EPA Hands Out 2024 Pollution Credits: Yawn-Worthy Math for Power Plants
Published Date: 2/28/2025
Notice
Summary
The EPA just shared the first numbers for how pollution allowances will be handed out to certain power plants for 2024 under the Cross-State Air Pollution Rule. If you think your plant’s info is wrong or you have questions, you’ve got until March 31, 2025, to speak up. This affects states and power plants working to reduce air pollution and helps make sure new units get their fair share of allowances.
Analyzed Economic Effects
6 provisions identified: 2 benefits, 3 costs, 1 mixed.
How new units receive NUSA allowances
Under the posted preliminary calculations, each eligible 'new' unit is generally allocated a 2024 NUSA allowance equal to its 2024 control-period emissions as reported under 40 CFR part 75, unless the sum of those allocations would exceed the state's NUSA, in which case allocations are reduced pro rata.
Group 3 trading program allocations stayed
The EPA states it has no current plans to determine NUSA allocations for the CSAPR NOX Ozone Season Group 3 Trading Program for the 2024 control period because implementation of that program is administratively stayed for all sources; the stay will remain in place for 2024 and future control periods unless changed by a future rulemaking.
Allocations subject to later correction
EPA warns that an allocation or lack of allocation to a given unit does not determine whether the trading program applies to that unit, and allocations are subject to correction if a unit is later found not to be an affected unit as of the start of the control period.
Preliminary NUSA allocations posted online
If you operate or represent a power plant or state program covered by CSAPR, the EPA has posted unit-by-unit spreadsheets showing preliminary 2024 new unit set-aside (NUSA) allowance allocations on its website (www.epa.gov/csapr/csapr-allowance-allocations#nusa). If you think the data or calculations are wrong, you may email objections to [email protected] by March 31, 2025.
Emissions before monitor certification excluded
EPA notes that emissions occurring before a unit's monitor certification deadline are not counted as 2024 control-period emissions for determining NUSA allocations, under the cited regulations.
Remaining allowances go to existing units
Any allowances in a state's 2024 NUSA not allocated to eligible new units are preliminarily allocated to the state's existing units in proportion to those existing units' prior allocations from the non-NUSA portion of the state's emissions budget.
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Key Dates
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