---
kind: "section"
citation: "40 C.F.R. § 74.50"
title: "40"
number: "74.50"
heading: "Deducting opt-in source allowances from ATS accounts."
url: "https://uscodex.org/cfr/40/74.50"
---

# §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 [§ 74.40](/cfr/40/74.40.md) by removing, from any Allowance Tracking System accounts in which they are held, the allowances in an amount specified in [paragraph (d)](#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 [§ 72.6](/cfr/40/72.6.md) 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)](#a-1) of this section from any Allowance Tracking System Account other than the account of the source that includes opt-in source allocated such allowance:
    - (i) After the Administrator has completed the process of recordation as set forth in [§ 73.34(a)](/cfr/40/73.34.md?p=a) of this chapter following the deduction of allowances from the compliance account of the source that includes the opt-in source 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 [§ 74.44(a)(1)(i)](/cfr/40/74.44.md?p=a-1-i), after the Administrator has completed action on the confirmation report concerning such estimated reduction pursuant to § [74.44(c)(2)(iii)(E)(3)](/cfr/40/74.44.md?p=c-2-iii-E-3), [(4)](/cfr/40/74.44.md?p=c-2-iii-E-4), and [(5)](/cfr/40/74.44.md?p=c-2-iii-E-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 compliance account of the source that includes the opt-in source.
- (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)](#a) of this section in an amount required to offset any excess emissions in accordance with [part 77](/cfr/40/part77.md) of this chapter and when the source that includes the 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 [§ 74.46(b)(1)](/cfr/40/74.46.md?p=b-1) (i) through (iv) in an amount required to be deducted under [§ 74.46(b)(1)](/cfr/40/74.46.md?p=b-1) (i) through (iv).

## Notes

### Amendments

[60 FR 17115, Apr. 4, 1995, as amended at 63 FR 18842, Apr. 16, 1998; 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 63 FR 18842, Apr. 16, 1998; 70 FR 25337, May 12, 2005]