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(a) Designated representative requirements. The owners and operators shall comply with the requirement to have a designated representative, and may have an alternate designated representative, in accordance with §§97.913 through 97.918.
(b) Emissions monitoring, reporting, and recordkeeping requirements. (1) The owners and operators, and the designated representative, of each Texas SO2 Trading Program source and each Texas SO2 Trading Program unit at the source shall comply with the monitoring, reporting, and recordkeeping requirements of §§97.930 through 97.935.
(2) The emissions data determined in accordance with §§97.930 through 97.935 shall be used to calculate allocations of Texas SO2 Trading Program allowances under §97.912 and to determine compliance with the Texas SO2 Trading Program emissions limitation and assurance provisions under paragraph (c) of this section, provided that, for each monitoring location from which mass emissions are reported, the mass emissions amount used in calculating such allocations and determining such compliance shall be the mass emissions amount for the monitoring location determined in accordance with §§97.930 through 97.935 and rounded to the nearest ton, with any fraction of a ton less than 0.50 being deemed to be zero and any fraction of a ton greater than or equal to 0.50 being deemed to be a whole ton.
(c) SO2emissions requirements - (1) Texas SO2Trading Program emissions limitation. (i) As of the allowance transfer deadline for a control period in a given year, the owners and operators of each Texas SO2 Trading Program source and each Texas SO2 Trading Program unit at the source shall hold, in the source's compliance account, Texas SO2 Trading Program allowances available for deduction for such control period under §97.924(a) in an amount not less than the tons of total SO2 emissions for such control period from all Texas SO2 Trading Program units at the source.
(ii) If total SO2 emissions during a control period in a given year from the Texas SO2 Trading Program units at a Texas SO2 Trading Program source are in excess of the Texas SO2 Trading Program emissions limitation set forth in paragraph (c)(1)(i) of this section, then:
(A) The owners and operators of the source and each Texas SO2 Trading Program unit at the source shall hold the Texas SO2 Trading Program allowances required for deduction under §97.924(d); and
(B) The owners and operators of the source and each Texas SO2 Trading Program unit at the source shall pay any fine, penalty, or assessment or comply with any other remedy imposed, for the same violations, under the Clean Air Act, and each ton of such excess emissions and each day of such control period shall constitute a separate violation of this subpart and the Clean Air Act.
(2) Texas SO Trading Program assurance provisions. (i) If total SO2 emissions during a control period in a given year from all Texas SO2 Trading Program units at Texas SO2 Trading Program sources exceed the State assurance level, then the owners and operators of such sources and units in each group of one or more sources and units having a common designated representative for such control period, where the common designated representative's share of such SO2 emissions during such control period exceeds the common designated representative's assurance level for such control period, shall hold (in the assurance account established for the owners and operators of such group) Texas SO2 Trading Program allowances available for deduction for such control period under §97.925(a) in an amount equal to two times the product (rounded to the nearest whole number), as determined by the Administrator in accordance with §97.925(b), of multiplying—
(A) The quotient of the amount by which the common designated representative's share of such SO2 emissions exceeds the common designated representative's assurance level divided by the sum of the amounts, determined for all common designated representatives for such sources and units for such control period, by which each common designated representative's share of such SO2 emissions exceeds the respective common designated representative's assurance level; and
(B) The amount by which total SO2 emissions from all Texas SO2 Trading Program units at Texas SO2 Trading Program sources for such control period exceed the State assurance level.
(ii) The owners and operators shall hold the Texas SO2 Trading Program allowances required under paragraph (c)(2)(i) of this section, as of midnight of November 1 (if it is a business day), or midnight of the first business day thereafter (if November 1 is not a business day), immediately after the year of such control period.
(iii) Total SO2 emissions from all Texas SO2 Trading Program units at Texas SO2 Trading Program sources during a control period in a given year exceed the State assurance level if such total SO2 emissions exceed the sum, for such control period, of the Texas SO2 Trading Program budget under §97.910(a)(1) and the variability limit under §97.910(b).
(iv) It shall not be a violation of this subpart or of the Clean Air Act if total SO2 emissions from all Texas SO2 Trading Program units at Texas SO2 Trading Program sources during a control period exceed the State assurance level or if a common designated representative's share of total SO2 emissions from the Texas SO2 Trading Program units at Texas SO2 Trading Program sources during a control period exceeds the common designated representative's assurance level.
(v) To the extent the owners and operators fail to hold Texas SO2 Trading Program allowances for a control period in a given year in accordance with paragraphs (c)(2)(i) through (iii) of this section,
(A) The owners and operators shall pay any fine, penalty, or assessment or comply with any other remedy imposed under the Clean Air Act; and
(B) Each Texas SO2 Trading Program allowance that the owners and operators fail to hold for such control period in accordance with paragraphs (c)(2)(i) through (iii) of this section and each day of such control period shall constitute a separate violation of this subpart and the Clean Air Act.
