Clean Air Interstate Rule (CAIR)

Clean Air Interstate Rule (CAIR) CAIR Requirements for SIPs Office of Air and Radiation March 2005

Overview of New Part 51 Sections • 51.123 CAIR SIP revision for NOx • 51.124 CAIR SIP revision for SO2 • 51.125 State reporting for CAIR

51.123 -- CAIR NOx requirements • Structure -- • (a) and (b) -- finding and requirement that certain States must submit a SIP revision to eliminate NOx in amounts that contribute significantly to one or more other States for PM2.5 or ozone • (c)(1) list of PM2.5 and ozone States • (c)(2) list of PM2.5 States • (c)(3) list of ozone States • (d) SIP revision requirements including 18 month deadline • (e) -- (o) annual NOx requirements • (q) -- (bb) ozone season NOx requirements • (cc) definitions • (dd) Provisions for NH

51.123 (e)--(o) CAIR Annual NOx requirements 51.123(e) • SIPs must contain control measures and demonstration that the State’s annual EGU NOx budget and annual non-EGU NOx reduction requirement, as applicable, are met. • Annual EGU NOx Budgets are given • Procedures for calculating annual non-EGU reduction requirements are given for States choosing to get a portion of reductions from non-EGUs (uses baseline emissions projections in CAIR baselines TSD) • Specifies State CSPs and distribution requirements

51.123(f) • Enforcement methods (compliance monitoring, violations, authority) • Emissions cap required for EGUs, large non-EGU boilers and turbines, others (unless not practicable)

51.123(g), non-EGU reduction eligibility criteria • Not required by State or federal government as of date of submission of SIP revision • Historic uncontrolled baseline with Part 75 monitoring or of the same quality (to the maximum extent possible) • 2009 and 2015 uncontrolled projected baseline • 2009 and 2015 controlled projected baseline • Goal is to ensure reductions are real

51.123(h)--(n) “general” SIP requirements • Addresses data availability, compliance monitoring, legal authority, resources, etc. • This includes the requirement for Part 75 monitoring for sources controlled under this part • All EGUs and large boilers and turbines • All others unless not possible--contains specs for alternatives

51.123(o) -- Use of Model Rule • Automatic approval of revision if substantively identical except as specified: • may decline opt-ins • may decline suggested allocation methodology • do not necessarily have to be in any of the other EPA-administered programs • Other variations must be reviewed and are not automatically approved

51.123 (q)--(bb) CAIR Ozone Season NOx requirements 51.123(q) • Nearly identical to 51.123(e) • SIPs must contain control measures and demonstration that the State’s ozone season EGU NOx budget and ozone season non-EGU NOx reduction requirement, as applicable, are met. • Ozone Season EGU NOx Budgets are given • Procedures for calculating ozone season non-EGU reduction requirements are given for States choosing to get a portion of reductions from non-EGUs (uses baseline emissions projections in CAIR baselines TSD) • Allows the use of 2003-2008 NOx SIP Call allowances

51.123(r) • enforcement methods (compliance monitoring, violations, authority) • Cap required for EGUs, large non-EGU boilers and turbines, others (unless not practicable)

51.123(s), non-EGU reduction eligibility criteria • Parallels 51.123 (g) • Baselines, projected uncontrolled, projected controlled • Cannot include control measures already adopted or implemented at the time of the SIP revision • Requires Part 75 monitoring for EGUs and large boilers and turbines • Requires Part 75 or comparable for all others 51.123(u)

51.123(aa) -- Use of Model Rule • Automatic approval of revision if substantively identical except as specified: • expand applicability to include non-EGUs subject to NOx SIP Call trading • may decline opt-ins • may decline suggested allocation methodology • do not necessarily have to be in any of the other EPA-administered programs • Other variations must be reviewed and are not automatically approved

51.123(bb) -- Interaction with 51.121 • For States that use the CAIR ozone season NOx model rule, trading sources are no longer subject o the NOx SIP Call provided: • The CAIR ozone season EGU NOx budget is less than the NOx SIP Call EGU NOx budget • If not, then the State must use its NOx SIP Call budget instead • Rhode Island can participate in the CAIR ozone season NOx trading program through use of the model rule

51.123(dd) -- Provisions for NH • New Hampshire can participate in the CAIR ozone season NOx trading program through use of the model rule

51.124 -- CAIR SO2 requirements • Structure -- • (a) and (b) -- finding and requirement that certain States must submit a SIP revision to eliminate SO2 in amounts that contribute significantly to one or more other States for PM2.5 • (c) list of PM2.5 States • (d) SIP revision requirements including 18 month deadline • (e) -- (p) annual SO2 requirements • (q) definitions

51.124 (e)--(p) CAIR Annual SO2 requirements 51.124(e) • SIPs must contain control measures and demonstration that the State’s annual EGU SO2 budget and annual non-EGU SO2 reduction requirement, as applicable, are met. • Annual EGU SO2 Budgets are given • Procedures for calculating annual non-EGU reduction requirements are given for States choosing to get a portion of reductions from non-EGUs

51.124(f) • enforcement methods (compliance monitoring, violations, authority) • Cap required for EGUs, large non-EGU boilers and turbines, others (unless not practicable)

51.124(g), non-EGU reduction eligibility criteria • Not required by State or federal government as of date of submission of SIP revision • Historic uncontrolled baseline with Part 75 monitoring or comparable • 2009 and 2015 uncontrolled projected baseline • 2009 and 2015 controlled projected baseline

51.124(h)--(n) “general” SIP requirements • Addresses data availability, compliance monitoring, legal authority, resources, etc. • This includes the requirement for Part 75 monitoring for sources controlled under this part • All EGUs and large boilers and turbines • All others unless not possible--contains specs for alternatives

51.124(o) -- Use of Model Rule • Automatic approval of revision if substantively identical except as specified: • may decline opt-ins • do not necessarily have to be in the EPA-administered NOx programs • Other trading program variations must be reviewed and are not automatically approved

51.124(p) -- Retirement of Excess SO2 Allowances • For States not using the CAIR SO2 model rule: • SIP must include a mechanism to each year permanently retire excess Acid Rain allowances • Procedure for determining excess is included

Part 51.125 -- State reporting relating to SO2 and NOx emission budgets Frequency -- Annually, all sources that are controlled under 51.123 or 51.124. Triennially, all sources in the State. Content -- PM States must report annual SO2 and NOx emissions. Ozone States must report ozone season and summer daily NOx emissions. Timing -- First reporting year: 2008 Due: 17 months after the end of the calendar year Special Case -- States do not have to provide annual reporting of pollutants for sources using Part 75 and reporting to EPA.

Part 51 amendments • 51.121 NOx SIP Call amended to reflect that EPA will not administer after 9/30/2008 and that States will need to change rules accordingly. • 51.122 The 2007 NOx emissions report is no longer required.

Summary • One SIP revision for CAIR • Automatic approval for trading programs that are substantively identical to the model rules • We’ll all work together to get there

Clean Air Interstate Rule (CAIR)