application in accordance with §74.16 for combustion sources or §74.17 for process sources.

(c) [Reserved]

(d) Entry into Acid Rain Program—(1) Effective date. The effective date of the opt-in permit shall be the January 1, April 1, July 1, or October 1 for a combustion or process source providing monthly data under §74.20, or January 1 for a combustion or process source providing annual data under §74.20, following the later of the issuance of the opt-in permit by the permitting authority or the completion of monitoring system certification, as provided in subpart F of this part for combustion sources or subpart G of this part for process sources. The combustion or process source shall become an opt-in source and an affected unit as of the effective date of the opt-in permit.

(2) Allowance allocation. After the opt-in permit becomes effective, the Administrator will allocate allowances to the opt-in source as provided in §74.40. If the effective date of the opt-in permit is not January 1, allowances for the first year shall be pro-rated as provided in §74.28.

(e) Expiration of opt-in permit. An opt-in permit that is issued before the completion of monitoring system certification under subpart F of this part for combustion sources or under subpart G of this part for process sources shall expire 180 days after the permitting authority serves the opt-in permit on the designated representative of the combustion or process source governed by the opt-in permit, unless such monitoring system certification is complete. The designated representative may petition the Administrator to extend this time period in which an opt-in permit expires and must explain in the petition why such an extension should be granted. The designated representative of a combustion source governed by an expired opt-in permit and that seeks to become an opt-in source must submit a new opt-in permit application.

[60 FR 17115, Apr. 4, 1995, as amended at 63 FR 18841, Apr. 16, 1998]

§ 74.16 Application requirements for combustion sources.
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(a) Opt-in permit application. Each complete opt-in permit application for a combustion source shall contain the following elements in a format prescribed by the Administrator:

(1) Identification of the combustion source, including company name, plant name, plant site address, mailing address, description of the combustion source, and information and diagrams on the combustion source's configuration;

(2) Identification of the designated representative, including name, address, telephone number, and facsimile number;

(3) The year and month the combustion source commenced operation;

(4) The number of hours the combustion source operated in the six months preceding the opt-in permit application and supporting documentation;

(5) The baseline or alternative baseline data under §74.20;

(6) The actual SO2 emissions rate under §74.22;

(7) The allowable 1985 SO2 emissions rate under §74.23;

(8) The current allowable SO2 emissions rate under §74.24;

(9) The current promulgated SO2 emissions rate under §74.25;

(10) If the combustion source seeks to qualify for a transfer of allowances from the replacement of thermal energy, a thermal energy plan as provided in §74.47 for combustion sources; and

(11) A statement whether the combustion source was previously an affected unit under this part;

(12) A statement that the combustion source is not an affected unit under §72.6 of this chapter and does not have an exemption under §72.7, §72.8, or §72.14 of this chapter;

(13) A complete compliance plan for SO2 under §72.40 of this chapter; and

(14) The following statement signed by the designated representative of the combustion source: “I certify that the data submitted under subpart C of part 74 reflects actual operations of the combustion source and has not been adjusted in any way.”

(b) Accompanying documents. The designated representative of the combustion source shall submit a monitoring plan in accordance with §74.61.

[60 FR 17115, Apr. 4, 1995, as amended at 63 FR 18841, Apr. 16, 1998]

§ 74.17 Application requirements for process sources. [Reserved]
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§ 74.18 Withdrawal.
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Link to an amendment published at 70 FR 25336, May 12, 2005.

(a) Withdrawal through administrative amendment. An opt-in source may request to withdraw from the Acid Rain Program by submitting an administrative amendment under §72.83 of this chapter; provided that the amendment will be treated as received by the permitting authority upon issuance of the notification of the acceptance of the request to withdraw under paragraph (f)(1) of this section.

(b) Requesting withdrawal. To withdraw from the Acid Rain Program, the designated representative of an opt-in source shall submit to the Administrator and the permitting authority a request to withdraw effective January 1 of the year after the year in which the submission is made. The submission shall be made no later than December 1 of the calendar year preceding the effective date of withdrawal.

