The Clean Air Markets Division Director, Reid Harvey, signed the following notice on 11/21/2014, and EPA is 

submitting it for publication in the Federal Register (FR). While we have taken steps to ensure the accuracy of this 

Internet version of the rule, it is not the official version of the rule for purposes of compliance. Please refer to the 

official version in a forthcoming FR publication, which will appear on the Government Printing Office's FDSys 

website (http://fdsys.gpo.gov/fdsys/search/home.action) and on Regulations.gov (http://www.regulations.gov) in 

Docket No. EPA-HQ-OAR-2009-0491. Once the official version of this document is published in the FR, this version 

will be removed from the Internet and replaced with a link to the official version.

6560-50-P

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 97

[EPA-HQ-OAR-2009-0491; FRL-????-?]

Availability of Data on Allocations of Cross-State Air Pollution 

Rule Allowances to Existing Electricity Generating Units

AGENCY: Environmental Protection Agency.

ACTION: Final rule; notice of data availability (NODA).

________________________________________________________________

SUMMARY: Through this notice of data availability (NODA), the 

EPA is providing notice of allocations of emission allowances to

certain units for compliance with the Cross-State Air Pollution 

Rule (CSAPR). Since its original promulgation, CSAPR has been 

amended in several subsequent rulemakings and its compliance 

deadlines have been tolled by three years pursuant to an order 

of the United States Court of Appeals for the District of 

Columbia Circuit (D.C. Circuit or Court). These allowance 

allocations, which supersede the allocations announced in a 2011 

NODA, reflect the changes to CSAPR made in those subsequent 

rulemakings as well as “re-vintaging” of previously recorded 

allowances so as to account for the impact of tolling of the 

rule’s deadlines. The allocations apply only to units that 
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commenced commercial operation before 2010 and only to the 

extent that states do not provide alternative allowance 

allocations following procedures set out in the rule. A 

spreadsheet containing both the allowance allocations and the 

data upon which the allocations are based has been posted on the 

EPA’s website. 

FOR FURTHER INFORMATION CONTACT: Questions concerning this 

notice should be addressed to Michael Cohen, at (202) 343-9497 

or cohen.michael@epa.gov; or Robert Miller, at (202) 343-9077 or 

miller.robertl@epa.gov. The mailing address for each of these 

individuals is U.S. Environmental Protection Agency, Clean Air 

Markets Division, MC 6204M, 1200 Pennsylvania Avenue NW, 

Washington, DC 20460.

SUPPLEMENTARY INFORMATION:

I. Data for Which Notice Is Being Provided

Through this NODA, the EPA is providing notice of the 

availability of unit-specific default allocations of CSAPR 

allowances for electricity generating units (EGUs) that 

commenced commercial operation before 2010. The data are 

contained in an Excel spreadsheet titled “Unit Level Allocations 

Under the CSAPR FIPs After Tolling” that has been posted on the 

EPA’s website at http://www.epa.gov/crossstaterule/actions.html.

The spreadsheet contains default allocations of allowances under 
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each of the four CSAPR trading programs for individual EGUs for 

each compliance year from 2015 through 2020. The spreadsheet 

also contains the data used to compute the allocations and 

describes how the computations are performed. The EPA is not 

requesting comment on the allocations, underlying data, or 

computation methodology.

The EPA notes that an allocation or lack of allocation of 

emission allowances to a given EGU does not constitute a 

determination that CSAPR does or does not apply to the EGU.1 The 

EPA also notes that allocations are subject to potential 

correction under the rule.2

II. Description of the Allocations

CSAPR includes several emissions trading programs that require 

affected EGUs to hold emission allowances sufficient to cover 

their emissions of nitrogen oxides (NOX) and/or sulfur dioxide 

(SO2) in each compliance period. For each trading program and 

compliance period, the rule establishes overall state “budgets” 

representing the maximum number of emission allowances that may 

be allocated to the group of affected EGUs in each covered 

state. Beginning with CSAPR’s second compliance year, each 

covered state generally has the option to determine how the 

 

1 See 40 CFR 97.411(a)(1), 97.511(a)(1), 97.611(a)(1), and 

97.711(a)(1).

2 See 40 CFR 97.411(c), 97.511(c), 97.611(c), and 97.711(c).
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allowances in its state budget for each program should be 

allocated among the state’s EGUs.

3 However, for CSAPR’s first 

compliance year, and by default for subsequent compliance years 

in situations where a state has not provided the EPA with the 

state’s own allocations pursuant to an approved SIP revision, 

the allocations are made by the EPA. 

In the case of units commencing commercial operation on or 

after January 1, 2010, termed “new” units, the EPA’s default 

allocations for each compliance year are annually determined

during the compliance year based on current and prior year 

emission data, using a methodology set out in the regulatory 

text.4 In the case of units that commenced commercial operations 

before January 1, 2010, termed “existing” units, the EPA

determined default allocations for all compliance years during 

the initial rulemaking based on 2006-2010 heat input data and 

2003-2010 emissions data, according to a methodology finalized 

in the rulemaking but not included in the regulatory text.

