Implementing the NAAQS and Regional Haze Program

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1 Implementing the NAAQS and Regional Haze Program EPA Office of Air Quality Planning and Standards Lydia Wegman STAPPA/ALAPCO s Spring Membership Meeting May 24, 2005

2 Overview CAIR Ozone PM & Regional Haze PM NAAQS Additional Topics: CAAAC Recommendations, Innovations & ASAP 2

3 CAIR 3

4 CAIR Final Rule: May 12, 2005 Sets an emissions reduction requirement for each State, based on capping power plant emissions collectively highly cost-effective levels. Provides an optional cap and trade program based on successful Acid Rain and NOx Budget Trading programs. Includes a two-phase program with declining power-plant emissions caps: SO 2 annual caps: 3.6 million tons in 2010 and 2.5 million in 2015 NOx annual caps: 1.5 million tons in 2009 and 1.3 million in 2015 NOx ozone season caps: 580,000 tons in 2009 and 480,000 tons in 2015 Emission caps are divided into State SO 2 and NOx budgets. Allows States flexibility on how to achieve the required reductions, including which sources to control and whether to join the trading program. 4

5 CAIR: Affected Region and Emissions Caps Emission Caps* (million tons) 2009/ Annual SO (2010) Annual NOx (2009) Seasonal NOx (2009) States controlled for fine particles (annual SO 2 and NOx) States controlled for ozone (ozone season NOx) States controlled for both fine particles (annual SO 2 and NOx) and ozone (ozone season NOx) States not covered by CAIR *For the affected region.

6 National NO x and SO 2 Power Plant Emissions: Historic and Projected with CAIR 20 SO 2 15 Million Tons 10 NO x Projected, w/ CAIR 5 0 Source: EPA

7 Ozone and Particle Pollution: CAIR, together with other Clean Air Programs, Will Bring Cleaner Air to Areas in the East Ozone and Fine Particle Nonattainment Projected Nonattainment Areas in 2010 after Reductions Areas (April 2005) from CAIR and Existing Clean Air Act Programs 104 ozone nonattainment areas (408counties) 36 PM 2.5 nonattainment areas with 195 counties 14 ozone nonattainment areas 19 PM2.5 nonattainment areas 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 Projections concerning future levels of air pollution in specific geographic locations were estimated using the best scientific models available. They are estimations, however, and should be characterized as such in any description. Actual results may vary significantly if any of the factors that influence air quality differ from the assumed values used in the projections shown here.

8 Ozone and Particle Pollution: CAIR, together with other Clean Air Programs, Will Bring Cleaner Air to Areas in the East Ozone and Fine Particle Nonattainment Projected Nonattainment Areas in 2015 after Reductions Areas (April 2005) from CAIR and Existing Clean Air Act Programs 104 ozone nonattainment areas (408counties) 36 PM 2.5 nonattainment areas with 195 counties 5 ozone nonattainment areas 14 PM 2.5 nonattainment areas 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 Projections concerning future levels of air pollution in specific geographic locations were estimated using the best scientific models available. They are estimations, however, and should be characterized as such in any description. Actual results may vary significantly if any of the factors that influence air quality differ from the assumed values used in the projections shown here.

9 Schedule for State Workshops 2005 State workshops designed to support States development of plans for CAIR and CAMR. Schedule: Atlanta: (Region 4) May 19 and 20 Dallas: (Region 6) May 25 and 26 New York: (Regions 1 and 2) June 1 and 2 Virginia: (Region 3) June 8 and 9 Chicago: (Regions 5) June 27 9

10 Ozone 10

11 Ozone Implementation Schedule Date April 04 June Summer 05 June 15 06* June 15 07* Action EPA issued final designations & Final Phase I Implementation rule Effective Date of Designations Final Phase 2 Implementation Rule RACT SIPs due Ozone attainment demonstration SIPs due Range of attainment dates *proposed

12 Phase 1 Ozone Implementation Rule Key Topics Included Classifications for the 8-hour standard designations Revocation of the 1-hour standard and the CAA s antibacksliding provisions Attainment dates and attainment date extensions Timing of emissions reductions needed for attainment 12

13 Phase 1 Petitions for Reconsideration Final action on Earthjustice (EJ) petition for reconsideration was issued on May 20, Issues: Imposition of section 185 fee penalties Timing for determining applicable requirements once the 1- hour NAAQS is revoked Requirement for 1-hour contingency measures and inclusion of an attainment demonstration as applicable requirements 13