(c) Conditions for withdrawal. In order for an opt-in source to withdraw, the following conditions must be met:

(1) By no later than January 30 of the first calendar year in which the withdrawal is to be effective, the designated representative must submit to the Administrator an annual compliance certification report pursuant to §74.43.

(2) If the opt-in source has excess emissions in the calendar year before the year for which the withdrawal is to be in effect, the designated representative must submit an offset plan for excess emissions, pursuant to part 77 of this chapter, that provides for immediate deduction of allowances.

(d) Administrator's action on withdrawal. After the opt-in source meets the requirements for withdrawal under paragraphs (b) and (c) of this section, the Administrator will deduct allowances required to be deducted under §73.35 of this chapter and part 77 of this chapter and allowances equal in number to and with the same or earlier compliance use date as those allocated under §74.40 for the first year for which the withdrawal is to be effective and all subsequent years. The Administrator will close the opt-in source's unit account and transfer any remaining allowances to a new general account as specified under §74.46(b)(2).

(e) Opt-in source's prior violations. An opt-in source that withdraws from the Acid Rain Program shall comply with all requirements under the Acid Rain Program concerning all years for which the opt-in source was an affected unit, even if such requirements arise, or must be complied with after the withdrawal takes effect.

(f) Notification. (1) After the requirements for withdrawal under paragraphs (b) and (c) of this section are met and after the Administrator's action on withdrawal under paragraph (d) of this section is complete, the Administrator will issue a notification to the permitting authority and the designated representative of the opt-in source of the acceptance of the opt-in source's request to withdraw.

(2) If the requirements for withdrawal under paragraphs (b) and (c) of this section are not met or the Administrator's action under paragraph (d) of this section cannot be completed, the Administrator will issue a notification to the permitting authority and the designated representative of the opt-in source that the opt-in source's request to withdraw is denied. If the opt-in source's request to withdraw is denied, the opt-in source shall remain in the Opt-in Program and shall remain subject to the requirements for opt-in sources contained in this part.

(g) Permit amendment. (1) After the Administrator issues a notification under paragraph (f)(1) of this section that the requirements for withdrawal have been met (including the deduction of the full amount of allowances as required under paragraph (d) of this section), the permitting authority shall amend, in accordance with §§72.80 and 72.83 (administrative amendment) of this chapter, the opt-in source's Acid Rain permit to terminate the opt-in permit, not later than 60 days from the issuance of the notification under paragraph (f) of this section.

(2) The termination of the opt-in permit under paragraph (g)(1) of this section will be effective on January 1 of the year for which the withdrawal is requested. An opt-in source shall continue to be an affected unit until the effective date of the termination.

(h) Reapplication upon failure to meet conditions of withdrawal. If the Administrator denies the opt-in source's request to withdraw, the designated representative may submit another request to withdraw in accordance with paragraphs (b) and (c) of this section.

(i) Ability to return to the Acid Rain Program. Once a combustion or process source withdraws from the Acid Rain Program and its opt-in permit is terminated, a new opt-in permit application for the combustion or process source may not be submitted prior to the date that is four years after the date on which the opt-in permit became effective.

[60 FR 17115, Apr. 4, 1995, as amended at 63 FR 18841, Apr. 16, 1998]

§ 74.19 Revision and renewal of opt-in permit.
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(a) The designated representative of an opt-in source may submit revisions to its opt-in permit in accordance with subpart H of part 72 of this chapter.

(b) The designated representative of an opt-in source may renew its opt-in permit by meeting the following requirements:

(1)(i) In order to renew an opt-in permit if the Administrator is the permitting authority for the renewed permit, the designated representative of an opt-in source must submit to the Administrator an opt-in permit application at least 6 months prior to the expiration of an existing opt-in permit.

(ii) In order to renew an opt-in permit if the State is the permitting authority for the renewed permit, the designated representative of an opt-in source must submit to the permitting authority an opt-in permit application at least 18 months prior to the expiration of an existing opt-in permit or such shorter time as may be approved for operating permits under part 70 of this chapter.

(2) Each complete opt-in permit application submitted to renew an opt-in permit shall contain the following elements in a format prescribed by the Administrator:

(i) Elements contained in the opt-in source's initial opt-in permit application as specified under §74.16(a)(1), (2), (10), (11), (12), and (13).

