40 CFR 97.1010: State NOX Ozone Season Group 3 trading budgets, set-asides, and variability limits.

(a) State NOX Ozone Season Group 3 trading budgets. (1)(i) The State NOX Ozone Season Group 3 trading budgets for allocations of CSAPR NOX Ozone Season Group 3 allowances for the control periods in 2021 through 2025 shall be as indicated in table 1 to this paragraph (a)(1)(i), subject to prorating for the control period in 2023 as provided in paragraph (a)(1)(ii) of this section:

Table 1 to Paragraph (a)(1)(i)—State NOX Ozone Season Group 3 Trading Budgets by Control Period, 2021-2025

[Tons]

State 2021 2022 Portion of 2023 control period before August 4, 2023, before prorating Portion of 2023 control period on and after August 4, 2023, before prorating 2024 2025

Alabama 13,211 6,379 6,489 6,489

Arkansas 9,210 8,927 8,927 8,927

Illinois 11,223 9,102 8,179 7,474 7,325 7,325

Indiana 17,004 12,582 12,553 12,440 11,413 11,413

Kentucky 17,542 14,051 14,051 13,601 12,999 12,472

Louisiana 16,291 14,818 14,818 9,363 9,363 9,107

Maryland 2,397 1,266 1,266 1,206 1,206 1,206

Michigan 14,384 12,290 9,975 10,727 10,275 10,275

Minnesota 5,504 4,058 4,058

Mississippi 6,315 6,210 5,058 5,037

Missouri 15,780 12,598 11,116 11,116

Nevada 2,368 2,589 2,545

New Jersey 1,565 1,253 1,253 773 773 773

New York 4,079 3,416 3,421 3,912 3,912 3,912

Ohio 13,481 9,773 9,773 9,110 7,929 7,929

Oklahoma 11,641 10,271 9,384 9,376

Pennsylvania 12,071 8,373 8,373 8,138 8,138 8,138

Texas 52,301 40,134 40,134 38,542

Utah 15,755 15,917 15,917

Virginia 6,331 3,897 3,980 3,143 2,756 2,756

West Virginia 15,062 12,884 12,884 13,791 11,958 11,958

Wisconsin 7,915 6,295 6,295 5,988

(ii) For the control period in 2023, the State NOX Ozone Season Group 3 trading budget for each State shall be calculated as the sum, rounded to the nearest allowance, of the following prorated amounts:

(A) The product of the non-prorated trading budget for the portion of the 2023 control period before August 4, 2023, shown for the State in table 1 to paragraph (a)(1)(i) of this section (or zero if table 1 to paragraph (a)(1)(i) shows no amount for such portion of the 2023 control period for the State) multiplied by a fraction whose numerator is the number of days from May 1, 2023, through the day before August 4, 2023, inclusive, and whose denominator is 153; plus

(B) The product of the non-prorated trading budget for the portion of the 2023 control period on and after August 4, 2023, shown for the State in table 1 to paragraph (a)(1)(i) of this section multiplied by a fraction whose numerator is the number of days from August 4, 2023, through September 30, 2023, inclusive, and whose denominator is 153.

(2)(i) The State NOX Ozone Season Group 3 trading budget for each State and each control period in 2026 through 2029 shall be the preset trading budget indicated for the State and control period in table 2 to this paragraph (a)(2)(i), except as provided in paragraph (a)(2)(ii) of this section.

Table 2 to Paragraph (a)(2)(i)—Preset Trading Budgets by Control Period, 2026-2029

[Tons]

