Missouri Code of State Regulations
Title 10 - DEPARTMENT OF NATURAL RESOURCES
Division 10 - Air Conservation Commission
Chapter 6 - Air Quality Standards, Definitions, Sampling and Reference Methods and Air Pollution Control Regulations for the Entire State of Missouri
Section 10 CSR 10-6.376 - Cross-State Air Pollution Rule Annual SO[2] Group 1 Trading Program

Universal Citation: 10 MO Code of State Regs 10-6.376

Current through Register Vol. 49, No. 6, March 15, 2024

PURPOSE: The purpose of this rule is to have Missouri responsible for the Cross-State Air Pollution Rule (CSAPR) Sulfur Dioxide (SO2) Group 1 Trading Program rather than the U.S. Environmental Protection Agency. This rule also provides the process to allocate allowances to affected units in Missouri for compliance with the CSAPR SO2 Group 1 Trading Program. The purpose of this amendment is to adjust emission allowances pursuant to the CSAPR Sulfur Dioxide SO2 Group 1 Trading Program. This amendment will return one thousand three hundred (1,300) allowances (tons) SO2 emission allowances to Iatan Unit 1 from the Asbury Power Plant. The 2015 amendment to this rule reallocated these one thousand three hundred (1,300) allowances (tons) SO2 emission allowances from Iatan Unit 1 to Asbury based on ownership share per a request from industry. Asbury is retired as of March 2020, and Liberty Utilities and Evergy have requested to transfer the one thousand three hundred (1,300) credits back to Iatan Unit 1 before they are forfeited to the new unit set-aside and redistributed to other emission units. This rulemaking reverses the 2015 reallocation of one thousand three hundred (1,300) allowances (tons) SO2 emission allowances. Asbury's remaining three thousand one hundred eighty (3,180) allowances (tons) allowances will be transferred to the new unit set-aside and redistributed, as is the case for any unit that retires under the program. In addition, there is a minor administrative change clarifying the list of exceptions to this rule. Pursuant to section 536.016, RSMo, the evidence supporting the need for this proposed amendment is that 40 CFR 52.39(f)(6) requires the Department of Natural Resources to submit a SIP revision to EPA by December 1 of the year before the year in which the department sends the allowance allocations to EPA. Since Asbury did not operate in 2020, the allowance allocation submission set to be made in June 2022 will be the first submission where the one thousand three hundred (1,300) allowances (tons) emission allowances would be forfeited if not reallocated. Therefore, it is necessary to submit this amendment (SIP revision) to EPA by December 1, 2021.

(1) Applicability.

(A) Unless otherwise noted in subsection (1)(B) of this rule, the provisions of 40 CFR 97.602 through 40 CFR 97.635 promulgated as of July 1, 2018 are hereby incorporated by reference as published by the Office of the Federal Register. Copies can be obtained from the U.S. Publishing Office Bookstore, 710 N. Capitol Street NW, Washington, DC 20401. This rule does not incorporate any subsequent amendments or additions.

(B) Exceptions.

The following provisions are not adopted by reference in subsection (1)(A) of this rule, nor are they replaced by any provisions in this rule:

1. 40 CFR 97.611(a);

2. 40 CFR 97.611(b)(1);

3. 40 CFR 97.612(a);

4. 40 CFR 97.611(b)(2);

5. 40 CFR 97.611(c)(5)(iii);

6. 40 CFR 97.612(b);

7. 40 CFR 97.621(h); and

8. 40 CFR 97.621(j).

(2) Definitions.

(A) Definitions for key words and phrases used in this rule may be found in 40 CFR 97.602 and 40 CFR 97.603 as incorporated by reference in subsection (1)(A) of this rule.

(B) Notification-Any action by the director to convey information to affected sources and interested parties. This includes, but is not limited to, public web postings with email alerts.

(C) Definitions of certain terms specified in this rule, other than those defined in this rule section, may be found in 10 CSR 10-6.020.

(3) General Provisions. The general provisions for the Cross-State Air Pollution Rule (CSAPR) sulfur dioxide (SO2) Group 1 Trading Program may be found in 40 CFR 97.604 through 40 CFR 97.628, which, unless listed in subsection (1)(B) of this rule, are incorporated by reference in subsection (1)(A) of this rule. Subsections (3)(A) and (3)(B) of this rule replace the provisions of 40 CFR 97.611(a), 40 CFR 97.611(b)(1), and 40 CFR 97.612(a) as incorporated by reference in subsection (1)(A) of this rule.

