(1) Applicability. This section applies to any affected unit that is retired prior to the issuance (including renewal) of an acid rain permit for the unit as a final agency action.

(2) Petition for written exemption.

(a) The designated representative, authorized in accordance with subpart B of 40 C.F.R. part 72, of a source that includes a unit under subsection (1) of this section may petition the permitting authority for a written exemption, or to renew a written exemption, for the unit from certain requirements of the acid rain program.

(b) A petition under this section shall be submitted on or before:

(i) The deadline for submitting an acid rain permit application for Phase II; or

(ii) If the unit has a Phase II acid rain permit, the deadline for reapplying for such permit.

(c) The petition under this section shall be submitted on a form approved by the permitting authority which includes the following elements:

(i) Identification of the unit;

(ii) The applicable deadline under (b) of this subsection;

(iii) The actual or expected date of retirement of the unit;

(iv) The following statement: "I certify that this unit ('is' or 'will be', as applicable) permanently retired on the date specified in this petition and will not emit any sulfur dioxide or nitrogen oxides after such date";

(v) A description of any actions that have been or will be taken and provide the basis for the certification in (c)(iv) of this subsection; and

(vi) The special provisions in subsection (4) of this section.

(vii) The name of the designated representative, his or her signature, and the date of signature.

(3) Permitting authority's action.

(a)(i) The permitting authority will issue, for any unit meeting the requirements of subsections (1) and (2) of this section, a written exemption from the requirements of WAC 173-406-100 through 173-406-800 and 40 C.F.R. part 72 except for the requirements specified in this section and 40 C.F.R. 72.1 through 72.6, 40 C.F.R. 72.8, and 40 C.F.R. 72.10 through 72.13.

(ii) The exemption shall take effect on January 1st of the year following the date on which the written exemption is issued as a final agency action subject to judicial review, in accordance with (b) of this subsection; provided that the owners and operators, and, to the extent applicable, the designated representative, shall comply with the requirements of WAC 173-406-100 through 173-406-800 and 40 C.F.R. part 72 concerning all years for which the unit was not exempted, even if such requirements arise or must be complied with after the exemption takes effect. The exemption shall not be a defense against any violation of such requirements of the acid rain program whether the violation occurs before or after the exemption takes effect.

(b) The permitting authority will consider and either issue or deny a written exemption under (a) of this subsection by applying the procedures for acid rain permit issuance in WAC 173-406-600 as if the petition for written exemption were a permit application, with regard to completeness determination, draft written exemption, administrative record, statement of basis, public notice and comment period, public hearing, proposed written exemption, written exemption issuance, exemption revision and appeal procedures as provided by WAC 173-406-600 and 173-406-700. No provision under WAC 173-406-600 concerning the content, effective date, or term of an acid rain permit shall apply to the written exemption or proposed written exemption under this section.

(c) A written exemption issued under this section shall have a term of five years, except as provided in subsection (4)(c) of this section.

(4) Special provisions.

(a) A unit exempted under this section shall not emit any sulfur dioxide and nitrogen dioxide starting on the date it is exempted.

(b) The owners and operators of a unit exempted under this section shall comply with monitoring requirements in accordance with 40 C.F.R. part 75 and will be allocated allowances in accordance with 40 C.F.R. part 73.

(c) A unit exempted under this section shall not resume operation unless the designated representative of the source that includes the unit submits an acid rain permit application for the unit not less than twenty-four months prior to the later of January 1, 2000, or the date the unit is to resume operation. On the earlier of the date the written exemption expires or the date an acid rain permit application is submitted or is required to be submitted under this paragraph, the unit shall no longer be exempted under this section and shall be subject to all requirements of WAC 173-406-100 through 173-406-800 and 40 C.F.R. part 72.