On July 6, 2011, the US Environmental Protection Agency (EPA) finalized a rule that protects the health of millions of Americans by helping states reduce air pollution and attain the 1997 ozone and fine particle and 2006 fine particle National Ambient Air Quality Standards (NAAQS). This rule, known as the Cross-State Air Pollution Rule (CSAPR), requires 27 states to significantly improve air quality by reducing power plant emissions that cross state lines and contribute to ozone and fine particle pollution in other states. To speed implementation, EPA is adopting federal implementation plans, or FIPs, for each of the states covered by this rule. EPA encourages States to replace these FIPs with State Implementation Plans, or SIPs, starting as early as 2013.

EPA, states, tribes and local governments all play important roles in reaching clean air goals. With this rule, the Agency is renewing its commitment to implement the Clean Air Act's "good neighbor" provision, which requires states to address the problem of interstate transport of air pollution. At the same time, states, tribes, and local agencies continue to work on local pollution control measures.

In a separate but related regulatory action, EPA also issued a supplemental notice of proposed rulemaking (SNPR) to require six states - Iowa, Kansas, Michigan, Missouri, Oklahoma, and Wisconsin - to make summertime NOx reductions under the CSAPR ozone-season control program. Five of those states are already covered in the final rule for interstate fine particle pollution (PM2.5). With the inclusion of these states, a total of 26 states would be required to reduce ozone-season NOx emissions to assist in attaining the 1997 8-Hour Ozone NAAQS. Finalizing this supplemental proposal would bring the total number of covered states under the CSAPR to 28. EPA issued a proposal instead of a final action for these states in order to provide additional opportunity for public comment on their linkages to downwind nonattainment and maintenance areas. EPA is proposing to finalize this proposal by late fall 2011.

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Update as of May 2016:

On April 29, 2014 the U.S. Supreme Court upheld the U.S. Environmental Protection Agency’s Cross State Air Pollution Rule, otherwise known as CSAPR or the “Transport Rule,” reversing a lower court decision that had vacated that rule in late December of 2011, only days before the new rule was set to go into effect. CSAPR was reinstated beginning January 1, 2015 for SO2 and annual NOx reductions and May 1, 2015 for ozone season NOx reductions. Phase II of CSAPR, originally slated to go into effect in 2014, will now begin in 2017 along with the reduced SO2 allocations proposed with the original rule. On November 16, 2015, in an effort to meet the 2008 National Ambient Air Quality Standards, the EPA proposed an update to CSAPR to reduce summertime NOx emissions. Drastically reducing the Seasonal NOx allocations beginning in 2017, the EPA’s latest rule will have a significant impact on any non-SCR coal units remaining.

The CSAPR rule allows unlimited trading of emission allowances between power plants within the same state and between different states, as long as state pollution control obligations are met. Though a second FES auction has not been scheduled yet for any CSAPR products, FES remains active in the CSAPR market.

Any questions concerning CSAPR products should be directed to James Meehan @ (330) 315-6876.

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