# 97.412 CSAPR NO Annual allowance allocations to new units.
(a) *Allocations from new unit set-asides.* For each control period in 2015 and thereafter and for the CSAPR NO<sub>X</sub> Annual units in each State and areas of Indian country within the borders of the State subject to the State's SIP authority, the Administrator will allocate CSAPR NO<sub>X</sub> Annual allowances to the CSAPR NO<sub>X</sub> Annual units as follows:
(1) The CSAPR NO<sub>X</sub> Annual allowances will be allocated to the following CSAPR NO<sub>X</sub> Annual units, except as provided in paragraph (a)(10) of this section:
(i) CSAPR NO<sub>X</sub> Annual units that are not allocated an amount of CSAPR NO<sub>X</sub> Annual allowances in the notice of data availability issued under § 97.411(a)(1) and that have deadlines for certification of monitoring systems under § 97.430(b) not later than December 31 of the year of the control period;
(ii) CSAPR NO<sub>X</sub> Annual units whose allocation of an amount of CSAPR NO<sub>X</sub> Annual allowances for such control period in the notice of data availability issued under § 97.411(a)(1) is covered by § 97.411(c)(2) or (3);
(iii) CSAPR NO<sub>X</sub> Annual units that are allocated an amount of CSAPR NO<sub>X</sub> Annual allowances for such control period in the notice of data availability issued under § 97.411(a)(1), which allocation is terminated for such control period pursuant to § 97.411(a)(2), and that operate during the control period immediately preceding such control period, for allocations for a control period before 2021, or that operate during such control period, for allocations for a control period in 2021 or thereafter; or
(iv) For purposes of paragraph (a)(9) of this section, CSAPR NO<sub>X</sub> Annual units under § 97.411(c)(1)(ii) whose allocation of an amount of CSAPR NO<sub>X</sub> Annual allowances for such control period in the notice of data availability issued under § 97.411(b)(1)(ii)(B) is covered by § 97.411(c)(2) or (3).
(2) The Administrator will establish a separate new unit set-aside for the State for each such control period. Each such new unit set-aside will be allocated CSAPR NO<sub>X</sub> Annual allowances in an amount equal to the applicable amount of tons of NO<sub>X</sub> emissions as set forth in § 97.410(a) and will be allocated additional CSAPR NO<sub>X</sub> Annual allowances (if any) in accordance with § 97.411(a)(2) and (c)(5) and paragraph (b)(10) of this section.
(3) The Administrator will determine, for each CSAPR NO<sub>X</sub> Annual unit described in paragraph (a)(1) of this section, an allocation of CSAPR NO<sub>X</sub> Annual allowances for the latest of the following control periods and for each subsequent control period:
(i) The control period in 2015;
(ii)(A) The first control period after the control period in which the CSAPR NO<sub>X</sub> Annual unit commences commercial operation, for allocations for a control period before 2021; or
(B) The control period containing the deadline for certification of the CSAPR NO<sub>X</sub> Annual unit's monitoring systems under § 97.430(b), for allocations for a control period in 2021 or thereafter;
(iii) For a unit described in paragraph (a)(1)(ii) of this section, the first control period in which the CSAPR NO<sub>X</sub> Annual unit operates in the State and areas of Indian country within the borders of the State subject to the State's SIP authority after operating in another jurisdiction and for which the unit is not already allocated one or more CSAPR NO<sub>X</sub> Annual allowances; and
(iv) For a unit described in paragraph (a)(1)(iii) of this section, the first control period after the control period in which the unit resumes operation, for allocations for a control period before 2021, or the control period in which the unit resumes operation, for allocations for a control period in 2021 or thereafter.
(4)(i) The allocation to each CSAPR NO<sub>X</sub> Annual unit described in paragraphs (a)(1)(i) through (iii) of this section and for each control period described in paragraph (a)(3) of this section will be an amount equal to the unit's total tons of NO<sub>X</sub> emissions during the immediately preceding control period, for allocations for a control period before 2021, or the unit's total tons of NO<sub>X</sub> emissions during the control period, for allocations for a control period in 2021 or thereafter.
