EPA Proposes Good Neighbor Federal Implementation Plan For The 2015 Ozone NAAQS

March 15, 2022

by Paul Ciampoli
APPA News Director
March 15, 2022

The Environmental Protection Agency (EPA) on March 11 proposed a federal implementation plan (FIP) to address the 2015 National Ambient Air Quality Standard (NAAQS) for ozone under the Clean Air Act.

The Proposed FIP provides for ozone season NOx reductions from electric generating units and industrial stationary sources.

EPA is proposing rule under its Clean Air Act authority known as the “good neighbor provision.” 

EPA is proposing implementation mechanisms to achieve enforceable emissions reductions required to eliminate significant contributions of ozone precursor emissions in 26 upwind states that are significantly contributing to downwind nonattainment or interfere with maintenance of the 2015 ozone National Ambient Air Quality Standard.

The 26 states are:

  • Alabama
  • Arkansas
  • California
  • Delaware
  • Illinois
  • Indiana
  • Kentucky
  • Louisiana
  • Maryland
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Nevada
  • New Jersey
  • New York
  • Ohio
  • Oklahoma
  • Pennsylvania
  • Tennessee
  • Texas
  • Utah
  • Virginia
  • West Virginia
  • Wisconsin
  • Wyoming

In 2015 EPA revised the primary and secondary ozone standard to 70 parts per billion. States were to file state implementation plans to fulfill their interstate transport obligations by October 2018.

Where EPA made a finding that a state had not submitted a good neighbor state implementation plan, or if EPA disapproved the plan, EPA is required under the Clean Air Act to issue a FIP within two years to assure downwind states are protected.

Therefore, the initial phase of proposed emissions reductions will be achieved prior to August 2, 2024, attainment date for areas classified as moderate nonattainment for the 2015 ozone NAAQS.

EPA is proposing to promulgate new or revised FIPs for 25 states (Alabama, Arkansas, Delaware, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin, and Wyoming).

The new or revised FIPs will include new nitrogen oxide ozone season emission budgets for electric generating units (EGU), with the implementation of these budgets beginning in the 2023 ozone season.

Delaware, Minnesota, Nevada, Utah, and Wyoming are not currently covered by any Cross-State Air Pollution Rule nitrogen oxide ozone season trading program.

EPA is also proposing to adjust these emission budgets in the 25 states subject to a new or revised FIP for each ozone season after that to maintain the initial stringency of the emissions budget, accounting for retirements and other changes to the EGU fleet over time.

EPA also wants to extend the Cross-State Air Pollution Rule nitrogen oxide Ozone Season Group 3 trading program beginning in the 2023 ozone season through the 2025 ozone season.

In addition, the federal agency is proposing new emissions budgets for the Cross-State Air Pollution Rule nitrogen oxide Ozone Season Group 3 trading program beginning in the 2026 ozone season.

Starting in 2026, emission budgets would be set at levels achieved by installing selective catalytic reduction controls at approximately 30 percent of largest coal-fired power plants in the covered states that do not now have them.

The proposed rule would establish a daily emissions rate limit for large coal-fired units, which would take effect in 2024 for units with existing controls and in 2027 for units installing new controls, to ensure environmental controls are operated effectively and consistently at these plants throughout the ozone season.

EPA is also proposing to retain Iowa and Kansas in the Cross-State Air Pollution Rule nitrogen oxide Ozone Season Group 2 Trading Program.

For non-EGUs, EPA is proposing to promulgate new FIPs for the remaining 23 states that include new NOX emissions limitations, with initial compliance dates for these emissions limitations beginning in 2026. The proposed standards would apply to the following emissions units in selected industries:

  • Reciprocating internal combustion engines in pipeline transportation of natural gas;
  • Kilns in cement and cement product manufacturing;
  • Boilers and furnaces in iron and steel mills and ferroalloy manufacturing;
  • Furnaces in glass and glass product manufacturing; and
  • High-emitting, large boilers in basic chemical manufacturing, petroleum and coal products manufacturing, and pulp, paper, and paperboard mills.

Once the proposal is published in the Federal Register, there will be a 60-day comment period.

Click here for additional information on the emissions budgets, fact sheet, and regulatory impact analysis.

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