(A) Existing Units.

1. Annual Submittal. The director must submit to the U.S. Environmental Protection Agency (EPA), in a format prescribed by the administrator, the CSAPR SO2 Group 1 allowances listed in Table I taking into account any modifications necessary in accordance with paragraph (3)(A)2. of this rule. This submittal must meet the following schedule:

A. By June 1, 2016, the director will submit to EPA allowances for CSAPR SO2 Group 1 units for the control periods in 2017 and 2018;

B. By June 1, 2017, the director will submit to EPA allowances for CSAPR SO2 Group 1 units for the control periods in 2019 and 2020;

C. By June 1, 2018, the director will submit to EPA allowances for CSAPR SO2 Group 1 units for the control periods in 2021 and 2022; and

D. By June 1, 2019, and June 1 of each year thereafter, the director will submit to EPA allowances for CSAPR SO2 Group 1 units for the control periods in the fourth year after the year in which the submission is made.

2. Non-operating Units. If a unit in Table I of this rule does not operate during two (2) consecutive control periods after 2014, the submittal made under paragraph (3)(A)1. of this rule will show zero (0) CSAPR SO2 Group 1 SO2 allowances for such unit for the control period in the fifth year after these two (2) such years and in each year after that fifth year. All CSAPR SO2 Group 1 allowances that would otherwise have been allocated to such unit will be allocated to the new unit set-aside for the state for the respective years involved. If this subsection is applicable, any resulting changes to the submittal under paragraph (3)(A)1. of this rule will be determined in accordance with the following:

A. Every year, the director will review the operation of each unit listed in Table I and issue a notification that lists any unit in Table I that has not operated during two (2) consecutive control periods after 2014. Any notification made under this subparagraph will specify the first year in which allowances listed in Table I will be terminated for the applicable unit(s) under paragraph (3)(A)2. of this rule;

B. For each notification in subparagraph (3)(A)2.A. of this rule, the director will provide an opportunity for submission of objections to the units referenced in such notice that must be submitted by the deadline specified in such notification in order to be considered; and

C. If there are objections, the director will review them and issue a notification responding to objections received along with any adjustments made to the list.