(ii) The Administrator will adjust the allocation amount in paragraph (a)(4)(i) of this section in accordance with paragraphs (a)(5) through (7) and (12) of this section.
(5) The Administrator will calculate the sum of the allocation amounts of CSAPR NO<sub>X</sub> Annual allowances determined for all such CSAPR NO<sub>X</sub> Annual units under paragraph (a)(4)(i) of this section in the State and areas of Indian country within the borders of the State subject to the State's SIP authority for such control period.
(6) If the amount of CSAPR NO<sub>X</sub> Annual allowances in the new unit set-aside for the State for such control period is greater than or equal to the sum under paragraph (a)(5) of this section, then the Administrator will allocate the amount of CSAPR NO<sub>X</sub> Annual allowances determined for each such CSAPR NO<sub>X</sub> Annual unit under paragraph (a)(4)(i) of this section.
(7) If the amount of CSAPR NO<sub>X</sub> Annual allowances in the new unit set-aside for the State for such control period is less than the sum under paragraph (a)(5) of this section, then the Administrator will allocate to each such CSAPR NO<sub>X</sub> Annual unit the amount of the CSAPR NO<sub>X</sub> Annual allowances determined under paragraph (a)(4)(i) of this section for the unit, multiplied by the amount of CSAPR NO<sub>X</sub> Annual allowances in the new unit set-aside for such control period, divided by the sum under paragraph (a)(5) of this section, and rounded to the nearest allowance.
(8) For a control period before 2021, the Administrator will notify the public, through the promulgation of the notices of data availability described in § 97.411(b)(1)(i) and (ii), of the amount of CSAPR NO<sub>X</sub> Annual allowances allocated under paragraphs (a)(2) through (7) and (12) of this section for such control period to each CSAPR NO<sub>X</sub> Annual unit eligible for such allocation.
(9) For a control period before 2021, if, after completion of the procedures under paragraphs (a)(5) through (8) of this section for such control period, any unallocated CSAPR NO<sub>X</sub> Annual allowances remain in the new unit set-aside for the State for such control period, the Administrator will allocate such CSAPR NO<sub>X</sub> Annual allowances as follows—
(i) The Administrator will determine, for each unit described in paragraph (a)(1) of this section that commenced commercial operation during the period starting January 1 of the year before the year of such control period and ending November 30 of the year of such control period, the positive difference (if any) between the unit's emissions during such control period and the amount of CSAPR NO<sub>X</sub> Annual allowances referenced in the notice of data availability required under § 97.411(b)(1)(ii) for the unit for such control period;
(ii) The Administrator will determine the sum of the positive differences determined under paragraph (a)(9)(i) of this section;
(iii) If the amount of unallocated CSAPR NO<sub>X</sub> Annual allowances remaining in the new unit set-aside for the State for such control period is greater than or equal to the sum determined under paragraph (a)(9)(ii) of this section, then the Administrator will allocate the amount of CSAPR NO<sub>X</sub> Annual allowances determined for each such CSAPR NO<sub>X</sub> Annual unit under paragraph (a)(9)(i) of this section; and
(iv) If the amount of unallocated CSAPR NO<sub>X</sub> Annual allowances remaining in the new unit set-aside for the State for such control period is less than the sum under paragraph (a)(9)(ii) of this section, then the Administrator will allocate to each such CSAPR NO<sub>X</sub> Annual unit the amount of the CSAPR NO<sub>X</sub> Annual allowances determined under paragraph (a)(9)(i) of this section for the unit, multiplied by the amount of unallocated CSAPR NO<sub>X</sub> Annual allowances remaining in the new unit set-aside for such control period, divided by the sum under paragraph (a)(9)(ii) of this section, and rounded to the nearest allowance.
