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Air Regulatory Updates: Program Priorities

Air Regulatory Updates: Program Priorities. Joe Kahn, Director, Division of Air Resource Management Florida Department of Environmental Protection November 5, 2008. Current Air Program Priorities. Climate change & greenhouse gas (GHG) reduction Diesel Idle Reduction Rule

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Air Regulatory Updates: Program Priorities

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  1. Air Regulatory Updates:Program Priorities Joe Kahn, Director, Division of Air Resource Management Florida Department of Environmental Protection November 5, 2008

  2. Current Air Program Priorities • Climate change & greenhouse gas (GHG) reduction • Diesel Idle Reduction Rule • Adoption of California MotorVehicle Emission Standards • Cap and Trade Rule • Control of mercury emissions • New ozone standard • Regional haze/CAIR vacatur

  3. Climate Change and Greenhouse Gas Reduction • “Global climate change is one of the most important issues we face this century, and we must take action.” Charlie Crist, Governor of Florida, 2007 • Governor Crist has set goal of reducing Florida’s GHG emissions to: 2000 levels by 2017 1990 levels by 2025, and 20% of 1990 levels by 2050

  4. Florida’s Carbon Dioxide (CO2) Emissions 2017 Goal 2025 Goal 2050 Goal

  5. Our Greatest Challenge: Growth • Florida is expected to add 209,000 new residents per year (2007-2010) • Returning to increases of about 317,000 per year (2010 to 2020) • Projected continued increases over next 20 years in both Population and Vehicle Miles Traveled

  6. Projected Growth: Vehicle Miles Traveled

  7. Florida’s CO2 Emissions Electric utilities and transportation accounts for about 92 percent of the CO2 emissions in Florida.

  8. Adoption of the Diesel Idle Reduction Rule • New rule was approved by the Environmental Regulation Commission June 19 • Applies to heavy-duty commercial and governmental vehicles (trucks & buses) • Prohibits idling for longer than 5 min. • Exemptions for traffic, emergency operations, bus passenger comfort, powering work equipment, etc. • After September 2013, exemption expires for main engine idling while driver resting in sleeping berth

  9. Adoption of California MotorVehicle Emission Standards • Scheduled for hearing December 2 • Assuming EPA’s denial of California waiver will be reversed; Florida DEP has joined lawsuit • Addresses GHG emissions from autos and light-duty trucks • California program brings about greater and sooner reductions than federal CAFE • Rule is not effective until ratified by the Legislature

  10. Electric Utility GHG Reductions • Electric generating units account for about half of Florida’s CO2 emissions • Governor directed DEP to develop cap on GHG emissions from electric utilities • Year 2000 emissions by 2017 • Year 1990 emissions by 2025 • 20% of 1990 emissions by 2050 • Coal projects cancelled • New nuclear units and uprating projects being proposed • Geologic potential for carbon sequestration from fossil units

  11. 2008 Florida Energy BillHB 7135 • Authorizes DEP to develop cap and trade regulations for GHG • Revises definition of “environmental compliance costs” to include research and geologic assessments of carbon sequestration • Requires “major emitters” to report GHG emissions via The Climate Registry • Directs PSC to develop rules for RPS/Draft rule was issued 8/11/08 • Creates the Florida Energy Systems Consortium

  12. Cap and Trade Rule • Continuation of workshops already held on the issue of setting GHG caps for electric utilities. • First Cap and Trade workshop scheduled for December 11, 2008 • Rule not to be adopted until after January 1, 2010 • DEP to develop rules for cap and trade in consultation with: • PSC • New Florida Energy and Climate Commission (FECC) • Climate Action Team (chaired by DEP Secretary Michael W. Sole)

  13. Cap and Trade Rule Must Address • Cap on emissions for major emitters • Method for allocating cap • Emission allowance and process for issuance • Length of allowance and response periods • Timeline for allowance process thru 2050 • Trade process for allowances • Cost containment mechanisms • Discouragement of leakage • Provisions for trial trading period before full implementation • Advisability of linking with other trading systems

  14. Key Factors to be Considered • Overall cost-effectiveness • Minimizing administrative burden • Impacts to utility prices • Costs and benefits to state economy • Potential effects of leakage • Consistency with other state/federal programs • Feasibility of expanding to other emitters and carbon sinks • Considerations for linking to efforts of other states or countries

  15. Rulemaking and Approval Process • DEP will coordinate with PSC and FECC • Build on recommendations of Climate Action Team • Proposed rule will be submitted to FECC for its review and report • Rule is not effective until ratified by the Legislature • Plan to submit January 2010

  16. Other Air Program Priorities:Florida’s Mercury Problem • High levels of mercury in fish—in waters of the state, and especially high in the Everglades • Highly toxic, especially to children. • Also, a threat to wading birds and endangered Florida panther • DEP required to develop Total Maximum Daily Loading (TMDL) standard • Air program interested in reducing emissions ahead of TMDL completion

  17. Mercury Emissions:Industry Groups of Interest • Emission reductions and monitoring • Coal power plants • Portland cement plants • Waste to energy • Control at all plants • Medical waste incinerators • Other sources

  18. Power Plant/Cement PlantConnection • Concern that mercury removed will be re-emitted by cement plants that use fly ash as raw material • Goal is to prevent this re-emission • Poor data for some sources; needs correction • Mercury continuous monitors now required by permit at two proposed cement plants (only one under construction) • Raw material sampling underway at four existing plants • Fly ash and other coal combustion products can be used directly in concrete and gypsum, which retain the contained metals such as mercury

  19. Mercury Rulemaking: Anticipated Schedule • Spring & Summer 2008 – planning and data collection • Spring 2009 – stakeholder meetings • Summer 2009 – start formal rulemaking • Fall 2009 – one or more final rules

  20. New Ozone Standard • 10 counties in violation for 2005-07;8 more counties in associated Metropolitan Statistical Areas • Highest levels in Pensacola (pop. 295,000) • Lowest levels along southeast coast (pop. 5,464,000) • Preliminary modeling predicted all of state to reach attainment in next few years based on now-vacated programs!

  21. Schedule for Final Ozone Rule • EPA final rule – March 2008 • State recommendations to EPA – March 2009 (based on 2006-2008 monitoring data) • Final designations – March 2010 • State Implementation Plan (SIP) – 2013 • DEP related rulemaking: • Nonattainment New Source Review – 2009 • Ozone rulemaking sometime before 2010-2013 • Reasonably available control technology (RACT) updates – 2010-2013

  22. CAIR Vacated • Or Not? • Court seeking briefs from parties regarding rehearing and stay of mandate

  23. Vacatur Fallout • Finalize Best Available Retrofit Technology (BART) 2008-2009 • SIP already overdue to EPA • Reasonable Progress • Wait for comments/guidance from EPA • Now need to reevaluate approach

  24. Questions or Comments?

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