(a) For each control period in 2015 and thereafter and for the CSAPR NOX Ozone Season Group 1 units in each State, the Administrator will allocate CSAPR NOX Ozone Season Group 1 allowances to the CSAPR NOX Ozone Season Group 1 units as follows:

(1) The CSAPR NOX Ozone Season Group 1 allowances will be allocated to the following CSAPR NOX Ozone Season Group 1 units, except as provided in paragraph (a)(10) of this section:

(i) CSAPR NOX Ozone Season Group 1 units that are not allocated an amount of CSAPR NOX Ozone Season Group 1 allowances in the notice of data availability issued under §97.511(a)(1);

(ii) CSAPR NOX Ozone Season Group 1 units whose allocation of an amount of CSAPR NOX Ozone Season Group 1 allowances for such control period in the notice of data availability issued under §97.511(a)(1) is covered by §97.511(c)(2) or (3);

(iii) CSAPR NOX Ozone Season Group 1 units that are allocated an amount of CSAPR NOX Ozone Season Group 1 allowances for such control period in the notice of data availability issued under §97.511(a)(1), which allocation is terminated for such control period pursuant to §97.511(a)(2), and that operate during the control period immediately preceding such control period; or

(iv) For purposes of paragraph (a)(9) of this section, CSAPR NOX Ozone Season Group 1 units under §97.511(c)(1)(ii) whose allocation of an amount of CSAPR NOX Ozone Season Group 1 allowances for such control period in the notice of data availability issued under §97.511(b)(1)(ii)(B) is covered by §97.511(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 NOX Ozone Season Group 1 allowances in an amount equal to the applicable amount of tons of NOX emissions as set forth in §97.510(a) and will be allocated additional CSAPR NOX Ozone Season Group 1 allowances (if any) in accordance with §97.511(a)(2) and (c)(5) and paragraph (b)(10) of this section.

(3) The Administrator will determine, for each CSAPR NOX Ozone Season Group 1 unit described in paragraph (a)(1) of this section, an allocation of CSAPR NOX Ozone Season Group 1 allowances for the later of the following control periods and for each subsequent control period:

(i) The control period in 2015;

(ii) The first control period after the control period in which the CSAPR NOX Ozone Season Group 1 unit commences commercial operation;

(iii) For a unit described in paragraph (a)(1)(ii) of this section, the first control period in which the CSAPR NOX Ozone Season Group 1 unit operates in the State after operating in another jurisdiction and for which the unit is not already allocated one or more CSAPR NOX Ozone Season Group 1 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.

(4)

(i) The allocation to each CSAPR NOX Ozone Season Group 1 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 NOX emissions during the immediately preceding control period.

(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 CSAPR NOX Ozone Season Group 1 allowances determined for all such CSAPR NOX Ozone Season Group 1 units under paragraph (a)(4)(i) of this section in the State for such control period.

(6) If the amount of CSAPR NOX Ozone Season Group 1 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 NOX Ozone Season Group 1 allowances determined for each such CSAPR NOX Ozone Season Group 1 unit under paragraph (a)(4)(i) of this section.

(7) If the amount of CSAPR NOX Ozone Season Group 1 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 NOX Ozone Season Group 1 unit the amount of the CSAPR NOX Ozone Season Group 1 allowances determined under paragraph (a)(4)(i) of this section for the unit, multiplied by the amount of CSAPR NOX Ozone Season Group 1 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) The Administrator will notify the public, through the promulgation of the notices of data availability described in §97.511(b)(1)(i) and (ii), of the amount of CSAPR NOX Ozone Season Group 1 allowances allocated under paragraphs (a)(2) through (7) and (12) of this section for such control period to each CSAPR NOX Ozone Season Group 1 unit eligible for such allocation.