(ii) An updated monitoring plan, if applicable under §75.53(b) of this chapter.

(c)(1) Upon receipt of an opt-in permit application submitted to renew an opt-in permit, the permitting authority shall issue or deny an opt-in permit in accordance with the requirements under subpart B of this part, except as provided in paragraph (c)(2) of this section.

(2) When issuing a renewed opt-in permit, the permitting authority shall not alter an opt-in source's allowance allocation as established, under subpart B and subpart C of this part for combustion sources and under subpart B and subpart D of this part for process sources, in the opt-in permit that is being renewed.

Subpart C—Allowance Calculations for Combustion Sources
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§ 74.20 Data for baseline and alternative baseline.
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(a) Acceptable data. (1) The designated representative of a combustion source shall submit either the data specified in this paragraph or alternative data under paragraph (c) of this section. The designated representative shall also submit the calculations under this section based on such data.

(2) The following data shall be submitted for the combustion source for the calendar year(s) under paragraph (a)(3) of this section:

(i) Monthly or annual quantity of each type of fuel consumed, expressed in thousands of tons for coal, thousands of barrels for oil, and million standard cubic feet (scf) for natural gas. If other fuels are used, the combustion source must specify units of measure.

(ii) Monthly or annual heat content of fuel consumed for each type of fuel consumed, expressed in British thermal units (Btu) per pound for coal, Btu per barrel for oil, and Btu per standard cubic foot (scf) for natural gas. If other fuels are used, the combustion source must specify units of measure.

(iii) Monthly or annual sulfur content of fuel consumed for each type of fuel consumed, expressed as a percentage by weight.

(3) Calendar Years. (i) For combustion sources that commenced operating prior to January 1, 1985, data under this section shall be submitted for 1985, 1986, and 1987.

(ii) For combustion sources that commenced operation after January 1, 1985, the data under this section shall be submitted for the first three consecutive calendar years during which the combustion source operated after December 31, 1985.

(b) Calculation of baseline and alternative baseline. (1) For combustion sources that commenced operation prior to January 1, 1985, the baseline is the average annual quantity of fuel consumed during 1985, 1986, and 1987, expressed in mmBtu. The baseline shall be calculated as follows:


where,

(i) for a combustion source submitting monthly data,


and unit conversion


= 2 for coal

= 0.001 for oil

= 1 for gas


For other fuels, the combustion source must specify unit conversion; or

(ii) for a combustion source submitting annual data,


and unit conversion


= 2 for coal

= 0.001 for oil

= 1 for gas


For other fuels, the combustion source must specify unit conversion.

(2) For combustion sources that commenced operation after January 1, 1985, the alternative baseline is the average annual quantity of fuel consumed in the first three consecutive calendar years during which the combustion source operated after December 31, 1985, expressed in mmBtu. The alternative baseline shall be calculated as follows:



where,

“annual fuel consumption” is as defined under paragraph (b)(1)(i) or (ii) of this section.


(c) Alternative data. (1) For combustion sources for which any of the data under paragraph (b) of this section is not available due solely to a natural catastrophe, data as set forth in paragraph (a)(2) of this section for the first three consecutive calendar years for which data is available after December 31, 1985, may be submitted. The alternative baseline for these combustion sources shall be calculated using the equation for alternative baseline in paragraph (b)(2) of this section and the definition of annual fuel consumption in paragraphs (b)(1)(i) or (ii) of this section.

(2) Except as provided in paragraph (c)(1) of this section, no alternative data may be submitted. A combustion source that cannot submit all required data, in accordance with this section, shall not be eligible to submit an opt-in permit application.

(d) Administrator's action. The Administrator may accept in whole or in part or with changes as appropriate, request additional information, or reject data or alternative data submitted for a combustion source's baseline or alternative baseline.

§ 74.22 Actual SO2 emissions rate.
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(a) Data requirements. The designated representative of a combustion source shall submit the calculations under this section based on data submitted under §74.20 for the following calendar year:

(1) For combustion sources that commenced operation prior to January 1, 1985, the calendar year for calculating the actual SO2 emissions rate shall be 1985.

