Section 326IAC24-3-3. Retired unit exemption

   (a) This section applies to any CAIR NO_x ozone season unit, other than a NO_x ozone season opt-in source, that is permanently retired.

  (b) Any CAIR NO_x ozone season unit that is permanently retired and is not a CAIR NO_x ozone season opt-in unit under section 12 of this rule shall be exempt from the CAIR NO_x ozone season trading program, except for the provisions of this section, sections 1, 2, 4(c)(4) through 4(c)(7), 5, 6, and 8 through 10 of this rule.

  (c) The exemption under this section shall become effective the day on which the CAIR NO_x ozone season unit is permanently retired. Within thirty (30) days of the unit's permanent retirement, the CAIR designated representative shall submit a statement to the department and shall submit a copy of the statement to the U.S. EPA. The statement shall state, in a format prescribed by the department, that the unit was permanently retired on a specific date and shall comply with the requirements of subsection (e).

  (d) After receipt of the statement under subsection (c), the department shall amend any permit under section 7 of this rule covering the source at which the unit is located to add the provisions and requirements of the exemption under subsections (b) and (e).

  (e) A unit exempt under this section shall comply with the following provisions:

(1) The unit shall not emit any nitrogen oxides, starting on the date that the exemption takes effect.

(2) The department shall allocate CAIR NO_x ozone season allowances under section 8 of this rule to the unit.

(3) For a period of five (5) years from the date the records are created, the owners and operators of the unit shall retain, at the source that includes the unit, or a central location within Indiana for those owners and operators with unattended sources, records demonstrating that the unit is permanently retired. The five (5) year period for keeping records may be extended for cause, at any time before the end of the period, in writing by the department or U.S. EPA. The owners and operators bear the burden of proof that the unit is permanently retired.

(4) The owners and operators and, to the extent applicable, the CAIR designated representative of the unit shall comply with the requirements of the CAIR NO_x ozone season trading program concerning all periods for which the exemption is not in effect, even if such requirements arise, or must be complied with, after the exemption takes effect.

(5) If the unit is located at a source that is required, or but for this exemption would be required, to have an operating permit under 326 IAC 2-7 or FESOP under 326 IAC 2-8, the unit shall not resume operation unless the CAIR designated representative of the source submits a complete CAIR permit application under section 7(c) of this rule for the unit not less than two hundred seventy (270) days or such lesser time provided by the department, before the later of January 1, 2009, or the date on which the unit resumes operation.

(6) A unit exempt under this section shall lose its exemption on the earlier of the following dates:

(A) The date on which the CAIR designated representative submits a CAIR permit application for the unit under subdivision (5).

(B) The date on which the CAIR designated representative is required under subdivision (5) to submit a CAIR permit application for the unit.

(C) The date on which the unit resumes operation, if the CAIR designated representative is not required to submit a CAIR permit application for the unit.

(7) For the purpose of applying monitoring, reporting, and record keeping requirements under section 11 of this rule, a unit that loses its exemption under this section shall be treated as a unit that commences commercial operation on the first date on which the unit resumes operation.

(Air Pollution Control Division; 326 IAC 24-3-3; filed Jan 26, 2007, 10:25 a.m.: 20070221-IR-326050117FRA)