1 / 19

Western Emissions Budget (WEB) Trading Program: Model Rule, Model SIP/TIP, MOU

Western Emissions Budget (WEB) Trading Program: Model Rule, Model SIP/TIP, MOU. Bob Lebens, WESTAR Council Air Managers Committee March 19, 2003. Working Group Charge. Ensure Model Rule/MOU contain all necessary provisions Incorporate ‘Supplement to the Annex’ Incorporate EPA comments

dagmar
Download Presentation

Western Emissions Budget (WEB) Trading Program: Model Rule, Model SIP/TIP, MOU

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Western Emissions Budget (WEB) Trading Program: Model Rule, Model SIP/TIP, MOU Bob Lebens, WESTAR Council Air Managers Committee March 19, 2003

  2. Working Group Charge • Ensure Model Rule/MOU contain all necessary provisions • Incorporate ‘Supplement to the Annex’ • Incorporate EPA comments • Ensure consistency with state and tribal regulatory structures

  3. Corky Martinkovic, AZ Mary Hilbert, NM Colleen Delaney, Lenore Epstein, UT Tina Jenkins, WY Bob Gruenig, NTEC Lee Alter, WRAP Lily Wong, EPA Region 9 Laurel Dygowski, EPA Region 8 Kristin Gaston, Bob Lebens, WESTAR Working Group

  4. Project Status: • Draft Model Rule, MOU, SIP/TIP • MTF Review • Arizona Stakeholders Review • Public Review

  5. Next Steps: • AMC Concurrence • MTF Approval • WRAP Board Approval • Additional Refinement by Working Group

  6. Original documents: Model Rule MOU Revised documents: Model Rule SIP/TIP Template MOU Working Group Recommendation:

  7. Legal Issues of MOU • U.S. Constitution Art I, § 10, cl. 3 “No State shall, without the Consent of Congress, enter into any Agreement or Compact with another State…” • Clean Air Act § 102(c) • “No such agreement or compact shall be binding or obligatory upon any State a party thereto unless and until it has been approved by Congress” • Based on these constraints, an MOU would not be enforceable without Congressional approval

  8. Enforceability Resolution It is not necessary for the MOU to be enforceable, because the rule and the SIP become the enforceable mechanism. • The SIP/TIP will ensure that the states and tribes meet their commitments, and • The Rule will ensure that the sources and market traders meet their commitments

  9. Why is an MOU necessary? • The MOU is a demonstration of good faith by the states and tribes that sign the agreement • It provides additional support to show EPA that the states and tribes have worked together in the development of this program and, therefore, it is more likely to be successful on a regional level

  10. Tribal Implementation • Tribal Authority Rule “reasonably severable” elements • Tribal set-side To be undertaken by Tribal Caucus

  11. 13% Reduction 52% Reduction SO2 Milestones

  12. Tracking System Requirements(before Trading Program is triggered) • Existing permits contain necessary provisions of the program • Sources monitor emissions and report to the state (as usual) • States track emissions and submit to regional organization (i.e., WRAP) to determine regional emissions and compare to regional milestones • States and tribes make determination of whether milestone has been exceeded

  13. Market Trading Program Requirements(after trading program is triggered) • Accounts are created for sources • States/Tribes arrange for a regional ‘bookkeeper’ to track allowance holdings and emissions • Sources are accountable to State or Tribe through the Rule • Each state is accountable to the regional program through its individual SIP commitments

  14. Outstanding Issues: MTF • 2018 Milestone Compliance • Utility Allocation • Monitoring Regulatory Text/Protocols • Several Other Issues

  15. Outstanding Issues: EPA • Legal Authority • Final Rule Promulgation • 2018 Milestone Compliance • Tracking System Administrator • Monitoring

  16. Outstanding Issues: EPA • Legal Authority • Penalties • Statute of Limitations • Record Retention

  17. Outstanding Issues: EPA • Final Rule Promulgation WRAP commented on: • Periodic evaluation of trading program • Milestone changes due to enforcement actions • Other Final Rule changes may require modifications to Rule and SIP/TIP

  18. Outstanding Issues: WRAP • Tracking System Specification • WRAP contract later this year • Monitoring Regulatory Provisions and Protocols

  19. Questions for AMC • Do you Concur with Recommendations? • Approval of Next Steps • Refer to WRAP Board • Working Group Continue Making Refinements

More Related