(9) If, after completion of the procedures under paragraphs (a)(5) through (8) of this section for such control period, any unallocated CSAPR NOX Ozone Season Group 1 allowances remain in the new unit set-aside for the State for such control period, the Administrator will allocate such CSAPR NOX Ozone Season Group 1 allowances as follows—

(i)

(A) For the control period in 2015 or 2016, the Administrator will determine, for each unit described in paragraph (a)(1) of this section that commenced commercial operation during the period starting May 1 of the year before the year of such control period and ending August 31 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 NOX Ozone Season Group 1 allowances referenced in the notice of data availability required under §97.511(b)(1)(ii) for the unit for such control period;

(B) For the control period in 2017 or any subsequent year, 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 NOX Ozone Season Group 1 allowances referenced in the notice of data availability required under §97.511(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 NOX Ozone Season Group 1 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 NOX Ozone Season Group 1 allowances determined for each such CSAPR NOX Ozone Season Group 1 unit under paragraph (a)(9)(i) of this section; and

(iv) If the amount of unallocated CSAPR NOX Ozone Season Group 1 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 NOX Ozone Season Group 1 unit the amount of the CSAPR NOX Ozone Season Group 1 allowances determined under paragraph (a)(9)(i) of this section for the unit, multiplied by the amount of unallocated CSAPR NOX Ozone Season Group 1 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 such control period, any unallocated CSAPR NOX Ozone Season Group 1 allowances remain in the new unit set-aside for the State for such control period, the Administrator will allocate to each CSAPR NOX Ozone Season Group 1 unit that is in the State, is allocated an amount of CSAPR NOX Ozone Season Group 1 allowances in the notice of data availability issued under §97.511(a)(1), and continues to be allocated CSAPR NOX Ozone Season Group 1 allowances for such control period in accordance with §97.511(a)(2), an amount of CSAPR NOX Ozone Season Group 1 allowances equal to the following: The total amount of such remaining unallocated CSAPR NOX Ozone Season Group 1 allowances in such new unit set-aside, multiplied by the unit's allocation under §97.511(a) for such control period, divided by the remainder of the amount of tons in the applicable State NOX Ozone Season Group 1 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) The Administrator will notify the public, through the promulgation of the notices of data availability described in §97.511(b)(1)(iii), (iv), and (v), of the amount of CSAPR NOX Ozone Season Group 1 allowances allocated under paragraphs (a)(9), (10), and (12) of this section for such control period to each CSAPR NOX Ozone Season Group 1 unit eligible for such allocation.

(12)

(i) Notwithstanding the requirements of paragraphs (a)(2) through (11) of this section, if the calculations of allocations of a new unit set-aside for a control period in a given year under paragraph (a)(7) of this section, paragraphs (a)(6) and (9)(iv) of this section, or paragraphs (a)(6), (9)(iii), and (10) of this section would otherwise result in total allocations of such new unit set-aside exceeding the total amount of such new unit set-aside, then the Administrator will adjust the results of the calculations under paragraph (a)(7), (9)(iv), or (10) of this section, as applicable, as follows. The Administrator will list the CSAPR NOX Ozone Season Group 1 units in descending order based on the amount of such units' allocations under paragraph (a)(7), (9)(iv), or (10) of this section, as applicable, and, in cases of equal allocation amounts, in alphabetical order of the relevant source's name and numerical order of the relevant unit's identification number, and will reduce each unit's allocation under paragraph (a)(7), (9)(iv), or (10) of this section, as applicable, by one CSAPR NOX Ozone Season Group 1 allowance (but not below zero) in the order in which the units are listed and will repeat this reduction process as necessary, until the total allocations of such new unit set-aside equal the total amount of such new unit set-aside.

