E D D I E T E R R I L LA I R Q U A L I T Y D I V I S I O ND E P T . O F E N V I R O N M E N T A L Q U A L I T YA U G U S T 2 1 , 2 0 1 4EPA’s 111(d) Clean Power PlanRule: A DEQ Perspective4 General Criteria for EGU 111(d) PlansEnforceable measuresthat reduce CO2 emissions fromaffected EGUsMeasures must be projected to achieve emissionperformanceequivalent to or better thanstate specificCO2 goal on a timeline equivalent to that in the emissionguidelines.Quantifiable and verifiableEGU CO2 emissionperformance.Process for state reporting of plan implementation,CO2emission performance, and, if necessary, implementation ofcorrective measuresOklahoma’s EGU 111(d) Plan- The long road aheadQuestions??????What can we donow to prepare?What approachis best forOklahoma?Are statutechangesneeded?Will DEQ needto adopt newrules?DEQ Permanent Rulemaking ProcessTypically, it takes at least 18 months to promulgate apermanent air quality rule.Rule development with stakeholder inputOklahoma APA filings and publication requirementsPublic commentsAir Quality Advisory Council HearingDEQ Environmental Quality Board HearingLegislative ApprovalGubernatorial ApprovalPublication of Final RuleIf new DEQ rules needed ?Fast Track to DEQ Rule Effective 2016June 30, 2015 – EPA promulgates final ruleOctober 2015 – Presentation on Key Concepts ofDEQ Rule Proposal during Council meetingWeek of Thanksgiving 2015 – Proposed rule &Notice of Rulemaking Intent to Governor &Oklahoma Secretary of Energy and EnvironmentDecember 15, 2015 – Proposed rule available forpublic comment; 30-day public comment periodbeginsDEQ Rule Effective 2016 (cont.)January 2016 – Air Quality Advisory CouncilHearingMarch 2016 – Environmental Quality Board HearingJuly 2016 – Permanent rule effectiveOklahoma 111(d) PlanJune 30, 2016 – Deadline for submitting State 111(d)Plan or request for extension to EPAExtension state plan – June 30, 2017 deadlineExtension regional plan – June 30, 2018 deadlinePublish proposed 111(d) Plan & 30-day publiccomment period prior to hearingResponse to Comments part of Final 111(d) Plan –Allow at least 45 days to prepare and finalize.To Think AboutRule effective after June 30, 2016 deadline for 111(d)Plan submittalOnly one public comment period & Council meetingJanuary Council meetings affected by winter stormsIf EPA final rule delayed, may be impossible topromulgate rule in 2016.Additional time may be needed if EPA final rule issubstantially different than as proposed.Plan to request extension?Extension RequestIf a state seeks an extension, must submit an initialplan with the following content by June 30, 2016:Description of plan approach and progress made indeveloping a complete planInitial quantification of the level of emissionperformance that will be achieved through the planCommitment to maintain existing measures thatlimit or avoid CO2 emission (e.g., RPS, unit-specificlimits on operation or fuel utilization), at leastuntilthe complete plan is approved.Extension Request (cont.)Comprehensive roadmap for complete the plan,including process, analytical methods, and schedule(including milestones) specifying when all necessaryplan components will be complete (e.g., projection ofemission performance; implementing legislation,regulations and agreements; necessary approvals)Identification of existing programs state intends torely on to meet its goalExecuted agreements (s) with other states (e.g.,MOU), if regional approach is being pursuedExtension Request (cont.)Commitment to submit a complete plan by theapplicable required date and actions the state willtake to show progress in addressing incomplete plancomponentsDescription of steps already taken toward developingcomplete planEvidence of opportunity for public comment on theinitial planOklahoma 111(d) Plan PreparationUnlike other 111(d) plans and routineimplementation plans done in pastNot a true State Implementation PlanSuggested Role of Secretary of Energy andEnvironment (SOEE)Suggested Role of Corporation CommissionEnergy Efficiency, Demand Side Management, RenewableEnergy and Renewable Energy Credits, Southwest Power PoolRole of Department of Environmental QualityOklahoma Workgroup StructureTechnical Workgroup led by Air Quality Division ofDEQThose companies with units affected by the ruleBroader stakeholder process led by the Secretary ofEnergy and EnvironmentIncludes all other interested partiesSuggestions for better structure?Suggested Oklahoma PathwayCurrently working on comments to proposal for submittalby October 16SOEE’s office scheduling broader stakeholder meeting forSeptemberContinue working with Corporation Commission andaffected/interested partiesMeet with smaller technical workgroup between now andtime rule becomes finalConduct broader stakeholder meetings in conjunctionwithSOEE as necessaryDevelop realistic timeline after rule goes final and legalchallenges appear to be resolvedCases Challenging GHGRegulation Under 111(d)Murray Energy Corp. v. EPA (N.D.W.V. 2014) –Murray Energy Corp. v. EPA (D.C. Cir. 2014) –State of West Virginia, et al. v. EPA (D.C. Cir. 2014) –ObstaclesOpposition to any plan from legislature, generalpublic or as part of stakeholder processCap and Trade PossibilityPlan will have to span presidential administrationsandpossible Congressional changesConsequences unclearOklahoma’sCleanPowerPageProposed StandardsTimelinesState & Industry RolesPresentations to DateEPA’s Comment Procedure Pagewww.deq.state.ok.us/aqdnew/RulesAndPlanning/cleanpower111d