---
kind: "section"
citation: "40 C.F.R. § 97.388"
title: "40"
number: "97.388"
heading: "CAIR NO X Ozone Season allowance allocations to CAIR NO X Ozone Season opt-in units."
url: "https://uscodex.org/cfr/40/97.388"
---

# §97.388. CAIR NO X Ozone Season allowance allocations to CAIR NO X Ozone Season opt-in units.

- (a) **Timing requirements.**
  - (1) When the CAIR opt-in permit is issued under [§ 97.384(e)](/cfr/40/97.384.md?p=e), the permitting authority will allocate CAIR NOX Ozone Season allowances to the CAIR NOX Ozone Season opt-in unit, and submit to the Administrator the allocation for the control period in which a CAIR NOX Ozone Season opt-in unit enters the CAIR NOX Ozone Season Trading Program under [§ 97.384(g)](/cfr/40/97.384.md?p=g), in accordance with paragraph [(b)](#b) or [(c)](#c) of this section.
  - (2) By no later than July 31 of the control period after the control period in which a CAIR NOX Ozone Season opt-in unit enters the CAIR NOX Ozone Season Trading Program under [§ 97.384(g)](/cfr/40/97.384.md?p=g) and July 31 of each year thereafter, the permitting authority will allocate CAIR NOX Ozone Season allowances to the CAIR NOX Ozone Season 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 NOX Ozone Season 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 NOX Ozone Season opt-in unit is to be allocated CAIR NOX Ozone Season allowances, the permitting authority will allocate in accordance with the following procedures, if provided in a State implementation plan revision submitted in accordance with § [51.123(ee)(3)(i)](/cfr/40/51.123.md?p=ee-3-i), [(ii)](/cfr/40/51.123.md?p=ee-3-ii), or [(iii)](/cfr/40/51.123.md?p=ee-3-iii) of this chapter and approved by the Administrator:
  - (1) The heat input (in mmBtu) used for calculating the CAIR NOX Ozone Season allowance allocation will be the lesser of:
    - (i) The CAIR NOX Ozone Season opt-in unit's baseline heat input determined under [§ 97.384(c)](/cfr/40/97.384.md?p=c); or
    - (ii) The CAIR NOX Ozone Season opt-in unit's heat input, as determined in accordance with [subpart HHHH](/cfr/40/subpartHHHH.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 NOX Ozone Season opt-in unit enters the CAIR NOX Ozone Season Trading Program under [§ 97.384(g)](/cfr/40/97.384.md?p=g).
  - (2) The NOX emission rate (in lb/mmBtu) used for calculating CAIR NOX Ozone Season allowance allocations will be the lesser of:
    - (i) The CAIR NOX Ozone Season opt-in unit's baseline NOX emissions rate (in lb/mmBtu) determined under [§ 97.384(d)](/cfr/40/97.384.md?p=d) and multiplied by 70 percent; or
    - (ii) The most stringent State or Federal NOX emissions limitation applicable to the CAIR NOX Ozone Season opt-in unit at any time during the control period for which CAIR NOX Ozone Season allowances are to be allocated.
  - (3) The permitting authority will allocate CAIR NOX Ozone Season allowances to the CAIR NOX Ozone Season opt-in unit in an amount equaling the heat input under [paragraph (b)(1)](#b-1) of this section, multiplied by the NOX emission rate under [paragraph (b)(2)](#b-2) of this section, divided by 2,000 lb/ton, and rounded to the nearest whole allowance as appropriate.
- (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 [§ 97.383 (a)(5)](/cfr/40/97.383.md?p=a-5)) providing for, allocation to a CAIR NOX Ozone Season opt-in unit of CAIR NOX Ozone Season allowances under this paragraph (subject to the conditions in §§ [97.384(h)](/cfr/40/97.384.md?p=h) and [97.386(g)](/cfr/40/97.386.md?p=g)), the permitting authority will allocate to the CAIR NOX Ozone Season opt-in unit as follows, if provided in a State implementation plan revision submitted in accordance with § [51.123(ee)(3)(i)](/cfr/40/51.123.md?p=ee-3-i), [(ii)](/cfr/40/51.123.md?p=ee-3-ii), or [(iii)](/cfr/40/51.123.md?p=ee-3-iii) of this chapter and approved by the Administrator:
