40 CFR § 74.49 - Calculation for deducting allowances.

---
identifier: "/us/cfr/t40/s74.49"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "40 CFR § 74.49 - Calculation for deducting allowances."
title_number: 40
title_name: "Protection of Environment"
section_number: "74.49"
section_name: "Calculation for deducting allowances."
chapter_name: "ENVIRONMENTAL PROTECTION AGENCY"
subchapter_number: "C"
subchapter_name: "AIR PROGRAMS"
part_number: "74"
part_name: "SULFUR DIOXIDE OPT-INS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 7601 and 7651"
regulatory_source: "60 FR 17115, Apr. 4, 1995, unless otherwise noted."
cfr_part: "74"
---


# 74.49 Calculation for deducting allowances.

(a) *Allowance deduction formula.* The following formula shall be used to determine the total number of allowances to be deducted for the calendar year from the allowances held in the compliance account of a source that includes an opt-in source as of the allowance transfer deadline applicable to that year:

Total allowances deducted = Tons emitted + Allowances deducted for reduced utilization where:

(1)(i) Except as provided in paragraph (a)(1)(ii) of this section, “Tons emitted” shall be the total tons of sulfur dioxide emitted by the opt-in source during the calendar year, as reported in accordance with subpart F of this part for combustion sources or subpart G of this part for process sources.

(ii) If the effective date of the opt-in source's permit took effect on a date other than January 1, “Tons emitted” for the first calendar year shall be the total tons of sulfur dioxide emitted by the opt-in source during the calendar quarters for which the opt-in source's opt-in permit is effective, as reported in accordance with subpart F of this part for combustion sources or subpart G of this part for process sources.

(2) “Allowances deducted for reduced utilization” shall be the total number of allowances deducted for reduced utilization as calculated in accordance with § 74.44 for combustion sources or § 74.45 for process sources.

(b) [Reserved]

[60 FR 17115, Apr. 4, 1995, as amended at 70 FR 25337, May 12, 2005]