EPA Region 6 has proposed to withdraw a 2015 finding that Texas’s State Implementation Plan (SIP) is substantially inadequate to comply with the Clean Air Act (CAA) because of state rules that provide an affirmative defense for excess air emissions that occur during upsets and unplanned maintenance, startup, and shutdown activities. 82 Fed. Reg. 17,986 (Apr. 29. 2019). Region 6 is now proposing to find that Texas’s affirmative defense provisions for so-called “startup, shutdown, and malfunction” or “SSM” events are “narrowly tailored and limited to ensure protection of the National Ambient Air Quality Standards (NAAQS),” as required by EPA guidance. Accordingly, Region 6 is proposing to withdraw EPA’s 2015 “SSM” SIP call issued to Texas based on the finding of substantial inadequacy.
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The Environmental Protection Agency (EPA) has proposed to expand the applicability of the National Emission Standards for Hazardous Air Pollutants (NESHAP) for stationary combustion turbines. EPA originally established the combustion turbine (CT) NESHAP in 2004. On April 12, EPA officially proposed the long overdue residual risk and technology review (RTR), which is required within eight years of the final standards.

While, based on its RTR analysis, EPA proposes to leave the current CT standards in place, the proposal would expand the reach of those standards to two additional subcategories of units by lifting a stay that has been in effect since the standards were originally finalized. Lifting that 15-year-old stay would impact lean pre-mix and diffusion flame natural-gas-fired CTs. The proposal would also eliminate the startup, shutdown, and malfunction exemption for all units subject to the rule. Although all existing lean pre-mix and diffusion-flame gas-fired units would become subject to the NESHAP, only units constructed or reconstructed after January 14, 2003 must comply with substantive emission and operating limitations.
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On February 7, 2019, EPA published its proposed revised Supplemental Cost Finding for the Mercury and Air Toxics Standards (MATS) and risk and technology review. The proposal re-evaluates the cost of complying with the MATS rule for coal- and oil-fired power plants, and the associated benefits of regulating hazardous air pollutant (HAP) emissions from these sources. Based on its revised analysis, EPA has determined that it is not “appropriate and necessary” to regulate HAP emissions from power plants under Section 112 of the Clean Air Act.
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On January 23, 2019 and February 6, 2019, OSHA and EPA, respectively, published their annual civil monetary penalty adjustments in the Federal Register. The Federal Civil Penalties Inflation Adjustment Act of 2015 requires federal agencies to make annual inflation adjustments to federal statutory civil penalty amounts. The annual inflation adjustments are based on a cost-of-living multiplier determined by changes to the Consumer Price Index.
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EPA has reset the public hearing date on its proposed revisions to the New Source Performance Standards governing CO2 emissions from new, modified and reconstructed Electric Generating Units (EGUs).  The hearing, originally scheduled for January 8th and then postponed until January 30th, is now scheduled for February 14th in Washington, D.C.  Under the Clean Air

In the last month of 2018, EPA released two proposals that it claims will have no immediate effect—revised CO2 standards for new coal-fired power plants that EPA does not expect anyone to build, and a determination that it is not “appropriate and necessary” to have a mercury rule that it nevertheless plans to keep on the books.  The question many may be asking is why EPA would issue two highly controversial rules if they won’t have any practical effect?  The answer may lie in the precedent they will set.

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On December 28, 2018, the U.S. Environmental Protection Agency (“EPA”) released a pre-publication version of a proposal revisiting the cost analysis underlying the Mercury and Air Toxics Standards (“MATS Rule”) for coal- and oil-fired electric generating units (EGUs) and conducting the residual risk and technology review required by the Clean Air Act (“Proposal”).  The Proposal would reverse a previous finding, issued by EPA under the Obama Administration, that regulation of hazardous air pollutant (“HAP”) emissions from EGUs under the MATS Rule was “appropriate and necessary” but would nonetheless leave the rule in effect.  The Proposal also concludes that more stringent HAP emission limits are not warranted by the required risk and technology reviews.

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This afternoon, EPA announced proposed revisions to performance standards governing CO2 emissions from new, reconstructed and modified coal-fired electric generating units. The proposal would drop carbon capture and storage (CCS) as the best system of emission reduction (BSER) for new units in favor of efficient supercritical steam design for large units and subcritical design

This morning, the Environmental Protection Agency (EPA) released its proposed replacement for the Clean Power Plan (CPP) titled the “Affordable Clean Energy Rule,” which would regulate greenhouse gas emissions at existing coal-fired power plants.   The proposed rule gives discretion to states for determining the greenhouse gas performance standards achievable for existing coal-fired power plants within their state.  Specifically, the proposed rule would require states to evaluate a menu of heat rate improvement options and, taking into account the unit’s remaining useful life and other factors, determine the lb/MWh CO2 emission rate achievable at each affected unit. While the rule proposes to allow for emissions averaging among affected units at an individual source, it does not provide for broader averaging or emissions trading.  To facilitate the heat rate improvement projects, EPA also has proposed an option for states to adopt a new emissions test under the New Source Review program for EGUs that is based on both hourly and annual emissions.

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