# Presentation: 042967

## CAIR/CAMR Update

***Presentation for ***
**CAIR and CAMR Training**
*** ******Beth Murray***
**Clean Air Markets Division**
**U.S. EPA Office of Air and Radiation**
**December 2007**

## 	Emission Caps*	
(million tons)
		2009/2010   	2015

Annual SO2	    3.6	 2.5
(2010)

Annual NOx	    1.5	 1.3
(2009)

Seasonal NOx       .58	 .48
(2009)

	*For the affected region.

- 	**Emission Caps***
*(million tons)*
- 		_**2009/2010**_**   ****	**_**2015**_
- Annual SO2	    3.6	 2.5
- (2010)
- Annual NOx	    1.5	 1.3
- (2009)
- Seasonal NOx       .58	 .48
- (2009)
*	*****For the affected region.*

## CAIR Implementation Timeline

**CAIR NOx Programs **
**Annual:  Jan 1, 2009**
**Ozone:  May 1, 2009**

**CAIR SO2 Program**** **
**Jan 1, 2010**

**CSP Early Reductions**
**(annual CAIR NOx)**
**(‘07 and ‘08)**

- 07

- 08

- 09

- 10

**Abbreviated SIPs due March 31, 2007 **

**NOx Monitoring and **
**Reporting Required**
**(‘08)**

**Record FIP or SIP* allocations**
**September 30, 2007**

**Petitioners’ briefs due**
**March 5, 2007**

**EPA’s brief due**
**June 13, 2007**

**SO2 Monitoring and **
**Reporting Required**
**(‘09)**

- *approved SIPs

**Final briefs due**
**Sept 2007**

## CAIR State Rule Development

- Positions in some States may change, but an April 2007 EPA survey indicates:
- All 29 affected jurisdictions (28 States + DC) are expected to be part of the trading program
- 6 States may impose tighter local controls
- State Plan submissions by deadline
- Sept ‘06:  AL, IA, LA(SO2), NC, TN, TX, WV
- Many other states have since submitted
- Several states plan to remain under the FIP either temporarily or permanently

- _How does EPA expect States Meet the CAIR Requirements?_

- _Which States Met the CAIR SIP Submittal Deadline?_

## EPA, states, and sources are working together and making significant progress in the state rulemaking process, and the installation of monitoring and control equipment to ensure smooth implementation of CAMR.

EPA HQ implementation efforts include:
 Providing training workshops for states
 Providing training workshops for sources
 Coordinating with the ten EPA Regions
 Reviewing all draft, proposed, and final state rules

CAMR monitoring begins in 2009; Phase I compliance begins in 2010

- EPA HQ implementation efforts include:
-  Providing training workshops for states
-  Providing training workshops for sources
-  Coordinating with the ten EPA Regions
-  Reviewing all draft, proposed, and final state rules
- CAMR monitoring begins in 2009; Phase I compliance begins in 2010

**CAMR Implementation Overview**

**Notes:**
RECs = Renewable Energy Credits

## Major effort on the part of States with a lot of unique “tailoring” of programs
For the 47 States and 2 tribes that have coal-fired units, an October 2007 EPA survey indicates:
29 are planning to have trading
19 plan to use CAMR trading “as-is”
7 plan to impose stricter local controls in addition to CAMR trading
2 plan to trade but with only partial allowances
2 plan to convert to non-trading in the future
5 states are not committed to an approach
12 plan a response other than trading, most with more stringent controls, often with control waivers for special circumstances
3 States and DC have no coal-fired units

**How Are States Planning to Meet the CAMR Requirements?**

- Major effort on the part of States with a lot of unique “tailoring” of programs
- For the 47 States and 2 tribes that have coal-fired units, an October 2007 EPA survey indicates:
- 29 are planning to have trading
- 19 plan to use CAMR trading “as-is”
- 7 plan to impose stricter local controls in addition to CAMR trading
- 2 plan to trade but with only partial allowances
- 2 plan to convert to non-trading in the future
- 5 states are not committed to an approach
- 12 plan a response other than trading, most with more stringent controls, often with control waivers for special circumstances
- 3 States and DC have no coal-fired units

## CAMR: State Plan Submittal Status

**CAMR: State Plan Submittal Status**

-  *    Also has state-specific requirements.
***Map represents best available information as of October 2007.***

- 2013

- 2018*

- State Plan Trading

- State Not Trading

- Federal Plan Trading

- State Specific Rules in Addition to Trading

- Zero Budget, evaluating how new sources are treated

- No clear indication of state’s plans for response

## CAMR Federal Plan (FP) – a regulatory backstop
Proposed in December 2006
FP serves as a backstop measure until all states have approved State Plans; approved State Plans will replace FP.  FP guarantees on-time monitoring and controls across the country
EPA is working to finalize the FP by late 2007
EPA is seriously considering the proposed option for a state to submit only an allocation methodology instead of a full plan
Adopting a deadline for submission of state allocation methodologies that would coincide with the effective date of the FP –  which is likely to be during March 2008 
EPA sent a letter to states apprising them of this

- Proposed in December 2006
- FP serves as a backstop measure until all states have approved State Plans; approved State Plans will replace FP.  **FP guarantees on-time monitoring and controls across the country**
- EPA is working to finalize the FP by late 2007
- EPA is seriously considering the proposed option for a state to submit only an allocation methodology instead of a full plan
- Adopting a deadline for submission of state allocation methodologies that would coincide with the effective date of the FP –  which is likely to be during March 2008
- EPA sent a letter to states apprising them of this

**CAMR Regulatory Update**

**Notes:**
Also used by utilities, generators, and trade groups.

## CAMR Federal Plan Notice of Data Availability (NODA)
EPA plans to determine FP Hg allocations through a NODA in Fall of 2007 
Sources, states, stakeholders and public will have opportunity to submit objections to a source’s affected status and/or Hg allocation
EPA will finalize the NODA early in 2008
EPA is developing a plan to ensure that all allocations are recorded in accounts no later than September 2008.  While EPA prefers to use state allocation plans, it may be necessary for EPA to allocate based on the FP in some cases

- EPA plans to determine FP Hg allocations through a NODA in Fall of 2007
- Sources, states, stakeholders and public will have opportunity to submit objections to a source’s affected status and/or Hg allocation
- EPA will finalize the NODA early in 2008
- EPA is developing a plan to ensure that all allocations are recorded in accounts no later than September 2008.  While EPA prefers to use state allocation plans, it may be necessary for EPA to allocate based on the FP in some cases

**CAMR Regulatory Update (continued)**

## Litigation Status

|   | Final
Briefs | Oral 
Arguments |
| --- | --- | --- |
| CAMR | July 13 | December 6 |
| CAIR | September 5 | Not
scheduled |
| North Carolina
Section 126
(CAIR) | November 28 | Not
scheduled |

**Litigation Status**

- (All Dates Are 2007)