[Federal Register Volume 86, Number 93 (Monday, May 17, 2021)]
[Notices]
[Pages 26719-26720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10304]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-10023-79-OAR]


Availability of Data on Allocations of Cross-State Air Pollution 
Rule Allowances to Existing Electricity Generating Units

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of data availability.

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SUMMARY: Under the Cross-State Air Pollution Rule (CSAPR) trading 
program regulations, EPA allocates emission allowances to existing 
electricity generating units as provided in a notice of data 
availability (NODA). In the Revised CSAPR Update promulgated earlier 
this year, EPA finalized default allocations of CSAPR NOX 
Ozone Season Group 3 allowances to existing units in Illinois, Indiana, 
Kentucky, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, 
Pennsylvania, Virginia, and West Virginia from the new state emissions 
budgets for the control periods in 2021 and subsequent years. In the 
same rule, EPA also finalized a formula for determining supplemental 
amounts of allowances to be issued for the 12 states for the 2021 
control period and a methodology for allocating each state's 
supplemental allowances among the state's existing units. Through this 
NODA, EPA is providing notice of the availability of data on the 
allowance allocations to existing units from both the state emissions 
budgets and the supplemental allowances, as well as the data upon which 
the allocations are based.

FOR FURTHER INFORMATION CONTACT: Questions concerning this notice 
should be addressed to Michael Cohen at (202) 343-9497 or 
[email protected].

SUPPLEMENTARY INFORMATION: In the Revised CSAPR Update, EPA established 
new emissions budgets for ozone season emissions of nitrogen oxides 
(NOX) in 2021 and subsequent years for 12 eastern states and 
promulgated federal implementation plan (FIP) provisions requiring 
affected units in those states to participate in the CSAPR 
NOX Ozone Season Group 3 Trading Program.\1\ Beginning with 
the 2022 control period, each covered state generally has the option to 
determine how the CSAPR NOX Ozone Season Group 3 allowances 
in its state emissions budget should be allocated among the state's 
units through a state implementation plan (SIP) revision.\2\ However, 
for the 2021 control period, and by default for subsequent control 
periods for which a state has not provided EPA with the state's own 
allocations pursuant to an approved SIP revision, the unit-level 
allocations are determined by EPA. For units that commenced commercial 
operations before January 1, 2019, termed ``existing'' units for 
purposes of this trading program, EPA determined default allocations of 
CSAPR NOX Ozone Season Group 3 allowances from the state 
emissions budgets for all control periods in the Revised CSAPR Update 
rulemaking. For units commencing commercial operation on or after 
January 1, 2019, termed ``new'' units for purposes of this trading 
program, EPA will determine the default allocations annually after each 
control period by applying a methodology in the regulations to data for 
that control period.\3\
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    \1\ See Revised Cross-State Air Pollution Rule Update for the 
2008 Ozone NAAQS, 86 FR 23054 (April 30, 2021).
    \2\ See 40 CFR 52.38(b)(10) through (12) as amended in the 
Revised CSAPR Update.
    \3\ See 40 CFR 97.1011(b) and 97.1012.
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    To ensure that the enhanced control stringency of the Revised CSAPR 
Update's new state emissions budgets will apply only after the rule's 
effective date, for the control period in 2021 the rule provides for 
EPA to issue supplemental allowances for the covered states in amounts 
determined under a formula that accounts for the portion of the 2021 
ozone season occurring before the rule's effective date.\4\ Subsequent 
to the rulemaking, EPA has computed the amounts of supplemental 
allowances for each state according to the formula and has also 
determined the allocations of each state's supplemental allowances 
among the state's existing units. The rule does not provide for 
allocations of supplemental allowances to new units.
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    \4\ See 40 CFR 97.1010(d).
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    Through this NODA, EPA is providing notice of the availability of 
data on the unit-level allocations of CSAPR NOX Ozone Season 
Group 3 allowances to existing units from both the state emissions 
budgets and each state's supplemental allowances. The allocations are 
shown in an Excel spreadsheet entitled ``Updated Unit-Level Allocations 
and Underlying Data for the Revised CSAPR Update for the 2008 Ozone 
NAAQS'' that has been posted on EPA's website at https://www.epa.gov/csapr/revised-cross-state-air-pollution-rule-update. The spreadsheet 
contains the default unit-level allocations of allowances from the 
state emissions budgets for each control period starting with 2021, the 
unit-level allocations of supplemental allowances for the 2021 control 
period, and the data used to compute the allocations. The spreadsheet 
is an update of an earlier version that was included in the docket for 
the final Revised CSAPR Update and that contained the same default 
allocations of allowances from the state emissions budgets but did not 
contain the allocations of supplemental allowances. All allocations 
have been determined according to the allocation methodology finalized 
in the Revised CSAPR Update rulemaking.\5\ EPA is not requesting 
comment on the allocations, the underlying data, or the allocation 
methodology.
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    \5\ See Allowance Allocation Under the Revised CSAPR Update 
Final Rule TSD, available at https://www.epa.gov/csapr/revised-cross-state-air-pollution-rule-update; see also 86 FR 23128-34.
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    In accordance with the deadlines set forth in the regulations, EPA 
will generally record allocations of CSAPR NOX Ozone Season 
Group 3 allowances to existing units for the 2021 control period by 
July 29, 2021.\6\ EPA will also generally record allocations to 
existing units for the 2022 control period by that same date except in 
instances where a state has provided EPA with timely notice of the 
state's intent to submit a SIP revision with state-determined allowance 
allocations replacing EPA's default allocations for the 2022 control 
period.\7\ However, in the case of any source that has not yet fully 
complied with the Revised CSAPR Update's

[[Page 26720]]

requirements concerning the recall of CSAPR NOX Ozone Season 
Group 2 allowances allocated for control periods after 2020, 
recordation of CSAPR NOX Ozone Season Group 3 allowances 
will be deferred until the source has fully complied with the recall 
requirements.\8\
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    \6\ See 40 CFR 97.1021(a).
    \7\ See 40 CFR 97.1021(b).
    \8\ See 40 CFR 97.1021(m); see also 40 CFR 97.811(d).
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    EPA notes that an allocation or lack of allocation of emission 
allowances to a given unit does not constitute a determination that 
CSAPR does or does not apply to the unit.\9\ EPA also notes that 
allocations are subject to potential termination or correction under 
the regulations.\10\
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    \9\ See 40 CFR 97.1011(a)(1).
    \10\ See 40 CFR 97.1011(a)(2) and (c).

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    Authority: 40 CFR 97.1011(a)(1).

Reid Harvey,
Director, Clean Air Markets Division, Office of Atmospheric Programs, 
Office of Air and Radiation.
[FR Doc. 2021-10304 Filed 5-14-21; 8:45 am]
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