# 40 CFR § 74.26 - Allocation formula.

§ 74.26 Allocation formula.

(a) The Administrator will calculate the annual allowance allocation for a combustion source based on the data, corrected as necessary, under § 74.20 through § 74.25 as follows:

(1) For combustion sources for which the current promulgated SO2 emissions limit under § 74.25 is greater than or equal to the current allowable SO2 emissions rate under § 74.24, the number of allowances allocated for each year equals:

$\text{Allowances}=\frac{\left[\begin{array}{c}\text{baseline}\\ \text{or}\\ \text{alternative baseline}\end{array}\right]×\text{the lesser of}\left[\begin{array}{c}\text{The actual}{\mathrm{CO}}_{2}\phantom{\rule{0ex}{0ex}}\text{emissions rate}\\ \mathrm{or}\\ \text{The 1985 allowable}{\mathrm{SO}}_{2}\phantom{\rule{0ex}{0ex}}\text{emissions rate}\\ \mathrm{or}\\ \text{The current allowable}{\mathrm{SO}}_{2}\phantom{\rule{0ex}{0ex}}\text{emissions rate}\end{array}\right]}{2000}$

(2) For combustion sources for which the current promulgated SO2 emissions limit under § 74.25 is less than the current allowable SO2 emissions rate under § 74.24.

(i) The number of allowances for each year ending prior to the effective date of the promulgated SO2 emissions limit equals:

$\text{Allowances}=\frac{\left[\begin{array}{c}\text{baseline}\\ \text{or}\\ \text{alternative baseline}\end{array}\right]×\text{the lesser of}\left[\begin{array}{c}\text{The actual}{\mathrm{SO}}_{2}\phantom{\rule{0ex}{0ex}}\text{emissions rate}\\ \mathrm{or}\\ \text{The 1985 allowable}{\mathrm{SO}}_{2}\phantom{\rule{0ex}{0ex}}\text{emissions rate}\\ \mathrm{or}\\ \text{The current allowable}{\mathrm{SO}}_{2}\phantom{\rule{0ex}{0ex}}\text{emissions rate}\end{array}\right]}{2000}$

(ii) The number of allowances for the year that includes the effective date of the promulgated SO2 emissions limit and for each year thereafter equals:

$\text{Allowances}=\frac{\left[\begin{array}{c}\text{baseline}\\ \text{or}\\ \text{alternative baseline}\end{array}\right]×\text{the lesser of}\left[\begin{array}{c}\text{The actual}{\mathrm{SO}}_{2}\phantom{\rule{0ex}{0ex}}\text{emissions rate}\\ \mathrm{or}\\ \text{The 1985 allowable}{\mathrm{SO}}_{2}\phantom{\rule{0ex}{0ex}}\text{emissions rate}\\ \mathrm{or}\\ \text{The current promulgated}{\mathrm{SO}}_{2}\phantom{\rule{0ex}{0ex}}\text{emissions rate}\end{array}\right]}{2000}$

[60 FR 17115, Apr. 4, 1995, as amended at 63 FR 18841, Apr. 16, 1998]