EPA Issues Cross-State Air Pollution Rule
Alert
07.12.2011
The U.S. EPA issued the "Cross-State Air Pollution Rule" ("CSAPR" or the "Transport Rule") on July 7, 2011 that requires 27 states to reduce emissions of sulfur dioxide and nitrogen oxide emissions from power plants that contribute to fine particulate matter and ozone in other states.
Background
Title I of the Clean Air Act requires EPA to issue clean air standards, referred to as national ambient air quality standards, or NAAQS, for each substance that causes or contributes to air pollution that endangers public health or welfare. The Act also contains what is commonly referred to as the "good neighbor" provision which requires states to limit their emissions of pollutants that can "contribute significantly" to downwind state's ability to meet the NAAQS.
Pursuant to this mandate, EPA enacted the Clean Air Interstate Rule ("CAIR") in 2005, which placed limits on the amount of nitrogen oxide and sulphur dioxide 28 states and the District of Columbia could emit. In 2008, the District of Columbia Circuit Court vacated CAIR due to several flaws, but then subsequently ruled that CAIR could remain in place until it was replaced by a revised rule. The Transport Rule replaces CAIR and is designed to address the flaws to this previous law.
Applicability
The Transport Rule applies to "electric generating units" which are fossil fuel boilers and turbines that produce electricity for sale. The rule covers electric generating units in 27 states, however, most New England states, including Maine, Massachusetts, New Hampshire, and Vermont are not covered by the Transport Rule.
Requirements
The Transport Rule requires emissions reductions in every covered state to address each state's significant contribution to downwind states' ability to meet: (1) the 1997 ozone National Ambient Air Quality Standards ("NAAQS"); (2) the 1997 annual fine particulate matter ("PM") NAAQS; or (3) the 24-hour fine PM NAAQS.
EPA's Transport Rule achieves these emissions reductions through the enactment of Federal Implementation Plans ("FIPs"). The FIPs regulate emissions in the power sector for covered states through four air quality trading programs: (1) an annual nitrogen oxide trading program; (2) an ozone season nitrogen oxide trading program; and two sulphur dioxide trading programs: (3) Sulphur Dioxide Group 1; and (4) Sulphur Dioxide Group 2. EPA is modifying its prior approval of 22 State Implementation Plans ("SIPs") where there are conflicts with Transport Rule FIPs.
Deadlines
The first phase of the Transport Rule requires compliance in certain covered states by January 1, 2012 for sulphur Dioxide and Nitrogen Dioxide and May 1, 2012 for ozone-season nitrogen dioxide reductions. The second phase of the Transport Rule sulphur dioxide reductions commences on January 2014.
Questions?
For more information on the Transport Rule and its implications contact Jeffrey Talbert at jtalbert@preti.com or 207.791.3000.