# EPA Overview and

Key Regulatory Updates Southeastern Electric Exchange 2014 Annual Conference and Trade Show June 26, 2014 Beverly H. Banister Air, Pesticides and Toxics Management Division U.S. Environmental Protection Agency, Region 4

# Presentation Overview

• Meeting the Challenges Ahead • Regulatory Updates  Clean Air  Action on Climate Change  Enforcement

### 1. Making a Visible Difference in Communities Across the Country 2. Addressing Climate Change and Improving Air Quality 

### 3. Taking Action on Toxics and Chemical Safety 4. Protecting Water: A Precious, Limited Resource 5. Launching a New Era of State, Tribal, and Local Partnerships 6. Embracing EPA as a High Performing Organization 7. Working Toward a Sustainable Future 

# EPA: Meeting the Challenges Ahead

Administrator Gina McCarthy

### • Clean Air

• National Ambient Air Quality Standard (NAAQS) Update • Mercury Air Toxics Standard • Boiler Rule • Startup, Shutdown and Malfunction (SSM) SIP Call • Interstate Transport Rule • Tier 3 Vehicle Emission and Fuel Standards Program 

### • Action on Climate Change

• President’s Action Plan on Climate Change • Reducing Carbon Pollution from Power Plants • Additional Climate Change Activities 

### • Enforcement

• EPA’s National Enforcement Initiatives • NSR/PSD • Air Toxics • Energy Extraction • Next Generation Compliance 

# EPA Regulatory UpdatesOzone Lead Primary NO 2 Primary SO 2 Secondary

NO 2 and SO 2 PM CO Last Review Completed (final rule signed) Mar 2008 Oct 2008 Jan 2010 Jun 2010 Mar 2012 Dec 2012 Aug 2011

Recent or Upcoming Major Milestone(s) 1 Feb 2014

2 nd Draft REAs 2 nd Draft PA Mar 25 - 27, 2014 CASAC review meeting Dec 1, 2014* Proposed rule Oct 1, 2015* Final rule Spring

2014 Final PA 2014 Proposed rule Nov 2013

1 st Draft ISA Feb 2014 Draft IRP Mar 12 - 13, 2014 CASAC review meeting Mar 2014

Draft IRP Apr 22, 2014 CASAC review meeting Mar 4- 6,

2014 Kickoff workshop for next review Summer 2014 Draft IRP Kickoff

workshop for next review targeted for early 2015 Kickoff

workshop for next review targeted for 2015

1 IRP – Integrated Review Plan; ISA – Integrated Science Assessment; REA – Risk and Exposure Assessment; PA – Policy Assessment * Court ordered dates per April 29, 2014 ruling Additional information regarding current and previous NAAQS reviews is available at: http://www.epa.gov/ttn/naaqs/ 

# NAAQS Reviews: Status Updates

(as of May 2014)

# 2010 SO 2 

# NAAQS • Revised primary 8- hr Ozone standard in 2008 (75 ppb)

• EPA designations for the 2008 Ozone NAAQS effective on July 20, 2012 • Litigation on certain final area designations 

### • Petition seeking redesignation to nonattainment of areas initially designated as attainment

• 2008 Ozone NAAQS SIP Requirements Rule • Proposed May 29, 2013 (78 FR 34178) • Anticipate final rule in Fall 2014 • Attainment plans and demonstrations due July 2015 

### (Moderate) or July 2016 (Serious and above) 

# 2008 Ozone NAAQS Implementation

# 2012 PM 2.5 

# NAAQS Designations Timeline August 14, 2014 120-day letters to States and Tribes August 29, 2014 Federal Register published September 29, 2014 Close of public comment period October 29, 2014 Deadline for State and Tribal comments on



### EPA's intended designations December 12, 2014 Final area designations 2015 and beyond Near- road monitors installed and



