Clean Air Act Advisory C

Section 185 Work Group C

October 6-7, 2009

Kimber Scavo

Arlington, Virginia
CAAAC Section 185 Tas

 CAAAC Task Force convened in ea

discuss section 185 program imple

 On May 15, 2009, the Task Force 

areas of potential state discretion they were legally permissible undesection 185 or section 172(e) of th

 The Task Force urged EPA to issu

guidance on alternative options to 
Review of CAA Section 1

 Section 185 applies as an obligation for se

extreme ozone nonattainment areas that their attainment date.

 Major stationary sources of VOC and NOx 

are subject to fees ($5,000 per ton adjustfor emissions that are above 80 percent oyear emissions baseline.

 Fees accrue for 

“each calendar year begin

attainment date” and continue 

“until the a

redesignated as an attainment area for oz

 EPA is required to collect the fees if a stat

meet the requirements of section 185, or administering and enforcing a section 185 
Review of CAA Section 18

 The due date for states to submit section 185 f

12/31/2000 for the 1-hour NAAQS and 6/15/20hour ozone NAAQS.

 D.C. Circuit Court opinion (South Coast v. EPA, 

identifies section 185 fees as a control requiremimplemented by former 1-hour ozone severe anprevent backsliding per CAA section 172(e).

 EPA released “Guidance on Establishing Emissio

Section 185 of the CAA for Severe and Extreme Nonattainment Areas that Fail to Attain the 1-htheir Attainment Date” on March 21, 2008.

 Addresses alternative baseline calculation fo

emissions are cyclical, irregular, or otherwisyear.
Areas required to implement a section 

program because of failure to attain thNAAQS by the statutory attainment da

Area AttaBaltimore, MD (severe 15) 

Baton Rouge, LA (severe 15) Sacramento, CA (severe 15)* New York, NY-NJ-CT (severe 17) Houston, TX (severe 17) Southeast Desert, CA (severe 17) Coachella Valley, CA (severe 17)* 

Area Atta

LA South Coast, CA (extreme) 

San Joaquin Valley, CA (extreme)* 

Areas that may need to implement 

...

*These areas have adopted full or partial section 185 programs.
Task Force List of Optionof Potential State Discret

 Aggregation of emissions am

commonly-owned facilities

 Aggregation of VOC and NO Consideration of pre-attainm

attainment year installation LAER

 Consideration of pre-attainm

attainment year installation controls
Task Force List of Options: APotential State Discretion (co

 Consideration of market-bas Credit sources for post-attai

emissions-reducing or air quinvestments

 Post-attainment year new so Use of program revenues Equivalent programs Program Sunset
Response to Task Force

 EPA does not believe that ma

points raised by the Task Forcapprovable under section 185

 Formal letter will be sent to th

with our response at the time the guidance memo.
Guidance on Developing FPrograms Required by Sec

 EPA is close to releasing the g

memo.

 The guidance addresses the f

topics:

 Applicability of section 185 to fo

ozone NAAQS nonattainment ar

 Applies to all severe and extreme 

nonattainment areas, e.g., 1-hour ozone areas

 Summary of section 185 require
Guidance on Developing FePrograms (cont.)

 The guidance addresses (cont

 When the fees begin to apply

 For 1-hour severe-15 areas, the fees beg For 1-hour severe-17 areas, the fees beg

 When the section 185 fee obliga Section 172(e) and alternatives 

fee programs

 Inflation adjustment for Section  Response to CAAAC Task Force 
Questions

 Questions on section 185 c

submitted in writing to: gerth.denise@epa.gov.