overview of nsps regulations sections 111(b) and 111(d)oct 31, 2013 · overview of nsps...
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Overview of NSPS Regulations
Sections 111(b) and 111(d)
Daniel Chartier Director, Environmental Markets & Air Quality Programs
NCSL Webinar October 31, 2013
Edison Electric Institute
Trade Association of Investor-Owned Electric Companies
Membership includes
All US investor-owned electric companies
70 international affiliates
250 associate members
US members
Directly employ over 500,000 workers
Provide electricity for 220 million electric utility customers
Our mission focuses on advocating public policy; expanding market opportunities; and providing strategic business information
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Federal Environmental Regulatory Challenges: 2012 and Beyond
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Air
Climate
Water
Land & Natural
Resources
Waste & Chemical
Management
Coal Ash
PCBs in Electrical
Equipment
HazMat Transport
Transmission Siting and Permitting
Avian Protection
Endangered Species
Vegetation Management
316(b)
Effluent Guidelines Limitations
Waters of the United States
NPDES Pesticide Permits
NSPS- New & Modified
Sources
NSPS-Existing Sources
BACT Permitting
International Negotiations
Utility MATS
Interstate Transport
(CAIR/CSAPR)
Regional Haze/Visibility
Multiple NAAQS
New Source Review (NSR)
Waterbody- Specific
Standards
National Climate Action Plan
On June 25, President Obama outlined his climate action plan, which contains three “key pillars”
Cutting U.S. carbon emissions
Preparing U.S. for the impacts of climate change (adaptation)
Leading international efforts to address climate change
Near-term mitigation focus is on power sector emissions reductions
Presidential Memo set schedule for EPA action
New source reproposal: September 2013
Final new source standards: “in a timely fashion”
Existing source emission guidelines for states: June 2014
Final existing source guidelines: June 2015
State compliance plans: June 2016 5
National Climate Action Plan (2)
Presidential memo also calls on EPA to:
Engage with states, the power sector and other stakeholders
Take into account other “environmental regulations and polices that affect the power sector”
Ensure the continued provision of reliable and affordable electricity
What does the President’s plan mean?
Legacy issue – likely to push hard to complete NSPS rulemakings
Consistent with messages since State of the Union
New spending will be difficult to get through Congress
Ramped up U.S. presence in international climate talks
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GHG Regulation – Introduction
EPA already is regulating GHG emissions under Clean Air Act’s (CAA) prevention of significant deterioration (PSD) Program
Pre-construction (BACT) permits addressing GHGs required for larger new and modified sources, such as power plants, since January 2011
Permits issued to date have largely focused on efficiency of technology being used in order to limit GHG emissions
Next wave of GHG regulations will be under CAA’s new source performance standards (NSPS) program
§111(b): covers new and modified sources; EPA will address modified and reconstructed sources under a separate standard
§111(d): covers existing sources
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GHG NSPS – New Sources, 111(b)
EPA required to issue unit-specific regulations for new sources; no compliance flexibility
EPA issued original proposal in April 2012
As part of President’s climate plan, EPA issued a reproposed NSPS for new sources on September 20
Not yet published in Federal Register; 60 day comment period once published
Sets separate standards for coal and gas
Coal standard requires use of Carbon Capture & Sequestration (CCS); effectively prohibiting new coal plants because technology is not commercially available
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Section 111(d)
Part of original 1970 version of statute
Directs EPA to promulgate regulations
Establishing a procedure
Similar to § 110
Under which state submit plans that establish “standards of performance”
Procedure must allow states to take into account remaining useful life, among other factors
EPA reviews and approves plan if satisfactory
If unsatisfactory, EPA may impose FIP-like plan
Standards enforced against sources, not states.
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Section 111(a)(1) Definition of “Standard of Performance”
“A standard for emissions of air pollutants which reflects the degree of emission limitation achievable through application of the best system of emission reduction (taking into account the cost of achieving such reduction and any nonair quality health and environmental impact and energy requirements) the [EPA] determines has been adequately demonstrated.”
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Potential Approaches to BSER
A recent EPA white paper sets forth a list of activities that might be included in an evaluation of BSER: Onsite actions at individual affected section 111(d) fossil-fuel sources.
Supply-side energy efficiency improvements (“heat rate improvements”)
Fuel switching or co-firing of lower-carbon fuels. Shifts in electricity generation among sources regulated under
section 111(d) (e.g., shifts from higher- to lower-emitting affected fossil units or environmental dispatch).
Offsite actions that reduce or avoid emissions at affected section 111(d) sources. Shifts from fossil generation to non-emitting generation Reduction in fossil generation due to increases in end-use energy
efficiency and demand-side management.
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The “Generic” 111(d) Implementing Regulations
40 C.F.R. 60.20-29 (Subpart B)
Response to statutory mandate to establish federal-state “procedure”
Promulgated in 1975 Some subsequent amendments
Legal challenge to generic regulations is foreclosed
EPA may deviate from generic regulations for specific source categories (Subpart C) However
EPA must justify approach as still consistent with § 111
Possible to challenge legality of such deviations
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EPA “Draft Guideline Document”
Contains information to guide development of state plans
Includes “emission guideline”:
“Guideline that reflects the application of the best system of emission reduction (considering the cost of such reduction) that has been adequately demonstrated for designated facilities, and
the time within which compliance with emission standards of equivalent stringency can be achieved.”
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Sub-categorization in the EPA Guideline
Regulations direct EPA to specify
Different emission guidelines or compliance times or both
For different sizes, types, and classes of designated facilities
When “appropriate” because of
costs of control
physical limitations
geographical location, or
similar factors
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Stringency of State Plans Relative to Guideline
Basic rule: must be at least as protective as the guideline 60.24(c): “Emission standards shall be no less stringent than the
corresponding emission guideline(s) specified in Subpart C of this part, and final compliance shall be required as expeditiously as practicable but no later than the compliance times specified in Subpart C of this part.”
Some exceptions: If EPA endangerment determination is not based on health,
state may balance guideline and other “factors of public concern” Note that GHG endangerment finding did cover health
Variances pursuant to 60.24(f)
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State Variances
State plan may have less stringent standards or compliance deadlines
Case-by-case basis – for particular facilities or classes of facilities
Must demonstrate
Unreasonable cost of control due to plant age, location or basic process design;
Physical impossibility of installing necessary control equipment; or
Other factors making reduced stringency significantly more reasonable
Variances available “unless otherwise specified in the applicable subpart” for the category of facilities
Added as part of 1995 amendments with addition of § 129.
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Key Takeaway
States will have a significant role in the implementation of the greenhouse gas NSPS for existing sources under Section 111(d)
States have flexibility in determining compliance options
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Contact Information
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