Impacts of GHG New Source Performance Standards Tim Williamson ...

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Impacts of GHG New Source Performance Standards Tim Williamson, Esq. Deputy Regional Counsel U.S. EPA Region 1

Environmental Business Council of New England Energy Environment Economy

Ron Fein & Tim Williamson U.S. Environmental Protection Agency Region 1, Office of Regional Counsel

Clean Air Act § 111(b) “[T]he Administrator shall publish proposed regulations, establishing Federal standards of performance for new sources within [listed categories]. . . . The Administrator shall, at least every 8 years, review and, if appropriate, revise such standards . . . . The Administrator may distinguish among classes, types, and sizes within categories of new sources for the purpose of establishing such standards.” 5

Standard of performance “A standard for emissions of air pollutants which reflects the degree of emission limitation achievable through the application of the best system of emission reduction, which (taking into account the cost of achieving such reduction and any non-air quality health and environmental impact and energy requirements) the Administrator determines has been adequately demonstrated.” 6

Year

Vehicles

2006 2007

NSPS GHG-less NSPS for EGUs; New York v. EPA

Mass. v. EPA

EPA requests remand of NY v. EPA

2008

Johnson memo

2009

Endangerment finding

2010

Tailpipe rule

2011 2012

2013

PSD

Coalition for Responsible Regulation v. EPA

Settlement: issue NSPS

Timing/tailoring rules

(AEP v. Connecticut)

PSD for GHGs begins

Proposed GHG NSPS

Coalition for Responsible Regulation v. EPA

Re-proposed GHG NSPS

S. Ct. cert. (limited)

Size of unit

Proposed limit

Small

1,100 lb CO2 / MWh

< 850 mmBtu/hr

Large > 850 mmBTU/hr

1,000 lb CO2 / MWh

Averaging period 12 months

Proposed limit

84 months

1,000-1,050 lb CO2 / MWh

1,100 lb CO2 / MWh

What is BSER?

2012

2013

Natural gas combined cycle

For natural gas: combined cycle

For coal/IGCC: partial CCS 1,000 or 1,100

Natural gas combined cycle limits

1,000

Coal/IGCC limit

1,000 (30-year 1,100 (12-month average) average) or 1,000-1,050 (84-month average)

Public process: next steps

Docket ID No. EPA-HQ-OAR-2013-0495 www.epa.gov/carbonpollutionstandard

“The Administrator shall prescribe regulations . . . under which each State shall submit to the Administrator a plan which establishes standards of performance for any existing source for any air pollutant for which air quality criteria have not been issued . . . but to which a standard of performance under this section would apply if such existing source were a new source, and provides for the implementation and enforcement of such standards of performance.”

Year

New power plants Modified/ Existing plants reconstructed

2012

Proposed rule

2013

Re-proposed rule

2014

Final rule

2015 2016

Proposed rule

Proposed guidelines

Final rule

Final guidelines State plans due

www.epa.gov/carbonpollutionstandard

NSPS and PSD No major emitting facility . . . may be constructed . . . unless . . . the proposed facility is subject to the best available control technology for each pollutant subject to regulation under this chapter emitted from, or which results from, such facility . . . . 15

NSPS and PSD Regulated NSR pollutant, for purposes of this section, means the following: . . . (i) (ii) (iii) (iv)

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Any pollutant for which a national ambient air quality standard has been promulgated . . .; Any pollutant that is subject to any standard promulgated under section 111 of the Act; Any Class I or II substance subject to a standard promulgated under or established by title VI of the Act; Any pollutant that otherwise is subject to regulation under the Act as defined in paragraph (b)(48) of this section.

NSPS and PSD “The term ‘best available control technology’ means an emission limitation based on the maximum degree of reduction of each pollutant subject to regulation under [the CAA]. . ., which the permitting authority, on a case-by-case basis, taking into account energy, environmental, and economic impacts and other costs, determines is achievable for such facility . . . . In no event shall application of ‘best available control technology’ result in emissions of any pollutants which will exceed the emissions allowed by any applicable standard established pursuant to section [111] . . . .” 17