(3) Compliance periods.(i) A Texas SO2 Trading Program unit shall be subject to the requirements under paragraph (c)(1) of this section for the control period starting on January 1, 2019 and for each control period thereafter.
(ii) A Texas SO2 Trading Program unit shall be subject to the requirements under paragraph (c)(2) of this section for the control period starting on January 1, 2021 and for each control period thereafter.
(4) Vintage of Texas SO2Trading Program allowances held for compliance. (i) A Texas SO2 Trading Program allowance held for compliance with the requirements under paragraph (c)(1)(i) of this section for a control period in a given year must be a Texas SO2 Trading Program allowance that was allocated for such control period or a control period in a prior year.
(ii) A Texas SO2 Trading Program allowance held for compliance with the requirements under paragraphs (c)(1)(ii)(A) and (c)(2)(i) through (iii) of this section for a control period in a given year must be a Texas SO2 Trading Program allowance that was allocated for a control period in a prior year or the control period in the given year or in the immediately following year.
(5) Allowance Management System requirements. Each Texas SO2 Trading Program allowance shall be held in, deducted from, or transferred into, out of, or between Allowance Management System accounts in accordance with this subpart.
(6) Limited authorization. A Texas SO2 Trading Program allowance is a limited authorization to emit one ton of SO2 during the control period in one year. Such authorization is limited in its use and duration as follows:
(i) Such authorization shall only be used in accordance with the Texas SO2 Trading Program; and
(ii) Notwithstanding any other provision of this subpart, the Administrator has the authority to terminate or limit the use and duration of such authorization to the extent the Administrator determines is necessary or appropriate to implement any provision of the Clean Air Act.
(7) Property right. A Texas SO2 Trading Program allowance does not constitute a property right.
(d) Title V permit requirements. (1) No title V permit revision shall be required for any allocation, holding, deduction, or transfer of Texas SO2 Trading Program allowances in accordance with this subpart.
(2) A description of whether a unit is required to monitor and report SO2 emissions using a continuous emission monitoring system (under subpart B of part 75 of this chapter), an excepted monitoring system (under appendices D and E to part 75 of this chapter), a low mass emissions excepted monitoring methodology (under §75.19 of this chapter), or an alternative monitoring system (under subpart E of part 75 of this chapter) in accordance with §§97.930 through 97.935 may be added to, or changed in, a title V permit using minor permit modification procedures in accordance with §§70.7(e)(2) and 71.7(e)(1) of this chapter, provided that the requirements applicable to the described monitoring and reporting (as added or changed, respectively) are already incorporated in such permit. This paragraph explicitly provides that the addition of, or change to, a unit's description as described in the prior sentence is eligible for minor permit modification procedures in accordance with §§70.7(e)(2)(i)(B) and 71.7(e)(1)(i)(B) of this chapter.
(e) Additional recordkeeping and reporting requirements. (1) Unless otherwise provided, the owners and operators of each Texas SO2 Trading Program source and each Texas SO2 Trading Program unit at the source shall keep on site at the source each of the following documents (in hardcopy or electronic format) for a period of 5 years from the date the document is created. This period may be extended for cause, at any time before the end of 5 years, in writing by the Administrator.
(i) The certificate of representation under §97.916 for the designated representative for the source and each Texas SO2 Trading Program unit at the source and all documents that demonstrate the truth of the statements in the certificate of representation; provided that the certificate and documents shall be retained on site at the source beyond such 5-year period until such certificate of representation and documents are superseded because of the submission of a new certificate of representation under §97.916 changing the designated representative.
(ii) All emissions monitoring information, in accordance with this subpart.
(iii) Copies of all reports, compliance certifications, and other submissions and all records made or required under, or to demonstrate compliance with the requirements of, the Texas SO2 Trading Program.
(2) The designated representative of a Texas SO2 Trading Program source and each Texas SO2 Trading Program unit at the source shall make all submissions required under the Texas SO2 Trading Program, except as provided in §97.918. This requirement does not change, create an exemption from, or otherwise affect the responsible official submission requirements under a title V operating permit program in parts 70 and 71 of this chapter.
(f) Liability. (1) Any provision of the Texas SO2 Trading Program that applies to a Texas SO2 Trading Program source or the designated representative of a Texas SO2 Trading Program source shall also apply to the owners and operators of such source and of the Texas SO2 Trading Program units at the source.
(2) Any provision of the Texas SO2 Trading Program that applies to a Texas SO2 Trading Program unit or the designated representative of a Texas SO2 Trading Program unit shall also apply to the owners and operators of such unit.
(g) Effect on other authorities. No provision of the Texas SO2 Trading Program or exemption under §97.905 shall be construed as exempting or excluding the owners and operators, and the designated representative, of a Texas SO2 Trading Program source or Texas SO2 Trading Program unit from compliance with any other provision of the applicable, approved State implementation plan, a federally enforceable permit, or the Clean Air Act.
[85 FR 49215, Aug. 12, 2020]