Overview Presentation:

Clean Air Act Section 111

Workshop for Communities with Environmental 

Justice Concerns 

Holly Wilson

U.S. Environmental Protection Agency

Office of Air Quality Planning and Standards

October 30, 2014
Purpose

• To engage with stakeholders as EPA addresses President Obama’s 

directive to reduce carbon pollution from power plants under his 

Climate Action Plan

• To build a common understanding about the basics of the Clean 

Air Act (CAA) section 111 

– How it has worked

– How it gives flexibility in the design of a program to reduce carbon 

pollution from existing power plants 

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In December 2009, EPA’s Administrator released 

an endangerment finding that the current and 

projected concentrations of six key greenhouse 

gases in the atmosphere threaten the public 

health and the welfare of current and future 

generations. 

 carbon dioxide (CO2)

 methane (CH4), 

 nitrous oxide (N2O), 

 hydrofluorocarbons (HFCs) 

 perfluorocarbons (PFCs) 

 sulfur hexafluoride (SF6) 
Carbon Pollution and Health

• Unchecked carbon pollution leads to long-lasting changes in our climate, such as:

– Rising global temperatures

– Rising sea level

– Changes in weather and precipitation patterns

– Changes in ecosystems, habitats and species diversity 

• These changes threaten America’s health and welfare for current and future 

generations

• Public health risks include:

– More heat waves and drought

– Worsening smog (also called ground-level ozone pollution)

– Increasing the intensity of extreme events, like hurricanes, extreme precipitation and 

flooding

– Increasing the range of ticks and mosquitoes, which can spread disease such as Lyme 

disease and West Nile virus

• Our most vulnerable citizens, including children, older adults, people with heart 

or lung disease and people living in poverty may be most at risk from the health 

impacts of climate change 4
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The President’s Climate Action Plan

• Calls on the federal government to work with states, cities, 

industries, consumers and the international community to 

address one of the greatest challenges of our time

• Reinforces the federal commitment to:

– Cut harmful pollution

– Protect our country from the impacts of climate change

– Lead an international effort to address a changing climate

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EPA Action Under The President’s 

Climate Action Plan

• Reducing carbon pollution from power plants

• Building a 21st century transportation sector

• Cutting energy waste in homes, businesses 

and factories

• Reducing methane and hydrofluorocarbons 

(HFCs)

• Preparing the U.S. for the impacts of climate 

change

• Leading international efforts to address global 

climate change

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Reducing Carbon Pollution From 

Power Plants

President’s Directive to EPA: 

• Set flexible carbon pollution standards, regulations or guidelines, as 

appropriate, for power plants under section 111 of the Clean Air Act

• Focus on these elements when developing the standards

– Stakeholder engagement on program design 

 States 

 Leaders in the power sector

 Labor leaders

 Non-governmental organizations

 Tribal officials 

 Members of the public

– Flexibilities in the program design

 Market-based instruments, performance standards, others

– Costs

 Tailor regulations and guidelines to reduce costs

– Continued importance of relying on a range of energy sources

8 – Other regulations that affect the power sector
President’s Directive

EPA’s task:

• Develop carbon pollution standards, regulations 

or guidelines, as appropriate, for:

1. New power plants

2. Modified and reconstructed power plants

3. Existing power plants

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EPA’s Task

1. Using the Clean Air Act authority, issue carbon pollution standards for new 

power plants

• On January 8, 2013, EPA issued a new proposal for carbon pollution from 

new power plants. This action proposes:

– A separate standard of performance for fossil fuel-fired electric utility steam 

generating units (EGUs) and integrated gasification combined cycle (IGCC) 

units that burn coal, petroleum coke and other fossil fuels that is based on 

partial implementation of carbon capture and storage as the best system of 

emission reduction

– Standards for natural gas-fired stationary combustion turbines based on 

modern, efficient natural gas combined cycle technology as the best system of 

emission reduction

– This action also includes related proposals concerning permitting fees under 

CAA title V, the Greenhouse Gas Reporting Program, and the definition of the 

pollutant covered under the Prevention of Significant Deterioration program

– A public hearing for the rulemaking was held on February 6, 2014

– The comment period for this rulemaking ended on May 9, 2014; EPA received 

over 2 million comments

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2. Using the Clean Air Act authority, issue carbon 

pollution standards for modified and reconstructed 

power plants

– Will follow the agency’s open and transparent 

regulatory process

 Proposal: June 2014

 Final: June 2015

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EPA’s Task
3. Using the Clean Air Act authority, issue carbon 

pollution guidelines for existing power plants

– Issue federal guidelines for the states

 Work in partnership with states

 States will develop plans that set standards for existing 

sources

 States use EPA guidelines as a reference

– Federal guidelines should build on states’ leadership and 

experience with programs that reduce GHGs

– Will follow the agency’s open and transparent regulatory 

process to develop guidelines and review state plans

 Proposed guidelines: June 2014

 Final guidelines: June 2015

 State plans due: June 2016 12

EPA’s Task
Clean Air Act Section 111

• Authorized in 1970 

• Establishes a mechanism for controlling air pollution from 

stationary sources 

– Applies to sources for which the Administrator, in her judgment, finds 

“causes, or contributes significantly to, air pollution which may 

reasonably be anticipated to endanger public health or welfare”

