Clean Air Update

GA AWMA REGULATORY UPDATE CONFERENCE

Tuesday, April 16, 2013

Beverly BanisterAir, Pesticides, and Toxics Management DivisionU.S. Environmental Protection AgencyAtlanta, Georgia

EPA Clean Air Update

Air Quality Trends

NAAQS Update and Implementation NAAQS Review Schedule Ozone NAAQS Update 2010 SO2 NAAQS Designations and Implementation 2012 PM 2.5 NAAQS Implementation DC Circuit Ruling on Implementing PM2.5 NAAQS

Regulatory Updates Mercury Air Toxics Standards Interstate Transport Update Startup Shutdown and Malfunction  Tier 3

Climate Change Activities  GHG Permitting

Air Quality Trends

Cumulative % Reduction in Population-weighted PM2.5 Concentrations

National Progress on PM2.5

Southeast Progress on PM2.5

Average design value and 5th and 95th percentiles of all monitors with a valid design value (117 monitors in 2011)

0

5

10

15

20

25

30

35

40

45

50

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

PM2.

5D

esig

n V

alue

(μg

/m3 )

Southeast Daily and Annual PM2.5 Design Values 2001-2011

Daily NAAQS:35 μg/m3

Annual NAAQS:12 μg/m3

6

Cumulative % Reduction in Population-weighted Ozone Concentrations

National Progress on Ozone

Southeast Progress on Ozone

0.04

0.045

0.05

0.055

0.06

0.065

0.07

0.075

0.08

0.085

0.09

0.095

0.1

0.105

0.11

0.115

0.12

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Dai

ly M

axim

um 8

-hr

Ozo

ne (p

pm)

Southeast Ozone Design Values 2000 - 2011

2008 NAAQS:0.075 ppm

Average design value and 5th and 95th percentiles of all monitors with a valid design value (205 monitors in 2011)

For more information see: http://epa.gov/ttn/naaqs/*PM Final Rulemaking December 14, 2012

NAAQS Review Schedule

MILESTONE

POLLUTANT

Ozone LeadNO2

Primary

SO2

Primary

NO2/SO2

SecondaryCO PM

NPR 2013 Jan 2014 Feb 2016 Feb 2017 May 2017Summer

2017TBD

NFR 2014Oct 2014

Nov 2016 Nov 2017 Feb 2018 Spring 2018 TBD

Ozone NAAQS Update2008 Ozone NAAQS Implementation Rule

Rule and guidance addressing SIP Requirements Rule

2014 Ozone NAAQS Review:Integrated Science Assessment – Released

February 15, 2013Risk and Exposure Assessment and Policy

Assessment – second draft due May/June 2013

Propose - December 2013Final - September 2014

2010 SO2 NAAQS Designations

and Implementation 6/3/10– EPA promulgated revised SO2 NAAQS of 75

parts per million.

8/27/12– EPA announced it would use discretionary year to completed designations in June 2013 versus June 2012.

2/7/13 - Issued 120-day letters to states for 30 areas with violating monitorsAlso issued strategy paper on next steps for

designations in other parts of the country

Strategy paper and additional information is located at :

http://www.epa.gov/airquality/sulfurdioxide/implement.html

Nassau County, FL

Hillsborough County, FL

Sullivan County, TN

Jefferson County, KY

Campbell County, KY

Legend

Proposed NAA for the 2010 SO2 NAAQS (partial counties)

Region 4 State Boundary

Portion of the information presented herein is considered PRELIMINARY. These projections are based on preliminary 2010-2012 design values. A county with a design value greater than 0.075 ppm is considered violating the 2010 Sulfur Dioxide NAAQS.EPA does not warrant the accuracy or completeness of the information shown. The information herein is subject to revision and is not in final form. EPA shall not be liable for any detrimental reliance upon the information shown.

Region 4 Proposed Sulfur Dioxide Nonattainment Areas

2012 PM2.5 NAAQS Implementation

EPA strengthened the annual primary PM2.5 NAAQS to 12 μg/m3 from the previous level of 15 μg/m3 on December 14, 2012

Published in Federal Register on January 15, 2013

EPA aims to complete initial designations of nonattainment areas by the end of 2014

Designations will likely become effective in early 2015

EPA is developing an implementation rule through notice –and-comment rulemaking

Current schedule aims to issue final rule around the time of initial designations (e.g., December 2014)

On January 4, 2013, the D.C. Circuit Court ruled that EPA erred in implementing the 1997 PM2.5 NAAQS under the general Clean Air Act (CAA) requirements for nonattainment areas (“Subpart 1”) rather than the Act’s PM-specific requirements (“Subpart 4”)

NRDC et al. v. EPA, D.C. Cir., No. 08-1250, 1/4/13

The Court remanded the 2007 PM2.5 NAAQS Implementation Rule

On January 22, 2013, the Court remanded the 2008 New Source Review (NSR)/Prevention of Significant Deterioration (PSD) Rule back to the Agency, but did not set a deadline for further action

D.C. Circuit Ruling on Implementing PM2.5

NAAQS

December 21, 2011 - EPA announced final standards to limit mercury, acid gases and other toxic pollution from new and existing electric generating units

Applies to units that are >25 MW that burn coal or oil for the purpose of generating electricity for sale and distribution through the national electric grid to the public

Existing sources generally will have up to 4 years if they need it to comply with MATS

EPA also providing a pathway for reliability critical units to obtain a schedule with up to an additional year to achieve compliance

MATS will save thousands of lives and prevent more than 100K heart and asthma attacks each year while providing important health protections to the most vulnerable such as children

The value of the air quality improvements for human health alone totals $37 billion to $90 billion each year

November 16, 2012 - EPA proposed to update MATS emission limits for new power plants. EPA issued a final reconsideration on March 28, 2013.