### producing data

# 2010 SO 2 

# NAAQS • Revised Primary SO 2 

### Standard: June 2010 (75 ppb/1 - hr)

• SO 2 

### Area Designations and Implementation Strategy released February 2013



### • Designations and Implementation Guidance and Assistance

– Issued PSD permit modeling guidance documents applicable to the 1 - hr SO2 NAAQS on August 23, 2010 and March 1, 2011



### – Technical Assistance Documents for modeling and monitoring issued December 2013

– For more information including strategy and guidances visit: • http://www.epa.gov/airquality/sulfurdioxide/implement.html 

# 2010 SO 2 

# NAAQS Implementation

# 2010 SO 2 

# NAAQS • Initial nonattainment area designations based on violating 

### monitors, were effective October 4, 2013

– 29 areas in 16 states designated • Attainment plans due April 2015 • Judicial challenges filed for three areas designated NA and regarding EPA’s approach to designations in general


### • Strategy includes two additional future rounds of initial designations based on modeling (2017) and monitoring (2020) data to be submitted by states

• Deadline suits filed by Sierra Club and several states requesting court to order EPA to issue final designations for all remaining areas with timeframes ranging from a couple months to 2 years from date of order 

# 2010 SO 2 

# NAAQS Area Designations

# 2010 SO 2 

# NAAQS • SO 2 

### Data Requirements Rule

– Objective is to provide information to EPA in an orderly fashion to inform initial area designations for areas not designated in 2013

– Proposal issued April 17, 2014 and final in late 2014


### • 1 - hr SO 2 

### NAAQS Nonattainment SIP Elements Guidance

– Objective is to provide assistance to areas developing their nonattainment area plans

– Draft provided for air agency review in October 31, 2013

– Issued in April 2014



### • Status of next SO 2 NAAQS Review (primary and secondary)

– At the beginning stages of the review 

# 2010 SO 2 

# NAAQS Implementation• December 21, 2011: EPA final standards to limit mercury, acid gases and other toxic pollution from new and existing electric generating units (EGUs) • Applicability: Units >25 MW that burn coal or oil for the purpose of generating electricity for sale and distribution through the national electric grid to the public • Existing sources: Can have up to 4 years to comply with MATS • Pathway for reliability: Critical units to obtain a schedule with up to an additional year to achieve compliance
• December 2013: DC Circuit Court of Appeals hears challenges to MATS
• April 15, 2014: The DC Circuit issued its ruling upholding MATS



# Mercury Air Toxics Standard (MATS)

http://www.epa.gov/mats/ and http://ferc.gov/media/news - releases/2012/2012 - 2/05 - 17 - 12 - E - 5.asp 11 The Mercury and Air Toxics Standards Will Prevent: Once Implemented (cases each year) Premature Death Up to 11,000 Chronic Bronchitis 2,800 Heart Attacks 4,700 Asthma Attacks 130,000 Hospital and Emergency Room Visits 5,700 Restricted Activity Days 3,200,000

# Boiler Rule Updates

 February 28, 2014 - EPA filed a motion asking the U. S. Circuit Court of Appeals for the District of Columbia to give the agency time to update a small set of standards that apply to less than 0.5% of all existing boilers and incinerators as well as some standards that affect new incinerators and boilers  March 21, 2011 - EPA promulgated final rules  December 20, 2012 - EPA finalized a specific set of adjustments to the standards  Will avoid up to 8,100 premature deaths, 5,100 heart attacks, and 52,000 asthma attacks  Cost effective, with EPA estimating that Americans will receive $13 to $29 in health benefits for every dollar spent to meet the final standards Reminders: March 21, 2014: Compliance date for area source boilers under the Boiler MACT January 31, 2016: Compliance date for major source boilers

# Startup, Shutdown, and Malfunction (SSM) SIP Call

• 6/30/11– Sierra Club petitioned EPA for rulemaking regarding 

### SSM provisions in State Implementation Plans (SIPs).

– Nationally - 39 states & 7 locals noted in the petition • Includes all 8 Southeastern States & 4 locals

– Settlement set schedule for proposed/final rules, SIP call 

### • 2/12/13 Proposed rule:

– 36 states submit their revised state plans to the Agency.



