FirstEnergy Solutions CSAPR Emission Allowance Auction

On July 6, 2011, the US Environmental Protection Agency finalized the Cross-State Air Pollution Rule (CSAPR) which requires 27 states to reduce power plant emissions that cross state lines and contribute to ground level ozone and fine particle pollution in other states. The CSAPR allows unlimited trading of emission allowances between power plants within the same state and between different states, as long as state pollution control obligations are met.

In November 2011, FirstEnergy Solutions Corp. held an auction to sell emission allowances for 2012 and 2013. The following products were offered in the FirstEnergy Solutions CSAPR Emission Allowance Auction:

Product Year
CSAPR Group-1 SO2 Allowances 2012
CSAPR Group-1 SO2 Allowances 2013
CSAPR Annual NOx Allowances 2012
CSAPR Annual NOx Allowances 2013
CSAPR Seasonal NOx Allowances 2012
CSAPR Seasonal NOx Allowances 2013

CRA International managed the auction process. A multi-product, ascending-price, clock bidding format was used. For additional information regarding the FirstEnergy Solutions CSAPR Emission Allowance Auction and to receive updates please register on this Information Website. Click here to register.


Update as of May 2016:

On April 29, 2014 the U.S. Supreme Court upheld the U.S. Environmental Protection Agency’s Cross State Air Pollution Rule, otherwise known as CSAPR or the “Transport Rule,” reversing a lower court decision that had vacated that rule in late December of 2011, only days before the new rule was set to go into effect. CSAPR was reinstated beginning January 1, 2015 for SO2 and annual NOx reductions and May 1, 2015 for ozone season NOx reductions. Phase II of CSAPR, originally slated to go into effect in 2014, will now begin in 2017 along with the reduced SO2 allocations proposed with the original rule. On November 16, 2015, in an effort to meet the 2008 National Ambient Air Quality Standards, the EPA proposed an update to CSAPR to reduce summertime NOx emissions. Drastically reducing the Seasonal NOx allocations beginning in 2017, the EPA’s latest rule will have a significant impact on any non-SCR coal units remaining.

The CSAPR rule allows unlimited trading of emission allowances between power plants within the same state and between different states, as long as state pollution control obligations are met. Though a second FES auction has not been scheduled yet for any CSAPR products, FES remains active in the CSAPR market.

Any questions concerning CSAPR products should be directed to James Meehan @ (330) 315-6876.

Register
Sections "Documents" and "Ask" of this Website are visible only to Registered Users of this Website. If you want to view the documents or to submit a question about the Auction described on this Website, please click here to register
Copyright © 2016 CRA International, Inc.   |  Privacy Statement  |  Terms Of Use