(2) For combustion sources that commenced operation after January 1, 1985, the calendar year for calculating the actual SO2 emissions rate shall be the first year of the three consecutive calendar years of the alternative baseline under §74.20(b)(2).

(3) For combustion sources meeting the requirements of §74.20(c), the calendar year for calculating the actual SO2 emissions rate shall be the first year of the three consecutive calendar years to be used as alternative data under §74.20(c).

(b) SO2 emissions factor calculation. The SO2 emissions factor for each type of fuel consumed during the specified year, expressed in pounds per thousand tons for coal, pounds per thousand barrels for oil and pounds per million cubic feet (scf) for gas, shall be calculated as follows:

SO2 Emissions Factor = (average percent of sulfur by weight) × (k),


where,

average percent of sulfur by weight

= annual average, for a combustion source submitting annual data

= monthly average, for a combustion source submitting monthly data

k = 39,000 for bituminous coal or anthracite

= 35,000 for subbituminous coal

= 30,000 for lignite

= 5,964 for distillate (light) oil

= 6,594 for residual (heavy) oil

= 0.6 for natural gas

For other fuels, the combustion source must specify the SO2 emissions factor.


(c) Annual SO2 emissions calculation. Annual SO2 Emissions for the specified calendar year, expressed in pounds, shall be calculated as follows:

(1) For a combustion source submitting monthly data,


(2) For a combustion source submitting annual data:



where,

“quantity of fuel consumed” is as defined under §74.20(a)(2)(i);

“SO2 emissions factor” is as defined under paragraph (b) of this section;

“control system efficiency” is as defined under §60.48(a) and part 60, appendix A, method 19 of this chapter, if applicable; and

“fuel pre-treatment efficiency” is as defined under §60.48(a) and part 60, appendix A, method 19 of this chapter, if applicable.


(d) Annual fuel consumption calculation. Annual fuel consumption for the specified calendar year, expressed in mmBtu, shall be calculated as defined under §74.20(b)(1) (i) or (ii).

(e) Actual SO2 emissions rate calculation. The actual SO2 emissions rate for the specified calendar year, expressed in lbs/mmBtu, shall be calculated as follows:


[60 FR 17115, Apr. 4, 1995, as amended at 63 FR 18841, Apr. 16, 1998]

§ 74.23 1985 Allowable SO2 emissions rate.
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(a) Data requirements. (1) The designated representative of the combustion source shall submit the following data and the calculations under paragraph (b) of this section based on the submitted data:

(i) Allowable SO2 emissions rate of the combustion source expressed in lbs/mmBtu as defined under §72.2 of this chapter for the calendar year specified in paragraph (a)(2) of this section. If the allowable SO2 emissions rate is not expressed in lbs/mmBtu, the allowable emissions rate shall be converted to lbs/mmBtu by multiplying the emissions rate by the appropriate factor as specified in Table 1 of this section.


Table 1_Factors to Convert Emission Limits to Pounds of SO2/mmBtu
----------------------------------------------------------------------------------------------------------------
Bituminous Subbituminous Lignite
Unit measurement coal coal coal Oil
----------------------------------------------------------------------------------------------------------------
lbs Sulfur/mmBtu.......................................... 2.0 2.0 2.0 2.0
% Sulfur in fuel.......................................... 1.66 2.22 2.86 1.07
ppm SO2................................................... 0.00287 0.00384 ......... 0.00167
ppm Sulfur in fuel........................................ ............ ............. ......... 0.00334
tons SO2/hour............................................. 2x8760/
(annual fuel
consumption
for
specified
year 1x10 3)
lbs SO2/hour.............................................. 8760/
(annual fuel
consumption
for
specified
year 1x10 6)
----------------------------------------------------------------------------------------------------------------
1 Annual fuel consumption as defined under § 74.20(b)(1) (i) or (ii); specified calendar year as defined
under § 74.23(a)(2).


(ii) Citation of statute, regulations, and any other authority under which the allowable emissions rate under paragraph (a)(1) of this section is established as applicable to the combustion source;

(iii) Averaging time associated with the allowable emissions rate under paragraph (a)(1) of this section.

