Allowance Allocation

{
  "id": "MLC-T-ENV-001115",
  "term": "Allowance Allocation",
  "field": "Environment",
  "definition": "1. Initial crediting of an allowance by the Administrator to an Allowance Tracking System compliance account or general account. [40 CFR 72.2]With regard to TR SO2 Group 1 allowances, the determination by the Administrator, State, or permitting authority, in accordance with this subpart and any SIP revision submitted by the State and approved by the Administrator under § 52.39(d), (e), or (f) of this chapter, of the amount of such TR SO2 Group 1 allowances to be initially credited, at no cost to the recipient, to:(1) A TR SO2 Group 1 unit;(2) A new unit set-aside;(3) An Indian country new unit set-aside; or(4) An entity not listed in paragraphs (1) through (3) of this definition;(5) Provided that, if the Administrator, State, or permitting authority initially credits, to a TR SO2 Group 1 unit qualifying for an initial credit, a credit in the amount of zero TR SO2 Group 1 allowances, the TR SO2 Group 1 unit will be treated as being allocated an amount (i.e., zero) of TR SO2 Group 1 allowances.\n\n2. With regard to NOX allowances, the determination by the Administrator of the number of NOX allowances to be initially credited to a NOX Budget unit or an allocation set-aside. [40 CFR 97.2]With regard to TR NOX Ozone Season allowances, the determination by the Administrator, State, or permitting authority, in accordance with this subpart and any SIP revision submitted by the State and approved by the Administrator under § 52.38(b)(3), (4), or (5) of this chapter, of the amount of such TR NOX Ozone Season allowances to be initially credited, at no cost to the recipient, to:(1) A TR NOX Ozone Season unit;(2) A new unit set-aside;(3) An Indian country new unit set-aside; or(4) An entity not listed in paragraphs (1) through (3) of this definition;(5) Provided that, if the Administrator, State, or permitting authority initially credits, to a TR NOX Ozone Season unit qualifying for an initial credit, a credit in the amount of zero TR NOX Ozone Season allowances, the TR NOX Ozone Season unit will be treated as being allocated an amount (i.e., zero) of TR NOX Ozone Season allowances.\n\n3. With regard to CAIR NOX allowances, the determination by a permitting authority or the Administrator of the amount of such CAIR NOX allowances to be initially credited to a CAIR NOX unit, a new unit set-aside, or other entity. [40 CFR 97.102]With regard to TR SO2 Group 2 allowances, the determination by the Administrator, State, or permitting authority, in accordance with this subpart and any SIP revision submitted by the State and approved by the Administrator under § 52.39(g), (h), or (i) of this chapter, of the amount of such TR SO2 Group 2 allowances to be initially credited, at no cost to the recipient, to:(1) A TR SO2 Group 2 unit;(2) A new unit set-aside;(3) An Indian country new unit set-aside; or(4) An entity not listed in paragraphs (1) through (3) of this definition;(5) Provided that, if the Administrator, State, or permitting authority initially credits, to a TR SO2 Group 2 unit qualifying for an initial credit, a credit in the amount of zero TR SO2 Group 2 allowances, the TR SO2 Group 2 unit will be treated as being allocated an amount (i.e., zero) of TR SO2 Group 2 allowances.\n\n4. With regard to CAIR SO2 allowances issued under the Acid Rain Program, the determination by the Administrator of the amount of such CAIR SO2 allowances to be initially credited to a CAIR SO2 unit or other entity and, with regard to CAIR SO2 allowances issued under § 97.288 or provisions of a State implementation plan that are approved under § 51.124(o)(1) or (2) or (r) of this chapter, the determination by a permitting authority of the amount of such CAIR SO2 allowances to be initially credited to a CAIR SO2 unit or other entity.\n\n5. With regard to CAIR NOX Ozone Season allowances, the determination by a permitting authority or the Administrator of the amount of such CAIR NOX Ozone Season allowances to be initially credited to a CAIR NOX Ozone Season unit, a new unit set-aside, or other entity.\n\n6. With regard to TR NOX Annual allowances, the determination by the Administrator, State, or permitting authority, in accordance with this subpart and any SIP revision submitted by the State and approved by the Administrator under § 52.38(a)(3), (4), or (5) of this chapter, of the amount of such TR NOX Annual allowances to be initially credited, at no cost to the recipient, to:(1) A TR NOX Annual unit;(2) A new unit set-aside;(3) An Indian country new unit set-aside; or(4) An entity not listed in paragraphs (1) through (3) of this definition;(5) Provided that, if the Administrator, State, or permitting authority initially credits, to a TR NOX Annual unit qualifying for an initial credit, a credit in the amount of zero TR NOX Annual allowances, the TR NOX Annual unit will be treated as being allocated an amount (i.e., zero) of TR NOX Annual allowances.\n\n7. A method of distributing allowances to regulated sources.",
  "abbreviation": "AA",
  "references": [
    "40 CFR 97.602 (CFR 2013)",
    "40 CFR 97.502 (CFR 2013)",
    "40 CFR 97.702 (CFR 2013)",
    "40 CFR 97.202 (CFR 2013)",
    "40 CFR 97.302 (CFR 2013)",
    "40 CFR 97.402 (CFR 2013)",
    "Emissions Trading Terms Glossary"
  ],
  "url": "https://mlchart.com/terminology/environment/allowance-allocation/"
}