1. Clean Air Interstate Rule (CAIR) CAIR Requirements for SIPs Office of Air and Radiation March 2005

2. 2 Overview of New Part 51 Sections 51.123 CAIR SIP revision for NOx 51.124 CAIR SIP revision for SO2 51.125 State reporting for CAIR

3. 3 Structure -- –(a) and (b) -- finding and requirement that certain States must submit a SIP revision to eliminate NOx in amounts that contribute significantly to one or more other States for PM2.5 or ozone –(c)(1) list of PM2.5 and ozone States –(c)(2) list of PM2.5 States –(c)(3) list of ozone States –(d) SIP revision requirements including 18 month deadline –(e) -- (o) annual NOx requirements –(q) -- (bb) ozone season NOx requirements –(cc) definitions –(dd) Provisions for NH 51.123 -- CAIR NOx requirements

4. 4 SIPs must contain control measures and demonstration that the States annual EGU NOx budget and annual non- EGU NOx reduction requirement, as applicable, are met. Annual EGU NOx Budgets are given Procedures for calculating annual non-EGU reduction requirements are given for States choosing to get a portion of reductions from non-EGUs (uses baseline emissions projections in CAIR baselines TSD) Specifies State CSPs and distribution requirements 51.123 (e)--(o) CAIR Annual NOx requirements 51.123(e)

5. 5 51.123(f) Enforcement methods (compliance monitoring, violations, authority) Emissions cap required for EGUs, large non-EGU boilers and turbines, others (unless not practicable)

6. 6 51.123(g), non-EGU reduction eligibility criteria Not required by State or federal government as of date of submission of SIP revision Historic uncontrolled baseline with Part 75 monitoring or of the same quality (to the maximum extent possible) 2009 and 2015 uncontrolled projected baseline 2009 and 2015 controlled projected baseline Goal is to ensure reductions are real

7. 7 51.123(h)--(n) general SIP requirements Addresses data availability, compliance monitoring, legal authority, resources, etc. This includes the requirement for Part 75 monitoring for sources controlled under this part –All EGUs and large boilers and turbines –All others unless not possible--contains specs for alternatives

8. 8 51.123(o) -- Use of Model Rule Automatic approval of revision if substantively identical except as specified: –may decline opt-ins –may decline suggested allocation methodology –do not necessarily have to be in any of the other EPA-administered programs Other variations must be reviewed and are not automatically approved

9. 9 Nearly identical to 51.123(e) SIPs must contain control measures and demonstration that the States ozone season EGU NOx budget and ozone season non-EGU NOx reduction requirement, as applicable, are met. Ozone Season EGU NOx Budgets are given Procedures for calculating ozone season non-EGU reduction requirements are given for States choosing to get a portion of reductions from non-EGUs (uses baseline emissions projections in CAIR baselines TSD) Allows the use of 2003-2008 NOx SIP Call allowances 51.123 (q)--(bb) CAIR Ozone Season NOx requirements 51.123(q)

10. 10 51.123(r) enforcement methods (compliance monitoring, violations, authority) Cap required for EGUs, large non-EGU boilers and turbines, others (unless not practicable)

11. 11 51.123(s), non-EGU reduction eligibility criteria Parallels 51.123 (g) Baselines, projected uncontrolled, projected controlled Cannot include control measures already adopted or implemented at the time of the SIP revision Requires Part 75 monitoring for EGUs and large boilers and turbines Requires Part 75 or comparable for all others 51.123(u)

12. 12 51.123(aa) -- Use of Model Rule Automatic approval of revision if substantively identical except as specified: –expand applicability to include non-EGUs subject to NOx SIP Call trading –may decline opt-ins –may decline suggested allocation methodology –do not necessarily have to be in any of the other EPA-administered programs Other variations must be reviewed and are not automatically approved

13. 13 51.123(bb) -- Interaction with 51.121 For States that use the CAIR ozone season NOx model rule, trading sources are no longer subject o the NOx SIP Call provided: –The CAIR ozone season EGU NOx budget is less than the NOx SIP Call EGU NOx budget –If not, then the State must use its NOx SIP Call budget instead Rhode Island can participate in the CAIR ozone season NOx trading program through use of the model rule

14. 14 51.123(dd) -- Provisions for NH New Hampshire can participate in the CAIR ozone season NOx trading program through use of the model rule

15. 15 Structure -- –(a) and (b) -- finding and requirement that certain States must submit a SIP revision to eliminate SO2 in amounts that contribute significantly to one or more other States for PM2.5 –(c) list of PM2.5 States –(d) SIP revision requirements including 18 month deadline –(e) -- (p) annual SO2 requirements –(q) definitions 51.124 -- CAIR SO2 requirements

16. 16 SIPs must contain control measures and demonstration that the States annual EGU SO2 budget and annual non- EGU SO2 reduction requirement, as applicable, are met. Annual EGU SO2 Budgets are given Procedures for calculating annual non-EGU reduction requirements are given for States choosing to get a portion of reductions from non-EGUs 51.124 (e)--(p) CAIR Annual SO2 requirements 51.124(e)

17. 17 51.124(f) enforcement methods (compliance monitoring, violations, authority) Cap required for EGUs, large non-EGU boilers and turbines, others (unless not practicable)

18. 18 51.124(g), non-EGU reduction eligibility criteria Not required by State or federal government as of date of submission of SIP revision Historic uncontrolled baseline with Part 75 monitoring or comparable 2009 and 2015 uncontrolled projected baseline 2009 and 2015 controlled projected baseline

19. 19 51.124(h)--(n) general SIP requirements Addresses data availability, compliance monitoring, legal authority, resources, etc. This includes the requirement for Part 75 monitoring for sources controlled under this part –All EGUs and large boilers and turbines –All others unless not possible--contains specs for alternatives

20. 20 51.124(o) -- Use of Model Rule Automatic approval of revision if substantively identical except as specified: –may decline opt-ins –do not necessarily have to be in the EPA- administered NOx programs Other trading program variations must be reviewed and are not automatically approved

21. 21 51.124(p) -- Retirement of Excess SO2 Allowances For States not using the CAIR SO2 model rule: –SIP must include a mechanism to each year permanently retire excess Acid Rain allowances –Procedure for determining excess is included

22. 22 Frequency -- Annually, all sources that are controlled under 51.123 or 51.124. Triennially, all sources in the State. Content -- PM States must report annual SO2 and NOx emissions. Ozone States must report ozone season and summer daily NOx emissions. Timing -- First reporting year: 2008 Due: 17 months after the end of the calendar year Special Case -- States do not have to provide annual reporting of pollutants for sources using Part 75 and reporting to EPA. Part 51.125 -- State reporting relating to SO2 and NOx emission budgets

23. 23 Part 51 amendments 51.121 NOx SIP Call amended to reflect that EPA will not administer after 9/30/2008 and that States will need to change rules accordingly. 51.122 The 2007 NOx emissions report is no longer required.

24. 24 Summary One SIP revision for CAIR Automatic approval for trading programs that are substantively identical to the model rules Well all work together to get there