(10) If, after completion of the procedures under paragraphs (a)(9) and (12) of this section for a control period before 2021, or under paragraphs (a)(2) through (7) and (12) of this section for a control period in 2021 or thereafter, any unallocated CSAPR NO<sub>X</sub> Annual allowances remain in the new unit set-aside for the State for such control period, the Administrator will allocate to each CSAPR NO<sub>X</sub> Annual unit that is in the State and areas of Indian country within the borders of the State subject to the State's SIP authority, is allocated an amount of CSAPR NO<sub>X</sub> Annual allowances in the notice of data availability issued under § 97.411(a)(1), and continues to be allocated CSAPR NO<sub>X</sub> Annual allowances for such control period in accordance with § 97.411(a)(2), an amount of CSAPR NO<sub>X</sub> Annual allowances equal to the following: The total amount of such remaining unallocated CSAPR NO<sub>X</sub> Annual allowances in such new unit set-aside, multiplied by the unit's allocation under § 97.411(a) for such control period, divided by the remainder of the amount of tons in the applicable State NO<sub>X</sub> Annual trading budget minus the sum of the amounts of tons in such new unit set-aside and the Indian country new unit set-aside for the State for such control period, and rounded to the nearest allowance.
(11)(i) For a control period before 2021, the Administrator will notify the public, through the promulgation of the notices of data availability described in § 97.411(b)(1)(iii), (iv), and (v), of the amount of CSAPR NO<sub>X</sub> Annual allowances allocated under paragraphs (a)(9), (10), and (12) of this section for such control period to each CSAPR NO<sub>X</sub> Annual unit eligible for such allocation.
(ii) For a control period in 2021 or thereafter, the Administrator will notify the public, through the promulgation of the notices of data availability described in § 97.411(b)(1)(i), (ii), and (v), of the amount of CSAPR NO<sub>X</sub> Annual allowances allocated under paragraphs (a)(2) through (7), (10), and (12) of this section for such control period to each CSAPR NO<sub>X</sub> Annual unit eligible for such allocation.
(12) Notwithstanding the requirements of paragraphs (a)(2) through (11) of this section, if the calculations of allocations from a new unit set-aside for a control period before 2021 under paragraph (a)(7) of this section, paragraphs (a)(6) and (a)(9)(iv) of this section, or paragraphs (a)(6), (a)(9)(iii), and (a)(10) of this section, or for a control period in 2021 or thereafter under paragraph (a)(7) of this section or paragraphs (a)(6) and (10) of this section, would otherwise result in total allocations from such new unit set-aside unequal to the total amount of such new unit set-aside, then the Administrator will adjust the results of such calculations as follows. The Administrator will list the CSAPR NO<sub>X</sub> Annual units in descending order based on such units' allocation amounts under paragraph (a)(7), (a)(9)(iv), or (a)(10) of this section, as applicable, and, in cases of equal allocation amounts, in alphabetical order of the relevant sources' names and numerical order of the relevant units' identification numbers, and will adjust each unit's allocation amount under such paragraph upward or downward by one CSAPR NO<sub>X</sub> Annual allowance (but not below zero) in the order in which the units are listed, and will repeat this adjustment process as necessary, until the total allocations from such new unit set-aside equal the total amount of such new unit set-aside.
(b) *Allocations from Indian country new unit set-asides.* For each control period in 2015 and thereafter and for the CSAPR NO<sub>X</sub> Annual units in areas of Indian country within the borders of each State not subject to the State's SIP authority, the Administrator will allocate CSAPR NO<sub>X</sub> Annual allowances to the CSAPR NO<sub>X</sub> Annual units as follows:
(1) The CSAPR NO<sub>X</sub> Annual allowances will be allocated to the following CSAPR NO<sub>X</sub> Annual units, except as provided in paragraph (b)(10) of this section:
(i) CSAPR NO<sub>X</sub> Annual units that are not allocated an amount of CSAPR NO<sub>X</sub> Annual allowances in the notice of data availability issued under § 97.411(a)(1) and that have deadlines for certification of monitoring systems under § 97.430(b) not later than December 31 of the year of the control period; or
(ii) For purposes of paragraph (b)(9) of this section, CSAPR NO<sub>X</sub> Annual units under § 97.411(c)(1)(ii) whose allocation of an amount of CSAPR NO<sub>X</sub> Annual allowances for such control period in the notice of data availability issued under § 97.411(b)(2)(ii)(B) is covered by § 97.411(c)(2) or (3).