Mercury Air Toxics Standard (MATS)

http://www.epa.gov/mats/ and http://ferc.gov/media/news-releases/2012/2012-2/05-17-12-E-5.asp

Interstate Transport Requirements

The “good neighbor provision” (section 110(a)(2)(D)(i)) of the CAA requires submittal of interstate transport SIPs in the same 3-year timeframe as infrastructure SIP submittals SIPs must contain provisions prohibiting

emissions that contribute significantly to downwind nonattainment with (or interfere with maintenance of) a NAAQS by any other state

Section 110(a)(2)(D)(i)(II) also contains provisions prohibiting downwind interference with PSD or visibility requirements

Interstate transport requirements apply for all NAAQS in all states

CSAPR Decision: Homer City Generation v.

EPA The Cross-State Air Pollution Rule (CSAPR)

is the most recent example of EPA’s efforts to implement the “good neighbor provision”

CSAPR aimed to reduce the harmful power plant emissions reaching Americans in downwind states, thereby protecting public health

CSAPR vacated by the D.C. Circuit Court of Appeals on August 2012

The prior transport rule addressing this issue, the 2005 Clean Air Interstate Rule (CAIR) remains in place

Interstate Transport Update

Status of litigation:March 29, 2013 - The U.S. Solicitor General

has petitioned the Supreme Court to review the D.C. Circuit Court’s decision on CSAPR. CAIR remains in place. As the case proceeds, EPA will continue working with states on next steps to address the interstate transport of pollution.

EPA and states are still responsible for addressing transport

Even as we consider legal options it is prudent to begin moving ahead to meet these obligations expeditiously

EPA is working with states in the coming months on a path forward to address interstate transport

EPA remains committed to working with states and with industry and environmental stakeholders to address pollution transport issues required by the CAA

Startup, Shutdown and Malfunction Rulemaking

6/30/11– Sierra Club filed petition with Administrator regarding SSM provisions in SIPs.

Nationally - 39 states & 7 locals noted in the petition Region 4 - all 8 Region 4 states & 4 locals

Raised a number of issues related to exemptions to enforcement &/or compliance for excess emissions that occur during periods of SSM

9/30/11– EPA entered into settlement agreement to respond to the petition.

2/12/13 - Proposed rule signed in response for a SIP call that addressed 36 states

8/27/13 – Deadline for EPA action on proposed SIP call

Tier 3Sets standards for light-duty vehicle

emissions and the sulfur content of gasoline.

Is among the most highly cost-effective air quality control measures available.

Will provide immediate emissions reductions that are critically important for states to attain and maintain the existing ozone NAAQS.

Timeline:Proposed March 29, 2013Finalized end of 2013

Climate Change Activities Proposed NSPS for new electricity generation

facilities Output‐based standard of 1,000 pounds of

CO2 per megawatt‐hour (lb CO2/MWh gross)

Final Mobile Source Emission and CAFE Standards Extends passenger vehicle program

to model year 2017 through 2025 Average163 grams CO2 per mile,

54.5 mpg in model year 2025

Renewable Fuels Standard EPA continues to work towards the goal

of 36 billion gallons of renewable fuel by 2022

2012 Climate Change Indicators Report EPA has compiled an updated set of 26

indicators tracking signs of climate change

Final Step 3 Tailoring Rule Retains the GHG permitting thresholds

that were established in Steps 1 and 2 of the GHG Tailoring Rule

Greenhouse GasReporting Program

Highlights for 2011 (Data released 2/5/13)

•Power plants are the largest stationary source emitter at 2,221 MMT CO2e (about 1/3 of total U.S. emissions)

•Petroleum and natural gas systems were the second largest sector, with emissions of 225 mmtCO2e in 2011, the first year of reporting for this group

•Refineries were the third-largest emitting source, with 182 mmtCO2e, a half of a percent increase over 2010.

www.epa.gov/climatechange

Permitting Timeline Under the Tailoring Rule

2011 2012 2013 2014 2015

Study Complete

2016

Step 1: Source already subject to PSD “anyway” (tpy CO2e) New source: N/A Modification: 75,000

Step 2: All Stationary Sources (tpy CO2e)New source: 100,000Modification: 75,000

Step 3: Implementation of potential additional phase-in and streamlining options

5-year study: To examine GHG permitting for smaller sources

July 1, 2011 new thresholds subject to regulation began

Step 3 Rule was issued July 3, 2012. Proposed no changes to thresholds.

Implementation of 5-year Study

Permitting Activities Nationally: 14 EPA-issued GHG PSD permits to date;

about 73 PSD GHG permits issued total (EPA and state/local permitting)

Region 4: Issuing GHG PSD permits in Florida; Region 4 continues to review all GHG PSD permits for other Region 4 state/local permitting authorities

Status of Biomass Deferral Issued July 1, 2011 and still in effect until July 20,

2014 EPA continues to work on framework for biogenic

CO2 accounting

Status of GHG NSPS Proposed April 13, 2012; EPA received over 2 million comments on proposed

rule (14,800+ individual submittals)

GHG Permitting Activity

Questions?Questions?

GA AWMA REGULATORY UPDATE CONFERENCE

Tuesday, April 16, 2013

Beverly BanisterU.S. EPA,

Atlanta, GA 404-562-9077