§97.925. Compliance with Texas SO 2 Trading Program assurance provisions. — Inbound Citations

(iii) The decision on the deduction of Texas SO2 Trading Program allowances under § 97.924 or § 97.925 of this chapter.

The terms used in this subpart shall have the meanings set forth in this section as follows:

(b) Any Texas SO2 Trading Program allowance that is held in a compliance account or a general account will remain in such account unless and until the Texas SO2 Trading Program allowance is deducted or transferred under § 97.911(c), § 97.923, § 97.924, § 97.925, § 97.927, or § 97.928.

(2) 2Trading Program assurance provisions. (i) If total SO2 emissions during a control period in a given year from all Texas SO2 Trading Program units at Texas SO2 Trading Program sources exceed the State assurance level, then the owners and operators of such sources and units in each group of one or more sources and units having a common designated representative for such control period, where the common designated representative's share of such SO2 emissions during such control period exceeds the common designated representative's assurance level for such control period, shall hold (in the assurance account established for the owners and operators of such group) Texas SO2 Trading Program allowances available for deduction for such control period under § 97.925(a) in an amount equal to two times the product (rounded to the nearest whole number), as determined by the Administrator in accordance with § 97.925(b), of multiplying—

(A) The quotient of the amount by which the common designated representative's share of such SO2 emissions exceeds the common designated representative's assurance level divided by the sum of the amounts, determined for all common designated representatives for such sources and units for such control period, by which each common designated representative's share of such SO2 emissions exceeds the respective common designated representative's assurance level; and

(B) The amount by which total SO2 emissions from all Texas SO2 Trading Program units at Texas SO2 Trading Program sources for such control period exceed the State assurance level.

(ii) The owners and operators shall hold the Texas SO2 Trading Program allowances required under paragraph (c)(2)(i) of this section, as of midnight of November 1 (if it is a business day), or midnight of the first business day thereafter (if November 1 is not a business day), immediately after the year of such control period.

(iii) Total SO2 emissions from all Texas SO2 Trading Program units at Texas SO2 Trading Program sources during a control period in a given year exceed the State assurance level if such total SO2 emissions exceed the sum, for such control period, of the Texas SO2 Trading Program budget under § 97.910(a)(1) and the variability limit under § 97.910(b).

(iv) It shall not be a violation of this subpart or of the Clean Air Act if total SO2 emissions from all Texas SO2 Trading Program units at Texas SO2 Trading Program sources during a control period exceed the State assurance level or if a common designated representative's share of total SO2 emissions from the Texas SO2 Trading Program units at Texas SO2 Trading Program sources during a control period exceeds the common designated representative's assurance level.

(v) To the extent the owners and operators fail to hold Texas SO2 Trading Program allowances for a control period in a given year in accordance with paragraphs (c)(2)(i) through (iii) of this section,

(A) The owners and operators shall pay any fine, penalty, or assessment or comply with any other remedy imposed under the Clean Air Act; and

(B) Each Texas SO2 Trading Program allowance that the owners and operators fail to hold for such control period in accordance with paragraphs (c)(2)(i) through (iii) of this section and each day of such control period shall constitute a separate violation of this subpart and the Clean Air Act.

(2) 2Trading Program assurance provisions. (i) If total SO2 emissions during a control period in a given year from all Texas SO2 Trading Program units at Texas SO2 Trading Program sources exceed the State assurance level, then the owners and operators of such sources and units in each group of one or more sources and units having a common designated representative for such control period, where the common designated representative's share of such SO2 emissions during such control period exceeds the common designated representative's assurance level for such control period, shall hold (in the assurance account established for the owners and operators of such group) Texas SO2 Trading Program allowances available for deduction for such control period under § 97.925(a) in an amount equal to two times the product (rounded to the nearest whole number), as determined by the Administrator in accordance with § 97.925(b), of multiplying—

(A) The quotient of the amount by which the common designated representative's share of such SO2 emissions exceeds the common designated representative's assurance level divided by the sum of the amounts, determined for all common designated representatives for such sources and units for such control period, by which each common designated representative's share of such SO2 emissions exceeds the respective common designated representative's assurance level; and

(B) The amount by which total SO2 emissions from all Texas SO2 Trading Program units at Texas SO2 Trading Program sources for such control period exceed the State assurance level.

(ii) The owners and operators shall hold the Texas SO2 Trading Program allowances required under paragraph (c)(2)(i) of this section, as of midnight of November 1 (if it is a business day), or midnight of the first business day thereafter (if November 1 is not a business day), immediately after the year of such control period.

(iii) Total SO2 emissions from all Texas SO2 Trading Program units at Texas SO2 Trading Program sources during a control period in a given year exceed the State assurance level if such total SO2 emissions exceed the sum, for such control period, of the Texas SO2 Trading Program budget under § 97.910(a)(1) and the variability limit under § 97.910(b).

(iv) It shall not be a violation of this subpart or of the Clean Air Act if total SO2 emissions from all Texas SO2 Trading Program units at Texas SO2 Trading Program sources during a control period exceed the State assurance level or if a common designated representative's share of total SO2 emissions from the Texas SO2 Trading Program units at Texas SO2 Trading Program sources during a control period exceeds the common designated representative's assurance level.

(v) To the extent the owners and operators fail to hold Texas SO2 Trading Program allowances for a control period in a given year in accordance with paragraphs (c)(2)(i) through (iii) of this section,

(A) The owners and operators shall pay any fine, penalty, or assessment or comply with any other remedy imposed under the Clean Air Act; and

(B) Each Texas SO2 Trading Program allowance that the owners and operators fail to hold for such control period in accordance with paragraphs (c)(2)(i) through (iii) of this section and each day of such control period shall constitute a separate violation of this subpart and the Clean Air Act.

The terms used in this subpart shall have the meanings set forth in this section as follows:

(b) The Administrator will establish assurance accounts for certain owners and operators and States in accordance with § 97.925(b)(3).