(iv) The annualization factor for the combustion source, based on the type of combustion source and the associated averaging time of the allowable emissions rate of the combustion source, as set forth in the Table 2 of this section:


Table 2_Annualization Factors for SO2 Emission Rates
------------------------------------------------------------------------
Annualization
Annualization factor for
Type of combustion source factor for unscrubbed
scrubbed unit unit
------------------------------------------------------------------------
Unit Combusting Oil, Gas, or some 1.00 1.00
combination..............................
Coal Unit with Averaging Time <= 1 day. 0.93 0.89
Coal Unit with Averaging Time = 1 week.... 0.97 0.92
Coal Unit with Averaging Time = 30 days... 1.00 0.96
Coal Unit with Averaging Time = 90 days... 1.00 1.00
Coal Unit with Averaging Time = 1 year.... 1.00 1.00
Coal Unit with Federal Limit, but 0.93 0.89
Averaging Time Not Specified.............
------------------------------------------------------------------------


(2) Calendar year. (i) For combustion sources that commenced operation prior to January 1, 1985, the calendar year for the allowable SO2 emissions rate shall be 1985.

(ii) For combustion sources that commenced operation after January 1, 1985, the calendar year for the allowable SO2 emissions rate shall be the first year of the three consecutive calendar years of the alternative baseline under §74.20(b)(2).

(iii) For combustion sources meeting the requirements of §74.20(c), the calendar year for calculating the allowable SO2 emissions rate shall be the first year of the three consecutive calendar years to be used as alternative data under §74.20(c).

(b) 1985 Allowable SO2 emissions rate calculation. The allowable SO2 emissions rate for the specified calendar year shall be calculated as follows:

1985 Allowable SO2 Emissions Rate = (Allowable SO2 Emissions Rate) × (Annualization Factor)

§ 74.24 Current allowable SO2 emissions rate.
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The designated representative shall submit the following data:

(a) Current allowable SO2 emissions rate of the combustion source, expressed in lbs/mmBtu, which shall be the most stringent federally enforceable emissions limit in effect as of the date of submission of the opt-in application. If the allowable SO2 emissions rate is not expressed in lbs/mmBtu, the allowable emissions rate shall be converted to lbs/mmBtu by multiplying the allowable rate by the appropriate factor as specified in Table 1 in §74.23(a)(1)(i).

(b) Citations of statute, regulation, and any other authority under which the allowable emissions rate under paragraph (a) of this section is established as applicable to the combustion source;

(c) Averaging time associated with the allowable emissions rate under paragraph (a) of this section.

§ 74.25 Current promulgated SO2 emissions limit.
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The designated representative shall submit the following data:

(a) Current promulgated SO2 emissions limit of the combustion source, expressed in lbs/mmBtu, which shall be the most stringent federally enforceable emissions limit that has been promulgated as of the date of submission of the opt-in permit application and that either is in effect on that date or will take effect after that date. If the promulgated SO2 emissions limit is not expressed in lbs/mmBtu, the limit shall be converted to lbs/mmBtu by multiplying the limit by the appropriate factor as specified in Table 1 of §74.23(a)(1)(i).

(b) Citations of statute, regulation and any other authority under which the emissions limit under paragraph (a) of this section is established as applicable to the combustion source;

(c) Averaging time associated with the emissions limit under paragraph (a) of this section.

(d) Effective date of the emissions limit under paragraph (a) of this section.

§ 74.26 Allocation formula.
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(a) The Administrator will calculate the annual allowance allocation for a combustion source based on the data, corrected as necessary, under §74.20 through §74.25 as follows:

(1) For combustion sources for which the current promulgated SO2 emissions limit under §74.25 is greater than or equal to the current allowable SO2 emissions rate under §74.24, the number of allowances allocated for each year equals:


(2) For combustion sources for which the current promulgated SO2 emissions limit under §74.25 is less than the current allowable SO2 emissions rate under §74.24.

