Clean Air Interstate Rule (CAIR)
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Transcript of Clean Air Interstate Rule (CAIR)
Clean Air Interstate Rule (CAIR)
Marilyn PowersDecember 8, 2006
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• Nitrogen Oxides contribute to the formation of both PM2.5 and ground-level ozone. Sulfur Dioxide (SO2) contributes to formation of PM2.5.
• Ozone and PM2.5 have been linked with premature death, serious illnesses such as chronic bronchitis and heart attacks, and respiratory illnesses such asthma exacerbations.
• NOx and SO2 are also linked with acid rain, eutrophication of water bodies including estuaries such as the Chesapeake Bay, and contribute to regional haze.
Pollutants and Concerns
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Electric Power Generation: A Major Source of Emissions
Source: SO2 and NOx data is from EPA’s 2003 National Emissions Inventory. “Other” sources of pollutants include transportation and other mobile sources and industrial sources.
SO2 Emissions
Total: 15.9 Million Tons
Power Sector22%
Other78%
Total: 20.8 Million Tons
10.9 Million Tons
5.0 Million Tons
4.5 Million Tons
16.3 Million Tons
NOx Emissions
69%
Power Sector
Other
31%
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Previous Programs Regulating NOx and SO2
• In 1995, EPA began implementation of the acid rain program under Title IV of the CAA
• In 1998, EPA issued the NOx SIP Call to 22 states and DC based on our finding that these states were significantly contributing to nonattainment of the 1 – hour ozone standard in downwind states. Region 3 states implemented the NOx SIP Call beginning in 2003.
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Long-Range Transport of Air Pollution
• Air pollution can travel hundreds of miles and cause multiple health and environmental problems on regionalor national scales.
• Emissions contributing to PM2.5 and ozone nonattainment often travel across state lines, especially in the eastern U.S.
• SO2 and NOx, and other pollutants, contribute to PM2.5 transport
• NOx and other pollutants contribute to ozone transport.
• Attaining national ambient air quality standards will require some combination of emission reductions from:• Sources located in or near nonattainment
areas (such as mobile sources) and• Sources, such as power plants, located
further from the nonattainment area.
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Dealing with Transport Problems
• Clean Air Act contains provisions for States and EPA to address interstate pollution transport.
• The NOx SIP Call (and now, CAIR) is needed because states have not met the CAA requirements for transported emissions
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Transport Contributes to Nonattainment of New Standards
• In 1997, EPA established more protective standards for fine particulates (PM2.5), and the more stringent 8-hour ozone standard
• In 2004, EPA designated 33 areas as nonattainment for ozone and 16 areas as nonattainment for PM2.5
• Nonattainment problems are caused by both regional and local emissions
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Areas Designated Nonattainment for Ozone and PM2.5 NAAQS in 2004
Nonattainment areas for both 8-hour ozone and fine particle pollution
Nonattainment areas for fine particle pollution only
Nonattainment areas for 8-hour ozone pollution only
126 ozone nonattainment areas with 474 counties
47 PM2.5 nonattainment areas with 224 counties
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Redesignations in Region 3
• Originally designated as nonattainment, many areas in the region have since monitored attainment
• This is largely because of reductions attributed to the NOx SIP Call
• Proof that cap and trade programs are indeed having a significant air quality benefit
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The Clean Air Interstate Rule
• Finalized in March 2005. Applies to 28 Eastern states and DC
• All Region 3 states were determined to have significant contribution to downwind nonattainment
• At full implementation, 73% reduction of SO2 and 61% reduction of NOx.
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Key Elements of CAIR
• CAIR sets an emission reduction requirement (budget) for each State, based on capping power plant emissions at levels that EPA believes are highly cost-effective to achieve.
• Provides an optional cap and trade program based on successful Acid Rain and NOx SIP Call programs as a method to implement the necessary reductions.
• Two-phase program with declining emission caps
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Key Elements of CAIR (cont.)
• Allows States flexibility on how to achieve the required reductions, including which sources to control and whether to join the trading program.
• Model rules that states can adopt.
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Caps and Reductions under CAIR
CapsReductions (from 2003 levels)
SO2
2010 3.6 million tons
45%
At full implementation
2.5 million tons
73%
NOx 2009 1.5 million
tons53%
2015 1.3 million tons
61%
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0
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1980 1985 1990 1995 2000 2005 2010 2015 2020
Mil
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n T
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sNational NOx and SO2 Power Plant Emissions:Historic and Projected with CAIR
SO2
NOx
Source: EPA
Projected, w/ CAIR
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Cap and Trade Programs - General
• Each allowance equals 1 ton of pollutant
• EPA administers the trading aspects of the program, including tracking of allowances
• A source must have enough allowances to cover its emissions at the end of the year (or ozone season)
• Excess allowances can be banked for future compliance or sold on the open market
• Any person or entity may buy allowances
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Cap and Trade Program under CAIR
• 3 separate trading programs under CAIR: annual programs for SO2 and NOx, and an Ozone Season program for NOx
• Set aside for new units
• States may have a set aside for energy efficiency/renewable energy sources
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CAIR Model Rules
• States can participate in one or more of the EPA-administered cap and trade programs
• Includes automatic penalties for noncompliance
• Requires continuous monitoring
• Unrestricted banking
• Flexibilities for source allocations
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Maryland - Reductions Under CAIR
2003 Emissions (1000 tons)
2015 emissions, with CAIR (1000 tons)
Percent Reductions
Delaware NOx 10 4 60%
Maryland SO2 269 24 91%
NOx 68 12 82%
Pennsylvania
SO2 967 132 86%
NOx 174 77 56%
Virginia SO2 216 116 46%
NOx 69 38 45%
West Virginia
SO2 540 118 78%
NOx 203 44 78%
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CAIR Health and Environmental Benefits
By 2015, CAIR will result in:
$85-100 billion in health benefits each year, preventing:
–17,000 premature deaths–22,000 non-fatal heart attacks–12,300 hospital admissions–1.7 million lost work days–500,000 lost school days.
Almost $2 billion in improved visibility benefits each year.
Other non-monetizable benefits – reductions of mercury emissions, acid rain, nitrification, eutrophication, and more.
In 2015, CAIR will cost about $3.6 billion a year. Implementation beyond 2015 leads to higher annual benefits and costs.
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CAIR Implementation in Maryland
• Maryland is in the process of developing its CAIR rule
• The CAIR rule will overlay Maryland’s Healthy Air Act, which establishes more stringent caps for large EGUs in the State
• Maryland is also considering whether additional NOx and/or SO2 reductions are needed for attainment
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Additional Information:
www.epa.gov/CAIR/