I have a 2008 outback 2.5i and the sticker says made in usa.

 

Trying to replace the engine but unsure what's a good option. It's a  usdm car with original engine but unsure if the engine would be a jdm. The engine is federal emissions and has avls

 

On the parts site it lists the two engines that goes in the car

Get a new Subaru block with 3 year 36,000 mile warranty ( I think I heard they even bumped the mileage component up higher). 
https://www.ebay.com/itm/SUBARU-GENUINE-LEGACY-FORESTER-IMPREZA-SHORT-BLOCK-ENGINE-EJ253-2006-/283726043624?_trksid=p2349526.m4383.l4275.c1#viTabs_0

(Resurface the heads first - like $150, no need for a full valve job.  And use Subaru gaskets)

If you're buying used get a 2008-2009 legacy or outback engine. 

There are ways to get other year/engines to work.

You do not have a JDM engine and federal/CA shouldn't matter for just replacing the block.  You're not replacing the electronics or converters.

www.car-part.com will give you a good idea of what's at the yards.

use your VIN on the parts site, it'll only give you one option.

Or, look at the plate on the LH strut tower in the engine bay for the original complete engine code.