[Code of Federal Regulations]
[Title 40, Volume 14]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR72.7]
[Page 30-33]
TITLE 40--PROTECTION OF ENVIRONMENT
CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
PART 72--PERMITS REGULATION--Table of Contents
Subpart A--Acid Rain Program General Provisions
Sec. 72.7 New units exemption.
(a) Applicability. This section applies to any new utility unit that
has not previously lost an exemption under paragraph (f)(4) of this
section and that, in each year starting with the first year for which
the unit is to be exempt under this section:
(1) Serves during the entire year (except for any period before the
unit commenced commercial operation) one or more generators with total
nameplate capacity of 25 MWe or less;
(2) Burns fuel that does not include any coal or coal-derived fuel
(except coal-derived gaseous fuel with a total sulfur content no greater
than natural gas); and
(3) Burns gaseous fuel with an annual average sulfur content of 0.05
percent or less by weight (as determined under
[[Page 31]]
paragraph (d) of this section) and nongaseous fuel with an annual
average sulfur content of 0.05 percent or less by weight (as determined
under paragraph (d) of this section).
(b)(1) Any new utility unit that meets the requirements of paragraph
(a) of this section and that is not allocated any allowances under
subpart B of part 73 of this chapter shall be exempt from the Acid Rain
Program, except for the provisions of this section, Secs. 72.2 through
72.6, and Secs. 72.10 through 72.13.
(2) The exemption under paragraph (b)(1) of this section shall be
effective on January 1 of the first full calendar year for which the
unit meets the requirements of paragraph (a) of this section. By
December 31 of the first year for which the unit is to be exempt under
this section, a statement signed by the designated representative
(authorized in accordance with subpart B of this part) or, if no
designated representative has been authorized, a certifying official of
each owner of the unit shall be submitted to permitting authority
otherwise responsible for administering a Phase II Acid Rain permit for
the unit. If the Administrator is not the permitting authority, a copy
of the statement shall be submitted to the Administrator. The statement,
which shall be in a format prescribed by the Administrator, shall
identify the unit, state the nameplate capacity of each generator served
by the unit and the fuels currently burned or expected to be burned by
the unit and their sulfur content by weight, and state that the owners
and operators of the unit will comply with paragraph (f) of this
section.
(3) After receipt of the statement under paragraph (b)(2) of this
section, the permitting authority shall amend under Sec. 72.83 the
operating permit covering the source at which the unit is located, if
the source has such a permit, to add the provisions and requirements of
the exemption under paragraphs (a), (b)(1), (d), and (f) of this
section.
(c)(1) Any new utility unit that meets the requirements of paragraph
(a) of this section and that is allocated one or more allowances under
subpart B of part 73 of this chapter shall be exempt from the Acid Rain
Program, except for the provisions of this section, Secs. 72.2 through
72.6, and Secs. 72.10 through 72.13, if each of the following
requirements are met:
(i) The designated representative (authorized in accordance with
subpart B of this part) or, if no designated representative has been
authorized, a certifying official of each owner of the unit submits to
the permitting authority otherwise responsible for administering a Phase
II Acid Rain permit for the unit a statement (in a format prescribed by
the Administrator) that:
(A) Identifies the unit and states the nameplate capacity of each
generator served by the unit and the fuels currently burned or expected
to be burned by the unit and their sulfur content by weight;
(B) States that the owners and operators of the unit will comply
with paragraph (f) of this section;
(C) Surrenders allowances equal in number to, and with the same or
earlier compliance use date as, all of those allocated to the unit under
subpart B of part 73 of this chapter for the first year that the unit is
to be exempt under this section and for each subsequent year; and
(D) Surrenders any proceeds for allowances under paragraph
(c)(1)(i)(C) or this section withheld from the unit under Sec. 73.10 of
this chapter. If the Administrator is not the permitting authority, a
copy of the statement shall be submitted to the Administrator.
(ii) The Administrator deducts from the unit's Allowance Tracking
System account allowances under paragraph (c)(1)(i)(C) of this section
and receives proceeds under paragraph (c)(1)(i)(D) of this section.
Within 5 business days of receiving a statement in accordance with
paragraph (c)(1)(i) of this section, the Administrator shall either
deduct the allowances under paragraph (c)(1)(i)(C) of this section or
notify the owners and operators that there are insufficient allowances
to make such deductions. Upon completion of such deductions and receipt
of such proceeds, the Administrator will close the unit's Allowance
Tracking System account and notify the designated representative (or
certifying official) and, if the Administrator is not the permitting
[[Page 32]]
authority otherwise responsible for administering a Phase II Acid Rain
permit for the unit, the permitting authority.
(2) The exemption under paragraph (c)(1) of this section shall be
effective on January 1 of the first full calendar year for which the
requirements of paragraphs (a) and (c)(1) of this section are met. After
notification by the Administrator under the third sentence of paragraph
(c)(1)(ii) of this section, the permitting authority shall amend under
Sec. 72.83 the operating permit covering the source at which the unit is
located, if the source has such a permit, to add the provisions and
requirements of the exemption under paragraphs (a), (c)(1), (d), and (f)
of this section.