5 The 

regulatory text calls for default allocations to the existing 

units to be provided in a NODA.

6 In July 2011, the EPA issued a 

 

3 See 40 CFR 52.38 and 52.39.

4 See 40 CFR 97.412, 97.512, 97.612, and 97.712.

5 See 76 FR 48208, 48288-90 (August 8, 2011).

6 See 40 CFR 97.411(a)(1), 97.511(a)(1), 97.611(a)(1), and 

97.711(a)(1).
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NODA reflecting the default allocations for existing units as 

determined in the original CSAPR rulemaking.7

In three rulemakings finalized after the original CSAPR 

rulemaking, the EPA created budgets for several states added to 

the rule’s ozone-season NOX trading program, increased some

previously established state budgets, and changed the shares of 

some state budgets set aside for new units.8 In one of those 

rulemakings, the EPA also revised unit-specific allowance 

allocations in some states in order to account for emissions 

tonnage limitations established under certain consent decrees.

9

As originally promulgated, compliance with CSAPR’s trading 

programs was scheduled to begin on January 1, 2012. However, on 

December 30, 2011, the D.C. Circuit stayed the rule. On October 

23, 2014, the Court granted the EPA’s motion to lift the stay 

and toll the rule’s compliance deadlines by three years, 

 

7 76 FR 42055 (July 18, 2011).

8 See 76 FR 48208 (August 8, 2011) (the original CSAPR final 

rule); 76 FR 80760 (December 27, 2011) (the “Supplemental 

Rule”); 77 FR 10324 (February 21, 2012) (the “First Revisions 

Rule”); 77 FR 34830 (June 12, 2012) (the “Second Revisions 

Rule”).

9 The consent decree tonnage limitations had already been 

considered for purposes of setting the CSAPR state budgets but 

had not previously been accounted for in setting unit-specific 

allowance allocations in states with EGUs affected by those 

limitations. See 77 FR at 10329-30.
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allowing the first compliance period to begin on January 1, 

2015.10

The allowance allocations described in this NODA reflect all 

the budget, set-aside, and unit-specific allocation changes 

finalized in the rulemakings conducted after the original CSAPR 

rulemaking. The allocations also account for the impact of the 

tolling of the rule’s compliance deadlines by re-vintaging 

previously recorded 2012 and 2013 allowances as 2015 and 2016 

allowances, respectively. 

III. Recordation of the Allocations

CSAPR specifies deadlines for the EPA to record allowance 

allocations for each compliance year.

11 In cases where those 

deadlines, as tolled by the Court’s order, have not yet passed, 

and where states have not submitted alternative allowance 

allocations pursuant to approved SIP revisions, the EPA will 

 

10 Order, Document #1518738, EME Homer City Generation, L.P. v. 

EPA, No. 11-1302 (D.C. Cir. issued Oct. 23, 2014).

11 See 40 CFR 97.421, 97.521, 97.621, and 97.721. With respect to 

recordation of allowance allocations for the additional state 

budgets established in the Supplemental Rule, CSAPR as amended 

includes separate, specific recordation deadlines. See 76 FR 

80760 (December 27, 2011); 40 CFR 97.521(a) and (b). However, 

with respect to recordation of allocation changes resulting from 

the two Revisions Rules, see 77 FR 10324 (February 21, 2012); 77 

FR 34830 (June 12, 2012), or re-vintaging of previously recorded 

allowances to account for tolling of the rule’s compliance 

deadlines, CSAPR as amended does not include specific 

recordation deadlines. 
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record the allocations described in this NODA by the applicable 

recordation deadlines. 

To meet recordation deadlines that occurred before CSAPR was 

stayed, the EPA has already recorded most allowances allocated 

for CSAPR’s first compliance year (originally 2012 and now 

2015), and some allowances allocated for CSAPR’s second 

compliance year (originally 2013 and now 2016). In these cases, 

the EPA will re-vintage the previously recorded 2012 and 2013 

allowances into 2015 and 2016 allowances, respectively, 

consistent with the Court’s order tolling CSAPR’s compliance 

deadlines. The EPA will then record adjustments as needed to 

bring the re-vintaged, previously recorded allocations up to the 

2015 and 2016 allocations described in this NODA. Allowance 

tracking system accounts will be briefly frozen while the revintaging and adjustments are carried out.

List of Subjects

40 CFR Part 97

Environmental protection, Administrative practice and 

procedure, Air pollution control, Electric power plants, 

Nitrogen oxides, Reporting and recordkeeping requirements, 

Sulfur dioxide.
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Availability of Data on Allocations of Cross-State Air Pollution 

Rule Allowances to Existing Electricity Generating Units

(page 8 of 8)

Dated: 

Reid P. Harvey,

Director, Clean Air Markets Division.