  - (1) For each control period in 2009 through 2014 for which the CAIR NOX Ozone Season opt-in unit is to be allocated CAIR NOX Ozone Season allowances,
    - (i) The heat input (in mmBtu) used for calculating CAIR NOX Ozone Season allowance allocations will be determined as described in [paragraph (b)(1)](#b-1) of this section.
    - (ii) The NOX emission rate (in lb/mmBtu) used for calculating CAIR NOX Ozone Season allowance allocations will be the lesser of:
      - (A) The CAIR NOX Ozone Season opt-in unit's baseline NOX emissions rate (in lb/mmBtu) determined under [§ 97.384(d)](/cfr/40/97.384.md?p=d); or
      - (B) The most stringent State or Federal NOX emissions limitation applicable to the CAIR NOX Ozone Season opt-in unit at any time during the control period in which the CAIR NOX Ozone Season opt-in unit enters the CAIR NOX Ozone Season Trading Program under [§ 97.384(g)](/cfr/40/97.384.md?p=g).
    - (iii) The permitting authority will allocate CAIR NOX Ozone Season allowances to the CAIR NOX Ozone Season opt-in unit in an amount equaling the heat input under [paragraph (c)(1)(i)](#c-1-i) of this section, multiplied by the NOX emission rate under [paragraph (c)(1)(ii)](#c-1-ii) of this section, divided by 2,000 lb/ton, and rounded to the nearest whole allowance as appropriate.
  - (2) For each control period in 2015 and thereafter for which the CAIR NOX Ozone Season opt-in unit is to be allocated CAIR NOX Ozone Season allowances,
    - (i) The heat input (in mmBtu) used for calculating the CAIR NOX Ozone Season allowance allocations will be determined as described in [paragraph (b)(1)](#b-1) of this section.
    - (ii) The NOX emission rate (in lb/mmBtu) used for calculating the CAIR NOX Ozone Season allowance allocation will be the lesser of:
      - (A) 0.15 lb/mmBtu;
      - (B) The CAIR NOX Ozone Season opt-in unit's baseline NOX emissions rate (in lb/mmBtu) determined under [§ 97.384(d)](/cfr/40/97.384.md?p=d); or
      - (C) The most stringent State or Federal NOX emissions limitation applicable to the CAIR NOX Ozone Season opt-in unit at any time during the control period for which CAIR NOX Ozone Season allowances are to be allocated.
    - (iii) The permitting authority will allocate CAIR NOX Ozone Season allowances to the CAIR NOX Ozone Season opt-in unit in an amount equaling the heat input under [paragraph (c)(2)(i)](#c-2-i) of this section, multiplied by the NOX emission rate under [paragraph (c)(2)(ii)](#c-2-ii) of this section, divided by 2,000 lb/ton, and rounded to the nearest whole allowance as appropriate.
- (d) **Recordation.** If provided in a State implementation plan revision submitted in accordance with § [51.123(ee)(3)(i)](/cfr/40/51.123.md?p=ee-3-i), [(ii)](/cfr/40/51.123.md?p=ee-3-ii), or [(iii)](/cfr/40/51.123.md?p=ee-3-iii) of this chapter and approved by the Administrator:
  - (1) The Administrator will record, in the compliance account of the source that includes the CAIR NOX Ozone Season opt-in unit, the CAIR NOX Ozone Season allowances allocated by the permitting authority to the CAIR NOX Ozone Season opt-in unit under [paragraph (a)(1)](#a-1) of this section.
  - (2) By September 1 of the control period in which a CAIR NOX Ozone Season opt-in unit enters the CAIR NOX Ozone Season Trading Program under [§ 97.384(g)](/cfr/40/97.384.md?p=g) and September 1 of each year thereafter, the Administrator will record, in the compliance account of the source that includes the CAIR NOX Ozone Season opt-in unit, the CAIR NOX Ozone Season allowances allocated by the permitting authority to the CAIR NOX Ozone Season opt-in unit under [paragraph (a)(2)](#a-2) of this section.

## Notes

### Authority

Authority: 42 U.S.C. 7401, 7403, 7410, 7426, 7491, 7601, and 7651, et seq.

### Source

Source: 65 FR 2727, Jan. 18, 2000, unless otherwise noted. 71 FR 25396, 25422, and 25443, Apr. 28, 2006