Source Name	Source ID	Unit ID	CSAPR SO2 Group 1 unit allowances (tons) for 2017 and thereafter
Asbury	2076	1	3,180
Audrain Power Plant	55234	CT1	0
Audrain Power Plant	55234	CT2	0
Audrain Power Plant	55234	CT3	0
Audrain Power Plant	55234	CT4	0
Audrain Power Plant	55234	CT5	0
Audrain Power Plant	55234	CT6	0
Audrain Power Plant	55234	CT7	0
Audrain Power Plant	55234	CT8	0
Blue Valley	2132	3	452
Chamois Power Plant	2169	2	893
Chillicothe	2122	GT1A	0
Chillicothe	2122	GT1B	0
Chillicothe	2122	GT2A	1
Chillicothe	2122	GT2B	0
Columbia	2123	6	78
Columbia	2123	7	215
Columbia	2123	8	0
Columbia Energy Center (MO)	55447	CT01	0
Columbia Energy Center (MO)	55447	CT02	0
Columbia Energy Center (MO)	55447	CT03	0
Columbia Energy Center (MO)	55447	CT04	0
Dogwood Energy Facility	55178	CT-1	1
Dogwood Energy Facility	55178	CT-2	1
Empire District Elec Co Energy Ctr	6223	1	0
Empire District Elec Co Energy Ctr	6223	2	0
Empire District Elec Co Energy Ctr	6223	3A	1
Empire District Elec Co Energy Ctr	6223	3B	1
Empire District Elec Co Energy Ctr	6223	4A	1
Empire District Elec Co Energy Ctr	6223	4B	1
Essex Power Plant	7749	1	0
Fairgrounds	2082	CT01	1
Greenwood Energy Center	6074	1	1
Greenwood Energy Center	6074	2	0
Greenwood Energy Center	6074	3	0
Greenwood Energy Center	6074	4	1
Hawthorn	2079	5A	2,643
Hawthorn	2079	6	0
Hawthorn	2079	7	0
Hawthorn	2079	8	0
Hawthorn	2079	9	1
Higginsville Municipal Power Plant	2131	4A	0
Higginsville Municipal Power Plant	2131	4B	0
Holden Power Plant	7848	1	0
Holden Power Plant	7848	2	1
Holden Power Plant	7848	3	0
Howard Bend	2102	CT1A	1
Howard Bend	2102	CT1B	1
Iatan	6065	1	11,133
James River	2161	GT1	0
James River	2161	GT2	0
James River	2161	3	747
James River	2161	4	847
James River	2161	5	1,566
John Twitty Energy Center	6195	1	2,883
John Twitty Energy Center	6195	CT1A	0
John Twitty Energy Center	6195	CT1B	0
John Twitty Energy Center	6195	CT2A	0
John Twitty Energy Center	6195	CT2B	0
Labadie	2103	1	9,056
Labadie	2103	2	9,265
Labadie	2103	3	9,633
Labadie	2103	4	9,929
Lake Road	2098	6	1,490
Lake Road	2098	GT5	2
McCartney Generating Station	7903	MGS1A	0
McCartney Generating Station	7903	MGS1B	0
McCartney Generating Station	7903	MGS2A	0
McCartney Generating Station	7903	MGS2B	0
Meramec	2104	1	2,326
Meramec	2104	2	2,192
Meramec	2104	3	3,869
Meramec	2104	4	5,394
Meramec	2104	CT01	1
Meramec	2104	CT2A	0
Meramec	2104	CT2B	0
Mexico	6650	CT01	1
Moberly	6651	CT01	2
Montrose	2080	1	2,608
Montrose	2080	2	2,555
Montrose	2080	3	2,684
Moreau	6652	CT01	1
New Madrid Power Plant	2167	1	8,190
New Madrid Power Plant	2167	2	7,628
Nodaway Power Plant	7754	1	0
Nodaway Power Plant	7754	2	0
Northeast Generating Station	2081	11	0
Northeast Generating Station	2081	12	0
Northeast Generating Station	2081	13	0
Northeast Generating Station	2081	14	0
Northeast Generating Station	2081	15	0
Northeast Generating Station	2081	16	0
Northeast Generating Station	2081	17	1
Northeast Generating Station	2081	18	0
Peno Creek Energy Center	7964	CT1A	0
Peno Creek Energy Center	7964	CT1B	0
Peno Creek Energy Center	7964	CT2A	0
Peno Creek Energy Center	7964	CT2B	0
Peno Creek Energy Center	7964	CT3A	0
Peno Creek Energy Center	7964	CT3B	0
Peno Creek Energy Center	7964	CT4A	0
Peno Creek Energy Center	7964	CT4B	0
Ralph Green Station	2092	3	0
Rush Island	6155	1	9,492
Rush Island	6155	2	8,700
Sibley	2094	1	799
Sibley	2094	2	788
Sibley	2094	3	5,037
Sikeston	6768	1	4,564
Sioux	2107	1	6,743
Sioux	2107	2	6,083
South Harper Peaking Facility	56151	1	0
South Harper Peaking Facility	56151	2	0
South Harper Peaking Facility	56151	3	0
St. Francis Power Plant	7604	1	1
St. Francis Power Plant	7604	2	1
State Line (MO)	7296	1	0
State Line (MO)	7296	2-1	2
State Line (MO)	7296	2-2	3
Thomas Hill Energy Center	2168	MB1	2,982
Thomas Hill Energy Center	2168	MB2	4,665
Thomas Hill Energy Center	2168	MB3	9,621
Viaduct	2096	CT01	0
Total	160,959

Note: Being included or excluded on the list of sources in Table I does not constitute a determination that such source is or is not a CSAPR SO2 Group 1 unit. The determination of applicability for CSAPR SO2 Group 1 units is in 40 CFR 97.604 as incorporated by reference in subsection (1)(A) of this rule.

(B) New Units.

1. Annual Submittal. For the CSAPR SO2 Group 1 control period in 2017 and each control period thereafter, the director must submit to EPA, in a format prescribed by the administrator, the CSAPR SO2 Group 1 allowances as determined under this subsection by July 1 of the applicable control period.

