; and (D) designate a representative as required under section 727(b). (3) Classification If a generator elects to be classified as a qualified cogeneration facility pursuant to this subsection, such classification shall remain in effect unless the facility produces no electricity over the previous calendar year. 725. Penalty for noncompliance (a) Civil penalty (1) In general The owner or operator of a covered entity that fails to surrender an emission allowance as required by section 721(a) shall be liable for payment to the Administrator of a penalty in the amount described in paragraph (2). (2) Amount The amount of a penalty under paragraph (1) shall be equal to the product of— (A) twice the highest monetary value (as indicated by the emission allowance tracking system established pursuant to section 726 over the previous calendar year) for the sale or transfer of an emission allowance