(ii) Notwithstanding the requirements of paragraphs (a)(10) and (11) of this section, if the calculations of allocations of a new unit set-aside for a control period in a given year under paragraphs (a)(6), (9)(iii), and (10) of this section would otherwise result in a total allocations of such new unit set-aside less than the total amount of such new unit set-aside, then the Administrator will adjust the results of the calculations under paragraph (a)(10) of this section, as follows. The Administrator will list the CSAPR NOX Ozone Season Group 1 units in descending order based on the amount of such units' allocations under paragraph (a)(10) of this section and, in cases of equal allocation amounts, in alphabetical order of the relevant source's name and numerical order of the relevant unit's identification number, and will increase each unit's allocation under paragraph (a)(10) of this section by one CSAPR NOX Ozone Season Group 1 allowance in the order in which the units are listed and will repeat this increase process as necessary, until the total allocations of such new unit set-aside equal the total amount of such new unit set-aside.

(b) For each control period in 2015 and thereafter and for the CSAPR NOX Ozone Season Group 1 units located in Indian country within the borders of each State, the Administrator will allocate CSAPR NOX Ozone Season Group 1 allowances to the CSAPR NOX Ozone Season Group 1 units as follows:

(1) The CSAPR NOX Ozone Season Group 1 allowances will be allocated to the following CSAPR NOX Ozone Season Group 1 units, except as provided in paragraph (b)(10) of this section:

(i) CSAPR NOX Ozone Season Group 1 units that are not allocated an amount of CSAPR NOX Ozone Season Group 1 allowances in the notice of data availability issued under §97.511(a)(1); or

(ii) For purposes of paragraph (b)(9) of this section, CSAPR NOX Ozone Season Group 1 units under §97.511(c)(1)(ii) whose allocation of an amount of CSAPR NOX Ozone Season Group 1 allowances for such control period in the notice of data availability issued under §97.511(b)(2)(ii)(B) is covered by §97.511(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 NOX Ozone Season Group 1 allowances in an amount equal to the applicable amount of tons of NOX emissions as set forth in §97.510(a) and will be allocated additional CSAPR NOX Ozone Season Group 1 allowances (if any) in accordance with §97.511(c)(5).

(3) The Administrator will determine, for each CSAPR NOX Ozone Season Group 1 unit described in paragraph (b)(1) of this section, an allocation of CSAPR NOX Ozone Season Group 1 allowances for the later of the following control periods and for each subsequent control period:

(i) The control period in 2015; and

(ii) The first control period after the control period in which the CSAPR NOX Ozone Season Group 1 unit commences commercial operation.

(4)

(i) The allocation to each CSAPR NOX Ozone Season Group 1 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 NOX emissions during the immediately preceding control period.

(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 CSAPR NOX Ozone Season Group 1 allowances determined for all such CSAPR NOX Ozone Season Group 1 units under paragraph (b)(4)(i) of this section in Indian country within the borders of the State for such control period.

(6) If the amount of CSAPR NOX Ozone Season Group 1 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 NOX Ozone Season Group 1 allowances determined for each such CSAPR NOX Ozone Season Group 1 unit under paragraph (b)(4)(i) of this section.

(7) If the amount of CSAPR NOX Ozone Season Group 1 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 NOX Ozone Season Group 1 unit the amount of the CSAPR NOX Ozone Season Group 1 allowances determined under paragraph (b)(4)(i) of this section for the unit, multiplied by the amount of CSAPR NOX Ozone Season Group 1 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) The Administrator will notify the public, through the promulgation of the notices of data availability described in §97.511(b)(2)(i) and (ii), of the amount of CSAPR NOX Ozone Season Group 1 allowances allocated under paragraphs (b)(2) through (7) and (12) of this section for such control period to each CSAPR NOX Ozone Season Group 1 unit eligible for such allocation.

