(a) For units commencing operation before January 1, 2001:
  (1) for each control period in 2009 - 2017, the baseline heat input, in million British thermal units (MMBtu), is the average of the three highest amounts of the unit's adjusted control period heat input for 2000 - 2004 with the adjusted control period heat input for each year calculated as follows:
    (A) if the unit is coal-fired during the year, the unit's control period heat input for such year is multiplied by 90%;
    (B) if the unit is natural gas-fired during the year, the unit's control period heat input for such year is multiplied by 50%; and
    (C) if the unit is not subject to subparagraph (A) or (B) of this paragraph, the unit's control period heat input for such year is multiplied by 30%.
  (2) for the 2018 control period and for the control period beginning every five years thereafter, the baseline heat input must be adjusted to reflect the average of the three highest amounts of the unit's adjusted control period heat input from control periods one through five of the preceding nine control periods with the adjusted control period heat input for each year calculated as follows:
    (A) if the unit is coal-fired during the year, the unit's control period heat input for such year is multiplied by 90%;
    (B) if the unit is natural gas-fired during the year, the unit's control period heat input for such year is multiplied by 50%; and
    (C) if the unit is not subject to subparagraph (A) or (B) of this paragraph, the unit's control period heat input for such year is multiplied by 30%.
(b) For units commencing operation on or after January 1, 2001:
  (1) for each control period in 2009 - 2014, Clean Air Interstate Rule (CAIR) oxides of nitrogen (NOX ) allowances must be allocated from the new unit set-aside identified under §101.503(b) of this title (relating to Clean Air Interstate Rule Oxides of Nitrogen Annual Trading Budget) and determined in accordance with subsection (d) of this section;
  (2) for the 2015, 2016, and 2017 control periods, for units operating each calendar year during a period of five or more consecutive years, the baseline heat input is the average of the three highest amounts of the unit's total converted control period heat input over the first such five years. The converted control period heat input for each year is calculated as follows:
    (A) except as provided in subparagraph (B) or (C) of this paragraph, the converted control period heat input equals the control period gross electrical output of the generator or generators served by the unit multiplied by 7,900 British thermal units per kilowatt-hour (Btu/kWh), if the unit is coal-fired for the year, or 6,675 Btu/kWh, if the unit is not coal-fired for the year, and divided by 1,000,000 Btu/MMBtu. If a generator is served by two or more units, then the gross electrical output of the generator must be attributed to each unit in proportion to the unit's share of the total control period heat input of such units for the year;
    (B) for a unit that is a boiler and has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy, the converted heat input is the total heat energy (in Btu) of the steam produced by the boiler during the control period, divided by 0.8 and converted to MMBtu by dividing by 1,000,000 Btu/MMBtu; or
    (C) for a unit that is a combustion turbine and has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy, the converted heat input is determined using the equation in the following figure.
Attached Graphic
  (3) for the 2018 control period and for the control period beginning every five years thereafter, for units operating each calendar year during a period of five or more consecutive years, the baseline heat input must be adjusted to reflect the average of the three highest amounts of the unit's converted control period heat input from control periods one through five of the preceding nine control periods. The converted control period heat input for each year is calculated as follows:
    (A) except as provided in subparagraph (B) or (C) of this paragraph, the converted control period heat input equals the control period gross electrical output of the generator or generators served by the unit multiplied by 7,900 Btu/kWh, if the unit is coal-fired for the year, or 6,675 Btu/kWh, if the unit is not coal-fired for the year, and divided by 1,000,000 Btu/MMBtu, provided that if a generator is served by two or more units, then the gross electrical output of the generator must be attributed to each unit in proportion to the unit's share of the total control period heat input of such units for the year;
    (B) for a unit that is a boiler and has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy, the converted control period heat input equals the total heat energy (in Btu) of the steam produced by the boiler during the control period, divided by 0.8 and converted to MMBtu by dividing by 1,000,000 Btu/MMBtu; or
    (C) for a unit that is a combustion turbine and has equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or cooling purposes through the sequential use of energy, the converted control period heat input is determined using the equation in the following figure.
Attached Graphic
(c) For units with a baseline heat input calculated under subsection (a) or (b)(2) or (3) of this section, CAIR NOX allowances must be allocated according to the equation in the following figure.
Attached Graphic
(d) For units commencing operation on or after January 1, 2001, and that have not established a baseline heat input in accordance with subsection (b)(2) or (3) of this section, CAIR NOX allowances must be allocated according to the following.
  (1) Beginning with the later of the control period in 2009 or the first control period after the control period in which the CAIR NOX unit commences commercial operation and until the first control period for which the unit is allocated CAIR NOX allowances under subsection (c) of this section, CAIR NOX allowances must be allocated from the new unit set-aside identified under §101.503(b) of this title. For the first control period in which a CAIR NOX unit commences commercial operation, such CAIR NOX unit will not receive a CAIR NOX allocation from the new unit set-aside.
  (2) To receive a CAIR NOX allowance allocation from the new unit set-aside, the CAIR designated representative shall submit to the executive director a written request on or before May 1 of the first control period for which the CAIR NOX allowance allocation is requested and after the date that the CAIR NOX unit commences commercial operation.
  (3) In a CAIR NOX allowance allocation request under paragraph (2) of this subsection, the amount of CAIR NOX allowances requested for a control period must not exceed the CAIR NOX unit's total tons of NOX emissions reported to EPA for the calendar year immediately preceding such control period.
  (4) The executive director shall review each CAIR NOX allowance allocation request submitted in accordance with this subsection and shall allocate CAIR NOX allowances for each control period as follows.
    (A) The executive director shall accept a CAIR NOX allowance allocation request only if the request meets, or is adjusted as necessary to meet, the requirements of this subsection.
    (B) On or after May 1 of the control period, the executive director shall determine the sum of all accepted CAIR NOX allowance allocation requests for the control period.
    (C) If the amount of CAIR NOX allowances in the new unit set-aside for the control period is greater than or equal to the sum under subparagraph (B) of this paragraph, then the executive director shall allocate the full amount of CAIR NOX allowances requested to each CAIR NOX unit covered under a CAIR NOX allowance allocation request that was accepted by the executive director.
    (D) If the amount of CAIR NOX allowances in the new unit set-aside for the control period is less than the sum under subparagraph (B) of this paragraph, then the executive director shall allocate CAIR NOX allowances to each CAIR NOX unit covered under a CAIR NOX allowance allocation request accepted by the executive director according to the equation in the following figure.
Attached Graphic
Cont'd...