14 Phase 1 Petitions for Reconsideration (cont.) Final action on EJ petition for reconsideration re: NSR anti-backsliding provisions will be issued by June 30, Proposed action on EJ petition for reconsideration re: overwhelming transport classification for basic areas will be issued in the next few months. EPA is still discussing petitions from the National Petrochemical & Refiners Association and the American Petroleum Institute on the classification scheme and attainment dates for the 8-hour ozone NAAQS. 14

15 Phase 2 Ozone Implementation Rule Key issues to be addressed Reasonable Further Progress (RFP) requirements Reasonably Available Control Technology (RACT) Attainment Demonstration & Modeling provisions New Source Review (NSR) 15

16 Phase 2 Ozone Implementation Rule Status Under review at OMB EPA addressing OMB s initial comments Expect signature Summer

17 Early Action Compacts (EACs) 29 areas submitted EAC SIPs in Dec of these areas are nonattainment-deferred (effective date of nonattainment designation postponed pending completion of certain agreed-upon milestones) Regions 3, 4, 6 & 8 are proposing to approve SIPs for all EAC areas 30-day comment period for each proposal 17

18 Early Action Compacts (EACs) OAQPS is proposing to extend deferred nonattainment status for the 14 EAC areas from 9/30/05 to 12/31/06 Final actions to approve SIPs & extend deferral will be issued by 9/30/05 NESCAUM States & the major environmental groups have stayed litigation on EAC concept OAQPS has continued dialogue with these litigants 18

19 PM and Regional Haze 19

20 PM2.5 & Regional Haze Timeline Date January 5, 04 April 5, 05 June 15, 05/Nov 8 05 Summer 05 Spring 06 Dec April 08 Action Final designations published Effective date of designations, including April 5 modifications Consent Decree deadline for final action on BART/Trading & WRAP Annex Proposal Propose Implementation Rule Finalize Implementation Rule Regional Haze SIPs due PM2.5 state implementation plans due

21 EPA s April 5, 2005 Action: PM2.5 Areas Changed to Attainment Based on Data From NA to Attainment Athens, GA Elkhart, IN Columbus, GA-AL Lexington, KY Marion county, WV San Diego, CA Toledo, OH Youngstown, OH-PA From Unclassifiable To Attainment DeKalb county, AL Gadsden, AL McMinn county, TN Muncie, IN 21

22 Final PM2.5 Nonattainment Areas Montana California Eastern U.S. OAQPS,AQSSD April 28,

23 Petitions on PM2.5 Designations 16 lawsuits concerning January 5, 2005 Notice are pending. These petitions cover wide range of issues (e.g. contribution from certain counties or power plants, size of partial counties included, inclusion of counties without monitors, use of 9-factor analysis, etc.). Court will likely consolidate these existing petitions with any additional petitions received on the April 5, 2005 Notice in June after the 60-day period for submission expires (currently no petitions concerning April Notice have been received). In addition, EPA has received 13 Petitions for Reconsideration, covering similar issues (responses under consideration). 23

24 June 15, 2005 Final BART Guidelines and Regional Haze Rule Revisions Revised the Consent Decree with ED and changed final rule date from April 15 to June 15, Need to conduct additional analyses to support rule decisions. Because of CEED decision, EPA will also finalize a rule by November 8, 2005 which will address the Better-than-BART test and the WRAP Annex 24

25 June 15 Final BART Guidelines and Regional Haze Rule Revisions DC Circuit 2002 decision vacated our cumulative assessment approach to determine effects of BART. June 15 BART rule addresses sources on sourcespecific basis. BART is the only part of the Regional Haze Rule that requires controls on specific sources. Guideline provides system for States to do BART analysis. Rule revisions establish requirements for EGUs over 750 MW. Environmentalists very concerned about strength of rule. 25

26 June 15 Final BART Guidelines and Regional Haze Rule Revisions Major Components of the Rule: States can exempt a source through an exemption process using individual source air quality modeling Requiring individual source air quality modeling to evaluate visibility impacts when determining BART control requirements Establishing presumptive control levels for SO 2 and NOx from EGUs 26

27 June 15 Final BART Guidelines and Regional Haze Rule Revisions State exemption process: State may choose to subject all BART- eligible sources to BART determinations, or State may choose to allow individual sources to show they should be exempt. Exemption process: each individual source models its emissions to show visibility impacts at nearest Class I area, using CALPUFF model Issue: How to assess single source contribution to visibility impairment? Under discussion with OMB 27

