EPA Requiring CO2 Plans in State Implementation Plans (SIPs)

The Environmental Protection Agency is taking more steps to implement its greenhouse gas Tailoring Rule, which will restrict emissions from new and modified large stationary sources such as power plants and petroleum refineries beginning January 2, 2011. On September 2, 2010, the agency released two draft rules for implementing the agency’s new permitting requirements under the Clean Air Act’s Prevention of Significant Deterioration (PSD) program.[1] Meanwhile, Congress is expected to vote this fall on proposals to block or delay EPA’s regulation of greenhouse gas emissions under existing Clean Air Act requirements, and litigation over EPA’s rules moves forward. But unless the courts or Congress intervene, limits on GHG emissions on stationary source will begin to go into effect early next year.

The first of the actions EPA released this month is a proposed determination that the Clean Air Act implementation plans (State Implementation Plan or SIPs) in thirteen states are “substantially inadequate” because their PSD programs do not apply to new or modified greenhouse gas-emitting sources. EPA would require that non-compliant states issue revised SIPs within 12 months of issuance of the final rule (slated for early December 2010). In its second rule, EPA proposes assuming responsibility for PSD permitting for greenhouse gas emissions for those states that do not timely submit compliant SIPs, via a Federal Implementation Plan (FIP).

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States with “Substantially Inadequate” SIPs

• Alaska
• Arizona (excluding Maricopa County, Pima County, and Indian Country)
• Arkansas
• California (Sacramento Air Quality Management District only)
• Connecticut
• Florida
• Idaho
• Kansas
• Kentucky
• Nebraska
• Nevada (Clark County only)
• Oregon
• Texas

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