11

Update on Prevention of Significant Update on Prevention of Significant Deterioration (PSD) and New Source Deterioration (PSD) and New Source

Review (NSR) ActivitiesReview (NSR) Activities

October 5, 2004October 5, 2004

22

Overview – Informational Overview – Informational BriefingBriefing

WESTAR work on PSD increment tracking and WESTAR work on PSD increment tracking and technical issuestechnical issues

Upcoming NSR ActionsUpcoming NSR Actions– LitigationLitigation– ReconsiderationReconsideration– NO2 IncrementsNO2 Increments– Debottlenecking, Aggregation and Allowable PALsDebottlenecking, Aggregation and Allowable PALs– Ozone and PM2.5 ImplementationOzone and PM2.5 Implementation– Tribal NSR ruleTribal NSR rule

33

NSR Reform – June 2002 NSR Reform – June 2002 RecommendationsRecommendations

DebottleneckingDebottlenecking

AggregationAggregation

Allowable PALsAllowable PALs

44

Litigation – December 2002 NSR Litigation – December 2002 NSR RuleRule

D.C. Court denied request for stay on December D.C. Court denied request for stay on December 2002 rules (Actual PALs, Clean Units, Pollution 2002 rules (Actual PALs, Clean Units, Pollution Control Projects, Emission Test)Control Projects, Emission Test)

Briefing schedule for December 2002 changesBriefing schedule for December 2002 changes– Litigants briefs – May 2004Litigants briefs – May 2004– EPA briefs – August 2004EPA briefs – August 2004– Final Briefs – October 2004Final Briefs – October 2004– Oral Arguments – January 2005Oral Arguments – January 2005

55

Litigation – Equipment Litigation – Equipment Replacement RuleReplacement Rule

D.C. Court granted request for stay on D.C. Court granted request for stay on Equipment Replacement Provision.Equipment Replacement Provision.

Proposed Briefing Schedule for ERPProposed Briefing Schedule for ERP– Litigants Briefs – the later of November 2004 Litigants Briefs – the later of November 2004

or 90 days after publication of EPA Response or 90 days after publication of EPA Response on Reconsiderationon Reconsideration

– EPA Brief – 90 days after Litigants BriefsEPA Brief – 90 days after Litigants Briefs– Final Briefs – 77 days after EPA BriefsFinal Briefs – 77 days after EPA Briefs

66

LitigationLitigation

Reconsideration of treatment of fugitive Reconsideration of treatment of fugitive emissions under December 2002 ruleemissions under December 2002 rule

Reconsideration of ERPReconsideration of ERP– Legal BasisLegal Basis– 20 percent cutoff20 percent cutoff– Reconsideration proposal published July 1, Reconsideration proposal published July 1,

20042004

Court remand of NO2 incrementsCourt remand of NO2 increments

77

Holmstead to Patton Letter – Holmstead to Patton Letter – September 29, 2004September 29, 2004

Identified 3 alternatives to using increment Identified 3 alternatives to using increment approachapproach– Cap-and-trade programCap-and-trade program– Protection of ecosystems based on critical loadsProtection of ecosystems based on critical loads– State planning program for protecting and enhancing State planning program for protecting and enhancing

air quality in attainment areasair quality in attainment areas

Commitment to propose one or more of Commitment to propose one or more of alternatives in a balanced wayalternatives in a balanced wayProposal – February 14, 2005Proposal – February 14, 2005

88

Ozone/PM2.5 ImplementationOzone/PM2.5 Implementation

Guidance and rules on how new 8-hour ozone Guidance and rules on how new 8-hour ozone and PM2.5 standards should be implemented in and PM2.5 standards should be implemented in nonattainment areasnonattainment areasNSR RulemakingsNSR Rulemakings– Appendix S – “bridge” NSR rule that is in effect until Appendix S – “bridge” NSR rule that is in effect until

State adopts its rulesState adopts its rules– Transition from 1-hour ozone standard to 8-hour Transition from 1-hour ozone standard to 8-hour

ozone standardozone standard– Requirements for PM2.5Requirements for PM2.5

Increment levelsIncrement levelsPrecursor pollutants Precursor pollutants

99

Potential OptionsPotential OptionsVOCVOC All VOCAll VOC

Subset of VOCSubset of VOC

Only if EPA/State make findingOnly if EPA/State make finding

NOxNOx Identify as precursorIdentify as precursor

Identify only if EPA/State make findingIdentify only if EPA/State make finding

SOxSOx Identify as precursorIdentify as precursor

Identify only if EPA/State make a Identify only if EPA/State make a findingfinding

AmmoniaAmmonia Identify only if EPA/State make a Identify only if EPA/State make a findingfinding

1010

Possible Major Source ThresholdsPossible Major Source Thresholds

The PM-2.5 program is governed by The PM-2.5 program is governed by Subpart 1 of the CAA. Subpart 1 of the CAA.

100/250 tpy for attainment and 100/250 tpy for attainment and unclassifiable areasunclassifiable areas

100 tpy for nonattainment areas100 tpy for nonattainment areas

We may suggest that States consider the We may suggest that States consider the effect smaller sources have on their ability effect smaller sources have on their ability to attain or maintain the NAAQS.to attain or maintain the NAAQS.

1111

Possible Significant Emissions Possible Significant Emissions Rates Approaches (tpy)Rates Approaches (tpy)

Propose significant emission rate of 10 tpy for PM-2.5 Propose significant emission rate of 10 tpy for PM-2.5 direct emissions direct emissions Use methodology comparable to methods used to Use methodology comparable to methods used to establish the significant emission rate for TSP and establish the significant emission rate for TSP and PM10. PM10. Take comment on alternative approaches that support a Take comment on alternative approaches that support a 4-15 tpy significant emissions rate.4-15 tpy significant emissions rate.Proposing a 40 tpy significant rate for precursors (if Proposing a 40 tpy significant rate for precursors (if applicable) to harmonize implementation of the PM-2.5 applicable) to harmonize implementation of the PM-2.5 NAAQS with the ozone NAAQS.NAAQS with the ozone NAAQS.

1212

Increments and Significant Impact Increments and Significant Impact Level (SIL)Level (SIL)

Still developing approach for increment level for Still developing approach for increment level for PM-2.5 direct emissions, PM-2.5 precursors, PM-2.5 direct emissions, PM-2.5 precursors, and the baseline trigger date.and the baseline trigger date.

Meanwhile, States must continue to implement Meanwhile, States must continue to implement the PM-10 increments.the PM-10 increments.

We also will be requesting comment on methods We also will be requesting comment on methods for developing SILs for PM-2.5 direct emissions for developing SILs for PM-2.5 direct emissions and precursors.and precursors.