air pollution control board october 1, 2008 thomas w. easterly, p.e., dee, qep commissioner, indiana...

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Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect Hoosiers and Our Environment

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Page 1: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

Air Pollution Control BoardOctober 1, 2008

Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of

Environmental Management

We Protect Hoosiers and Our Environment

Page 2: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

US Courts Overturning Rules• 2007—Industrial, Commercial and Institutional

(ICI) Boiler MACT—directly impacted about 10 sources with coal fired boilers

• May 2008—Clean Air Mercury Rule (CAMR) impacted all power plants

• July 2008—Clean Air Interstate Rule (CAIR) impacted all power plants and most Indiana air pollution strategies

We Protect Hoosiers and Our Environment

Page 3: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

Boiler MACT

• IDEM is seeking guidance and direction from U.S. EPA on how to handle Clean Air Act 112g and 112j requirements for these sources

• U.S. EPA has sent 114 letters to Indiana sources requesting information regarding their combustion sources

We Protect Hoosiers and Our Environment

Page 4: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

CAMR• EPA has until October 17 to appeal this decision• Indiana’s Attorney General’s Office has issued an

opinion that Indiana’s CAMR rule cannot be enforced due to its reliance on the trading program

• No immediate action is necessary in order to meet federal rule or requirements pertaining to mercury

We Protect Hoosiers and Our Environment

Page 5: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

Clean Air Interstate Rule• While the Court has issued an opinion vacating

EPA’s regulations, the Court has not issued a “mandate” so EPA’s CAIR rule currently remains in effect

• As long as EPA’s CAIR rule remains in effect, IDEM’s CAIR regulations can be enforced

We Protect Hoosiers and Our Environment

Page 6: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

Clean Air Interstate Rule• On September 24,

– EPA, – the Natural Resources Defense Council, – the Environmental Defense Fund, and – the National Mining Association

asked the court to reconsider its vacature of CAIR

We Protect Hoosiers and Our Environment

Page 7: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

CAIRIndiana’s CAIR Rule Addressed Four Issues:

– Indiana’s impact on out of state ozone and fine particle nonattainment areas, meeting the Clear Air Act SIP requirements of 110(a)(2)(D) for Indiana

– It served as the backbone for Indiana’s attainment and maintenance strategy for the ozone and fine particle standards

– It met the reasonably available control technology (RACT) requirements for electric generating units (EGUs) located in ozone and fine particle nonattainment areas

– Indiana’s contribution to Class 1 areas for regional haze purposes, by serving as best available retrofit technology (BART) for EGUs

We Protect Hoosiers and Our Environment

Page 8: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

CAIR-ContinuedWhy does Indiana need to take action now?

– Improve air quality in the interest of public health– Meet past due and upcoming federal requirements.

• Provide for an approvable 110(a)(2)(D) SIP to address interstate transport and reduce likelihood of Section 126 action against Indiana and sources within

• Provide for approvable attainment, rate of progress, and RACT SIPs for the annual PM 2.5 standard

– SIPs were due on April 5, 2008 and Indiana could be placed on a sanction clock by close of 2008

We Protect Hoosiers and Our Environment

Page 9: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

CAIR-Continued

Why does Indiana need to take action now?• Provide for approvable regional haze SIP and

address BART requirements for EGUs –SIPs were due December 2007

• Assist Indiana in meeting annual and 24-hour PM 2.5 standards, as well as the new ozone standard

We Protect Hoosiers and Our Environment

Page 10: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

CAIR-ContinuedWhat does Indiana intend to do?

Reinstate the NOx SIP Call– Present an emergency rule to the Air Pollution Control Board to:

• remove the sunset language from 326 IAC 10-4-16, and• repeal the CAIR ozone season program at 326 IAC 24-3

reinstating the NOx SIP Call program for 2009 and beyond– Publish Section 7 notice (a limited policy alternative rulemaking

under IC 13-14-9-7) by December 2008 to have rule in place prior emergency rule expiring

– Cap and trade program managed by U.S. EPA

We Protect Hoosiers and Our Environment

Page 11: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

CAIR-ContinuedWhat does Indiana intend to do?

Establish an Emergency Indiana Clean Air Replacement Rule

– Present an emergency rule to the Air Pollution Control Board to establish NOx and SO2 annual allowance budgets at the unit level based on what a unit would have received in conjunction with Phase I of the vacated CAIR rule

– Repeal annual NOx and SO2 programs at 326 IAC 24-1 and 24-2 (Indiana’s CAIR rule)

We Protect Hoosiers and Our Environment

Page 12: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

CAIR-ContinuedWhat does Indiana intend to do?

Establish an Emergency Indiana Clean Air Replacement Rule

– The emergency rule will have an effective date that coincides with, or is contingent upon, the issuance of the mandate

– The emergency rule will provide an array of flexibility options

– Allowance budgets established for 2009 and 2010– Include an “out” clause should a more stringent

federal program be established

We Protect Hoosiers and Our Environment

Page 13: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

CAIR-ContinuedWhat does Indiana intend to do?

