---
kind: "section"
citation: "40 C.F.R. § 96.288"
title: "40"
number: "96.288"
heading: "CAIR SO 2 allowance allocations to CAIR SO 2 opt-in units."
url: "https://uscodex.org/cfr/40/96.288"
---

# §96.288. CAIR SO 2 allowance allocations to CAIR SO 2 opt-in units.

- (a) **Timing requirements.**
  - (1) When the CAIR opt-in permit is issued under [§ 96.284(e)](/cfr/40/96.284.md?p=e), the permitting authority will allocate CAIR SO2 allowances to the CAIR SO2 opt-in unit, and submit to the Administrator the allocation for the control period in which a CAIR SO2 opt-in unit enters the CAIR SO2 Trading Program under [§ 96.284(g)](/cfr/40/96.284.md?p=g), in accordance with paragraph [(b)](#b) or [(c)](#c) of this section.
  - (2) By no later than October 31 of the control period after the control period in which a CAIR SO2 opt-in unit enters the CAIR SO2 Trading Program under [§ 96.284(g)](/cfr/40/96.284.md?p=g) and October 31 of each year thereafter, the permitting authority will allocate CAIR SO2 allowances to the CAIR SO2 opt-in unit, and submit to the Administrator the allocation for the control period that includes such submission deadline and in which the unit is a CAIR SO2 opt-in unit, in accordance with paragraph [(b)](#b) or [(c)](#c) of this section.
- (b) **Calculation of allocation.** For each control period for which a CAIR SO2 opt-in unit is to be allocated CAIR SO2 allowances, the permitting authority will allocate in accordance with the following procedures:
  - (1) The heat input (in mmBtu) used for calculating the CAIR SO2 allowance allocation will be the lesser of:
    - (i) The CAIR SO2 opt-in unit's baseline heat input determined under [§ 96.284(c)](/cfr/40/96.284.md?p=c); or
    - (ii) The CAIR SO2 opt-in unit's heat input, as determined in accordance with [subpart HHH](/cfr/40/subpartHHH.md) of this part, for the immediately prior control period, except when the allocation is being calculated for the control period in which the CAIR SO2 opt-in unit enters the CAIR SO2 Trading Program under [§ 96.284(g)](/cfr/40/96.284.md?p=g).
  - (2) The SO2 emission rate (in lb/mmBtu) used for calculating CAIR SO2 allowance allocations will be the lesser of:
    - (i) The CAIR SO2 opt-in unit's baseline SO2 emissions rate (in lb/mmBtu) determined under [§ 96.284(d)](/cfr/40/96.284.md?p=d) and multiplied by 70 percent; or
    - (ii) The most stringent State or Federal SO2 emissions limitation applicable to the CAIR SO2 opt-in unit at any time during the control period for which CAIR SO2 allowances are to be allocated.
  - (3) The permitting authority will allocate CAIR SO2 allowances to the CAIR SO2 opt-in unit with a tonnage equivalent equal to, or less than by the smallest possible amount, the heat input under [paragraph (b)(1)](#b-1) of this section, multiplied by the SO2 emission rate under [paragraph (b)(2)](#b-2) of this section, and divided by 2,000 lb/ton.
- (c) Notwithstanding [paragraph (b)](#b) of this section and if the CAIR designated representative requests, and the permitting authority issues a CAIR opt-in permit (based on a demonstration of the intent to repower stated under [§ 96.283(a)(5)](/cfr/40/96.283.md?p=a-5)) providing for, allocation to a CAIR SO2 opt-in unit of CAIR SO2 allowances under this paragraph (subject to the conditions in §§ [96.284(h)](/cfr/40/96.284.md?p=h) and [96.286(g)](/cfr/40/96.286.md?p=g)), the permitting authority will allocate to the CAIR SO2 opt-in unit as follows:
  - (1) For each control period in 2010 through 2014 for which the CAIR SO2 opt-in unit is to be allocated CAIR SO2 allowances,
    - (i) The heat input (in mmBtu) used for calculating CAIR SO2 allowance allocations will be determined as described in [paragraph (b)(1)](#b-1) of this section.
    - (ii) The SO2 emission rate (in lb/mmBtu) used for calculating CAIR SO2 allowance allocations will be the lesser of:
      - (A) The CAIR SO2 opt-in unit's baseline SO2 emissions rate (in lb/mmBtu) determined under [§ 96.284(d)](/cfr/40/96.284.md?p=d); or
      - (B) The most stringent State or Federal SO2 emissions limitation applicable to the CAIR SO2 opt-in unit at any time during the control period in which the CAIR SO2 opt-in unit enters the CAIR SO2 Trading Program under [§ 96.284(g)](/cfr/40/96.284.md?p=g).
    - (iii) The permitting authority will allocate CAIR SO2 allowances to the CAIR SO2 opt-in unit with a tonnage equivalent equal to, or less than by the smallest possible amount, the heat input under [paragraph (c)(1)(i)](#c-1-i) of this section, multiplied by the SO2 emission rate under [paragraph (c)(1)(ii)](#c-1-ii) of this section, and divided by 2,000 lb/ton.
  - (2) For each control period in 2015 and thereafter for which the CAIR SO2 opt-in unit is to be allocated CAIR SO2 allowances,
    - (i) The heat input (in mmBtu) used for calculating the CAIR SO2 allowance allocations will be determined as described in [paragraph (b)(1)](#b-1) of this section.
    - (ii) The SO2 emission rate (in lb/mmBtu) used for calculating the CAIR SO2 allowance allocation will be the lesser of:
      - (A) The CAIR SO2 opt-in unit's baseline SO2 emissions rate (in lb/mmBtu) determined under [§ 96.284(d)](/cfr/40/96.284.md?p=d) multiplied by 10 percent; or
      - (B) The most stringent State or Federal SO2 emissions limitation applicable to the CAIR SO2 opt-in unit at any time during the control period for which CAIR SO2 allowances are to be allocated.
    - (iii) The permitting authority will allocate CAIR SO2 allowances to the CAIR SO2 opt-in unit with a tonnage equivalent equal to, or less than by the smallest possible amount, the heat input under [paragraph (c)(2)(i)](#c-2-i) of this section, multiplied by the SO2 emission rate under [paragraph (c)(2)(ii)](#c-2-ii) of this section, and divided by 2,000 lb/ton.
- (d) **Recordation.**
  - (1) The Administrator will record, in the compliance account of the source that includes the CAIR SO2 opt-in unit, the CAIR SO2 allowances allocated by the permitting authority to the CAIR SO2 opt-in unit under [paragraph (a)(1)](#a-1) of this section.
  - (2) By December 1 of the control period in which a CAIR SO2 opt-in unit enters the CAIR SO2 Trading Program under [§ 96.284(g)](/cfr/40/96.284.md?p=g), and December 1 of each year thereafter, the Administrator will record, in the compliance account of the source that includes the CAIR SO2 opt-in unit, the CAIR SO2 allowances allocated by the permitting authority to the CAIR SO2 opt-in unit under [paragraph (a)(2)](#a-2) of this section.

## Notes

### Amendments

[70 FR 25362, May 12, 2005, as amended at 71 FR 25390, Apr. 28, 2006]

### Source

Source: 70 FR 25362, May 12, 2005, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 7401, 7403, 7410, 7601, and 7651, et seq.

### Source

Source: 63 FR 57514, Oct. 27, 1998, unless otherwise noted.

### Amendments

[70 FR 25362, May 12, 2005, as amended at 71 FR 25390, Apr. 28, 2006]