State 2026 2027 2028 2029

Alabama 6,339 6,236 6,236 5,105

Arkansas 6,365 4,031 4,031 3,582

Illinois 5,889 5,363 4,555 4,050

Indiana 8,363 8,135 7,280 5,808

Kentucky 9,697 7,908 7,837 7,392

Louisiana 6,370 3,792 3,792 3,639

Maryland 842 842 842 842

Michigan 6,743 5,691 5,691 4,656

Minnesota 4,058 2,905 2,905 2,578

Mississippi 3,484 2,084 1,752 1,752

Missouri 9,248 7,329 7,329 7,329

Nevada 1,142 1,113 1,113 880

New Jersey 773 773 773 773

New York 3,650 3,388 3,388 3,388

Ohio 7,929 7,929 6,911 6,409

Oklahoma 6,631 3,917 3,917 3,917

Pennsylvania 7,512 7,158 7,158 4,828

Texas 31,123 23,009 21,623 20,635

Utah 6,258 2,593 2,593 2,593

Virginia 2,565 2,373 2,373 1,951

West Virginia 10,818 9,678 9,678 9,678

Wisconsin 4,990 3,416 3,416 3,416

(ii) If the preset trading budget indicated for a given State and control period in table 2 to paragraph (a)(2)(i) of this section is less than the dynamic trading budget for the State and control period referenced in the applicable notice promulgated under paragraph (a)(4)(v)(C) of this section, then the State NOX Ozone Season Group 3 trading budget for the State and control period shall be the dynamic trading budget for the State and control period referenced in the applicable notice promulgated under paragraph (a)(4)(v)(C) of this section.

(3) The State NOX Ozone Season Group 3 trading budget for each State and each control period in 2030 and thereafter shall be the dynamic trading budget for the State and control period referenced in the applicable notice promulgated under paragraph (a)(4)(v)(C) of this section.

(4) The Administrator will calculate the dynamic trading budget for each State and each control period in 2026 and thereafter in the year before the year of the control period as follows:

(i) The Administrator will include a unit in a State (and Indian country within the borders of the State) in the calculation of the State's dynamic trading budget for a control period if—

(A) To the best of the Administrator's knowledge, the unit qualifies as a CSAPR NOX Ozone Season Group 3 unit under § 97.1004, without regard to whether the unit has permanently retired, provided that including a unit in the calculation of a dynamic trading budget does not constitute a determination that the unit is a CSAPR NOX Ozone Season Group 3 unit, and not including a unit in the calculation of a dynamic trading budget does not constitute a determination that the unit is not a CSAPR NOX Ozone Season Group 3 unit;

(B) The unit's deadline for certification of monitoring systems under § 97.1030(b) is on or before May 1 of the year two years before the year of the control period for which the dynamic trading budget is being calculated; and

(C) The owner or operator reported heat input greater than zero for the unit in accordance with part 75 of this chapter for the historical control period in the year two years before the year of the control period for which the dynamic trading budget is being calculated.

(ii) For each unit identified for inclusion in the calculation of the State's dynamic trading budget for a control period under paragraph (a)(4)(i) of this section, the Administrator will calculate the heat input amount in mmBtu to be used in the budget calculation as follows:

(A) For each such unit, the Administrator will determine the following unit-level amounts:

(1) The total heat input amounts reported in accordance with part 75 of this chapter for the unit for the historical control periods in the years two, three, four, five, and six years before the year of the control period for which the dynamic trading budget is being calculated, except any historical control period that commenced before the unit's first deadline under any regulatory program to begin recording and reporting heat input in accordance with part 75 of this chapter; and

(2) The average of the three highest unit-level total heat input amounts identified for the unit under paragraph (a)(4)(iv)(A)(1) of this section or, if fewer than three non-zero amounts are identified for the unit, the average of all such non-zero total heat input amounts.

(B) For the State, the Administrator will determine the following state-level amounts:

(1) The sum for all units in the State meeting the criterion under paragraph (a)(4)(i)(A) of this section, without regard to whether such units also meet the criteria under paragraphs (a)(4)(i)(B) and (C) of this section, of the total heat input amounts reported in accordance with part 75 of this chapter for the historical control periods in the years two, three, and four years before the year of the control period for which the dynamic trading budget is being calculated, provided that for the historical control periods in 2022 and 2023, the total reported heat input amounts for Nevada and Utah as otherwise determined under this paragraph (a)(4)(ii)(B)(1) shall be increased by 13,489,332 mmBtu for Nevada and by 1,888,174 mmBtu for Utah;

(2) The average of the three state-level total heat input amounts calculated for the State under paragraph (a)(4)(ii)(B)(1) of this section; and

(3) The sum for all units identified for inclusion in the calculation of the State's dynamic trading budget for the control period under paragraph (a)(4)(i) of this section of the unit-level average heat input amounts calculated under paragraph (a)(4)(ii)(A)(2) of this section.

