# Title 40

## SECTION 73.27

### 73.27 Special allowance reserve.

§ 73.27 Special allowance reserve.(a) *Establishment of Reserve.* (1) The Administrator will
allocate 150,000 allowances annually for calendar years 1995
through 1999 to the Auction Subaccount of the Special Allowance
Reserve.

(2) The Administrator will allocate 250,000 allowances annually for calendar year 2000 and each year thereafter to the Auction Subaccount of the Special Allowance Reserve.

(b) *Distribution of proceeds.* (1) Monetary proceeds from
the auctions and sales of allowances from the Special Allowance
Reserve (under subpart E of this part) for use in calendar years
1995 through 1999 will be distributed to the designated
representative of the unit according to the following equation:

(2) Until June 1, 1998, monetary proceeds from the auctions of allowances from the Special Allowance Reserve (under subpart E of this part) for use in calendar years 2000 through 2009 will be distributed to the designated representative of each unit listed in Table 2 according to the following equation:

(3) On or after June 1, 1998, monetary proceeds from the auctions of allowances from the Special Allowance Reserve (under subpart E of this part) for use in calendar years 2000 through 2009 will be distributed to the designated representative of each unit listed in Table 2 according to the following equation:

(4) Monetary proceeds from the auctions of allowances from the Special Allowance Reserve (under subpart E of this part) from years of purchase from 1993 through 1998, remaining in the U.S. Treasury as a result of the surrender of allowances and return of proceeds under § 73.10(b)(3), will be distributed to the designated representative of each unit listed in Table 2 according to the following equation:

(5) Monetary proceeds from the auctions of allowances from the Special Allowance Reserve (under subpart E of this part) for use in calendar years 2010 and thereafter will be distributed to the designated representative of each unit listed in Table 2 according to the following equation:

(c) *Reallocation of allowances.* (1) Allowances remaining
in the Special Allowance Reserve following the annual auctions and
sales (under subpart E of this part) for use in calendar years 1995
through 1999 will be reallocated to the unit's Allowance Tracking
System Account according to the following equation:

(2) Until June 1, 1998, allowances, for use in calendar years 2000 through 2009, remaining in the Special Allowance Reserve at the end of each year, following that year's auction (under subpart E of this part), will be reallocated to the unit's Allowance Tracking System account according to the following equation:

(3) On or after June 1, 1998, allowances, for use in calendar years 2000 through 2009, remaining in the Special Allowance Reserve at the end of each year, following that year's auction (under subpart E of this part), will be reallocated to the compliance account of the source that includes the unit according to the following equation:

(4) [Reserved]

(5) Allowances, for use in calendar years 2010 and thereafter, remaining in the Special Allowance Reserve at the end of each year, following that year's auction (under subpart E of this part), will be reallocated to the compliance account of the source that includes the unit according to the following equation:

(d) *Calculation rounding.* All proceeds under this section
shall be distributed as whole dollars. All calculations for such
allowances shall be rounded down for decimals less than .5 and up
for decimals of .5 or greater.

(e) *Achieving exact totals.* (1) If the sum of the
proceeds to be distributed under paragraph (b) of this section
exceeds the total proceeds or the allowances to be reallocated
under paragraph (c) of this section exceeds the allowances
remaining, then the Administrator will withdraw one dollar or
allowance from each unit, beginning with the unit receiving the
largest number of dollars or allowances, in descending order, until
the distribution balances with the proceeds and the reallocated
allowances balance with the remaining allowances.

(2) If the sum of the proceeds to be distributed under paragraph (b) of this section is less than the total proceeds or the allowances to be reallocated under paragraph (c) of this section is less than the allowances remaining, then EPA will distribute one dollar or allowance for each unit, beginning with the unit receiving the largest number of dollars or allowances, in descending order, until the distribution balances with the proceeds and the reallocated allowances balance with the remaining allowances.

[58 FR 3687, Jan. 11, 1993, as amended at 58 FR 15714, Mar. 23, 1993; 63 FR 51765, Sept. 28, 1998; 70 FR 25335, May 12, 2005]