2. New unit set-asides.

A. Allowance Calculation. Every year, the director will calculate the CSAPR SO2 Group 1 allowance allocation to each CSAPR SO2 Group 1 unit in a state, in accordance with subparagraphs (3)(B)3.B. through (3)(B)3.G. and (3)(B)3.L. of this rule, for the control period in the year of the applicable submittal deadline under paragraph (3)(B)1. of this rule. Once the calculations are complete, the director will contact all facilities that will receive allocations under subparagraphs (3)(B)3.B. through (3)(B)3.G. and (3)(B)3.L. of this rule for the control period in the year of the applicable submittal deadline under paragraph (3)(B)1. of this rule to confirm that the calculations were performed in accordance with this rule, and make adjustments to the calculations if necessary.

B. Excess Allowances. If the new unit set-aside for the control period has any CSAPR SO2 Group 1 allowances remaining after the calculations performed under sub-paragraphs (3)(B)3.B. through (3)(B)3.G. and (3)(B)3.L. of this rule have been completed, then allowances will be calculated in accordance with subparagraph (3)(B)3.I. of this rule.

C. Industry Requests for Excess Allowances. If a facility owner, operator, or designated representative wishes to receive allowances in accordance with subparagraph (3)(B)3.I. of this rule, for any control period, then by April 5 of the applicable control period, the facility owner, operator, or designated representative must submit information to the director confirming that a CSAPR SO2 Group 1 unit commenced commercial operation during the period starting January 1 of the year before the year of such control period and ending March 31 of the year of such control period. The submittal must also include the calculation of eligible allowances for use in subparagraph (3)(B)3.I. of this rule, for each CSAPR SO2 Group 1 unit that commenced commercial operation during the period starting January 1 of the year before the year of such control period and ending March 31 of the year of such control period.

(I) The calculation of eligible allowances must be in accordance with part (3)(B)3.I.(III) of this rule in order for such units to be eligible to receive any allowances in accordance with subparagraph (3)(B)3.I. of this rule.

(II) Each year, the director will review any submissions made in accordance with this paragraph to confirm that units identified in the submissions are CSAPR SO2 Group 1 units that commenced commercial operation during the period starting January 1 of the year before the year of such control period and ending March 31 of the year of such control period. The director will also confirm that the submission includes the correct calculations for eligible allowances in accordance with part (3)(B)3.I.(III) of this rule. If, during the review, the director identifies any discrepancies with the identified units or the calculations in a submission made in accordance with this paragraph, the director may request additional information from the facility owner, operator, or designated representative that made the submission. If additional information is requested, the facility owner, operator, or designated representative must provide the requested information by the deadline specified in the information request; otherwise, units identified in such submission will not be eligible for allowances in accordance with subparagraph (3)(B)3.I. of this rule for the applicable control period.

D. Public Notification. The director will determine the CSAPR SO2 Group 1 allowance allocation to each CSAPR SO2 Group 1 unit in accordance with subparagraphs (3)(B)3.I., (3)(B)3.J., and (3)(B)3.L. of this rule and 40 CFR 97.606(b)(2) and 40 CFR 97.630 through 40 CFR 97.635 as incorporated by reference in subsection (1)(A) of this rule. By June 1 of each year, the director will issue a notification making available the results of all allowance determinations from the new unit set-aside for the control period in which the notification is made.

(I) For each notification in subparagraph (3)(B)2.D. of this rule, the director will provide an opportunity for submission of objections to the calculations referenced in such notice.

(II) If there are objections, the director will review them and provide notification stating the outcome.

E. Allowance Changes. If any CSAPR SO2 Group 1 allowances are added to the new unit set-aside after submittals per subparagraph (3)(B)2.C. of this rule, the director will issue additional notifications, as deemed appropriate, of the allocation of such CSAPR SO2 Group 1 allowances in accordance with subparagraph (3)(B)3.J. of this rule.

3. New Unit Annual Allowance Allocation Methodology. For each control period in 2017 and thereafter and for the CSAPR SO2 Group 1 units in Missouri, the director will allocate CSAPR SO2 Group 1 allowances to the CSAPR SO2 Group 1 units as follows:

A. Units Eligible to Receive Allowances. The CSAPR SO2 Group 1 allowances will be allocated to the following CSAPR SO2 Group 1 units, except as provided in subparagraph (3)(B)3.J. of this rule:

(I) CSAPR SO2 Group 1 units that are not listed in Table I in paragraph (3)(A)2. of this rule;

