['Air Programs']
['Air Quality']
07/31/2023
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(a) Availability for deduction for compliance. CSAPR SO2 Group 1 allowances are available to be deducted for compliance with a source's CSAPR SO2 Group 1 emissions limitation for a control period in a given year only if the CSAPR SO2 Group 1 allowances:
(1) Were allocated or auctioned for such control period or a control period in a prior year; and
(2) Are held in the source's compliance account as of the allowance transfer deadline for such control period.
(b) Deductions for compliance. After the recordation, in accordance with §97.623, of CSAPR SO2 Group 1 allowance transfers submitted by the allowance transfer deadline for a control period in a given year, the Administrator will deduct from each source's compliance account CSAPR SO2 Group 1 allowances available under paragraph (a) of this section in order to determine whether the source meets the CSAPR SO2 Group 1 emissions limitation for such control period, as follows:
(1) Until the amount of CSAPR SO2 Group 1 allowances deducted equals the number of tons of total SO2 emissions from all CSAPR SO2 Group 1 units at the source for such control period; or
(2) If there are insufficient CSAPR SO2 Group 1 allowances to complete the deductions in paragraph (b)(1) of this section, until no more CSAPR SO2 Group 1 allowances available under paragraph (a) of this section remain in the compliance account.
(c) Selection of CSAPR SO2 Group 1 allowances for deduction—(1) Identification by serial number. The designated representative for a source may request that specific CSAPR SO2 Group 1 allowances, identified by serial number, in the source's compliance account be deducted for emissions or excess emissions for a control period in a given year in accordance with paragraph (b) or (d) of this section. In order to be complete, such request shall be submitted to the Administrator by the allowance transfer deadline for such control period and include, in a format prescribed by the Administrator, the identification of the CSAPR SO2 Group 1 source and the appropriate serial numbers.
(2) First-in, first-out. The Administrator will deduct CSAPR SO2 Group 1 allowances under paragraph (b) or (d) of this section from the source's compliance account in accordance with a complete request under paragraph (c)(1) of this section or, in the absence of such request or in the case of identification of an insufficient amount of CSAPR SO2 Group 1 allowances in such request, on a first-in, first-out accounting basis in the following order:
(i) Any CSAPR SO2 Group 1 allowances that were recorded in the compliance account pursuant to §97.621 and not transferred out of the compliance account, in the order of recordation; and then
(ii) Any other CSAPR SO2 Group 1 allowances that were transferred to and recorded in the compliance account pursuant to this subpart, in the order of recordation.
(d) Deductions for excess emissions. After making the deductions for compliance under paragraph (b) of this section for a control period in a year in which the CSAPR SO2 Group 1 source has excess emissions, the Administrator will deduct from the source's compliance account an amount of CSAPR SO2 Group 1 allowances, allocated or auctioned for a control period in a prior year or the control period in the year of the excess emissions or in the immediately following year, equal to two times the number of tons of the source's excess emissions.
(e) Recordation of deductions. The Administrator will record in the appropriate compliance account all deductions from such an account under paragraphs (b) and (d) of this section.
[86 FR 23194, Apr. 30, 2021]
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