(C) The heat input amount for a unit used in the calculation of the State's dynamic trading budget shall be the product of the unit-level average total heat input amount calculated for the unit under paragraph (a)(4)(ii)(A)(2) of this section multiplied by a fraction whose numerator is the state-level average total heat input amount calculated under paragraph (a)(4)(ii)(B)(2) of this section and whose denominator is the state-level sum of the unit-level average heat input amounts calculated under paragraph (a)(4)(ii)(B)(3) of this section.

(iii) For each unit identified for inclusion in the calculation of the State's dynamic trading budget for a control period under paragraph (a)(4)(i) of this section, the Administrator will identify the NOX emissions rate in lb/mmBtu to be used in the calculation as follows:

(A) For a unit listed in the document entitled “Unit-Specific Ozone Season NOX Emissions Rates for Dynamic Budget Calculations” posted at www.regulations.gov in docket EPA-HQ-OAR-2021-0668, the NOX emissions rate used in the calculation for the control period shall be the NOX emissions rate shown for the unit and control period in that document.

(B) For a unit not listed in the document referenced in paragraph (a)(4)(iii)(A) of this section, the NOX emissions rate used in the calculation for the control period shall be identified according to the type of unit and the type of fuel combusted by the unit during the control period beginning May 1 on or immediately after the unit's deadline for certification of monitoring systems under § 97.1030(b) as follows:

(1) 0.011 lb/mmBtu, for a simple cycle combustion turbine or a combined cycle combustion turbine other than an integrated coal gasification combined cycle unit;

(2) 0.030 lb/mmBtu, for a boiler combusting only fuel oil or gaseous fuel (other than coal-derived fuel) during such control period; or

(3) 0.050 lb/mmBtu, for a boiler combusting any amount of coal or coal-derived fuel during such control period or any other unit not covered by paragraph (a)(4)(iii)(B)(1) or (2) of this section.

(iv) The Administrator will calculate the State's dynamic trading budget for the control period as the sum (converted to tons at a conversion factor of 2,000 lb/ton and rounded to the nearest ton), for all units identified for inclusion in the calculation under paragraph (a)(4)(i) of this section, of the product for each such unit of the heat input amount in mmBtu calculated for the unit under paragraph (a)(4)(ii) of this section multiplied by the NOX emissions rate in lb/mmBtu identified for the unit under paragraph (a)(4)(iii) of this section.

(v)(A) By March 1, 2025 and March 1 of each year thereafter, the Administrator will calculate the dynamic trading budget for each State, in accordance with paragraphs (a)(4)(i) through (iv) of this section and §§ 97.1006(b)(2) and 97.1030 through 97.1035, for the control period in the year after the year of the applicable calculation deadline under this paragraph (a)(4)(v)(A) and will promulgate a notice of data availability of the results of the calculations.

(B) For each notice of data availability required in paragraph (a)(4)(v)(A) of this section, the Administrator will provide an opportunity for submission of objections to the calculations referenced in such notice. Objections shall be submitted by the deadline specified in such notice and shall be limited to addressing whether the calculations (including the identification of the units included in the calculations) are in accordance with the provisions referenced in paragraph (a)(4)(v)(A) of this section.

(C) The Administrator will adjust the calculations to the extent necessary to ensure that they are in accordance with the provisions referenced in paragraph (a)(4)(v)(A) of this section. By May 1 immediately after the promulgation of each notice of data availability required in paragraph (a)(4)(v)(A) of this section, the Administrator will promulgate a notice of data availability of the results of the calculations incorporating any adjustments that the Administrator determines to be necessary and the reasons for accepting or rejecting any objections submitted in accordance with paragraph (a)(4)(v)(B) of this section.