(9) If, after completion of the procedures under paragraphs (b)(5) through (8) of this section for such control period, any unallocated CSAPR NOX Ozone Season Group 1 allowances remain in the Indian country new unit set-aside for the State for such control period, the Administrator will allocate such CSAPR NOX Ozone Season Group 1 allowances as follows—

(i)

(A) For the control period in 2015 or 2016, the Administrator will determine, for each unit described in paragraph (b)(1) of this section that commenced commercial operation during the period starting May 1 of the year before the year of such control period and ending August 31 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 NOX Ozone Season Group 1 allowances referenced in the notice of data availability required under §97.511(b)(2)(ii) for the unit for such control period;

(B) For the control period in 2017 or any subsequent year, 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 NOX Ozone Season Group 1 allowances referenced in the notice of data availability required under §97.511(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 NOX Ozone Season Group 1 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 NOX Ozone Season Group 1 allowances determined for each such CSAPR NOX Ozone Season Group 1 unit under paragraph (b)(9)(i) of this section; and

(iv) If the amount of unallocated CSAPR NOX Ozone Season Group 1 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 NOX Ozone Season Group 1 unit the amount of the CSAPR NOX Ozone Season Group 1 allowances determined under paragraph (b)(9)(i) of this section for the unit, multiplied by the amount of unallocated CSAPR NOX Ozone Season Group 1 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 such control period, any unallocated CSAPR NOX Ozone Season Group 1 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 NOX Ozone Season Group 1 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(b)(4) or (5) of this chapter covering such control period, include such unallocated CSAPR NOX Ozone Season Group 1 allowances in the portion of the State NOX Ozone Season Group 1 trading budget that may be allocated for such control period in accordance with such SIP revision.

(11) The Administrator will notify the public, through the promulgation of the notices of data availability described in §97.511(b)(2)(iii), (iv), and (v), of the amount of CSAPR NOX Ozone Season Group 1 allowances allocated under paragraphs (b)(9), (10), and (12) of this section for such control period to each CSAPR NOX Ozone Season Group 1 unit eligible for such allocation.

(12)

(i) Notwithstanding the requirements of paragraphs (b)(2) through (11) of this section, if the calculations of allocations of an Indian country new unit set-aside for a control period in a given year under paragraph (b)(7) of this section, paragraphs (b)(6) and (9)(iv) of this section, or paragraphs (b)(6), (9)(iii), and (10) of this section would otherwise result in total allocations of such Indian country new unit set-aside exceeding the total amount of such Indian country new unit set-aside, then the Administrator will adjust the results of the calculations under paragraph (b)(7), (9)(iv), or (10) of this section, as applicable, as follows. The Administrator will list the CSAPR NOX Ozone Season Group 1 units in descending order based on the amount of such units' allocations under paragraph (b)(7), (9)(iv), or (10) of this section, as applicable, and, in cases of equal allocation amounts, in alphabetical order of the relevant source's name and numerical order of the relevant unit's identification number, and will reduce each unit's allocation under paragraph (b)(7), (9)(iv), or (10) of this section, as applicable, by one CSAPR NOX Ozone Season Group 1 allowance (but not below zero) in the order in which the units are listed and will repeat this reduction process as necessary, until the total allocations of such Indian country new unit set-aside equal the total amount of such Indian country new unit set-aside.

(ii) Notwithstanding the requirements of paragraphs (b)(10) and (11) of this section, if the calculations of allocations of an Indian country new unit set-aside for a control period in a given year under paragraphs (b)(6), (9)(iii), and (10) of this section would otherwise result in a total allocations of such Indian country new unit set-aside less than the total amount of such Indian country new unit set-aside, then the Administrator will adjust the results of the calculations under paragraph (b)(10) of this section, as follows. The Administrator will list the CSAPR NOX Ozone Season Group 1 units in descending order based on the amount of such units' allocations under paragraph (b)(10) of this section and, in cases of equal allocation amounts, in alphabetical order of the relevant source's name and numerical order of the relevant unit's identification number, and will increase each unit's allocation under paragraph (b)(10) of this section by one CSAPR NOX Ozone Season Group 1 allowance in the order in which the units are listed and will repeat this increase process as necessary, until the total allocations of 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 74610, Oct. 26, 2016]