(i) The number of allowances for each year ending prior to the effective date of the promulgated SO2 emissions limit equals:


(ii) The number of allowances for the year that includes the effective date of the promulgated SO2 emissions limit and for each year thereafter equals:


[60 FR 17115, Apr. 4, 1995, as amended at 63 FR 18841, Apr. 16, 1998]

§ 74.28 Allowance allocation for combustion sources becoming opt-in sources on a date other than January 1.
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(a) Dates of entry. (1) If an opt-in source provided monthly data under §74.20, the opt-in source's opt-in permit may become effective at the beginning of a calendar quarter as of January 1, April 1, July 1, or October 1.

(2) If an opt-in source provided annual data under §74.20, the opt-in source's opt-in permit must become effective on January 1.

(b) Prorating by Calendar Quarter. Where a combustion source's opt-in permit becomes effective on April 1, July 1, or October 1 of a given year, the Administrator will prorate the allowance allocation for that first year by the calendar quarters remaining in the year as follows:

Allowances for the first year


(1) For combustion sources that commenced operations before January 1, 1985,


(2) For combustion sources that commenced operations after January 1, 1985,


(3) Under paragraphs (b) (1) and (2) of this section,

(i) “Remaining calendar quarters” shall be the calendar quarters in the first year for which the opt-in permit will be effective.

(ii) Fuel consumption for remaining calendar quarters =



where unit conversion

= 2 for coal

= 0.001 for oil

= 1 for gas

For other fuels, the combustion source must specify unit conversion;

and where starting month

= April, if effective date is April 1;

= July, if effective date is July 1; and

= October, if effective date is October 1.


Subpart D—Allowance Calculations for Process Sources [Reserved]
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Subpart E—Allowance Tracking and Transfer and End of Year Compliance
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§ 74.40 Establishment of opt-in source allowance accounts.
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Link to an amendment published at 70 FR 25336, May 12, 2005.

(a) Establishing accounts. Not earlier than the date on which a combustion or process source becomes an affected unit under this part and upon receipt of a request for an opt-in account under paragraph (b) of this section, the Administrator will establish an account and allocate allowances in accordance with subpart C of this part for combustion sources or subpart D of this part for process sources. A separate unit account will be established for each opt-in source.

(b) Request for opt-in account. The designated representative of the opt-in source shall, on or after the effective date of the opt-in permit as specified in §74.14(d), submit a letter requesting the opening of an allowance account in the Allowance Tracking System to the Administrator.

§ 74.41 Identifying allowances.
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(a) Identifying allowances. Allowances allocated to an opt-in source will be assigned a serial number that identifies them as being allocated under an opt-in permit.

(b) Submittal of opt-in allowances for auction. (1) An authorized account representative may offer for sale in the spot auction under §73.70 of this chapter allowances that are allocated to opt-in sources, if the allowances have a compliance use date earlier than the year in which the spot auction is to be held and if the Administrator has completed the deductions for compliance under §73.35(b) for the compliance year corresponding to the compliance use date of the offered allowances.

(2) Authorized account representatives may not offer for sale in the advance auctions under §73.70 of this chapter allowances allocated to opt-in sources.

§ 74.42 Prohibition on future year transfers.
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Link to an amendment published at 70 FR 25336, May 12, 2005.

The Administrator will not record a transfer of opt-in allowances allocated to opt-in sources from a future year subaccount into any other future year subaccount in the Allowance Tracking System.

[60 FR 17115, Apr. 4, 1995, as amended at 63 FR 18841, Apr. 16, 1998]

§ 74.43 Annual compliance certification report.
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Link to an amendment published at 70 FR 25337, May 12, 2005.

(a) Applicability and deadline. For each calendar year in which an opt-in source is subject to the Acid Rain emissions limitations, the designated representative of the opt-in source shall submit to the Administrator, no later than 60 days after the end of the calendar year, an annual compliance certification report for the opt-in source in lieu of any annual compliance certification report required under subpart I of part 72 of this chapter.