28 June 15 Final BART Guidelines and Regional Haze Rule Revisions Presumptive control levels for power plants > 750 MW: SO2 NOx 95% control (eastern) or 0.15 lbs/mmbtu (western) Year-round SCR if already installed If without SCR, table of specific control levels, in lbs/mmbtu, based on boiler type and coal type. For large EGUs at plants < 750 MW, EPA tells States they should consider these levels to be cost-effective 28

29 June15 Final BART Guidelines and Regional Haze Rule Revisions: Key Changes Since Reproposal Presumptive NOx limits for large EGUs will be a table of limits that vary by boiler and coal type Softening language of presumptive limits Removing trading provisions Will address relationship with CAIR 29

30 February 2005 D.C. Circuit Decision Issue litigated by Center for Energy and Economic Development (CEED representing coal interests): EPA s approval of the WRAP Annex in June Court granted CEED s petition. Court again objected to provision which required States to group BART sources when assessing visibility impacts, even if the requirement is contained in a program entirely optional to States. Court upheld EPA interpretation that Act does allow for emission trading program alternatives to BART. Ruling requires us to conduct additional rulemaking on trading. 30

31 Trading, CAIR, and BART Guidelines Want to permit trading as a way to meet BART. This would be an alternative measure in lieu of source-by-source BART. EPA has said that trading program must do better-than- BART DC Circuit in CEED essentially said we can allow trading under BART, but not the cumulative test, as proposed, to assess it. Need to take public comment on this new approach. Therefore, June 15 final BART package will NOT include a final trading alternative to BART. EPA will propose another rule on trading. June 15 rule will contain a demonstration that CAIR is better than BART. 31

32 Western States 5 Western States directly affected by Court overturning EPA s approval of WRAP Annex AZ, NM, OR, UT, WY These States have expressed desire for rule revisions to allow implementation of their strategies to proceed EPA will address this issue in June 15, 2005 proposal for BART trading programs in general Allow States to resubmit SIPs containing SO2 backstop trading program, without being subject to cumulative requirement rejected by court. 32

33 PM NAAQS Review 33

34 PM NAAQS Review: Process Scientific studies related to health and environmental effects EPA Criteria Document: integrative assessment of scientific studies EPA Staff Paper: policyrelevant assessments leading to staff recommendations on standards Scientific peer review of published studies Reviews by CASAC and the public Reviews by CASAC and the public We are here EPA final decision on standards Interagency review Public hearings and comments on proposal EPA proposed decision on standards

35 PM NAAQS Review: Schedule Final PM Air Quality Criteria Document October 2004 Completion of PM Staff Paper: Second draft released for CASAC review and public comment January 31, 2005 CASAC review meeting April 6-7 and May 18, 2005 Final PM Staff Paper by June 30, 2005 Rulemaking on PM NAAQS: Federal Register proposal to be signed by December 20, 2005 Public comment period: 90 days Final Federal Register notice to be signed by September 27,

36 Draft Staff Paper Recommendations: Primary PM 2.5 (Fine) NAAQS Consideration should be given to revising the current primary PM 2.5 standards to provide increased public health protection from the effects of both long- and short-term exposures to fine particles. Annual PM 2.5 standard at the current level of 15 µg/m 3 together with a revised 24-hour PM 2.5 standard in the range of 35 to 25 µg/m 3 OR Revised annual PM 2.5 standard, within the range of 14 to 12 µg/m 3, together with a revised 24-hour PM 2.5 standard in the range of 40 to 35 µg/m 3, to provide supplemental protection against episodic localized or seasonal peaks 36

37 Draft Staff Paper Recommendations: Primary PM (Coarse) NAAQS The current primary PM 10 standards should be revised in part by replacing the PM 10 indicator with an indicator of coarse particles that does not include fine particles (e.g., PM ). Consideration should be given to setting a 24-hour PM standard about as protective as the current daily PM 10 standard, with a level in the range of approximately 65 to 75 µg/m 3, 98th percentile, or approximately 75 to 85 µg/m 3, 99th percentile. Also some support for consideration of a 24-hour PM standard down to approximately 30 µg/m 3, 98th percentile, or 35 µg/m 3, 99th percentile, recognizing that a standard set at such a relatively low level would place a great deal of weight on very limited and uncertain epidemiologic associations. 37

38 Draft Staff Paper Recommendations: Secondary PM 2.5 NAAQS (Visibility) Consideration should be given to revising the current secondary PM 2.5 standards to provide increased and more targeted protection, primarily in urban areas, from visibility impairment related to fine particles. Consideration should be given to a 4- to 8-hour PM 2.5 standard in the range of 30 to 20 µg/m 3 to protect visual air quality primarily in urban areas. Staff paper, criteria document, risk assessment & technical documents available at: 38

