---
kind: "section"
citation: "40 C.F.R. § 74.49"
title: "40"
number: "74.49"
heading: "Calculation for deducting allowances."
url: "https://uscodex.org/cfr/40/74.49"
---

# §74.49. Calculation for deducting allowances.

- (a) **Allowance deduction formula.** The following formula shall be used to determine the total number of allowances to be deducted for the calendar year from the allowances held in the compliance account of a source that includes an opt-in source as of the allowance transfer deadline applicable to that year:
  - (1)
    - (i) Except as provided in [paragraph (a)(1)(ii)](#a-1-ii) of this section, “Tons emitted” shall be the total tons of sulfur dioxide emitted by the opt-in source during the calendar year, as reported in accordance with [subpart F](/cfr/40/subpartF.md) of this part for combustion sources or [subpart G](/cfr/40/subpartG.md) of this part for process sources.
    - (ii) If the effective date of the opt-in source's permit took effect on a date other than January 1, “Tons emitted” for the first calendar year shall be the total tons of sulfur dioxide emitted by the opt-in source during the calendar quarters for which the opt-in source's opt-in permit is effective, as reported in accordance with [subpart F](/cfr/40/subpartF.md) of this part for combustion sources or [subpart G](/cfr/40/subpartG.md) of this part for process sources.
  - (2) “Allowances deducted for reduced utilization” shall be the total number of allowances deducted for reduced utilization as calculated in accordance with [§ 74.44](/cfr/40/74.44.md) for combustion sources or [§ 74.45](/cfr/40/74.45.md) for process sources.
- (b) [Reserved]

## Notes

### Amendments

[60 FR 17115, Apr. 4, 1995, as amended at 70 FR 25337, May 12, 2005]

### Authority

Authority: 42 U.S.C. 7601 and 7651 et seq.

### Source

Source: 60 FR 17115, Apr. 4, 1995, unless otherwise noted.

### Amendments

[60 FR 17115, Apr. 4, 1995, as amended at 70 FR 25337, May 12, 2005]