Basics of the Clean Air Interstate Rule and the Clean Air Mercury Rule

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Basics of the Clean Air Interstate Rule and the
Clean Air Mercury Rule

• Brian J. Hug
• Division Chief, Air Quality Planning and Policy
  Division

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Topics

• Basics of CAIR
• Basics of CAMR
• Maryland Specific Data/ Analysis
• Questions?

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PM2.5 and 8Hr Ozone Nonattainment Areas
Source EPA
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8Hr Ozone Nonattainment Areas in Maryland
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PM2.5 Nonattainment Areas in Maryland
Baltimore Region Washington Region Washington
County Nonattainment Area
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National EGU Emissions
Source EPA
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Maryland 2002 NOx/ VOC Inventory Emissions by
Source Type
VOC Emissions TPD
NOx Emissions TPD
Source MDE 2002 PEI
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CAIR Basics

• Through the use a cap and trade approach, CAIR
  requires reductions of sulfur dioxide (SO2) and
  nitrogen oxides (NOx) emissions by EGUs.
• SO2 and NOx contribute to the formation of fine
  particles and NOx contributes to the formation of
  ground-level ozone.
• CAIR covers 28 eastern states and the District of
  Columbia. In this rule, EPA finds that SO2 and
  NOx emissions from 23 states and the District of
  Columbia contribute to unhealthy levels of fine
  particles in downwind states. In addition, NOx
  emissions in 25 eastern states and the District
  of Columbia contribute to unhealthy levels of
  8-hour ozone in other downwind states.
• States must achieve the required emission
  reductions using one of two compliance options
  1) meet the states emission budget by requiring
  power plants to participate in an
  EPA-administered interstate cap and trade system
  that caps emissions in two stages, or 2) meet an
  individual state emissions budget through
  measures of the states choosing.

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CAIR Basics (2)

• CAIR provides a Federal framework requiring
  states to reduce emissions of SO2 and NOx. EPA
  anticipates that states will achieve this
  primarily by reducing emissions from the power
  generation sector.
• If states choose to meet their emissions
  reductions requirements by controlling power
  plant emissions through an interstate cap and
  trade program, EPAs modeling shows that
• In 2010, CAIR will reduce SO2 emissions by 4.3
  million tons -- 45 lower than 2003 levels,
  across states covered by the rule. By 2015, CAIR
  will reduce SO2 emissions by 5.4 million tons, or
  57, from 2003 levels in these states. At full
  implementation, CAIR will reduce power plant SO2
  emissions in affected states to just 2.5 million
  tons, 73 below 2003 emissions levels.
•  
• CAIR also will achieve significant NOx
  reductions across states covered by the rule. In
  2009, CAIR will reduce NOx emissions by 1.7
  million tons or 53 from 2003 levels. In 2015,
  CAIR will reduce power plant NOx emissions by 2
  million tons, achieving a regional emissions
  level of 1.3 million tons, a 61 reduction from
  2003 levels.

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CAIR CAPS
Emission Caps (million tons) Annual SO2 2010
3.6 2015 2.5 Annual NOx 2009 1.5 2015
1.3 Seasonal NOx 2009 0.58 2010 0.48
Source EPA
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CAIR in 2010
Source EPA
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CAIR in 2015
Source EPA
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Maryland SO2 Benefits
  CAIR Reduces Marylands SO2 Emissions   Accordin
g to EPA, by 2015 CAIR will help Maryland sources
reduce emissions of sulfur dioxide (SO2) by
245,000 tons or 91.
Source EPA
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Maryland NOx Benefits
  CAIR Reduces Marylands SO2 Emissions According
to EPA, By 2015 CAIR will help Maryland sources
reduce emissions of nitrogen oxides (NOx) by
56,000 tons or 82 from 2003 levels.
Nationally, EPA expects CAIR to reduce SO2
emissions by 57 and NOx by 61 by 2015.
Maryland is expected to have a parallel reduction
of 91 and 82. Based strictly on these
percentages it appears MD will be a net seller of
emission credits (meaning our facilities may be
more apt to add controls and not purchase credits
under the cap and trade program).
Source EPA
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Reductions in Transport
  What do we think CAIR is going to mean with
respect to utility controls in states surrounding
Maryland (and identified in CAIR as key
contributors to our air quality problems)? These
states identified below were identified in the
CAIR air quality modeling work as states that
significantly impact Marylands air quality. The
percentage emission reductions are based on EPAs
assessment of how much emission reductions are
expected via CAIR in 2015.
Source EPA
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Some Maryland Comments - CAIR