39 Exceptional/Natural Events Policy Currently focusing on a policy for PM; ozone may come later. Transportation bill currently in Congress requires EPA to do a rulemaking on exceptional/natural events. General concern regarding the direction/impact of these events on designation status and effectiveness of control strategies. Review of PM NAAQS, particularly consideration of standards for coarse fraction, necessitates additional discussion of suitable strategies for dealing with exceptional/natural events. Any action taken by EPA will be fully vetted with interested stakeholders. Final action will be tied to new PM NAAQS. 39

40 Additional Topics Responses to CAAAC, Innovations, & ASAP 40

41 CAAAC AQM Work Group: Implementation of Recommendations January Clean Air Act Advisory Committee delivered report to EPA with 38 recommendations Most are short term actions to improve the current Air Quality Management system Some are longer-term actions that need to be started to improve data and analytical tools EPA, in partnership with S/L/Ts, taking action to implement all 38 recommendations 16 Recommendations deal with SIP Process EPA contact: Barbara Driscoll (driscoll.barbara@epa.gov) 41

42 CAAAC Recommendations to Improve the SIP Process (continued) CAAAC AQM Work Group: Key SIP Process Recommendations Streamline the SIP Process: Align SIP submittal dates Develop a protocol for SIP development Develop a SIP clearinghouse Streamline minor SIP revisions Develop guidance in a timely manner Avoid unnecessary public hearings Facilitate redesignation process for certain areas 42

43 CAAAC Recommendations to Improve the SIP Process (continued) CAAAC AQM Work Group: Key SIP Process Recommendations Improve communications to the public: Educate about clean air plans Communicate co-benefits of innovative measures Increase use of innovative measures: Encourage innovative and voluntary measures Offer SIP credits for bundled innovative measures 43

44 CAAAC AQM Work Group: Key SIP Process Recommendations Increase collaboration in early SIP planning and control-strategy development: Involve EPA in Regional approaches to SIP planning especially for multiple nonattainment areas in the same regional scale air problems Build a process to enhance the Federal and State partnerships to pursue emissions reductions, including Federally-owned and international sources 44

45 EPA s Air Innovations Conference August 24-26, 2005 in Chicago Session topics will cover: Integrating Energy Efficiency and Renewable Energy into SIPs Interesting Initiatives and Technologies for Clean Air New Federal Partnerships Smart Growth as a Path to Clean Air Clean Diesel Futures and Technological Solutions to Clean Air Financing Innovative Projects Breakout session will solicit input from participants on: Additional policy and guidance needs to promote innovation Guidance needs to support multi-pollutant SIPs Promoting co-benefits of innovative and voluntary approaches How to support innovation through additional incentives 45

46 EPA s Air Innovations Conference Exhibit booths will provide more information on technologies and information sources Networking opportunities are built into the conference to facilitate the exchange of ideas Two $50K State grants to support innovative ideas Limited travel funding is available for State and local participants For further information and registration: or contact: Melissa McCullough at: mccullough.melissa@epa.gov or ( ) 46

47 New Initiatives Started in 2004 SIP credit for Stationary and Mobile Diesel Retrofits SIP credit for Woodstove Retrofits SIP credit for Bundled SIP Measures DOE/EPA Air Energy Integration Initiative Clean Energy-Environment State Partnership Program Texas ecalc refinement to verify SIP credit New Innovations Website: 47

48 Air Strategy Assessment Program (ASAP) ASAP was introduced to STAPPA/ALAPCO at 2004 Fall Membership Meeting. ASAP is an integrated suite of 3 tools that will help state and local air quality agencies determine: Control strategies and associated costs (AirControlNET) Air quality impacts of controls and identification of costeffective strategies for meeting air quality standards (Response Surface Model) Health impacts and non-monetary benefits of pollution reduction strategies (BenMAP) 48

49 Current Status of ASAP Current Version (2005): This version is based on CAMx and focuses on ozone CAMx domain is the Eastern 2/3 of the United States 2015 National Emissions Inventory Data Focus on Midwest and Northeast nonattainment areas Intended Users Air Quality Modelers and Policy Analysts at local, State, and regional levels Have received requests from some States to serve as beta testers Available for beta testing - Summer 2005 Free 49

50 Current Status of ASAP Future Version (Summer 2006) Will be based upon CMAQ and provide both PM and ozone Domain with be National Scale Flexibility to input different emissions inventories For More Information, contact: Darryl A. Weatherhead, OAQPS 50