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CAIR Vacatur Update: On December 23, 2008, the United States Court of Appeals for the D.C. Circuit issued its ruling on the petitions for rehearing of the court’s July 11 decision to vacate the Clean Air Interstate Rule (CAIR) and the associated federal implementation plan. The Court denied the petitions for rehearing en banc. However, the panel granted the petition for rehearing to the extent that it remanded the rule without vacatur.
Thus, CAIR remains effective until replaced by the U.S. EPA with a rule that comports with the Court’s July 11, 2008 opinion. The Court did not set any deadline for U.S. EPA to promulgate a replacement rule.
Notice from the U.S. EPA: On July 11, 2008, the D.C. Circuit vacated the U.S. Environmental Protection Agency's (U.S. EPA) Clean Air Interstate Rule. The U.S. EPA is reviewing the courts decisions and evaluating its impacts.
On March 10, 2005, the U.S. EPA signed CAIR requiring 28 states and the District of Columbia to submit state implementation plan (SIP) revisions to reduce emissions of sulfur dioxide (SO2) and nitrogen oxide (NOx) from fossil-fuel-fired power plants. CAIR consists of three cap and trade programs: an annual SO2 trading rule that builds on the existing Acid Rain program; an ozone season NOx trading rule that builds on the existing NOx SIP Call program; and a new annual NOx trading program. Reductions are required to take place in two phases: 2009 and 2015 for NOx and 2010 and 2015 for SO2. Indiana has included non-EGUs from the NOx SIP Call in the CAIR ozone season trading program so that non-EGUs that were part of the NOx SIP Call trading rule (326 IAC 10-4) can continue to trade allowances.
Note: IDEM has been in contact with U.S. EPA, who have determined that since the Transport Rule will replace CAIR prior to 2015, IDEM will not submit this information to CAMD by October 31st as stated in the CAIR rule.
IDEM Air Permits Administration
ATTN: Incoming Application
100 North Senate Avenue
MC 61-53, IGCN 1003
Indianapolis, IN 46204-2251
Notice from the U.S. EPA: On February 8, 2008, the D.C. Circuit vacated the U.S. EPA’s rule removing power plants from the Clean Air Act list of sources of hazardous air pollutants. At the same time, the Court vacated the Clean Air Mercury Rule. The U.S. EPA is reviewing the Court's decisions and evaluating its impacts.
On March 18, 2005, the U.S. EPA signed the Clean Air Mercury Rule (CAMR) to permanently cap and reduce mercury emissions from coal-fired power plants serving a generator larger than 25 megawatts that produces electricity for sale. CAMR builds on the Clean Air Interstate Rule (CAIR). When fully implemented, CAMR will reduce utility emissions of mercury from 48 tons a year to 15 tons a year, nationwide. CAMR creates a market-based cap and trade program to reduce mercury emissions in two phases: Phase 1 in 2010 and Phase II in 2018. The Phase I cap is based on “co-benefit” reductions; these are mercury reductions that will be achieved by reducing sulfur dioxide (SO2) and nitrogen oxides (NOx) emissions under CAIR.
New coal-fired power plants will also have to meet a new source performance standard (NSPS) in addition to being subject to caps (40 CFR Part 60, Subpart Da). The Phase 1 cap for Indiana is 4,194 pounds (14% reduction from 1999 levels) and the Phase II cap is 1,656 pounds (66% reduction from 1999 levels). The Indiana CAMR generally follows the CAMR federal model trading rules (40 CFR 60, Subpart HHHH) and contains the same key elements. The Indiana rule contains a clean coal technology unit set-aside.
These spreadsheets are based on draft rule language in Second Notice (11/29/06):
Indiana Department of Environmental Management
Office of Air Quality
100 North Senate Avenue
Indianapolis, IN 46204-2251
(317) 233-0430
info at idem.IN.gov