### – Revised SIPs will require industrial facilities to follow air pollution rules during SSM.

– 6/15/14 – Deadline for EPA action on final rule completion date

– States will have 18 months to submit SIPs following effective date of final rule

# 2010 SO 2 

# NAAQS • U.S. Supreme Court granted EPA’s petition for review of the D.C. Circuit’s decision in EME Homer City which vacated the Cross State Air 

### Pollution Rule (CSPAR)

– Oral argument was held on December 10, 2013


### • CSAPR requires states to significantly improve air quality by reducing power plant emissions that contribute to ozone and/or fine particle 

### pollution in other states
• On April 29, 2014, the Supreme Court reversed the DC Circuit opinion and remanded it back to the appeals court for further proceedings

“Today’s Supreme Court decision is a resounding victory for public health and a key component of EPA’s efforts to make sure all Americans have clean air to breathe. It serves to support the ongoing work to see that air quality in downwind states continues to improve. The Court’s finding also underscores the importance of basing the agency’s efforts on strong legal foundations and sound science. This is a big win for the nation’s public health and a proud day for the agency .” Gina McCarthy, EPA Administrator 

# Interstate Pollution Transport Update

# Tier 3 Vehicle Emission and Fuel

Standards Program
 March 3, 2014 - EPA Finalizes Tighter Vehicle and Fuel Standards to Reduce Emissions  Starting in 2017, Tier 3 sets new vehicle emissions standards and lowers the sulfur content of gasoline, considering the vehicle and its fuel as an integrated system  Emission reductions from the Tier 3 program will lead to immediate air quality improvements that are critically important for States to attain and maintain the existing health - based NAAQS http://www.epa.gov/otaq/tier3.htm

## Addressing Climate Change:

President’s Action Plan on Climate Change

• June 25, 2013: President announced his plan to cut 

### carbon pollution and prepare the U.S. for the impacts of climate change  Reduce carbon emissions from power plants  Build a 21 st Century transportation sector  Develop post- 2013 fuel economy standards for heavy-duty vehicles  Cut energy waste from our homes, businesses, and factories  Help states and cities prepare for the impacts of climate change  Lead global efforts to address climate change

http://www.whitehouse.gov/share/climate-action -plan

# Reducing Carbon Pollution From Power 

# Plants President’s Directive to EPA: 

# Develop carbon pollution standards, regulations or guidelines, as appropriate, for: 1. New power plants • Proposed: January 8, 2014 

## 2. Modified and reconstructed power plants • Proposal: June 2, 2014 • Final : June 2015 

## 3. Existing power plants • Proposed Guidelines: June 2014 • Final Guidelines: June 2015 • State Plans due: June 2016• Proposed standards of performance only apply to new electric utility generating units >25 MW. • EPA standards of performance for:

– Natural gas fired stationary combustion turbines • 1,000 lbs CO 2/ MWh -gross for large units (>850 mmBtu/hr) • 1,100 lb CO 2/ MWh -gross for smaller units (≤850 mmBtu/hr)

– Fossil fuel -fired utility boilers and Integrated Gasification Combined Cycle units • 1,100 lb CO 2/ MWh -gross over a 12 - month operating month period, or • 1,000- 1500 lb CO 2/ MWh -gross over a 7-year period 

## Reducing Carbon Pollution From

New Power Plants – 111(b) New power plants — 111(b) Proposal: September 20, 2013 Public comment period: Ended on May 9, 2014

http ://

### • On June 2, 2014, EPA proposed the first 

### national guidelines to cut carbon pollution from existing power plants. • EPA is following through on the steps laid out in President Obama’s Climate Action 

### Plan by proposing to cut carbon pollution

– a leading cause of rapid, dangerous climate change — from existing power plants. • Nationwide, by 2030, this rule would achieve CO2 emission reductions from the power sector of approximately 30 percent from 2005 levels, while starting to make significant reductions in 2020.



