From: Raj Rao/RTP/USEPA/US 

To: "Kymn, Christine J." <Christine_J._Kymn@omb.eop.gov> 

Date: 08/06/2010 03:53 PM 

Subject: RE: timing 

Per your request, 

 

 

SIP-Fix write-up.doc 

Please let me know asap if you have any concerns 

Raj Rao, P.E. 

Group Leader, NSRG 

OAQPS/AQPD(MD- C504-03) 

109 TW Alexander Drive 

RTP, NC 27709 

919-541-5344 

919-541-5509 fax 

Note: Positions or views expressed here do not represent official EPA policy. Interagency deliberative 

and Confidential. 

From: "Kymn, Christine J." <Christine_J._Kymn@omb.eop.gov> 

To: Raj Rao/RTP/USEPA/US@EPA 

Date: 08/06/2010 03:04 PM 

Subject: RE: timing 

Raj, can you send me the CEQ language separately stat? 

-----Original Message----- 

From: Rao.Raj@epamail.epa.gov [mailto:Rao.Raj@epamail.epa.gov] 

Sent: Friday, August 06, 2010 2:55 PM 

To: Kymn, Christine J. 

Subject: Re: timing 

Also, can you let me know if you think we may need a call to wrap this up 

today? Perhaps I should schedule a placeholder call at 4 or 4.30? 

Raj Rao, P.E. 

Group Leader, NSRG 

OAQPS/AQPD(MD- C504-03) 

109 TW Alexander Drive 

RTP, NC 27709 

919-541-5344 

919-541-5509 fax 

Note: Positions or views expressed here do not represent official EPA policy. 

Interagency deliberative and Confidential. 
SIP Fix Rule 

Today’s proposal is secondary to our overarching goal, which is to assure that in every 

instance, it will be the state that will be that permitting authority. EPA continues to recognize 

that the states are best-suited to the task of permitting because they and their sources have 

experience working together in the state PSD program to process permit applications. EPA 

seeks to remain solely in its primary role of providing guidance and acting as a resource for the 

states as they make the various required permitting decisions for GHG emissions. 

Accordingly, beginning immediately we intend to work closely with the States – as we 

have already begun to do since earlier in the year -- to help them promptly develop and submit to 

us their corrective SIP revisions that extend their PSD program to GHG-emitting sources. 

Moreover, we intend to promptly act on their SIP submittals. Again, EPA’s goal is to have each 

and every affected state have in place the necessary permitting authorities by the time businesses 

seeking construction permits need to have their applications processed and the permits issued – 

and to achieve that outcome by means of engaging with the States directly through a concerted 

process of consultation and support. 

EPA is taking up the additional task of proposing this SIP call and the companion FIP 

action only because the agency is compelled to do so by the need to assure businesses, to the 

maximum extent possible and as promptly as possible, that a permitting authority is available to 

process PSD permit applications for GHG-emitting sources once they become subject to PSD 

requirements on January 2, 2011. Again, without a permitting authority, those sources will be 

unable to construct or modify. 

In order to provide that assurance, we are obligated to recognize, as both states and the 

regulated community already do, that there may be circumstances in which states are simply 
unable to develop and submit those SIP revisions by January 2, 2011 or for some period of time 

beyond that date. As a result, absent further action by EPA, those states’ affected sources 

confront the risk that they will have to put on hold their plans to construct or modify, a risk that 

may have adverse consequences for the economy – and a risk that can be minimized only by 

EPA’s taking the specific step of issuing today’s proposal. . 

To be sure, these circumstances are exigent. They demand that we develop a plan to 

assure, within the limits of our power, that a back-up permitting authority is available – and to 

send that signal of assurance expeditiously in order to eliminate uncertainty and thus facilitate 

businesses’ planning. Within the design of the Clean Air Act, it is EPA that must fill that role of 

back-up permitting authority. This SIP call action and the companion FIP action fulfill the Clean 

Air Act’s requirements to establish EPA in that role. 

At the same time, we have designed these actions to retain as much discretion as possible 

in the hand of the states. The states may choose the deadline they consider reasonable for 

submission of their corrective SIP revision. If we are compelled to promulgate a FIP, we invite 

the affected state to accept a delegation of authority to implement that FIP, so that it will still be

the state that processes the permit applications, albeit operating under Federal law. In addition, if

we are compelled to issue a FIP, we intend to continue to work closely with the state to assist it 

in developing and submitting for approval its corrective SIP revision, so as to minimize the 

amount of time that the FIP must remain in place. 

Finally, we can report that in informal conversations, officials of various states have 

acknowledged the need for our SIP call and FIP actions. That is, they have acknowledged that a 

short-term FIP may be necessary in their states to protect their sources’ abilities to construct and 
modify in accordance with environmental safeguards. In addition, some have indicated that they 

will closely consider their opportunities to accept delegation of the permitting responsibilities.