EPA Allocates Cross-State Air Pollution Rule Allowances for 2025 Control Periods

Content

ACTION:

Notice of data availability.

SUMMARY:

The U.S 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. The EPA has completed final calculations
for the allocations of allowances from the new unit set-asides (NUSAs) for the 2025 control periods and posted spreadsheets
with these calculations on the Agency's website. The EPA has also completed final calculations for the allocations of allowances
of the remaining 2025 NUSA allowances to existing units and posted spreadsheets with these calculations on the Agency's website.

DATES:

April 15, 2026.

FOR FURTHER INFORMATION CONTACT:

For information about this notice, contact Morgan Riedel at telephone number: (202) 564-0421 or email address: riedel.morgan@epa.gov.

SUPPLEMENTARY INFORMATION:

Preamble acronyms and abbreviations. Throughout this document the use of “we,” “us,” or “our” refers to the EPA. The EPA uses multiple acronyms and terms in this
preamble. While this list may not be exhaustive, to ease the reading of this preamble and for reference purposes, the EPA
defines the following terms and acronyms here:

CFR Code of Federal Regulations

CSAPR Cross-State Air Pollution Rule

EPA Environmental Protection Agency

FR Federal Register

NODA notice of data availability

NO X nitrogen oxides

NUSA new unit set-asides

SO 2 sulfur dioxide

Background and Rationale. When the EPA is responsible for determining emission allowance allocations in a CSAPR trading program, a NUSA reserves a portion
of each state's emissions budget, during each control period of the program, for allocation to certain units that would not
otherwise receive allowance allocations. In addition, under most of the trading programs, there is a separate Indian country
NUSA for states containing Indian country within their borders. The

  CSAPR trading program regulations set forth procedures for identifying eligible units during each control period and for allocating
  allowances from the NUSAs and Indian country NUSAs to these units. [(1 2)]() Each NUSA allowance allocation process involves allocations to eligible units, termed “new” units, followed by allocations
  to “existing” units of any remaining allowances.

This notice concerns the EPA's final calculations for the NUSA allowance allocations for the 2025 control periods. Generally,
under the allocation procedures, each eligible new unit receives a 2025 NUSA allocation equal to its 2025 control period emissions
as reported under 40 CFR part 75. If the total of such allocations to all eligible units exceeds the amount of allowances
in the NUSA, the EPA reduces the allocations on a pro-rata basis. The EPA does not consider a unit's emissions that occur
before its monitor certification deadline as occurring during a control period and thus does not include these emissions for
determining NUSA allocations. (3) After allocating allowances to eligible new units in a state (or Indian country), the EPA allocates remaining allowances to
the state's existing units in proportion to those units' previous allocations from the portion of the state's emissions budget
for the control period that was not reserved in a NUSA (or Indian country NUSA).

On March 2, 2026, the EPA published a notice of data availability (NODA) in the
Federal Register
announcing the preliminary NUSA allowance allocations for the 2025 control periods and explaining how to submit objections. (4) The EPA received no objections to the March 2, 2026, NODA. This NODA provides the final NUSA allowance allocations. The EPA
made no changes between the preliminary and final 2025 NUSA sheets.

The EPA sets forth detailed, unit-by-unit data and final allowance allocation calculations for new units in Excel spreadsheets
titled “CSAPRNUSA2025NO X _AnnualFinalDataNewUnits,” “CSAPRNUSA2025NO X OSFinalDataNewUnits,” and “CSAPRNUSA2025SO 2 FinalDataNewUnits,” which are available online at https://www.epa.gov/csapr/csapr-allowance-allocations#nusa. Each spreadsheet contains a separate worksheet for every state covered by that program and shows, for each unit identified
as eligible for a NUSA allocation, (1) the unit's emissions in the 2025 control period (annual or ozone season, as applicable),
(2) the maximum 2025 NUSA allowance allocation for the unit (typically the unit's emissions in the 2025 control period), (3)
various adjustments to the unit's maximum allocation if the NUSA pool is oversubscribed, and (4) the final calculation of
the unit's 2025 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 2025 NUSA, (2) the sum of the 2025 NUSA allowance allocations to new units in that state, assuming that there are
no corrections to the data, and (3) the quantity of allowances that would remain in the 2025 NUSA for allocation to existing
units, assuming that there are no corrections to the data.

The EPA sets forth final calculations of allocations of the remaining unallocated allowances to existing units in Excel spreadsheets
titled “CSAPRNUSA2025NO X _AnnualFinalDataExistingUnits,” “CSAPRNUSA2025NO X OSFinalDataExistingUnits,” and “CSAPRNUSA2025SO 2 FinalDataExistingUnits,” which are available at the same online location.

The EPA notes that an allocated allowance, or lack thereof, to a given unit under a CSAPR trading program does not constitute
a determination that the trading program does or does not apply to the unit. The EPA also notes that, under 40 CFR 97.411(c),
97.511(c), 97.611(c), 97.711(c), and 97.811(c), allocations are subject to potential correction if a unit with allocated allowances
for a given control period is not 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), and 97.811(b).)

David Cozzie, Acting Director, Industrial Processing and Power Division, Office of Clean Air Programs, Office of Air and Radiation. [FR Doc. 2026-07299 Filed 4-14-26; 8:45 am] BILLING CODE 6560-50-P

Footnotes

(1) See 40 CFR 97.411(b) and 97.412 (Nitrogen Oxide (NO X) Annual), 97.511(b) and 97.512 (NO X Ozone Season Group 1), 97.611(b) and 97.612 (Sulfur Dioxide (SO 2) Group 1), 97.711(b) and 97.712 (SO 2 Group 2), and 97.811(b) and 97.812 (NO X Ozone Season Group 2, including units using Original Group 2 allowances and units using Expanded Group 2 allowances).

(2) The EPA has no plans to determine NUSA allowance allocations for the 2025 control period under the CSAPR NO X Ozone Season Group 3 Trading Program regulations at 40 CFR 97.1012. In response to judicial stay orders, the EPA has administratively
stayed the implementation of that program for all sources for the 2024 control period. This program implementation will remain
stayed for future control periods unless and until provided otherwise in a future rulemaking. See 88
Federal Register
(FR) 49295 (July 31, 2023); 88 FR 67102 (September 29, 2023); 89 FR 87960 (November 6, 2024).

(3) See 40 CFR 97.406(c)(3), 97.506(c)(3), 97.606(c)(3), 97.706(c)(3), and 97.806(c)(3).

(4) 91 FR 10090 (March 2, 2026).

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