1. CAIR Update
WESTAR
October 2, 2008

2. 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

3. 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.”

4. 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

5. 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)?