PSD SIP Fix for Regulated 

Pollutants (GHGs)

Briefing for OMB

July 23, 2010
Purpose of this briefing

 Identify the need for these rules Present proposed path forward inclu

schedule – 3 rules

 Identify scope of rulemaking  List “A” and “B” states Q and A session
Why are these rules need

 As of January 2, 2011, large GHGs-emitting 

will be required to obtain a PSD permit befcan construct or modify. 

 Most states with approved PSD SIPs apply 

sources of “regulated NSR pollutants,” (RNwhich will include GHGs as of January 2, 2

 However, some states with approved PSD 

do not cover GHGs-emitting sources becau

 their list of regulated pollutants do not include G they adopt EPA’s definition of RNSRP as of a sp they specifically exclude GHGs
Why are these rules need(Cont..d)

 In such states, neither the state nor EPA w

the authority to issue PSD permits for GHGas of January 2, 2011. Until this situation corrected, major sources in those states caPSD construction permits and this in effecta construction ban in those states. 

 To fix this problem, either the state would 

have a revised rule approved by EPA befor2, 2011 or EPA has to issue a SIP call/FIP be able to issue PSD permits in such defici
Proposed Path Forward 

 Three rules

 SIP call and FIP -- proposal in early August 2010, final SIP 

December, 2010

 For states that elect early SIP submittal date, final finding o

submit in late December 2010

 For states that elect early SIP submittal date, final FIP in la

2010

 SIP call proposal 

 Identifies about 14 deficient state and local programs  Allows states up to a 12-month SIP submission date (to De

but states may elect an earlier submission date, which is as 

December, 2010.

 If a state fails to submit a corrected SIP by its submission d

issue a finding of failure to submit, and, simultaneously, issassure that a permitting authority will be in place as early a2011 to issue GHGs PSD permits.
Scope of SIP call 

 Only addresses GHGs for PSD SIPs. Deficient Title V programs will be ad

in a subsequent rulemaking since Titnot present the construction ban prowith PSD

 Primarily for GHGs but we encourage 

to also update their PSD programs foimplementing PM2.5
List of “A” States for SIP 

 Tentative list of 14 states whose PSD regulations w

are inadequate with regard to GHGs.  Alaska, Arizona: Pinal County, Arkansas, California: 

Metropolitan AQMD, Connecticut, Florida, Idaho, KaLouisiana, Nebraska, Nevada: Clark County, Oklahoand Texas 

 EPA is seeking comment from the remaining States 

list states) to advise EPA if they should be on the “A

 EPA regions are working with states to confirm the 

the “A” list. We intend to develop a Technical SupDocument (TSD) to substantiate our conclusions.
SIP call: Process 

We request a response from states within 30 days afte

of SIP call proposal (during the comment period):

1. States advise whether they need to be added to o

from our “A” list for final SIP call All states, not only the ones on our “A” list in the pr

review their PSD regulations to determine whether Efinal action relative to their state

2. States advise whether they have general permittin

that allows them to issue GHGs permits anyway States with such authority will be removed from our  Those states may issue permits in accordance with 

requirements (40 CFR 51.166)

 States elect a deadline for their response to the SIP 
Finding of failure to subm

 The Administrator makes a finding for eac

that fails to meet its SIP submittal deadlin

 The Administrator issues these findings to 

states by letter, followed by publication of referencing the letter

 Notice of findings will be published in Fed

Register along with the FIP final rule

 The finding is necessary before a FIP can 

imposed
FIP

 We will promulgate a FIP for each state th

meet its SIP submittal deadline

 The FIP authorizes EPA to regulate GHGs emiss

state until the corrective state regulation has beapproved

 States that elect the earliest SIP submittal dead

FIP’d effective December 2010

 EPA’s position is that our finding of failure 

a PSD revision does not start a mandatory 

clock