– Can apply to new, existing, modified and reconstructed sources

• Technology-based regulations

• More than 70 stationary source categories and subcategories are 

currently regulated under section 111

– A full list of sources regulated under section 111 can be found in 

40 CFR Part 60

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Clean Air Act Section 111

• Lays out different approaches for new and existing 

sources

– New sources under section 111(b)

Federal standards for new, modified and reconstructed 

sources

– Existing sources under section 111(d) 

State programs for existing sources that are equivalent 

to federal guidelines

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Clean Air Act Section 111

Section 111(b) for New Sources

• EPA sets a standard of performance for new stationary 

sources

• Standard reflects the degree of emission limitation 

achievable through the application of the best system of 

emission reduction (BSER) that the Administrator 

determines has been adequately demonstrated 

• EPA may distinguish among classes, types and sizes of 

sources

• Each new source must meet the standard 

• EPA can delegate implementation and enforcement of the 

standards of performance to the states

• Standards are incorporated in state air permits

• Standards are to be reviewed at least every 8 years and 

revised, if appropriate 15

Determining “BSER” 

takes into account:

- The costs of achieving 

 emission reductions

- Non-air quality health 

 and environmental 

 impacts

- Energy requirements
Section 111(b) for Modified and 

Reconstructed Sources

• EPA must also set a standard to address 

modified and reconstructed sources

• Follows same process as setting 

standards for new sources

• Each modified or reconstructed source 

must meet the standard

• Standards are incorporated in state air 

permits

• Standards are to be reviewed at least 

every 8 years and revised, if 

appropriate

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Modification 

A physical or operational 

change that increases the 

source’s maximum 

achievable hourly rate of 

emissions 

Reconstruction

When a single project 

replaces components and 

exceeds 50 percent of the 

fixed capital cost that 

would be required to 

construct a comparable 

entirely new facility

Clean Air Act Section 111
Clean Air Act Section 111

Section 111(d) for Existing Sources

• Requires a different approach for 

achieving emission reductions than the 

approach used for new sources

• Provides that EPA establish 

– A procedure for states to issue performance 

standards for existing sources in the source 

category and

– Guidance about the appropriate level of the 

standard

• EPA has established section 111 (d) 

regulations for existing sources for 5 

source categories 

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Section 111(d) 

regulations

- Sulfuric acid plants 

 (acid mist)

- Phosphate 

 fertilizer plants 

 (fluorides)

- Primary aluminum 

 plants (fluorides)

- Kraft pulp plants 

 (total reduced sulfur)

- Municipal solid 

 waste landfills 

 (landfill gases)
Section 111(d) is broad by design

• Congress anticipated there may be air pollution problems that EPA 

would need to address beyond those covered by national ambient air 

quality standards (such as ozone and fine particle pollution) or air 

toxics standards

• Also recognized that existing sources do not have as much flexibility 

as new ones to build emission controls into their design

• Therefore, the statutory language in section 111(d) is broad

• Section 111 (d) provides greater flexibility to EPA and states to design 

a program in consultation with a diverse range of stakeholders

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Clean Air Act Section 111
Clean Air Act Section 111

How Section 111(d) Has Worked

• EPA previously has set “emission guidelines” for 5 

source categories 

– Has not prescribed technology that must be used to comply

• Once EPA set the guidelines, states developed section 

111(d) plans establishing standards of performance for 

the covered sources in their state

• States then submitted section 111(d) plans to EPA for 

review and approval

• EPA subsequently evaluated the plans and took action 

through notice and comment rulemaking

• EPA has authority to prescribe a plan for a state in 

cases where the state fails to submit a satisfactory plan 

and to enforce the provisions of a plan in cases where 

the state fails to enforce them

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Common elements 

of past guidelines

• Description of the Best 

System of Emission 

Reduction (BSER) that has 

been adequately 

demonstrated

• Degree of emission 

limitation achievable, 

costs and environmental 

impacts of application

• Time required to 

implement

• Other information to 

facilitate development of 

state plans

• A goal for reductions – or 

“standard of 

performance” -- based on 

a BSER analysis 
Clean Air Act Section 111

How State Plans Have Worked

• States determine the combination of measures that will meet the 

guidelines

• State plans set standard of performance

– Can be identical to EPA’s guidelines (states adopt EPA’s model rules)

– Can differ from, but be equivalent to, EPA’s guidelines

• State plans provide for implementation and enforcement

– States have had flexibility when applying the standard of performance in 

their plans to take into consideration, among other factors, the remaining 

useful life of the source

• Timeframe to submit state plans has been set by EPA in the 

guidelines 

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Clean Air Act Section 111 

Section 111(d) and Carbon Pollution

• In general, carbon pollution emissions differ from the 

pollutants that have been regulated in the past under section 

111(d)

• Carbon pollution is:

– Global 

– An order of magnitude greater than the other pollutants covered under 

section 111(d) in the past 

– Accumulating and remaining in the atmosphere over hundreds of years

• We have opportunities to explore various program designs and 

flexibilities because of the

– Broad statutory language of section 111(d)

– Unique characteristics of carbon pollution 

– Interconnected nature of the power sector

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• Per the President’s Directive

– EPA will issue proposed carbon pollution standards, 

regulations, or guidelines, as appropriate, for modified, 

reconstructed and existing power plants 

By no later than June 1, 2014 

– EPA will issue final standards, regulations or guidelines, as 

appropriate

By no later than June 1, 2015

– EPA will include in the guidelines addressing existing power 

plants a requirement that states submit to EPA the 

implementation plans 

By no later than June 30, 2016

Next Steps: Actions and Timing