[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: 40CFR72.8]

[Page 33-35]
 
                   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. 72.8  Retired units exemption.

    (a) This section applies to any affected unit (except for an opt-in 
source) that is permanently retired.
    (b)(1) Any affected unit (except for an opt-in source) that is 
permanently retired shall be exempt from the Acid Rain Program, except 
for the provisions of this section, Secs. 72.2 through 72.6, Secs. 72.10 
through 72.13, and subpart B of part 73 of this chapter.
    (2) The exemption under paragraph (b)(1) of this section shall 
become effective on January 1 of the first full calendar year during 
which the unit is permanently retired. By December 31 of the first year 
that the unit is to be

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exempt under this section, 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 submit a statement to the 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 
shall state (in a format prescribed by the Administrator) that the unit 
is permanently retired and will comply with the requirements of 
paragraph (d) of this section.
    (3) After receipt of the notice 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 (b)(1) and (d) of this section.
    (c) A unit that was issued a written exemption under this section 
and that is permanently retired shall be exempt from the Acid Rain 
Program, except for the provisions of this section, Secs. 72.2 through 
72.6, Secs. 72.10 through 72.13, and subpart B of part 73 of this 
chapter, and shall be subject to the requirements of paragraph (d) 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 (c) and paragraph (d) of this 
section.
    (d) Special Provisions. (1) A unit exempt under this section shall 
not emit any sulfur dioxide and nitrogen oxides starting on the date 
that the exemption takes effect. The owners and operators of the unit 
will be allocated allowances in accordance with subpart B of part 73 of 
this chapter. If the unit is a Phase I unit, for each calendar year in 
Phase I, the designated representative of the unit shall submit a Phase 
I permit application in accordance with subparts C and D of this part 72 
and an annual certification report in accordance with Secs. 72.90 
through 72.92 and is subject to Secs. 72.95 and 72.96.
    (2) A unit exempt under this section shall not resume operation 
unless the designated representative of the source that includes the 
unit submits a complete Acid Rain permit application under Sec. 72.31 
for the unit not less than 24 months prior to the later of January 1, 
2000 or the date on which the unit is first to resume operation.
    (3) The owners and operators and, to the extent applicable, the 
designated representative of a unit exempt under this section shall 
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.
    (4) 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.
    (5) 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 unit is permanently retired. 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. The owners 
and operators bear the burden of proof that the unit is permanently 
retired.
    (6) Loss of exemption. (i) On the earlier of the following dates, a 
unit exempt under paragraph (b) or (c) 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 designated representative submits an Acid 
Rain permit application under paragraph (d)(2) of this section; or

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    (B) The date on which the designated representative is required 
under paragraph (d)(2) of this section to submit an Acid Rain permit 
application.
    (ii) 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 resumes operation.

[62 FR 55477, Oct. 24, 1997; 62 FR 66279, Dec. 18, 1997]