[Code of Federal Regulations]
[Title 40, Volume 15]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR73.84]

[Page 170-171]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 73_SULFUR DIOXIDE ALLOWANCE SYSTEM--Table of Contents
 
       Subpart F_Energy Conservation and Renewable Energy Reserve
 
Sec. 73.84  Administrator's action on applications.

    (a) First come, first served. The Administrator will process and 
approve Allowance Reserve applications, in whole or in part, on a 
``first-come, first-served'' basis as established by the order of date 
of receipt, provided that the Administrator shall not allocate more than 
a total of 30,000 allowances in connection with applications based on 
any one of the four categories of qualified renewable energy generation 
enumerated in Sec. 73.81(c)(2)(i) and appendix A(3.1-3.4).
    (b) Deficient applications. An application is deficient and will be 
returned by the Administrator if it fails to meet the requirements set 
forth in this subpart, including those set forth in Sec. 73.82. A 
revised application that is submitted after being returned for failure 
to meet the requirements of this subpart will be processed according to 
the date of receipt of the revised application.
    (c) Notification of approval. Applications that the Administrator 
determines to be complete and correct will be conditionally approved, 
subject to notification to EPA of a net income neutrality certification 
from the Department of Energy, within 120 calendar days of receipt. 
Allowances from the Reserve will be awarded subject to the Department of 
Energy certification, or, if a DOE certification has already been issued 
to the applicant, allocated to applicants from such applications 
depending on the availability of allowances in the Reserve. In the event 
the initial application approval is conditioned upon the Secretary of 
Energy's certification, final approval will be granted upon notification 
of certification by the Secretary of Energy pursuant to Sec. 73.83. The 
Administrator will notify applicants of final approval in writing.
    (d) Allocation of allowances. Beginning in 1995, the Administrator 
will allocate allowances from the Reserve for each approved application 
into the applicant's account or accounts in the Allowance Tracking 
System. If the applicant does not have an account in the Allowance 
Tracking System, or wishes to open a new account for the allowances from 
the Reserve, an application pursuant to Sec. 73.31(c) must accompany 
the application for Reserve allowances.
    (e) Partial fulfillment of requests. (1) In the event that the 
allowances available in the Reserve are less than the number that could 
otherwise be allocated to an approved applicant's account under the 
application as approved, the applicant will receive the allowances 
remaining in the Reserve.
    (2) In the event that a subaccount is established by EPA, pursuant 
to Sec. 73.85, and the applicant is making a request for allowances not 
included in the subaccount, the Allowance Reserve allocations for the 
approved applicant will be made, in addition to any that may be 
allocated pursuant to paragraph (f)(3) of this section, from any 
allowances remaining in the Reserve that are not contained in the 
subaccount.
    (f) Oversubscription of the Reserve.(1) In the event that the 
Reserve becomes oversubscribed by more than one applicant on a single 
day, the allowances remaining in the Reserve will be distributed on a 
pro rata basis to applicants meeting the requirements of Sec. 73.82.
    (2) If Reserve applications are received by the Administrator after 
all allowances from the Reserve have been allocated, the Administrator 
will so notify the applicant within 5 business days after receipt of the 
application.
    (3) In the event that applications meeting the requirements pursuant 
to Sec. 73.82 are received by the Administrator prior to February 1, 
1998, and

[[Page 171]]

    (i) All remaining allowances in the Reserve have been placed in a 
subaccount pursuant to Sec. 73.85; and
    (ii) The applicant is not eligible for an allocation of allowances 
from the subaccount; the application will be placed on a waiting list in 
order of receipt.
    (iii) The Administrator will notify the applicant of such action 
within 5 business days after receipt of the application.
    (4) If any allowances are returned to the Reserve after February 1, 
1998 pursuant to Sec. 73.85(c), the Administrator will review the wait-
listed applications in order of receipt and allocate any remaining 
allowances to the approved applicants in the order of their receipt 
until no more allowances remain in the Reserve.
    (g) Applications for allowances based on the same avoided emissions 
from the same energy conservation measures or renewable energy 
generation.(1) The Administrator will not award allowances to more than 
one applicant for the same avoided emissions from the same energy 
conservation measure or the same qualified renewable energy generation, 
and will process and act on such duplicative applications on a ``first-
come, first-serve'' basis as determined by the order of date of receipt.
    (2) Any allowances awarded pursuant to two or more applications 
received on the same date based on the same avoided emissions from the 
same energy conservation measure or the same renewable electric 
generation will be divided equally between all such applicants unless 
the Administrator is otherwise directed by all such applicants.