# Clean Power Plan Reducing Carbon Pollution From Existing Power Plants – 111(d) Existing power plants — 111(d) Proposed Guidelines: June 2,2014 Final Guidelines: June 2015

http://www2.epa.gov/carbon -pollution -standards

### This proposal will: • Reduce carbon pollution from existing power plants, for which there are currently no national limits. 

### • Maintain an affordable, reliable energy system. • By 2030, reduce nationwide carbon dioxide (CO 2 

### ) emissions, from the power sector by approximately 30% from 2005 levels.

– Significant reductions begin by 2020. 

### • Cut hundreds of thousands of tons of harmful particle pollution, sulfur dioxide and nitrogen oxides as a co - benefit. • Provide important health protections to the most vulnerable, such as children and older Americans. • Lead to health and climate benefits worth an estimated $55 billion to 

### $93 billion in 2030. • From soot and smog reductions alone, for every dollar invested through the Clean Power Plan – American families will see up to $7 in health benefits. 20



# Clean Power Plan

### • Build on actions states, cities and businesses across the country are already taking to address the risks of climate change. • Spur investment in cleaner and more efficient technologies, creating jobs and driving innovation. 

### • Require a reasonable emission reduction glidepath starting in 2020. • Provide a flexible timeline — up to 15 years from guideline issuance — for all emission reduction measures to be fully implemented in 2030.

– Recognizing that investments in infrastructure can take time to put in place and

– Avoiding stranded assets. 

### • Provide an array of tools states can use to formulate approvable plans. 21



# Clean Power Plan

### • The proposed rule, as well as information about how to comment and supporting technical information, are available online at: http://www.epa.gov/cleanpowerplan

• EPA will hold 4 public hearings the week of July 28th 

### in Denver , 

### Atlanta , Pittsburgh and Washington, D.C.

• There will be a 120-day public comment period on the proposal.

• Comments on the proposal should be identified by Docket ID No. 

### EPA- HQ-OAR- 2013 -0602 . 22 

# Clean Power Plan

Next Steps

# Additional Climate Change

Activities

• Final Mobile Source Emission and CAFE Standards o Extends passenger vehicle program to model year 2017 through 2025  Average163 grams CO 2 per mile, 54.5 mpg in model year 2025 o CAFE standards for medium -sized and heavy trucks  Our program will continue to on standards already in place for model years 2014- 18
• 2012 Climate Change Indicators Report o EPA has compiled an updated set of 26 indicators tracking signs of climate change

www.epa.gov/climatechange 19

# EPA’s National Enforcement Initiatives

Cutting Air Pollution That Affects Communities’ Health: MACT Standards
Clean Water: Keeping raw sewage and contaminated stormwater out of waters; Preventing animal waste from contaminating surface and groundwater Reducing Pollution from Mineral Processing Assuring Energy Extraction Sector Compliance with Environmental Laws Reducing Widespread Pollution from Largest Sources : New Source Review and Prevention of Significant Deterioration Sector Focus -- Utilities, Cement, Glass and Acid Sectors
Clean Communities: protect people from exposure to hazardous chemicals and require polluters to pay for cleanup of contaminated sites

# Next Generation Compliance  

### More effective rules  

### Advanced monitoring technology  

### Electronic reporting  

### Increased transparency  

### Innovative enforcement Effective Rules Advanced

Monitoring

Electronic Reporting Transparency Innovative Enforcement

# 2010 SO 2 

# NAAQS • The air pollution monitoring paradigm 

### is rapidly changing due to recent advances in:

– The development of portable, lower-cost air pollution sensors reporting data in near- real time at a high -time resolution,

– Increased computational and visualization capabilities, and

– Wireless communication/infrastructure. 

# The Changing Paradigm of Air Monitoring

Snyder et al., ES&T, August 2013 http://pubs.acs.org/doi/abs/10.1021/es4 022602

# Thank you!



# Questions?