(b) Indian country existing unit set-asides for the control periods in 2023 and thereafter. The Indian country existing unit set-aside for allocations of CSAPR NOX Ozone Season Group 3 allowances for each State for each control period in 2023 and thereafter shall be calculated as the sum of all allowance allocations to units in areas of Indian country within the borders of the State not subject to the State's SIP authority as provided in the applicable notice of data availability for the control period referenced in § 97.1011(a)(2).

(c) New unit set-asides. (1) The new unit set-asides for allocations of CSAPR NOX Ozone Season Group 3 allowances for the control periods in 2021 and 2022 for each State with CSAPR NOX Ozone Season Group 3 trading budgets for such control periods shall be as indicated in table 3 to this paragraph (c)(1):

Table 3 to Paragraph (c)(1)—New Unit Set-Asides by Control Period

[2021-2022 (tons)]

State 2021 2022

Illinois 265 265

Indiana 262 254

Kentucky 309 283

Louisiana 430 430

Maryland 135 115

Michigan 500 482

New Jersey 27 27

New York 168 168

Ohio 291 290

Pennsylvania 335 339

Virginia 185 161

West Virginia 266 261

(2) The new unit set-aside for allocations of CSAPR NOX Ozone Season Group 3 allowances for each State for each control period in 2023 and thereafter shall be calculated as the product (rounded to the nearest allowance) of the State NOX Ozone Season Group 3 trading budget for the State and control period established in accordance with paragraph (a) of this section multiplied by—

(i) 0.09, for Nevada for the control periods in 2023 through 2025;

(ii) 0.06, for Ohio for the control periods in 2023 through 2025;

(iii) 0.05, for each State other than Nevada and Ohio for the control periods in 2023 through 2025; or

(iv) 0.05, for each State for each control period in 2026 and thereafter.

(d) Indian country new unit set-asides for the control periods in 2021 and 2022. The Indian country new unit set-asides for allocations of CSAPR NOX Ozone Season Group 3 allowances for the control periods in 2021 and 2022 for each State with CSAPR NOX Ozone Season Group 3 trading budgets for such control periods shall be as indicated in table 4 to this paragraph (d):

Table 4 to Paragraph (d)—Indian Country New Unit Set-Asides by Control Period

[2021-2022 (tons)]

State 2021 2022

Illinois

Indiana

Kentucky

Louisiana 15 15

Maryland

Michigan 13 12

New Jersey

New York 3 3

Ohio

Pennsylvania

Virginia

West Virginia

(e) Variability limits. (1) The variability limits for the State NOX Ozone Season Group 3 trading budgets for the control periods in 2021 and 2022 for each State with such trading budgets for such control periods shall be as indicated in table 5 to this paragraph (e)(1).

Table 5 to Paragraph (e)(1)—Variability Limits by Control Period

[2021-2022 (tons)]

State 2021 2022

Illinois 2,356 1,911

Indiana 3,571 2,642

Kentucky 3,684 2,951

Louisiana 3,421 3,112

Maryland 504 266

Michigan 3,021 2,581

New Jersey 329 263

New York 856 717

Ohio 2,831 2,052

Pennsylvania 2,535 1,758

Virginia 1,329 818

West Virginia 3,163 2,706

(2) The variability limit for the State NOX Ozone Season Group 3 trading budget for each State for each control period in 2023 and thereafter shall be calculated as the product (rounded to the nearest ton) of the State NOX Ozone Season Group 3 trading budget for the State and control period established in accordance with paragraph (a) of this section multiplied by the greater of—

(i) 0.21; or

(ii) Any excess over 1.00 of the quotient (rounded to two decimal places) of—

(A) The sum for all CSAPR NOX Ozone Season Group 3 units in the State and Indian country within the borders of the State of the total heat input reported for the control period in mmBtu, provided that, for purposes of this paragraph (e)(2)(ii)(A), the 2023 control period for all States shall be deemed to be the period from May 1, 2023 through September 30, 2023, inclusive; divided by

(B) The state-level total heat input amount used in the calculation of the State NOX Ozone Season Group 3 trading budget for the State and control period in mmBtu, as identified in accordance with paragraph (e)(3) of this section.