(d) Compliance with the requirement that fuel burned during the year
have an annual average sulfur content of 0.05 percent by weight or less
shall be determined as follows using a method of determining sulfur
content that provides information with reasonable precision,
reliability, accessibility, and timeliness:
(1) For gaseous fuel burned during the year, if natural gas is the
only gaseous fuel burned, the requirement is assumed to be met;
(2) For gaseous fuel burned during the year where other gas in
addition to or besides natural gas is burned, the requirement is met if
the annual average sulfur content is equal to or less than 0.05 percent
by weight. The annual average sulfur content, as a percentage by weight,
for the gaseous fuel burned shall be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TR24OC97.001
where:
%Sannual = annual average sulfur content of the fuel burned
during the year by the unit, as a percentage by weight;
%Sn = sulfur content of the nth sample of the fuel delivered
during the year to the unit, as a percentage by weight;
Vn = volume of the fuel in a delivery during the year to the
unit of which the nth sample is taken, in standard cubic feet; or, for
fuel delivered during the year to the unit continuously by pipeline,
volume of the fuel delivered starting from when the nth sample of such
fuel is taken until the next sample of such fuel is taken, in standard
cubic feet;
dn = density of the nth sample of the fuel delivered during
the year to the unit, in lb per standard cubic foot; and
n = each sample taken of the fuel delivered during the year to the unit,
taken at least once for each delivery; or, for fuel that is delivered
during the year to the unit continuously by pipeline, at least once each
quarter during which the fuel is delivered.
(3) For nongaseous fuel burned during the year, the requirement is
met if the annual average sulfur content is equal to or less than 0.05
percent by weight. The annual average sulfur content, as a percentage by
weight, shall be calculated using the equation in paragraph (d)(2) of
this section. In lieu of the factor, volume times density (Vn
dn), in the equation, the factor, mass (Mn), may
be used, where Mn is: mass of the nongaseous fuel in a
delivery during the year to the unit of which the nth sample is taken,
in lb; or, for fuel delivered during the year to the unit continuously
by pipeline, mass of the nongaseous fuel delivered starting from when
the nth sample of such fuel is taken until the next sample of such fuel
is taken, in lb.
(e)(1) A utility unit that was issued a written exemption under this
section and that meets the requirements of paragraph (a) of this section
shall be exempt from the Acid Rain Program, except for the provisions of
this section, Secs. 72.2 through 72.6, and Secs. 72.10 through 72.13 and
shall be subject to the requirements of paragraphs (a), (d), (e)(2), and
(f) of this section in lieu of the requirements set forth in the written
exemption. The permitting authority shall amend under Sec. 72.83 the
operating permit covering the source at which the unit is located, if
the source has such a permit, to add the provisions and requirements of
the exemption under this paragraph (e)(1) and paragraphs (a), (d),
(e)(2), and (f) of this section.
(2) If a utility unit under paragraph (e)(1) of this section is
allocated one or more allowances under subpart B of part 73 of this
chapter, the designated representative (authorized in accordance with
subpart B of this part) or, if
[[Page 33]]
no designated representative has been authorized, a certifying official
of each owner of the unit shall submit to the permitting authority that
issued the written exemption a statement (in a format prescribed by the
Administrator) meeting the requirements of paragraph (c)(1)(i)(C) and
(D) of this section. The statement shall be submitted by June 31, 1998
and, if the Administrator is not the permitting authority, a copy shall
be submitted to the Administrator.
(f) Special Provisions. (1) The owners and operators and, to the
extent applicable, the designated representative of a unit exempt under
this section shall:
(i) Comply with the requirements of paragraph (a) of this section
for all periods for which the unit is exempt under this section; and
(ii) Comply with the requirements of the Acid Rain Program
concerning all periods for which the exemption is not in effect, even if
such requirements arise, or must be complied with, after the exemption
takes effect.
(2) For any period for which a unit is exempt under this section,
the unit is not an affected unit under the Acid Rain Program and parts
70 and 71 of this chapter and is not eligible to be an opt-in source
under part 74 of this chapter. As an unaffected unit, the unit shall
continue to be subject to any other applicable requirements under parts
70 and 71 of this chapter.
(3) For a period of 5 years from the date the records are created,
the owners and operators of a unit exempt under this section shall
retain at the source that includes the unit records demonstrating that
the requirements of paragraph (a) of this section are met. The 5-year
period for keeping records may be extended for cause, at any time prior
to the end of the period, in writing by the Administrator or the
permitting authority.
(i) Such records shall include, for each delivery of fuel to the
unit or for fuel delivered to the unit continuously by pipeline, the
type of fuel, the sulfur content, and the sulfur content of each sample
taken.
(ii) The owners and operators bear the burden of proof that the
requirements of paragraph (a) of this section are met.
(4) Loss of exemption. (i) On the earliest of the following dates, a
unit exempt under paragraphs (b), (c), or (e) of this section shall lose
its exemption and become an affected unit under the Acid Rain Program
and parts 70 and 71 of this chapter:
(A) The date on which the unit first serves one or more generators
with total nameplate capacity in excess of 25 MWe;
(B) The date on which the unit burns any coal or coal-derived fuel
except for coal-derived gaseous fuel with a total sulfur content no
greater than natural gas; or
(C) January 1 of the year following the year in which the annual
average sulfur content for gaseous fuel burned at the unit exceeds 0.05
percent by weight (as determined under paragraph (d) of this section) or
for nongaseous fuel burned at the unit exceeds 0.05 percent by weight
(as determined under paragraph (d) of this section).
(ii) Notwithstanding Sec. 72.30(b) and (c), the designated
representative for a unit that loses its exemption under this section
shall submit a complete Acid Rain permit application on the later of
January 1, 1998 or 60 days after the first date on which the unit is no
longer exempt.
(iii) For the purpose of applying monitoring requirements under part
75 of this chapter, a unit that loses its exemption under this section
shall be treated as a new unit that commenced commercial operation on
the first date on which the unit is no longer exempt.
[62 FR 55476, Oct. 24, 1997]