(2) The Administrator will establish a separate Indian country new unit set-aside for the State for each such control period. Each such Indian country new unit set-aside will be allocated CSAPR NO<sub>X</sub> Annual allowances in an amount equal to the applicable amount of tons of NO<sub>X</sub> emissions as set forth in § 97.410(a) and will be allocated additional CSAPR NO<sub>X</sub> Annual allowances (if any) in accordance with § 97.411(c)(5).
(3) The Administrator will determine, for each CSAPR NO<sub>X</sub> Annual unit described in paragraph (b)(1) of this section, an allocation of CSAPR NO<sub>X</sub> Annual allowances for the later of the following control periods and for each subsequent control period:
(i) The control period in 2015; and
(ii)(A) The first control period after the control period in which the CSAPR NO<sub>X</sub> Annual unit commences commercial operation, for allocations for a control period before 2021; or
(B) The control period containing the deadline for certification of the CSAPR NO<sub>X</sub> Annual unit's monitoring systems under § 97.430(b), for allocations for a control period in 2021 or thereafter.
(4)(i) The allocation to each CSAPR NO<sub>X</sub> Annual unit described in paragraph (b)(1)(i) of this section and for each control period described in paragraph (b)(3) of this section will be an amount equal to the unit's total tons of NO<sub>X</sub> emissions during the immediately preceding control period, for allocations for a control period before 2021, or the unit's total tons of NO<sub>X</sub> emissions during the control period, for allocations for a control period in 2021 or thereafter.
(ii) The Administrator will adjust the allocation amount in paragraph (b)(4)(i) of this section in accordance with paragraphs (b)(5) through (7) and (12) of this section.
(5) The Administrator will calculate the sum of the allocation amounts of CSAPR NO<sub>X</sub> Annual allowances determined for all such CSAPR NO<sub>X</sub> Annual units under paragraph (b)(4)(i) of this section in areas of Indian country within the borders of the State not subject to the State's SIP authority for such control period.
(6) If the amount of CSAPR NO<sub>X</sub> Annual allowances in the Indian country new unit set-aside for the State for such control period is greater than or equal to the sum under paragraph (b)(5) of this section, then the Administrator will allocate the amount of CSAPR NO<sub>X</sub> Annual allowances determined for each such CSAPR NO<sub>X</sub> Annual unit under paragraph (b)(4)(i) of this section.
(7) If the amount of CSAPR NO<sub>X</sub> Annual allowances in the Indian country new unit set-aside for the State for such control period is less than the sum under paragraph (b)(5) of this section, then the Administrator will allocate to each such CSAPR NO<sub>X</sub> Annual unit the amount of the CSAPR NO<sub>X</sub> Annual allowances determined under paragraph (b)(4)(i) of this section for the unit, multiplied by the amount of CSAPR NO<sub>X</sub> Annual allowances in the Indian country new unit set-aside for such control period, divided by the sum under paragraph (b)(5) of this section, and rounded to the nearest allowance.
(8) For a control period before 2021, the Administrator will notify the public, through the promulgation of the notices of data availability described in § 97.411(b)(2)(i) and (ii), of the amount of CSAPR NO<sub>X</sub> Annual allowances allocated under paragraphs (b)(2) through (7) and (12) of this section for such control period to each CSAPR NO<sub>X</sub> Annual unit eligible for such allocation.
