[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: 40CFR77.6]

[Page 468-469]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 77--EXCESS EMISSIONS--Table of Contents
 
Sec. 77.6  Penalties for excess emissions of sulfur dioxide and nitrogen oxides.

    (a)(1) If excess emissions of sulfur dioxide or nitrogen oxide occur 
at an affected unit during any year, the owners and operators of the 
affected unit shall pay, without demand, an excess emissions penalty, as 
calculated under paragraph (b) of this section.
    (2) If one or more affected units governed by an approved 
NOX averaging plan under Sec. 76.11 of this chapter fail 
(after applying Sec. 76.11(d)(1)(ii)(C) of this chapter) to meet their 
respective alternative contemporaneous emission limitations or annual 
heat input limits, then excess emissions of nitrogen oxides occur during 
the year at each such unit. The sum of the excess emissions of nitrogen 
oxides of such units shall equal the amount determined under 
Sec. 76.13(b) of this chapter. The owners and operators of such units 
shall pay an excess emissions penalty, as calculated under paragraph (b) 
of this section using the sum of the excess emissions of nitrogen oxides 
of such units.
    (3) Except as otherwise provided in this paragraph (a)(3), payment 
under paragraphs (a) (1) or (2) of this section shall be submitted to 
the Administrator by 30 days after the date on which the Administrator 
serves the designated representative a notice that the process of 
recordation set forth in Sec. 73.34(a) of this chapter is completed or 
by July 1 of the year after the year in which the excess emissions 
occurred, whichever date is earlier. Payment under paragraph (a)(1) of 
this section for any increase in excess emissions of sulfur dioxide 
determined after adjustments made under Sec. 72.91(b) of this chapter 
shall be submitted to the Administrator by 30 days after the date on 
which the Administrator serves the designated representative a notice 
that process set forth in Sec. 72.91(b) of this chapter is completed.
    (b) Penalty formula. (1) The following formulas shall be used to 
determine the excess emissions penalty:

Penalty for excess emissions of sulfur dioxide = $2000/ton x annual 
    adjustment factor x tons of excess emissions of sulfur dioxide.

Penalty for excess emissions of nitrogen oxides = $2000/ton x annual 
    adjustment factor x tons of excess emissions of nitrogen oxides.

    (i) The annual adjustment factor will be calculated as follows:

Annual adjustment factor = 1 + {[CPI(year) - CPI(1990)] / 
    CPI(1990){time} 


where:

    (A) ``CPI(year)'' is the Consumer Price Index as defined in 
Sec. 72.2 of this chapter and ``year'' is the year in which the unit had 
excess emissions.

[[Page 469]]

    (B) ``CPI(1990)'' is the Consumer Price Index for 1990, as defined 
in Sec. 72.2 of this chapter.

    (ii) The Administrator will publish the annual adjustment factor in 
the Federal Register by October 15 of each year beginning in 1995.
    (2) The penalty may be rounded to the nearest dollar after 
completing the calculation in paragraph (b)(1)(i) of this section.
    (3) The penalty for excess emissions of sulfur dioxide shall be paid 
separately from the payment for excess emissions of nitrogen oxides. 
Each payment shall be accompanied by a document, in a format prescribed 
by the Administrator, indicating the unit for which the payment is made, 
whether the payment is for excess emissions of sulfur dioxide or 
nitrogen oxides, the number of tons of excess emissions, the penalty 
amount, and the check or money order number of the payment.
    (c) If an excess emissions penalty due under this part is not paid 
on or before the applicable deadline under paragraph (a) of this 
section, the penalty shall be subject to interest charges in accordance 
with the Debt Collection Act (31 U.S.C. 3717). Interest shall begin to 
accrue on the date on which the Administrator mails, to the designated 
representative of the unit with excess emissions, a demand notice for 
the payment.
    (d)(1) Except for wire transfers made in accordance with paragraph 
(d)(2) of this section, payments of penalties shall be made by money 
order, cashier's check, certified check, or U.S. Treasury check made 
payable to the ``U.S. EPA.''
    (2) Payments made under paragraph (c)(1) of this section shall be 
mailed to the following address, unless the Administrator has notified 
the designated representative of a different address: U.S. EPA: 
Headquarters Accounting Operations Branch, Acid Rain Excess Emissions 
Penalties, P.O. Box 952491, St. Louis, MO 63195-2491.
    (3) Payments of penalties of $25,000 or more may be made by wire 
transfer to the U.S. Treasury at the Federal Reserve Bank of New York.
    (e) If the Administrator determines that overpayment has been made, 
he or she will refund the overpayment without interest, as promptly as 
administratively possible.
    (f) Excess emissions in any year resulting directly from an order 
issued in that year under section 110(f) of the Act shall not be subject 
to the penalty payment requirements of this section; provided that the 
designated representative of any unit subject to such order shall advise 
the Administrator within 30 days of issuance of the order that the order 
will result in such excess emissions.

[58 FR 3757, Jan. 11, 1993, as amended at 60 FR 17131, Apr. 4, 1995; 62 
FR 55487, Oct. 24, 1997]