• Rule is a good starting point for EGU control
• CAIR alone does not get MD into attainment of the
  8hr Ozone Standard
• CAIR modeling does show possible attainment of
  the PM2.5 standard but MDE is not in 100
  agreement (modeling concerns)
• IPM Modeling Questions
• The need for stronger caps in quicker timeframes
  for attainment i.e. the OTC Position

Source EPA
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Mercury Basics
Forms of mercury. Mercury is a naturally
occurring element that is found in air, water and
soil. It exists in several forms elemental or
metallic mercury, inorganic mercury compounds,
and organic mercury compounds. Sources of
mercury. Mercury is found in many rocks
including coal. When coal is burned, mercury is
released into the environment. Coal-burning power
plants are the largest human-caused source of
mercury emissions to the air in the United
States, accounting for over 40 percent of all
domestic human-caused mercury emissions. Burning
hazardous wastes, producing chlorine, breaking
mercury products, and spilling mercury, as well
as the improper treatment and disposal of
products or wastes containing mercury, can also
release it into the environment.
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Mercury Ingestion

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• Concentrations of mercury in the air are usually
  low. However, atmospheric mercury falls to Earth
  through rain, snow and dry deposition and enters
  lakes, rivers and estuaries. Once there, it can
  transform into, methylmercury, and can build up
  in fish tissue.
• Americans are exposed to methylmercury primarily
  by eating contaminated fish. Because the
  developing fetus is the most sensitive to the
  toxic effects of methylmercury, women of
  childbearing age are regarded as the population
  of greatest concern. Children who are exposed to
  methylmercury before birth may be at increased
  risk of poor performance on neurobehavioral
  tasks, such as those measuring attention, fine
  motor function, language skills, visual-spatial
  abilities and verbal memory.

Source EPA
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Global Mercury Emissions
Source EPA
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Maryland Mercury Emissions
Source MDE 2003 EGU Testing, 2002 Non-EGU Testing
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National Mercury Emissions
Source EPA
Source EPA
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Deposition
Source EPA
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The Clean Air Mercury Rule

• The Clean Air Mercury Rule establishes standards
  of performance limiting mercury emissions from
  new and existing coal-fired power plants and
  creates a market-based cap-and-trade program that
  will reduce nationwide utility emissions of
  mercury in two distinct phases.
• The first phase cap is 38 tons and emissions will
  be reduced by taking advantage of co-benefit
  reductions that is, mercury reductions achieved
  by reducing sulfur dioxide (SO2) and nitrogen
  oxides (NOx) emissions under CAIR the new Base
  Case.
• In the second phase, due in 2018, coal-fired
  power plants will be subject to a second cap,
  which will reduce emissions to 15 tons upon full
  implementation.

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Cap and Trade Basics
In the Clean Air Mercury Rule, EPA has assigned
each state an emissions budget for mercury, and
each state must submit a State Plan revision
detailing how it will meet its budget for
reducing mercury from coal-fired power plants.
The rule includes a model cap-and-trade program
that states can adopt to achieve and maintain
their mercury emissions budgets. Although states
and tribes are not required to adopt the
EPA-administered cap-and-trade program, EPA
believes most will do so. The state and tribal
emission budgets are permanent, regardless of
growth in the electric sector.
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Cap and Trade Basics (2)
MD Annual EGU Hg Budget (in tons) 2010-2017
0.49 2018 and thereafter 0.193
MD Air Sources EGUs Portland Cement
Plants Pulp and Paper Mills Medical Waste
Incinerators Municipal Waste Combustors
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Some Maryland Comments - CAMR

• CAA Section 111 vs 112 (MACT) issues
• Co-benefits with CAIR
• The OTC Position on Mercury (2008 Co-benefits,
  2010 review, 2015 hard cap)
• Non-EGU Sources
• Bay Connection
• Cap and Trade Concerns (Hot Spots)

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Thanks..Brian HugDivision Chief, Planning
and Policy Division410-537-4125bhug_at_mde.state.md
.us