(II) CSAPR SO2 Group 1 units whose allocation of an amount of CSAPR SO2 Group 1 allowances for such control period listed in Table I in paragraph (3)(A)2. of this rule is covered by 40 CFR 97.611(c)(2) or (3) as incorporated by reference in subsection (1)(A) of this rule;

(III) CSAPR SO2 Group 1 units that are listed in Table I in paragraph (3)(A)2. of this rule and the allocation to such unit(s) is terminated for the applicable control period pursuant to paragraph (3)(A)2. of this rule, and that operate during the control period immediately preceding such control period; or

(IV) For purposes of subparagraph (3)(B)3.I. of this rule, CSAPR SO2 Group 1 units under 40 CFR 97.611(c)(1)(ii) whose allocation of an amount of CSAPR SO2 Group 1 allowances for such control period under paragraph (3)(B)2. of this rule is covered by 40 CFR 97.611(c)(2) or (3) as incorporated by reference in subsection (1)(A) of this rule;

B. Total Allowances Available. The director will establish a separate new unit set-aside for the state for each such control period. Each such new unit set-aside will be allocated CSAPR SO2 Group 1 allowances in an amount equal to the difference between the Missouri CSAPR SO2 Group 1 trading budget for 2017 and thereafter, as set forth in 40 CFR 97.610(a) as incorporated by reference in subsection (1)(A) of this rule, and the total number of allowances allocated in accordance with paragraph (3)(A)1. of this rule for such control period. The new unit set-aside will be allocated additional CSAPR SO2 Group 1 allowances (if any) in accordance with paragraph (3)(A)2. of this rule and 40 CFR 97.611(c)(5) as incorporated by reference in subsection (1)(A) of this rule;

C. Eligible Control Periods. The director will determine, for each CSAPR SO2 Group 1 unit described in sub-paragraph (3)(B)3.A. of this rule, an allocation of CSAPR SO2 Group 1 allowances for the later of the following control periods and for each subsequent control period:

(I) The control period in 2017;

(II) The first control period after the control period in which the CSAPR SO2 Group 1 unit commences commercial operation;

(III) For a unit described in part (3)(B)3.A.(II) of this rule, the first control period in which the CSAPR SO2 Group 1 unit operates in the state after operating in another jurisdiction and for which the unit is not already allocated one (1) or more CSAPR SO2 Group 1 allowances; and

(IV) For a unit described in part (3)(B)3.A.(III) of this rule, the first control period after the control period in which the unit resumes operation, or the first control period in which the allocation for such unit listed in Table I in paragraph (3)(A)2. of this rule is terminated pursuant to paragraph (3)(A)2. of this rule, whichever is later;

D. Allocations. The allocation to each CSAPR SO2 Group 1 unit described in parts (3)(B)3.A.(I) through (3)(B)3.A.(III) of this rule and for each control period described in subparagraph (3)(B)3.C. of this rule will be an amount equal to the unit's total tons of SO2 emissions during the immediately preceding control period. The director will adjust the allocation amount in this subparagraph in accordance with subparagraphs (3)(B)3.E. through (3)(B)3.G. and (3)(B)3.L. of this rule;

E. Sum of Allowances. The director will calculate the sum of the CSAPR SO2 Group 1 allowances determined for all such CSAPR SO2 Group 1 units under subparagraph (3)(B)3.D. of this rule in the state for such control period;

F. Extra Allowance Allocation. If the amount of CSAPR SO2 Group 1 allowances in the new unit set-aside for the state for such control period is greater than or equal to the sum under subparagraph (3)(B)3.E. of this rule, then the director will allocate the amount of CSAPR SO2 Group 1 allowances determined for each such CSAPR SO2 Group 1 unit under subparagraph (3)(B)3.D. of this rule;

G. Insufficient Allowance Allocation. If the amount of CSAPR SO2 Group 1 allowances in the new unit set-aside for the state for such control period is less than the sum under sub-paragraph (3)(B)3.E. of this rule, then the director will allocate to each such CSAPR SO2 Group 1 unit the amount of the CSAPR SO2 Group 1 allowances determined under subparagraph (3)(B)3.D. of this rule for the unit, multiplied by the amount of CSAPR SO2 Group 1 allowances in the new unit set-aside for such control period, divided by the sum under subparagraph (3)(B)3.E. of this rule, and rounded to the nearest allowance;

