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Clean Air Interstate Rule (CAIR)

Clean Air Interstate Rule (CAIR). Reducing Regional Transport of Emissions and Helping States Achieve the PM2.5 and Ozone NAAQS Office of Air and Radiation April 2005. Overview. Why CAIR? What is CAIR? How Does CAIR relate to other EPA rulemakings?. Nonattainment areas for

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Clean Air Interstate Rule (CAIR)

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  1. Clean Air Interstate Rule (CAIR) Reducing Regional Transport of Emissions and Helping States Achieve the PM2.5 and Ozone NAAQS Office of Air and Radiation April 2005

  2. Overview • Why CAIR? • What is CAIR? • How Does CAIR relate to other EPA rulemakings?

  3. Nonattainment areas for 8-hour ozone pollution only Nonattainment areas for fine particle pollution only Nonattainment areas for both 8-hour ozone and fine particle pollution Areas Designated Nonattainment for Ozone and PM2.5 NAAQS in 2004 126 ozone nonattainment areas with 474 counties 47 PM2.5 nonattainment areas with 224 counties

  4. Long-Range Transport of Air Pollution • Air pollution can travel hundreds of miles and cause multiple health and environmental problems on regionalor national scales. • Emissions contributing to PM2.5 and ozone nonattainment often travel across state lines, especially in the eastern U.S. • SO2 and NOx, and other pollutants, contribute to PM2.5 transport • NOx and other pollutants contribute to ozone transport. • Attaining national ambient air quality standards will require some combination of emission reductions from: • Sources located in or near nonattainment areas (such as mobile sources) and • Sources, such as power plants, located further from the nonattainment area. • Clean Air Act contains provisions for States and EPA to address interstate pollution transport. • EPA is also addressing ozone and particle pollution from mobile sources by implementing national fuel and engine standards.

  5. Eastern urban/rural fine particles 30 Bottom: Regional Contribution 25 Top: Urban Increment 20 15 ug/m3 10 5 0 Indy/LIVO SLC/GRBA Tulsa/WIMO Bronx/BRIG Fresno/PINN Atlanta/2 Sites Charlotte/LIGO Missoula/MONT Richmond/JARI St.Louis/3 Sites Baltimore/DOSO Birmingham/SIP Cleveland/MKGO Urban Increment Regional Contribution In the East, Transport Is a Major Fraction of PM2.5 and Ozone (not shown) Top: Urban Bottom: Rural 12-month average PM2.5 mass from speciation samplers Reference: 2002 EPA Trends Report http://www.epa.gov/air/airtrends/chem_spec_of_pm2.5_b.pdf

  6. Electric Power Generation: A Major Source of Emissions SO2 Emissions NOx Emissions 10.9 Million Tons Power Sector 4.5 Million Tons 69% 5.0 Million Tons 16.3 Million Tons Other 31% Total: 20.8 Million Tons Total: 15.9 Million Tons Source: SO2 and NOx data is from EPA’s 2003 National Emissions Inventory. “Other” sources of pollutants include transportation and other mobile sources and industrial sources.

  7. The CAIR Approach • Determine if a significant contribution is projected from individual states on ozone and PM nonattainment in 2010, to define geographic boundaries covered by the rule. • Analyze sources of highly cost effective reductions of SO2 (for PM2.5) and NOx (for PM2.5 and ozone). • Create a two-phase program with declining emission caps for NOx in 2009 and 2015, and for SO2 in 2010 and 2015 based on application of highly cost effective controls to large EGUs.. • Develop an emissions budget for each state that chooses to achieve it emission reduction requirements based on reductions from EGUs. Create parallel emission reduction targets for States that choose to control other source categories. • Create an optional cap-and-trade program similar to current Acid Rain Program for SO2 (Title IV) and the NOx SIP call.

  8. States controlled for fine particles (annual SO2 and NOx) States controlled for ozone (ozone season NOx) States controlled for both fine particles (annual SO2 and NOx) and ozone (ozone season NOx) States not covered by CAIR CAIR: Affected Region and Emission Caps Emission Caps* (million tons) 2009/20102015 Annual SO2 3.6 2.5 (2010) Annual NOx 1.5 1.3 (2009) Seasonal NOx .58 .48 (2009) *For the affected region.

