No Reprieve for Some Sources With New Requirements from CSAPR Good Neighbor Plan

Limited Exceptions

Effective July 31, 2023, the Environmental Protection Agency (EPA) issued an interim final action to stay the Good Neighbor Plan for emissions sources in Arkansas, Kentucky, Louisiana, Mississippi, Missouri, and Texas only, the effectiveness of the federal implementation plan (FIP) requirements established to address the obligations of these and other states to mitigate interstate air pollution with respect to the 2015 national ambient air quality standards (NAAQS) for ozone (the Good Neighbor Plan). Petitioners challenging the SIP Disapproval action filed motions in several courts for partial stays of that action with respect to the SIPs submitted by particular states. Subsequent to the Good Neighbor Plan’s signature date, courts granted some of these motions to stay the Good Neighbor Plan. In response, the EPA has revised certain other regulations to ensure that sources in these states will continue to be subject to previously established requirements to mitigate interstate air pollution with respect to other ozone NAAQS while the Good Neighbor Plan’s requirements are stayed.

The Good Neighbor Plan Requirements

Despite the stay for the six states noted above, the Good Neighbor Plan defines ozone season nitrogen oxides (NOx) emissions performance obligations for Electric Generating Unit (EGU) sources in 16 states by implementing an allowance-based ozone season trading program beginning in 2023. On February 13, 2023, the EPA issued FIP requirements that now apply the provisions of the CSAPR NOx Ozone Season Group 3 Trading Program as revised in the rule to EGU sources within the borders of the following 16 states: Alabama, Illinois, Indiana, Maryland, Michigan, Minnesota, Nevada, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, Utah, Virginia, West Virginia, and Wisconsin. Implementation of the revised trading program provisions began May 1, 2023 with the start of the 2023 ozone season. The emissions reductions required for EGUs in these states are based primarily on the potential retrofit of additional post combustion controls for NOx on most coal-fired EGUs and a portion of oil/gas-fired EGUs that are currently lacking such controls. EGU sources in three states (Alabama, Oklahoma, and Wisconsin) previously covered by the CSAPR NOx Ozone Season Group 2 Trading Program were transitioned from the Group 2 program to the revised Group 3 trading program beginning with the 2023 ozone season. Further, sources in three states not previously covered by any CSAPR NOx ozone season trading program were added to the revised Group 3 trading program: Minnesota, Nevada, and Utah.

The Good Neighbor Plan rule also establishes emissions limitations beginning in 2026 for certain other industrial stationary sources (referred to generally as ‘‘non-Electric Generating Units’’ (non-EGUs)). Beginning in the 2026 ozone season, EPA is setting enforceable NOx emissions control requirements for existing and new emissions sources in industries that are estimated to have significant impacts on downwind air quality and the ability to install cost-effective pollution controls. These standards would collectively achieve an approximately 15% reduction in NOx emissions from 2019 ozone season, point source emissions.

The deadline is December 4, 2023 for the non-EGU affected emissions sources of the rule in the Cement and Concrete Manufacturing, Iron and Steel and Ferroalloy Manufacturing, and Glass and Glass Product Manufacturing industries that have a PTE of 100 tons per year or more to submit an initial notification of applicability to the EPA that identifies its PTE as of the effective date of this final rule. The reduction in NOx emissions and the initial notification requirements will apply to the following types of emissions sources:

• Reciprocating internal combustion engines in Pipeline Transportation of Natural Gas
• Kilns in Cement and Cement Product Manufacturing
• Reheat furnaces in Iron and Steel Mills and Ferroalloy Manufacturing
• Furnaces in Glass and Glass Product Manufacturing
• Boilers in Iron and Steel Mills and Ferroalloy Manufacturing, Metal Ore Mining, Basic Chemical Manufacturing, Petroleum and Coal Products Manufacturing, and Pulp, Paper, and Paperboard Mills
• Combustors and incinerators in Solid Waste Combustors or Incinerators

Contact Mary Turner at mturner@Verdantas.com for more information.