Establish a Permanent Indiana Clean Air Replacement Rule

– Present a rule to the Air Pollution Control Board to establish NOx and SO2 annual allowance budgets at the unit level into the future

• Phase I will be defined as years 2009 through 2014• Phase II will be defined as 2015 and beyond

– Establish mechanism for retirement of SO2 credits

We Protect Hoosiers and Our Environment

Page 14: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

CAIR-ContinuedWhat does Indiana intend to do?

Establish a Permanent Indiana Clean Air Replacement Rule

– The rule will provide an array of flexibility options– Include an “out” clause should a more stringent

federal program be established– Publish first notice by the end of the year (2008)

We Protect Hoosiers and Our Environment

Page 15: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

CAIR-ContinuedWhat does Indiana intend to do?

Potential Flexibility Options

– Source-wide and intrastate system emissions averaging for units operated under common ownership

– Multi-year emissions averaging plan or compliance order. Both of these would be in the form of a binding agreement

We Protect Hoosiers and Our Environment

Page 16: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

CAIR-ContinuedWhat does Indiana intend to do?

Potential Flexibility Options– Intrastate and interstate emission trading program

through agreements with sources in Indiana or other states to use their emission credits

– An Indiana certification statement would be required to ensure reductions attained elsewhere are:• Realized in conjunction with a specified baseline

within an eligible state• Not used as credits to satisfy a separate legal or

regulatory obligation

We Protect Hoosiers and Our Environment

Page 17: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

Closing Remarks and Questions

We Protect Hoosiers and Our Environment

Page 18: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

Preliminary Ozone Season Summary Report

Air Pollution Control BoardOctober 1, 2008

Daniel Murray, Assistant CommissionerIndiana Department of Environmental Management

We Protect Hoosiers and Our Environment

Page 19: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

*2008 monitoring data is preliminary and not yet fully quality assured.

Statewide Average 8-Hour Ozone Annual 4th High*

0.060

0.065

0.070

0.075

0.080

0.085

0.090

0.095

0.100

0.105

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year

part

s pe

r m

illio

n

Statewide Monitors

We Protect Hoosiers and Our Environment

Page 20: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

Statewide 90 Degree Days vs 8-Hour Exceedance Days

(Based on Standard of .085 ppm)

0

50

100

150

200

250

300

2000 2001 2002 2003 2004 2005 2006 2007 2008

Num

ber

of D

ays

Number of 8-Hour Exceedance Days Number of 90 Degree Days

We Protect Hoosiers and Our Environment

Page 21: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

Current Status of 8-Hour Ozone

NonattainmentAreas through 2008

Lawrenceburg TwnShp

0.070

0.070

0.070

0.070

0.093

0.074

0.077

0.081

0.071

0.071

0.0770.079

0.0780.069

0.077

0.077

0.075

0.076

0.073

0.078

0.072

0.072

0.075

0.073

0.076

0.078

0.071

0.078

0.065

0.065

0.072

0.072

0.073

0.075

0.062

0.069

0.0720.074

0.0690.076

0.0730.073

0.073

Cass Co, MI

Hamilton Co, OH

Allen

Jay

Lake

Knox

Vigo

White

Jasper

Cass

Clay

Laporte

Pike

Rush

Parke

Grant

Greene

Perry

Ripley

Clark

Noble

Gibson

Porter

Wells

Posey

Elkhart

Owen

Henry

Boone

Miami

Jackson

Putnam

Dubois

Shelby

Pulaski Fulton

Marion

Wayne

Clinton

Sullivan

Harrison

BentonCarroll

Daviess Martin

Orange

Kosciusko

Monroe

Morgan

Madison

Newton

Marshall

Warrick

Wabash

Warren

Brown

DeKalb

Franklin

Adams

Starke

Spencer

Decatur

Randolph

Lawrence

Whitley

Fountain

Hamilton

Washington

St. Joseph

TippecanoeTipton

Jennings

Delaware

Hendricks

Lagrange

Montgomery

Jefferson

Steuben

Howard

Johnson

Scott

Huntington

Hancock

Crawford

DearbornBartholomew

Fayette Union

Floyd

Switzerland

Ohio

Blackford

Vermillion

Vanderburgh

Clark Co, IL

Hamilton

Ozone Standard at 0.085 ppmBased on 2006 - 2008 Ozone Design Values

Legend

Values posted are in units of ppm

Values Under the Standard of 0.085 ppm

Values Over the Standard of 0.085 ppm

Designated attainment

Designated nonattainment

We Protect Hoosiers and Our Environment

Page 22: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

New 8-Hour Ozone Standard at 0.075 ppm

Designation Status based on 2006-2008 monitoring data

We Protect Hoosiers and Our Environment

Page 23: Air Pollution Control Board October 1, 2008 Thomas W. Easterly, P.E., DEE, QEP Commissioner, Indiana Department of Environmental Management We Protect

Summary● Ground-level ozone air quality continues to improve throughout the State of Indiana.

● All air quality monitoring sites were below the current 8-Hour Ozone National Ambient Air Quality Standard (85 parts per billion) during the 2008 ozone monitoring season.

● Only twelve counties possess a three-year design value (2006 – 2008) above the new 8-Hour ozone standard. This is a significant improvement compared to 2005-2007, when twenty-five counties maintained three-year design values above the standard. However, further improvements are necessary.

We Protect Hoosiers and Our Environment