1PSD SIP Fix for Regulated NSRPollutants (GHGs)Briefing for OMBJuly 23, 20102Purpose of this briefingIdentify the need for these rulesPresent proposed path forward includingschedule – 3 rulesIdentify scope of rulemakingList “A” and “B” statesQ and A session3Why are these rules needed?As of January 2, 2011, large GHGs-emitting sourceswill be required to obtain a PSD permit before theycan construct or modify.Most states with approved PSD SIPs apply PSD tosources of “regulated NSR pollutants,” (RNSRP)which will include GHGs as of January 2, 2011.However, some states with approved PSD programsdo not cover GHGs-emitting sources because:their list of regulated pollutants do not include GHGs orthey adopt EPA’s definition of RNSRP as of a specific date orthey specifically exclude GHGs4Why are these rules needed?(Cont..d)In such states, neither the state nor EPA will havethe authority to issue PSD permits for GHGs sourcesas of January 2, 2011. Until this situation iscorrected, major sources in those states can not getPSD construction permits and this in effect, results ina construction ban in those states.To fix this problem, either the state would need tohave a revised rule approved by EPA before January2, 2011 or EPA has to issue a SIP call/FIP by then tobe able to issue PSD permits in such deficient states5Proposed Path ForwardThree rulesSIP call and FIP -- proposal in earlyAugust 2010, final SIP call in earlyDecember, 2010For states that elect early SIP submittal date, final finding of failure tosubmit in late December 2010For states that elect early SIP submittal date, final FIP in late December2010SIP call proposalIdentifies about 14 deficient state and local programsAllows states up to a 12-month SIP submission date (to December, 2011), 

# but states may elect an earlier submissi on date, which is as early as end of

December, 2010.If a state fails to submit a correctedSIP by its submission date, EPA willissue a finding of failure to submit,and, simultaneously, issue a FIP toassure that a permitting authority willbe in place as early as January 2,2011 to issue GHGs PSD permits.6Scope of SIP callOnly addresses GHGs for PSD SIPs.Deficient Title V programs will be addressedin a subsequent rulemaking since Title V doesnot present the construction ban problem aswith PSDPrimarily for GHGs but we encourage statesto also update their PSD programs forimplementing PM2.57List of “A” States for SIP CallTentative list of 14 states whose PSD regulations we believeare inadequate with regard to GHGs.Alaska, Arizona: Pinal County, Arkansas, California: SacramentoMetropolitan AQMD, Connecticut,Florida, Idaho, Kansas,Louisiana, Nebraska, Nevada: Clark County, Oklahoma, Oregon,and TexasEPA is seeking comment from theremaining States (i.e. the “B”list states) to advise EPA if they should be on the “A” listEPA regions are working with states to confirm the accuracy ofthe “A” list. We intend to develop a Technical SupportDocument (TSD) to substantiate our conclusions.8SIP call: ProcessWe request a response from stateswithin 30 days after publicationof SIP call proposal (during the comment period):1.States advise whether they needto be added to or removedfrom our “A” list for final SIP callAllstates, not only the ones on our“A” list in the proposal, are toreview their PSD regulations to determine whether EPA must takefinal action relative to their state2.States advise whether they have general permitting authoritythat allows them to issue GHGs permits anywayStates with such authority will be removed from our “A” listThose states may issue permitsin accordance with our PSDrequirements (40 CFR 51.166)States elect a deadline for their response to the SIP call9Finding of failure to submitThe Administrator makes a finding for each statethat fails to meet its SIP submittal deadlineThe Administrator issues these findings to suchstates by letter, followed by publication of noticereferencing the letterNotice of findings will be published in FederalRegisteralong with the FIP final ruleThe finding is necessary before a FIP can beimposed10FIPWe will promulgate a FIP for each state that fails tomeet its SIP submittal deadlineThe FIP authorizes EPA to regulate GHGs emissions in thestate until the corrective state regulation has been SIPapprovedStates that elect the earliestSIP submittal deadline can beFIP’d effective December 2010EPA’s position is that our finding of failure to submita PSD revision does notstart a mandatory sanctionsclock