H. Confirmation of Allowances. The director will contact facilities as described in subparagraph (3)(B)2.A. of this rule to confirm the amount of CSAPR SO2 Group 1 allowances allocated under subparagraphs (3)(B)3.B. through (3)(B)3.G. and (3)(B)3.L. of this rule for such control period to each CSAPR SO2 Group 1 unit eligible for such allocation;

I. Allowance Calculation for Units That Recently Began Operation. If, after completion of the procedures under subparagraphs (3)(B)3.E. through (3)(B)3.H. of this rule for such control period, any unallocated CSAPR SO2 Group 1 allowances remain in the new unit set-aside for the state for such control period, the director will allocate such CSAPR SO2 Group 1 allowances as follows:

(I) For any submission made in accordance with subparagraph (3)(B)2.C. of this rule, the submitting facility owner, operator, or designated representative may include the calculation of eligible allowances for such control period as specified in part (3)(B)3.I.(III) of this rule. If such submission is not made or fails to include the calculation of eligible allowances under this part by the April 5 deadline, or if the facility owner, operator, or designated representative fails to provide additional information requested in accordance with part (3)(B)2.C.(II) of this rule by the applicable deadline; then no allowances will be awarded to such unit in accordance with this sub-paragraph for such control period;

(II) The director will review submissions made in accordance with subparagraph (3)(B)2.C. of this rule, as specified in part (3)(B)2.C.(II) of this rule and may adjust the units identified in such submission if they are not eligible for allowances under this subparagraph, and the director may also adjust the calculation of eligible allowances included in such submission to ensure they are in accordance with part (3)(B)3.I.(III) of this rule;

(III) The calculation of eligible CSAPR SO2 Group 1 allowances for a specific control period for CSAPR SO2 Group 1 units that commenced commercial operation during the period starting January 1 of the year before the year of such control period and ending March 31 of the year of such control period must be as follows;

Click to view image

Where:

EA - eligible CSAPR SO2 Group 1 Allowances

ER - the unit's permitted emission rate from the unit's construction permit approved under 10 CSR 10-6.060 (lb/mmBTU)

HR - the heat rate efficiency for the generator that the unit serves (BTU/kW-hr)

NPCap - nameplate capacity of the generator that the unit serves (MWe)

CPTot - number of days in the control period

CF - the unit's default capacity factor from Table II below

Table II - Default Capacity Factors for New Units

Unit Types	Annual SO2 & NOx Programs
Coal-Fired Steam Boiler	0.85
IGCC (Coal Gasification)	0.74
Oil-Fired Steam Boiler	0.30
Natural Gas-Fired Steam Boiler	0.44
Simple Cycle Combustion Turbine	0.24
Combined Cycle Combustion Turbine	0.66

(IV) The director will determine, for each unit described in subparagraph (3)(B)3.A. of this rule that commenced commercial operation during the period starting January 1 of the year before the year of such control period and ending March 31 of the year of such control period, the positive difference (if any) between the unit's emissions during the previous control period and the amount of eligible CSAPR SO2 Group 1 allowances as calculated under part (3)(B)3.I.(III) of this rule;

(V) The director will determine the sum of the positive differences determined under part (3)(B)3.I.(IV) of this rule;

(VI) If the amount of unallocated CSAPR SO2 Group 1 allowances remaining in the new unit set-aside for the state for such control period is greater than or equal to the sum determined under part (3)(B)3.I.(V) of this rule, then the director will allocate the amount of CSAPR SO2 Group 1 allowances determined for each such CSAPR SO2 Group 1 unit under part (3)(B)3.I.(IV) of this rule; and

(VII) If the amount of unallocated CSAPR SO2 Group 1 allowances remaining in the new unit set-aside for the state for such control period is less than the sum under part (3)(B)3.I.(V) of this rule, then the director will allocate to each such CSAPR SO2 Group 1 unit the amount of the CSAPR SO2 Group 1 allowances determined under part (3)(B)3.I.(IV) of this rule for the unit, multiplied by the amount of unallocated CSAPR SO2 Group 1 allowances remaining in the new unit set-aside for such control period, divided by the sum under part (3)(B)3.I.(V) of this rule, and rounded to the nearest allowance;

