[Federal Register Volume 87, Number 38 (Friday, February 25, 2022)]
[Notices]
[Pages 10786-10787]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04031]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9542-01-OAR]


Preliminary Allocations of Cross-State Air Pollution Rule 
Allowances From New Unit Set-Asides for 2021 Control Periods

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of data availability.

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SUMMARY: The Environmental Protection Agency (EPA) is providing notice 
of the availability of data on emission allowance allocations to 
certain units under the Cross-State Air Pollution Rule (CSAPR) trading 
programs. EPA has completed preliminary calculations for the 
allocations of allowances from the CSAPR new unit set-asides (NUSAs) 
for the 2021 control periods and has posted spreadsheets containing the 
calculations on EPA's website. EPA will consider timely objections to 
the preliminary calculations (including objections concerning the 
identification of units eligible for allocations) before determining 
the final amounts of the allocations.

DATES: Objections to the information referenced in this notice must be 
received on or before March 28, 2022.

ADDRESSES: Submit your objections via email to [email protected]. 
Include ``2021 NUSA allocations'' in the email subject line and include 
your name, title, affiliation, address, phone number, and email address 
in the body of the email.

FOR FURTHER INFORMATION CONTACT: Questions concerning this action 
should be addressed to Jason Kuhns at (202) 564-3236 or 
[email protected] or Andrew Reighart at (202) 564-0418 or 
[email protected].

SUPPLEMENTARY INFORMATION: Under each CSAPR trading program where EPA 
is responsible for determining emission allowance allocations, a 
portion of each state's emissions budget for the program for each 
control period is reserved in a NUSA (and in an additional Indian 
country NUSA in the case of states with Indian country within their 
borders) for allocation to certain units that would not otherwise 
receive allowance allocations. The procedures for identifying the 
eligible units for each control period and for allocating allowances 
from the NUSAs and Indian country NUSAs to these units are set forth in 
the CSAPR trading program regulations at 40 CFR 97.411(b) and 97.412 
(NOX Annual), 97.511(b) and 97.512 (NOX Ozone 
Season Group 1), 97.611(b) and 97.612 (SO2 Group 1), 
97.711(b) and 97.712 (SO2 Group 2), 97.811(b) and 97.812 
(NOX Ozone Season Group 2), and 97.1011(b) and 97.1012 
(NOX Ozone Season Group 3). Each NUSA allowance allocation 
process involves allocations to eligible units, termed ``new'' units, 
followed by the allocation to ``existing'' units of any allowances not 
allocated to new units.\1\
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    \1\ For control periods before 2021, the NUSA allocation process 
involved two rounds of allocations. The current one-round process 
for all CSAPR trading programs was adopted in the Revised CSAPR 
Update. Refer to 86 FR 23054, 23145-46 (April 30, 2021).
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    This notice concerns preliminary calculations for the NUSA 
allowance allocations for the 2021 control periods. Generally, the 
allocation procedures call for each eligible ``new'' unit to receive a 
2021 NUSA allocation equal to its 2021 control period emissions as 
reported under 40 CFR part 75 unless the total of such allocations to 
all such eligible units would exceed the amount of allowances in the 
NUSA, in which case the allocations are reduced on a pro-rata basis. 
(EPA notes that, under 40 CFR 97.406(c)(3), 97.506(c)(3), 97.606(c)(3), 
97.706(c)(3), 97.806(c)(3), and 97.1006(c)(3), a unit's emissions 
occuring before its monitor certification deadline are not considered 
to have occurred during a control period and consequently are not 
included in the emission amounts used to determine NUSA allocations.) 
Any allowances not allocated to eligible ``new'' units are allocated to 
the state's ``existing'' units in proportion to such existing units' 
previous allocations from the portion of the respective state's 
emissions budget for the control period that was not reserved in a NUSA 
(or Indian country NUSA).

[[Page 10787]]

    The detailed unit-by-unit data and preliminary allowance allocation 
calculations for ``new'' units are set forth in Excel spreadsheets 
titled ``CSAPR_NUSA_2021_NOX_Annual_Prelim_Data_New_Units'', 
``CSAPR_NUSA_2021_NOX_OS_Prelim_Data_New_Units'', and 
``CSAPR_NUSA_2021_SO2_Prelim_Data_New_Units'', available on 
EPA's website at https://www.epa.gov/csapr/csapr-allowance-allocations#nusa. Each of the spreadsheets contains a separate 
worksheet for each state covered by that program showing, for each unit 
identified as eligible for a NUSA allocation, (1) the unit's emissions 
in the 2021 control period (annual or ozone season as applicable), (2) 
the maximum 2021 NUSA allowance allocation for which the unit is 
eligible (typically the unit's emissions in the 2021 control period), 
(3) various adjustments to the unit's maximum allocation if the NUSA 
pool is oversubscribed, and (4) the preliminary calculation of the 
unit's 2021 NUSA allowance allocation.
    Each state worksheet for ``new'' units also contains a summary 
showing (1) the quantity of allowances initially available in that 
state's 2021 NUSA, (2) the sum of the 2021 NUSA allowance allocations 
that will be made to new units in that state, assuming there are no 
corrections to the data, and (3) the quantity of allowances that would 
remain in the 2021 NUSA for allocation to existing units, again 
assuming there are no corrections to the data.
    The preliminary calculations of allocations of the remaining 
unallocated allowances to ``existing'' units are set forth in Excel 
spreadsheets titled 
``CSAPR_NUSA_2021_NOX_Annual_Prelim_Data_Existing_Units'', 
``CSAPR_NUSA_2021_NOX_OS_Prelim_Data_Existing_Units'', and 
``CSAPR_NUSA_2021_SO2_Prelim_Data_Existing_Units'', 
available at the same location.
    Objections should be strictly limited to the data and calculations 
upon which the NUSA allowance allocations are based and should be 
emailed to the address identified in ADDRESSES. Objections must 
include: (1) Precise identification of the specific data and/or 
calculations the commenter believes are inaccurate, (2) new proposed 
data and/or calculations upon which the commenter believes EPA should 
rely instead to determine allowance allocations, and (3) the reasons 
why EPA should rely on the commenter's proposed data and/or 
calculations and not the data referenced in this notice.
    EPA notes that an allocation or lack of allocation of allowances to 
a given unit does not constitute a determination that CSAPR does or 
does not apply to the unit. EPA also notes that, under 40 CFR 
97.411(c), 97.511(c), 97.611(c), 97.711(c), 97.811(c), and 97.1011(c), 
allocations are subject to potential correction if a unit to which 
allowances have been allocated for a given control period is not 
actually an affected unit as of the start of that control period.

(Authority: 40 CFR 97.411(b), 97.511(b), 97.611(b), 97.711(b), 
97.811(b), and 97.1011(b).)

Rona Birnbaum,
Acting Director, Clean Air Markets Division, Office of Atmospheric 
Programs, Office of Air and Radiation.
[FR Doc. 2022-04031 Filed 2-24-22; 8:45 am]
BILLING CODE 6560-50-P


