EPA Office of Air & RadiationUpdateElizabeth CraigActing Assistant AdministratorU.S. EPA, Office ofAir and RadiationMay 14, 20092Significant Recent Proposals•Emission Control Areas for Ocean-Going Vessels–Joint U.S./Canada proposal–Sent for consideration by International Maritime Organization March 30•Greenhouse Gas Monitoring and Reporting Rule–Published in Federal Register April 10–Comment period ends June 9•Endangerment Finding–Published in Federal Register April 24–Comment period ends June 23•Cement Kilns MACT–Published in Federal Register May 6–Comment period ends July 6•Renewable Fuels Standard 2–Signed May 5, 60-day comment period–not yet published3Strategy to Address Ocean-Going Vessel Emissions•Amendments to MARPOL Annex VI- Complete–Adopted October 2008–Stringent long-term standards that apply toall ships operating indesignated EmissionControl Areas (ECAs)•NOx standards (2016): 80% reduction•Fuel sulfur standards (2015): 1,000 ppm•ECA U.S. Coasts through Amendment to Annex VI -Underway–U.S./Canada ECA proposal sent to IMO March 27, 2009–Consideration in July 2009; possible adoption in March 2010–Applies to lower 48 plus eastern Alaska and eastern Hawaii–Working on additional submittal forPuerto Rico and U.S. Virgin Islands•Clean Air Act rule – Proposal in June 2009–Adopt emission limits for U.S. vessels–Apply Annex VI requirements to allvessels operating in U.S. waters•National Clean Diesel Campaign Clean Ports USA program–Promote cleaner diesel technologies and strategies through education, incentives,financial assistance4Greenhouse Gas Monitoring and Reporting Rule•Required by FY08 Appropriations Act – Dec. 26, 2007•Rule applies to:–Direct emitters of greenhousegases with emissions generallyequal or greater to 25,000 metric tons/year–Suppliers of fossil fuels & industrial chemicals–Manufacturers of motor vehicles and engines•Covers 85%-90% of total U.S. GHG emissions•Excludes most small businesses and governments•Reporting at the facility level•Working toward issuing final rule in late 2009, so 2010data can be reported in 20115Proposed Endangerment Finding•April 2, 2007– InMassachusetts v. EPASupreme Court decisionfound that greenhouse gases are air pollutants covered by theClean Air Act .•April 17, 2009 – Administratorsigned the proposal with twodistinct findings regardinggreenhouse gases under section202(a) of the Clean Air Act–Proposed Endangerment Finding:Current and projectedconcentrations of the mix of six key greenhouse in the atmospherethreaten the public health and welfare–Cause or Contribute Finding:Combined emissions of CO2, CH4,N2O, and HFCs from new motor vehicles and motor vehicle enginescontribute to the atmospheric concentrations of these keygreenhouse gases and hence to the threat of climate change•60-day public comment period from April 24-June 23–Over 600 comments received so far6Proposed Amendments to MACT: PortlandCement Manufacturing•Would significantly reduce emissions of mercury, totalhydrocarbons, hydrochloricacid (HCl) and particulatematter (PM).•Applies to both new and existing cement kilns.•Proposed numerical limits for mercury, totalhydrocarbons and PM would apply both major and areasources; HCl limits would apply to major sources only.•Proposal Published May 6; comment period ends July 6.•Final rule due Spring 2010.7•RFS2 in Energy Independence & Security Act of 2007–Increased required volumes from 7.5 billion gallons per year in 2012to 36 billion gallonsper year in 2022–Increase is Almost AllCellulosic/Advanced Renewables–New renewable categorieswith GHG thresholds•No threshold for ethanol up to•15 billion gallons;•20% for new production•50% GHG reduction foradvanced biofuels;•60% GHG reductionfor cellulosic biofuel–Provides new waiverprovisions•Status of Rulemaking–Proposal signed May 5–60-day Comment Period–Goal is to issue final rule bythe end of this yearRenewable Fuel Standard Proposed0.05.010.015.020.025.030.035.040.0 200 6 200 7 20 0 8 200 9 201 0 2011 201 2

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Billion gallonsRFS1RFS28Actions Under Review–California GHG Waiver Denial–New Source Review•Aggregation•Fugitive Emissions•“Reasonable Possibility”•PM 2.5 Permitting–“Johnson Memo”•Power plant permitting and CO2 emissions–Air Quality Standards•PM standards – response to Court remand•Ozone – Court grants EPA motion requesting time todetermine whether standardsshould be reconsidered9NAAQS PollutantProposalFinalNO2Primary*Jun 2009Jan 2010SO2Primary*Nov 2009Jun 2010NOX/SOXSecondary*Feb 2010Oct 2010CO*Oct 2010May 2011PMJan 2011Oct 2011OzoneJun 2012Mar 2013Looking Forward -National Ambient Air Quality Standards Review Schedule*Court ordered deadline10Upcoming Court-Ordered RulemakingDeadlines through June 2009•5/15– NSPS Coal Preparation and Processing Plants–Supplemental Proposal•5/31– NSPS Review for Portland Cement –Final Rule•5/31– NESHAP Amendments for Mercury Cell Chlor-Alkali Plants –Final Rule•6/15– Air Toxics Requirements for Aluminum Copper, and otherNonferrous Foundries Area Sources –Final Rule•6/26 –NO2 NAAQS Review–Proposal•8/15– 4 area source rules covering these source categories:–1) Asphalt Roofing Manufacture–2) Chemical Preparations Industry–3) Paint and Allied Products–4) Prepared Animal Feed Materials11ARRA Clean Diesel Funding Distribution•American Recovery and Reinvestment Act–$300 million distributed between four ARRA Diesel programs•National Competitive RFA – $206 Million announced March 19•Received over 600 applications – approximately $2 billion–Clean Diesel Funding Assistance – $156 Million•funding to reduce emissions from existing diesel engines with EPA-verifiedand certified technologies–SmartWay – $30 Million•establishes national low-cost revolving loans or other financing programsthat will provide funding to fleets to reduce diesel emissions–Emerging Technology – $20 Million•advances new cutting edge technologiesto reduce diesel emissions fromthe existing fleet•State Program Grants – $88 Million, $1.73 Million per state and DC–50 grants awarded–States use funds to develop and implement grant and low-cost revolvingloan programs