(9) For a control period before 2021, if, after completion of the procedures under paragraphs (b)(5) through (8) of this section for such control period, any unallocated CSAPR NO<sub>X</sub> Annual allowances remain in the Indian country new unit set-aside for the State for such control period, the Administrator will allocate such CSAPR NO<sub>X</sub> Annual allowances as follows—
(i) The Administrator will determine, for each unit described in paragraph (b)(1) of this section that commenced commercial operation during the period starting January 1 of the year before the year of such control period and ending November 30 of the year of such control period, the positive difference (if any) between the unit's emissions during such control period and the amount of CSAPR NO<sub>X</sub> Annual allowances referenced in the notice of data availability required under § 97.411(b)(2)(ii) for the unit for such control period;
(ii) The Administrator will determine the sum of the positive differences determined under paragraph (b)(9)(i) of this section;
(iii) If the amount of unallocated CSAPR NO<sub>X</sub> Annual allowances remaining in the Indian country new unit set-aside for the State for such control period is greater than or equal to the sum determined under paragraph (b)(9)(ii) of this section, then the Administrator will allocate the amount of CSAPR NO<sub>X</sub> Annual allowances determined for each such CSAPR NO<sub>X</sub> Annual unit under paragraph (b)(9)(i) of this section; and
(iv) If the amount of unallocated CSAPR NO<sub>X</sub> Annual allowances remaining in the Indian country new unit set-aside for the State for such control period is less than the sum under paragraph (b)(9)(ii) of this section, then the Administrator will allocate to each such CSAPR NO<sub>X</sub> Annual unit the amount of the CSAPR NO<sub>X</sub> Annual allowances determined under paragraph (b)(9)(i) of this section for the unit, multiplied by the amount of unallocated CSAPR NO<sub>X</sub> Annual allowances remaining in the Indian country new unit set-aside for such control period, divided by the sum under paragraph (b)(9)(ii) of this section, and rounded to the nearest allowance.
(10) If, after completion of the procedures under paragraphs (b)(9) and (12) of this section for a control period before 2021, or under paragraphs (b)(2) through (7) and (12) of this section for a control period in 2021 or thereafter, any unallocated CSAPR NO<sub>X</sub> Annual allowances remain in the Indian country new unit set-aside for the State for such control period, the Administrator will:
(i) Transfer such unallocated CSAPR NO<sub>X</sub> Annual allowances to the new unit set-aside for the State for such control period; or
(ii) If the State has a SIP revision approved under § 52.38(a)(4) or (5) of this chapter covering such control period, include such unallocated CSAPR NO<sub>X</sub> Annual allowances in the portion of the State NO<sub>X</sub> Annual trading budget that may be allocated for such control period in accordance with such SIP revision.
(11)(i) For a control period before 2021, the Administrator will notify the public, through the promulgation of the notices of data availability described in § 97.411(b)(2)(iii), (iv), and (v), of the amount of CSAPR NO<sub>X</sub> Annual allowances allocated under paragraphs (b)(9), (10), and (12) of this section for such control period to each CSAPR NO<sub>X</sub> Annual unit eligible for such allocation.
(ii) For a control period in 2021 or thereafter, the Administrator will notify the public, through the promulgation of the notices of data availability described in § 97.411(b)(2)(i), (ii), and (v), of the amount of CSAPR NO<sub>X</sub> Annual allowances allocated under paragraphs (b)(2) through (7), (10), and (12) of this section for such control period to each CSAPR NO<sub>X</sub> Annual unit eligible for such allocation.
(12) Notwithstanding the requirements of paragraphs (b)(2) through (11) of this section, if the calculations of allocations from an Indian country new unit set-aside for a control period before 2021 under paragraph (b)(7) of this section or paragraphs (b)(6) and (b)(9)(iv) of this section, or for a control period in 2021 or thereafter under paragraph (b)(7) of this section, would otherwise result in total allocations from such Indian country new unit set-aside unequal to the total amount of such Indian country new unit set-aside, then the Administrator will adjust the results of such calculations as follows. The Administrator will list the CSAPR NO<sub>X</sub> Annual units in descending order based on such units' allocation amounts under paragraph (b)(7) or (b)(9)(iv) of this section, as applicable, and, in cases of equal allocation amounts, in alphabetical order of the relevant sources' names and numerical order of the relevant units' identification numbers, and will adjust each unit's allocation amount under such paragraph upward or downward by one CSAPR NO<sub>X</sub> Annual allowance (but not below zero) in the order in which the units are listed, and will repeat this adjustment process as necessary, until the total allocations from such Indian country new unit set-aside equal the total amount of such Indian country new unit set-aside.
[76 FR 48379, Aug. 8, 2011, as amended at 79 FR 71672, Dec. 3, 2014; 81 FR 74606, Oct. 26, 2016; 86 FR 23183, Apr. 30, 2021; 88 FR 36898, June 5, 2023]