How con I get more information cljoot the
ATS and the Acid Rain Program? ' • :
All information stored in the ATS. is publicly avail-
able. To obtain a list of the information available in
the ATS and guidelines for making your request, or
to request forms to open accounts or transfer
allowances, call the Acid Rain Hotline at (.202) 233-
9620 or write to:
U.S. Environmental Protection Agency
Acid Rain Program (6204J) :
Attn: Allowance Tracking System.
401 M Street, SW.
Washington, DC 20460
dx.
Additional information on the management of
ATS accounts is available in the EPA brochure The
Allowance Tracking System.- An .Introduction for
Authorized Account Representatives (EPA430-F-94-
001) and other EPA Acid Rain Program materials.
Specific requirements related to the ATS are found
in Title 40 of the Code of Federal Regulations, Part,73..
United States
Environmental Protection
Agency
EPA 430-F-94-002
February 1994
Air and Radiation (6204J)
Tracking
Accounting for
SO2 Allowances
Under the Acid
Rain Program
PROGRAM
Recycled/Recyclable
Printed on paper that contains
at least 50% recycled fiber
-&3V&R-
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\ PA's Add Rain Program was established by
Tit/e IV of the Clean Air Act Amendments of
' 1990 (CAM) to reduce acid rain in the United
tes. The Add Rain Program achieves a 50-percent
jction in sulfur dioxide (502) emissions from elec-
f|pwer plants using a flexible, market-based
ch to environmental management As part
iroach, EPA issues utilities iimited authori-
iitS02 in the form of "allowances,"
i equal to i ton of 502. At the end of
utility must hold allowances
!ounteq8&kfi5' or greater than its; annual •
|ions. To meet this goaJxiilowarices may
Isold, or trans/erred between utilities and
•|ted parties. Those utilities whose annual
^likely to exceed their allotment of
lid either install pollution control tech-
i to cleaner fuels to reduce their
tin additional allowances.
0-percent reduction in sulfur
must continuously moni-
these levels to EPA.
allowances-,
^gs in^arTam^unt equal to its
[ties whose emissions exceed
urchase additional allow-
gmissions offset require-
'owances, as well as the
|ngo/allowances, is
[nee Tracking System
ATS and its role in
: Wlio is.authorized to manage a unit
or general account?
Whenever a unit or general account is opened,
the owners or operators of the affected utility
unit, or persons or companies that have an-
ownership interest in the allowances held in a
general account, must select an authorized
account representative (AAR) to act on their
behalf. Designated representatives that are'
responsible for'a utility's permitting and moni-
toring requirements automatically become
, AARs for unit accounts within the ATS. AARs
and their appointed alternates are the official
contact persons for'EPA's Acid Rain Program.
They are the only persons able to authorize.
1 the transfer of allowances, surrender allow-
ances for compliance purposes, and change
information associated with their particular unit
1 or general accounts. AARs may represent more
than one account, including both unit and gen-
eral accounts. >.....
; How snould AARs report allowance
: transfers to the ATS? : •
' Allowance transfers are reported to the ATS
through the submittal of an Allowance Transfer
: form. This form must list the serial numbers of
the allowances to be transferred and include
the signatures of both the transferor (the party
selling or transferring the allowances) and the
transferee (the party buying or receiving the
allowances). EPA will record tire trade within
5 business days of receiving the form and will
notify both AARs of the transaction within 5
'. business days of recording the trade.
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What is the Allowance Tracking System?
Functioning much like a bank, the ATS is an auto-
mated system used to track the allowances held
by utilities, other affected companies, and other
organizations or individuals. These allowances may
be bought, sold, or transferred at any time. Specifi-
cally, the ATS tracks:
® The issuance of allallowances.
® The holdings of allowances in accounts.
© The holdings of allowances in various allow-
ance reserves, such as the EPA Auction and
Sale Reserve and the Conservation and Renew-
able Energy Reserve.
© The deduction of allowances for compliance
purposes..
& The transfer of allowances between accounts.
Each allowance within the ATS is identified by a
12-digit serial number consisting of 4 digits signify-
ing the first year in which the allowance can be
used for compliance and a unique 8-digitidentifier.
For example, an allowance that becomes eligible
for use in compliance during 1995 could be num-
bered 1995-04875234. Only EPA can create emis-
sion allowances, and the ATS is the only official
record of their creation, transfer, and use for
compliance purposes.
What is the role of the ATS in the
allowance market!
The primary role of the ATS is to provide ah effi-
cient, automated means of monitoring compliance
with the Acid Rain Program. The ATS also provides
the allowance market with a record of who is hold-
ing allowances, the date of allowance transfersrand
the allowances transferred. The ATS does not, how-
ever, record the price or other terms associated
with allowance trades; such information is better
collected and reported by the private sector
or other trade
executed
edin
rans-
ns-
estabnsh
intimation
orne
a
th
EPA
govern
unit gccoi
the Acid Rain
General accounts are used to hold or trade
allowances but are not subject to allowance
deductions to cover emissions. Any individual
or group, including a utility, can open a gen-
eral account by submitting an Allowance
Account information form. General, accounts
can be used for a variety of purposes:
o Utilities may pool their emission allow-
ances in general accounts. •'-..
© Brokers may use general accounts to
hold allowances that they buy or sell for
customer
Investors,
hold all
even
kuse general accounts to
they have acquired for
•oups wishirigto remove
Available allowances
ly purchase allowances
rieral accounts.
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