J. Distribution of Remaining Allocations. If, after completion of the procedures under subparagraphs (3)(B)3.I. and (3)(B)3.L. of this rule for such control period, any unallocated CSAPR SO2 Group 1 allowances remain in the new unit set-aside for the state for such control period, the director will allocate to each CSAPR SO2 Group 1 unit that is in the state, is allocated an amount of CSAPR SO2 Group 1 allowances listed in Table I in paragraph (3)(A)2. of this rule, and continues to be allocated CSAPR SO2 Group 1 allowances for such control period in accordance with paragraph (3)(A)2. of this rule, an amount of CSAPR SO2 Group 1 allowances equal to the following: the total amount of such remaining unallocated CSAPR SO2 Group 1 allowances in such new unit set-aside, multiplied by the unit's allocation listed in Table I in paragraph (3)(A)2. of this rule for such control period, divided by the remainder of the amount of tons in the applicable state SO2 Annual trading budget minus the amount of tons in such new unit set-aside for the state for such control period, and rounded to the nearest allowance;

K. Public Notification. The director will issue notifications as described in subparagraphs (3)(B)2.D. and (3)(B)2.E. of this rule, of the amount of CSAPR SO2 Group 1 allowances allocated under subparagraphs (3)(B)3.B. through (3)(B)3.G., (3)(B)3.I., (3)(B)3.J., and (3)(B)3.L. of this rule for such control period to each CSAPR SO2 Group 1 unit eligible for such allocation; and

L. Allocation Tabulations That Exceed or Are Less Than the New Unit Set-Aside.

(I) Notwithstanding the requirements of subparagraphs (3)(B)3.B. through (3)(B)3.K. of this rule, if the calculations of allocations of a new unit set-aside for a control period in a given year under subparagraph (3)(B)3.G. of this rule, subparagraph (3)(B)3.F. and part (3)(B)3.I.(VII) of this rule, or subparagraph (3)(B)3.F., part (3)(B)3.I.(VI), and subparagraph (3)(B)3.J. of this rule would otherwise result in total allocations of such new unit set-aside exceeding the total amount of such new unit set-aside, then the director will adjust the results of the calculations under subparagraph (3)(B)3.G., part (3)(B)3.I.(VII), or subparagraph (3)(B)3.J. of this rule, as applicable, as follows. The director will list the CSAPR SO2 Group 1 units in descending order based on the amount of such units' allocations under subparagraph (3)(B)3.G., part (3)(B)3.I.(VII), or subparagraph (3)(B)3.J. of this rule, as applicable, and, in cases of equal allocation amounts, in alphabetical order of the relevant source's name and numerical order of the relevant unit's identification number, and will reduce each unit's allocation under subparagraph (3)(B)3.G., part (3)(B)3.I.(VII), or subpara-graph (3)(B)3.J. of this rule, as applicable, by one (1) CSAPR SO2 Group 1 allowance (but not below zero (0)) in the order in which the units are listed and will repeat this reduction process as necessary, until the total allocations of such new unit set-aside equal the total amount of such new unit set-aside.

(II) Notwithstanding the requirements of subparagraphs (3)(B)3.J. and (3)(B)3.K. of this rule, if the calculations of allocations of a new unit set-aside for a control period in a given year under subparagraph (3)(B)3.F., part (3)(B)3.I.(VI), and subparagraph (3)(B)3.J. of this rule would otherwise result in a total allocations of such new unit set-aside less than the total amount of such new unit set-aside, then the director will adjust the results of the calculations under subparagraph (3)(B)3.J. of this rule, as follows. The director will list the CSAPR SO2 Group 1 units in descending order based on the amount of such units' allocations under sub-paragraph (3)(B)3.J. of this rule and, in cases of equal allocation amounts, in alphabetical order of the relevant source's name and numerical order of the relevant unit's identification number, and will increase each unit's allocation under subparagraph (3)(B)3.J. of this rule by one (1) CSAPR SO2 Group 1 allowance in the order in which the units are listed and will repeat this increase process as necessary, until the total allocations of such new unit set-aside equal the total amount of such new unit set-aside.

(4) Reporting and Record Keeping.

(A) The monitoring, reporting, and record keeping provisions of the CSAPR SO2 Group 1 Trading Program may be found in 40 CFR 97.630 through 40 CFR 97.635 as incorporated by reference in subsection (1)(A) of this rule.

(B) The director will maintain CSAPR SO2 Group 1 unit allowance records submitted to E PA for each CSAPR SO2 Group 1 control period for a minimum of five (5) years.

(5) Test Methods. (Not Applicable).

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