CAIR Update WESTAR October 2, 2008.

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Presentation transcript:

CAIR Update WESTAR October 2, 2008

Standard annual standard What Is the Clean Air Interstate Rule (CAIR)? CAIR is EPA’s strategy to reduce interstate transport of emissions contributing to nonattainment of National Ambient Air Quality Standards (NAAQS) for fine particles (PM2.5) and ozone in the eastern U.S. Uses an optional set of 3 interstate trading programs to achieve highly cost-effective emission reductions of sulfur dioxide (SO2) and nitrogen oxides (NOx) Not intended to be an air quality panacea, but a valuable aid to state-led efforts to attain the NAAQS, as well as reduce acid rain and regional haze EPA successfully addressed a similar ozone problem in the 1990s by developing the NOx Budget Trading Program under the NOx SIP Call ug/m3 St.Louis/3 Sites Birmingham/SIP Indy/LIVO Atlanta/2 Sites Cleveland/MKGO Charlotte/LIGO Richmond/JARI Baltimore/DOSO Bronx/BRIG 5 10 15 20 25 30 Urban Contribution Regional Contribution Eastern urban/rural fine particles 1997 Standard annual standard 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

D.C. Circuit Decision on CAIR EPA’s regional approach failed to appropriately factor in each state’s individual contribution. EPA did not have authority under 110(a)(2)(D) to require the surrender of Title IV allowances for compliance with CAIR. EPA did not establish that the 2015 compliance deadline is consistent with states’ attainment deadlines. The state SO2 and NOx budgets were not adequately based on the objectives of 110(a)(2)(D) EPA must address emissions that “interfere with maintenance” of NAAQS not just those which “significantly contribute to nonattainment.”

What Are the Consequences of the Court’s Decision? Disruption/delay of industry plans for installation and operation of pollution abatement equipment Lost health and environmental benefits Increased administrative costs to government and industry Questions of future cap and trade program viability

Decisions needed How will we deal with SIPs approvability issues? Do we proceed with findings of failure to submit for Regional Haze and PM? How do we deal with clocks for findings for ozone and Section 110(a)2(d)(i)?