[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: 40CFR74.50]

[Page 203]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 74--SULFUR DIOXIDE OPT-INS--Table of Contents
 
  Subpart E--Allowance Tracking and Transfer and End of Year Compliance
 
Sec. 74.50  Deducting opt-in source allowances from ATS accounts.

    (a)(1) Deduction of allowances. The Administrator may deduct any 
allowances that were allocated to an opt-in source under Sec. 74.40 by 
removing, from any Allowance Tracking System accounts in which they are 
held, the allowances in an amount specified in paragraph (d) of this 
section, under the following circumstances:
    (i) When the opt-in source has permanently shut down; or
    (ii) When the opt-in source has been reconstructed; or
    (iii) When the opt-in source becomes an affected unit under 
Sec. 72.6 of this chapter; or
    (iv) When the opt-in source fails to renew its opt-in permit.
    (2) An opt-in allowance may not be deducted under paragraph (a)(1) 
of this section from any Allowance Tracking System Account other than 
the account of the opt-in source allocated such allowance:
    (i) After the Administrator has completed the process of recordation 
as set forth in Sec. 73.34(a) of this chapter following the deduction of 
allowances from the opt-in source's compliance subaccount for the year 
for which such allowance may first be used; or
    (ii) If the opt-in source includes in the annual compliance 
certification report estimates of any reduction in heat input resulting 
from improved efficiency under Sec. 74.44(a)(1)(i), after the 
Administrator has completed action on the confirmation report concerning 
such estimated reduction pursuant to Sec. 74.44(c)(2)(iii)(E)(3), (4), 
and (5) for the year for which such allowance may first be used.
    (b) Method of deduction. The Administrator will deduct allowances 
beginning with those allowances with the latest recorded date of 
transfer out of the opt-in source's unit account.
    (c) Notification of deduction. When allowances are deducted, the 
Administrator will send a written notification to the authorized account 
representative of each Allowance Tracking System account from which 
allowances were deducted. The notification will state:
    (1) The serial numbers of all allowances deducted from the account,
    (2) The reason for deducting the allowances, and
    (3) The date of deduction of the allowances.
    (d) Amount of deduction. The Administrator may deduct allowances in 
accordance with paragraph (a) of this section in an amount required to 
offset any excess emissions in accordance with part 77 of this chapter 
and when an opt-in source does not hold allowances equal in number to 
and with the same or earlier compliance use date for the calendar years 
specified under Sec. 74.46(b)(1) (i) through (iv) in an amount required 
to be deducted under Sec. 74.46(b)(1) (i) through (iv).

[60 FR 17115, Apr. 4, 1995, as amended at 63 FR 18842, Apr. 16, 1998]

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