(b) Contents of report. The designated representative shall include in the annual compliance certification report the following elements, in a format prescribed by the Administrator, concerning the opt-in source and the calendar year covered by the report:

(1) Identification of the opt-in source;

(2) An opt-in utilization report in accordance with §74.44 for combustion sources and §74.45 for process sources;

(3) A thermal energy compliance report in accordance with §74.47 for combustion sources and §74.48 for process sources, if applicable;

(4) Shutdown or reconstruction information in accordance with §74.46, if applicable;

(5) A statement that the opt-in source has not become an affected unit under §72.6 of this chapter;

(6) At the designated representative's option, the total number of allowances to be deducted for the year, using the formula in §74.49, and the serial numbers of the allowances that are to be deducted; and

(7) At the designated representative's option, for opt-in sources that share a common stack and whose emissions of sulfur dioxide are not monitored separately or apportioned in accordance with part 75 of this chapter, the percentage of the total number of allowances under paragraph (b)(6) of this section for all such affected units that is to be deducted from each affected unit's compliance subaccount; and

(8) The compliance certification under paragraph (c) of this section.

(c) Annual compliance certification. In the annual compliance certification report under paragraph (a) of this section, the designated representative shall certify, based on reasonable inquiry of those persons with primary responsibility for operating the opt-in source in compliance with the Acid Rain Program, whether the opt-in source was operated during the calendar year covered by the report in compliance with the requirements of the Acid Rain Program applicable to the opt-in source, including:

(1) Whether the opt-in source was operated in compliance with applicable Acid Rain emissions limitations, including whether the opt-in source held allowances, as of the allowance transfer deadline, in its compliance subaccount (after accounting for any allowance deductions or other adjustments under §73.34(c) of this chapter) not less than the opt-in source's total sulfur dioxide emissions during the calendar year covered by the annual report;

(2) Whether the monitoring plan that governs the opt-in source has been maintained to reflect the actual operation and monitoring of the opt-in source and contains all information necessary to attribute monitored emissions to the opt-in source;

(3) Whether all the emissions from the opt-in source or group of affected units (including the opt-in source) using a common stack were monitored or accounted for through the missing data procedures and reported in the quarterly monitoring reports in accordance with part 75 of this chapter;

(4) Whether the facts that form the basis for certification of each monitor at the opt-in source or group of affected units (including the opt-in source) using a common stack or of an opt-in source's qualifications for using an Acid Rain Program excepted monitoring method or approved alternative monitoring method, if any, have changed;

(5) If a change is required to be reported under paragraph (c)(4) of this section, specify the nature of the change, the reason for the change, when the change occurred, and how the unit's compliance status was determined subsequent to the change, including what method was used to determine emissions when a change mandated the need for monitoring recertification; and

(6) When applicable, whether the opt-in source was operating in compliance with its thermal energy plan as provided in §74.47 for combustion sources and §74.48 for process sources.

§ 74.44 Reduced utilization for combustion sources.
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Link to an amendment published at 70 FR 25337, May 12, 2005.

(a) Calculation of utilization—(1) Annual utilization. (i) Except as provided in paragraph (a)(1)(ii) of this section, annual utilization for the calendar year shall be calculated as follows:

Annual Utilization = Actual heat input + Reduction from improved efficiency

where,

(A) “Actual heat input” shall be the actual annual heat input (in mmBtu) of the opt-in source for the calendar year determined in accordance with appendix F of part 75 of this chapter.

(B) “Reduction from improved efficiency” shall be the sum of the following four elements: Reduction from demand side measures that improve the efficiency of electricity consumption; reduction from demand side measures that improve the efficiency of steam consumption; reduction from improvements in the heat rate at the opt-in source; and reduction from improvement in the efficiency of steam production at the opt-in source. Qualified demand side measures applicable to the calculation of utilization for opt-in sources are listed in appendix A, section 1 of part 73 of this chapter.

(C) “Reduction from demand side measures that improve the efficiency of electricity consumption” shall be a good faith estimate of the expected kilowatt hour savings during the calendar year for such measures and the corresponding reduction in heat input (in mmBtu) resulting from those measures. The demand side measures shall be implemented at the opt-in source, in the residence or facility to which the opt-in source delivers electricity for consumption or in the residence or facility of a customer to whom the opt-in source's utility system sells electricity. The verified amount of such reduction shall be submitted in accordance with paragraph (c)(2) of this section. (continued)