E

Environment

Human 

Status of 

Clean Air Interstate Rule Imple

and Outreach for Replacemen

EPA’s Clean Air Act Advisory Committe

Washington, D.C.

May 13, 2009 

Sam Napolitano

U.S. EPA Clean Air Markets Division
Clean Air Interstate Rules (CA

Remain In Effect
State Responses to CA

• All states have chosen the regional trading pro• Some states still working on SIPs and NOx all

• NOx allocation methodology

– About 1/3 use model rule approach– Remaining 2/3 chose their own approach

• Varies from permanent allocation to annual updatin

year block)

• Compliance Supplement Pool for Annual NOx 

– 2 out of 23 states chose not t

o distribute

– EPA a

dministers in six states

– Issued as 2009 annual NOx allowances

– Discussing with states expediting CSP a

w

a

rds
State Flexibilities unde

• Opt-ins

– 13 states chose to include opt-in provision– 16 states chose not to include opt-ins

• Expanding applicability to include major non-

sources (like in NOx SIP Call) in the CAIR oz

trading program

– 14 out of 20 states chose to expand applica
Source Response to CA

• Sources established Designated Representa

programs

• Facility allowance accounts have been estab

allocations recorded

• Sources began monitoring and reporting em

– Jan. 1, 2008 for NO

x

– Jan. 1, 2009 for SO

2

• Some sources have earned early reduction c

annual NOx program (awarded as CSP allow

• Vast majority of sources have NOx allowan

and 2010 and most have additional years

– General concern exists over trading allowances – “Buyer beware” 

language posted on EPA web s
Progress under the Acid Rain, NO

Trading, and CAIR Programs

A

1

15.7

05

101520

1990 2

SO 2 Emissions (million tons)

* Based on initial data submiss

needed. 2. From all Acid Rain Program fuels.

O

zone S

eason N

Ox E

missi

o

ns

1 

1,924

 1,256

481

506

609

-

500

1,0001,5002,0002,500

1990 2000 2004 2007 2008

NOx Emissions (thousand tons)

emissions cap

1. From all NOx Budget Trading Programsources including about 2,600 units from the

electric power industry and other large stationary sources.
State-by-State Annual SO2 Emission 

Rain Program Sources, 1990-2008

02468

1012141618

1990 1995 2000 2005 2007 2008

Year

SO2 Emissions (million tons) .

2008 data are preliminary

Emissions fgeneration u

in the Acid 
State-by-State Annual NOx Emission 

Rain Program Sources, 1995-2008

01234567

1995 2000 2005 2007 2008

Year

NOX Emissions (million tons) .

2008 data are preliminary

Emissions fgeneration u

in the Acid 
State-by-State Ozone Season NOX Emi

NOX Budget Trading Program Sources

001122

Ozone Season NOX (million tons) .

200

Emissions fro

m about 2,60

0 electric 

generation units that use fossil fuels and 

other large stationary sources in the NOX 

B

u

dget Trading Program (N

B

P).
2008 Coal Controls for SO
SO2 and NOX Emissions Rates 

for Coal-fired Generation

0

102030405060708090

0-0.1 0.1-0.2 0.2-0.3 

2008 Ozone Sea

Capacity (GW)

0

20406080

100120140

0-0.5 0.5-1 1-1.5 1.5-2 2-2.5 2.5-3 >3

2008 Annual SO2 Rate (lbs/MMBtu)

Capacity (GW)

Non-FGDFGD

Source: EPA, ARP data

FGD includes units with flue gas desulfurization and fluidized bed units, and 

Non-FGD includes all other units which inlimited cases have induct and other 

controls and have switched or blended 

coals to lower SO2 emissions rates.
Outreach on Rules to Rep

• Over the last two months, EPA staff have h

“listening sessions” with major stakeholder

replace CAIR

– National Association of Clean Air Agencies (NACA– Lake Michigan Air Directors Consortium (LADCO)– Ozone Transport Commission (OTC)– Central States Air Resource Agencies (CENSARA)– Southeastern States Air Resource Managers (SESAR– State of Texas– Non-Governmental Organizations (environmental an– Council of Industrial Boiler Owners (CIBO). Americ

Association, Automobile Alliance, American Chemirelated industries

– Electric power industry and related industries and org
E

Environment

Human 

Visit the Clean Air Markets web site 

•Emissions data

•Allowance transfers

•Program rules and guidelines

•Studies and reports 

•Clean Air Markets www.epa.gov/air

New updated portion of w

http://www.epa.gov/cap
E

Environment

Human 

Appendix
Overview of

Electric Power Sector and A

Sources of Data

• Initial emissions maps are based on Acid Rain Program (AR

Trading Program (NBP) compliance data reported to EPA’s Division. All data are final, except annual SO2 and NOx prefor 2008. 

• For pollution controls shown in the map in the main body o

for maps in this appendix, EPA has based this on its draft 2Electric Power Emissions Data System (NEEDS) that is useIntegrated Planning Model (IPM) and EPA ARP emissions 

– Includes existing federal controls for ARP and NBP, state co

Court decisions, and controls reported to be underway becausor binding contracts are in place from broad, although not co

work. States (through their Regional Planning Organizations) 

commented on much of the NEEDS data used in this analysis

change for companies participating in survey.

– Additional controls from CAIR replacement rules or other fe

upcoming MACT regulations or State regional haze SIPS are 

• Note that in some cases future controls for SO2 may potenti

where economic analysis now suggests its cheaper to use SO

operate controls. EPA has not seen clear evidence of this oaware of some countervailing factors that could inhibit this
Selected Facts on Coal-fired Gen

• Electric Generation Units, Capacity, and Power Plants

– All units: 1,279 electric generation units and 310 gigawatts 

of capac

– Units >25 MW: 1,083 electri

c generation units and 307 GW of capa

– Active units in the Acid Rain Program: 988 electric generation unit

to 400 power plants

• For all units the average age of coal-fired generation capacity is 35 years. 

– Oldest: Over 50 years old (on line 1929-1967)– Older Middle: 34-50 years old (on line 1967-1974)– Younger Middle: 27-34 years old (on line 1974-1981)– Youngest: Less than 28 years old (on line 1981-2008)

• Vast majority of coal-fired generation capacity has advanced pollution co

controls (mostly electrostati

c precipitators and some bag houses) that stat

• At least 234 GW of coal-fired capacity has some form of l

ow NOx burner

Selective Cat

alytic Reduction (SCR) and 27 GW of capacity have Selecti

(SNCR) pollution control technology. 

• For SO2 emissions control, t

here is 136 GW of t

otal capacity that has flue 

“scrubbers” 

and close to 6 GW of fluidized-bed capacity, where the comb

scrubber. Notably, about 80 GW of capacity have both scrubbers and SCR

percent of the capacity has scrubbers or is a fluidized-bed unit east of the percent of the capacity west of the Mississippi has these advance controls

• Early in 2008, owners of coal-fired generation and other sources reported 

additional 33 GW of FGD capacity and 9 GW of SCR/SNCR capacity at 2010.
2000 Coal Controls for SO
2005 Coal Controls for SO
2010 Coal Controls for SO
2012 Coal Controls for SO
2014 Coal Controls for SO
State-by-State Annual CO2 Emission 

Rain Program Sources, 1995-2008

2.17

2.45 2.54 2.56 2.52

0.00.51.01.52.02.53.0

1995 2000 2005 2007 2008

Year

CO2 Emissions (billion tons) .

2008 data are preliminary

Emissions fgeneration u

in the Acid