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        EPA to Restart CSAPR in January

        11.21.14

        The U.S. Environmental Protection Agency (EPA) announced today it will restart the previously vacated Cross-state Air Pollution Rule (CSAPR) in January 2015. EPA also confirmed it will implement CSAPR with no further modifications to the current rule.

        In an email sent to representatives of regulated units, EPA confirmed that these units will be subject to CSAPR starting in 2015. The EPA also confirmed that 2014 will be the last calendar year in which the CAIR NOx and CAIR SO2 programs apply.

        In addition, EPA has indicated that it will “re-vintage” CSAPR allowances that were distributed before the original court decision to vacate the program was handed down. As a result, 2012-vintage CSAPR allowances will now be 2015-vintage allowances, and 2013-vintage CSAPR allowances will now be 2016-vintage allowances.

        CSAPR is being re-instated next year in the wake of a U.S. Supreme Court decision in April of this year that reversed a D.C. Circuit decision vacating the program. Subsequently, the D.C. Circuit Court granted EPA’s motion and provided a schedule for the remaining legal challenges to CSAPR.

        Evolution Markets’ Paul Tesoriero has published an overview of CSAPR in anticipation of the restart of the program. You can find Paul’s analysis HERE.

        For more information on CSAPR or to transact in the market, please contact the Emissions Markets Desk at: +1 914.323.0255.

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