(3) For purposes of paragraph (e)(2)(ii)(B) of this section, the state-level total heat input amount used in the calculation of a State NOX Ozone Season Group 3 trading budget for a given control period shall be identified as follows:

(i) For a control period in 2023 through 2025, and for a control period in 2026 through 2029 if the State NOX Ozone Season Group 3 trading budget for the State and control period under paragraph (a)(2) of this section is the preset trading budget set forth for the State and control period in table 2 to paragraph (a)(2)(i) of this section, the state-level total heat input amounts shall be as indicated in table 6 to this paragraph (e)(3)(i).

Table 6 to Paragraph (e)(3)(i)—State-Level Total Heat Input Used in Calculations of Preset Trading Budgets by Control Period

[2023-2029 (mmBtu)]

State 2023 2024 2025 2026 2027 2028 2029

Alabama 313,037,541 333,030,691 333,030,691 330,396,046 328,650,653 328,650,653 307,987,882

Arkansas 192,843,561 192,843,561 192,843,561 190,921,052 190,921,052 190,921,052 190,921,052

Illinois 274,005,935 286,568,112 286,568,112 253,219,463 253,219,463 214,086,655 193,900,867

Indiana 356,047,916 330,175,944 330,175,944 302,245,332 302,245,332 277,218,546 236,611,101

Kentucky 301,161,750 301,161,750 295,857,697 295,857,697 295,857,697 293,016,485 274,595,978

Louisiana 280,592,592 280,592,592 278,766,253 278,461,807 277,262,840 277,262,840 277,262,840

Maryland 70,725,007 70,725,007 70,725,007 70,725,007 70,725,007 70,725,007 70,725,007

Michigan 313,846,533 299,124,688 299,124,688 258,225,107 258,225,107 258,225,107 222,314,181

Minnesota 128,893,685 107,821,236 107,821,236 107,821,236 93,890,928 93,890,928 85,707,385

Mississippi 192,978,295 189,415,018 189,279,160 189,279,160 189,279,160 176,004,820 176,004,820

Missouri 284,308,851 249,153,661 249,153,661 249,153,661 248,413,545 248,413,545 248,413,545

Nevada 103,489,785 116,979,117 114,729,782 105,018,415 100,193,805 100,193,805 96,378,269

New Jersey 112,233,231 112,233,231 112,233,231 112,233,231 112,233,231 112,233,231 112,233,231

New York 242,853,661 242,853,661 242,853,661 242,853,661 242,853,661 242,853,661 242,853,661

Ohio 412,292,609 386,560,212 386,560,212 386,560,212 386,560,212 358,992,155 342,075,946

Oklahoma 212,903,386 211,187,283 211,165,691 211,145,820 196,160,642 196,160,642 196,160,642

Pennsylvania 550,993,363 550,993,363 550,993,363 550,993,363 550,993,363 550,993,363 487,590,728

Texas 1,395,116,925 1,395,116,925 1,389,251,813 1,389,251,813 1,356,192,532 1,320,040,162 1,280,014,875

Utah 164,519,648 166,407,822 166,407,822 127,217,396 127,217,396 127,217,396 127,217,396

Virginia 202,953,791 194,015,719 194,015,719 194,015,719 194,015,719 194,015,719 186,848,587

West Virginia 306,845,495 273,151,957 273,151,957 273,151,957 273,151,957 273,151,957 273,151,957

Wisconsin 220,794,282 220,792,155 213,038,308 185,469,476 151,343,287 151,343,287 151,343,287

(ii) For a control period in 2026 through 2029 if the State NOX Ozone Season Group 3 trading budget for the State and control period under paragraph (a)(2) of this section is the dynamic trading budget for the State and control period referenced in the applicable notice promulgated under paragraph (a)(4)(v)(C) of this section, and for a control period in 2030 and thereafter, the state-level total heat input amount shall be the amount for the State and control period calculated under paragraph (a)(4)(ii)(B)(2) of this section.

(f) Relationship of trading budgets, set-asides, and variability limits. Each State NOX Ozone Season Group 3 trading budget in this section includes any tons in an Indian country existing unit set-aside, a new unit set-aside, or an Indian country new unit set-aside but does not include any tons in a variability limit.