  9. Overview of the Trading Programs • SO2 trading program • Designed to work with existing Title IV Program • Sources turn in Title IV allowances at a ratio of greater than 1 to 1 to ensure reductions beyond Title IV • Sources may use pre-2010 allowances at a 1 to 1 ratio • Annual NOx Trading Program • Sources can comply using allowances from compliance supplement pool • Allowances cannot be traded between annual and ozone season programs • Ozone Season NOx Trading Program • Sources can used banked allowances from NOx SIP Call • NOx SIP Call sources that are not part of CAIR (e.g. non-EGUs and sources in Rhode Island) can be brought into the ozone season trading program

  10. CAIR Implementation Timeline Phase I: CAIR NOx Programs (ozone-season and annual) (09) CSP Early Emission Reduction Period (annual CAIR NOx program) (07 and 08) Phase I: CAIR SO2 Program (10) States develop SIPs (18 months) SO2 Monitoring and Reporting Required (09) NOx Monitoring and Reporting Required (08) Phase II: CAIR NOx and SO2 Programs Begin (15) SIPs Due (Sep 06) CAIR Rule signed 08 05 06 07 09 10 11 12 13 14 15 Early Reductions for CAIR NOx ozone-season program and CAIR SO2 program begin immediately because NOx SIP Call and title IV allowances can be banked into CAIR Note: Dotted lines indicate a range of time.

  11. Comparison of Proposed Rule to Final Rule The final CAIR rule reflects revisions to the proposed rule in response to information received by public comment and new analyses conducted by EPA. Differences are: • The first phase of NOx reductions starts in 2009 (covering 2009-2014) instead of 2010. The first phase of SO2 reductions still starts in 2010. • All states for which EPA has made a finding with respect to ozone are subject to an ozone season cap. • A 200,000 allowance (ton) compliance supplement pool was added for NOx. • Based on new analyses of each state’s contribution to downwind PM2.5 nonattainment, final CAIR does not cover Kansas, Arkansas, Delaware, Massachusetts, and New Jersey. • The change in states covered by the rule requires a re-analysis of the NOx budgets for all covered states. • A number of changes were made to the trading rule, including changes to the model NOx allocation and the addition of opt-in provisions. • Improved power sector and air quality models were used to analyze costs and benefits of the rule. • The emissions inventories used for PM2.5 and 8-hour ozone air quality modeling have been updated and improved. • In the final rule, EPA determined that the 28 States and DC would be included for fine particle pollution based on a threshold of 0.2 ug/m3, instead of the 0.15 ug/m3 threshold that was proposed. • SIP approval criteria have been changed to no longer exclude measures otherwise required by the Clean Air Act from being included in the state’s compliance with CAIR.

  12. Other Rulemakings Being Published on the Same Day as CAIR • DE/NJ Proposal - proposal to find that Delaware and New Jersey contribute significantly to downwind PM non-attainment and should be subject to annual SO2 and NOx limitations. • Section 110 findings: • As required by litigation with Earth Justice and Environmental Defence, EPA issued a national notice of failure to submit SIPs implementing 110a(2)D for ozone and PM-2.5. • We were required to do this by 3/15/05 per a settlement agreement. • This notice started a FIP clock. • We are developing guidance for CAIR and non-CAIR states on how to satisfy this finding. • For CAIR states, adoption of the CAIR requirements will satisfy this finding. • Emissions Reporting Rule – emissions reporting NPRM was not published, still at OMB

  13. Section 126 and FIP • Section 126 • In March 2004, North Carolina filed a Section 126 petition claiming that large EGUs in a number of States were contributing to non-attainment in North Carolina • In March 2005, the agency entered into a consent decree with North Carolina agreeing to a schedule to respond to the petition • EPA is required to propose action by August 1, 2005 • FIP - In the final CAIR rulemaking, the agency indicated its intent to move forward with a FIP for any State that did not meet the requirements of CAIR.

  14. PM2.5 and O3 Guidance

  15. Regional Haze and BART

  16. Mercury • On March 15, 2005, the EPA finalized a mercury rule for EGUs (CAMR) • There is a great deal of potential overlap in the source coverage of CAIR and CAMR • The optional CAIR trading programs cover all EGUs greater than 25 Mwe in CAIR affected States • CAMR covers all coal-fired EGUs greater than 25 Mwe in the 50 States and the US terrotories • Both rules include similar model trading rules • The first phase reduction requirements of CAMR are based on co-benefits of CAIR

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