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EPA ANNOUNCES FINAL RULE FOR REGIONAL SMOG REDUCTION

Release Date: 9/24/1998
Contact Information: Carol Febbo (215) 814-2076 & David Sternberg (215) 814-5548 September 24, 1998

Philadelphia - EPA announced its final rule for regional nitrogen oxide (Nox) reductions to address the regional transport of ozone smog.  The strategy is based on the results of a two-study on ozone transport conducted by a group of 37 states, EPA, industry and environmental groups.  It would reduce ozone transport by requiring upwind states to reduce nitrogen oxide emissions, allowing each state to choose which sources to target.

Twenty-two states will have to reduce emissions of nitrogen oxides that significantly contribute to pollution in downwind areas.  In addition to reducing ozone pollution to protect public health, this program will also reduce acid rain, pollution of the Chesapeake Bay, and greenhouse gases which contribute to global warming.

"By requiring states to reduce the emissions which causes ozone smog problems in downwind areas, EPA is doing the most important thing we can to improve the health and air quality of millions of Americans across the eastern half of the U.S.," said W. Michael McCabe, EPA regional administrator for the Mid-atlantic region.

Tons of nitrogen oxides reductions required under this rule.

Delaware: 2,413
Maryland: 21,182
Pennsylvania: 79,338
Virginia: 35,331
West Virginia: 97,967


(see attached national release)


98-336

FOR RELEASE:  THURSDAY, SEPTEMBER 24, 1998

EPA ANNOUNCES FINAL RULE TO PROTECT EASTERN U.S. FROM SMOG
                               
Dave Ryan 202-260-2981

     To help meet the nation's goal of cleaner air, EPA today announced final plans to ensure that 138 million Americans living in the eastern United States will breathe cleaner air.  The new plan calls for reducing smog-causing emissions of nitrogen oxides (NOx) by 1.1 million tons annually, or 28 percent overall, in 22 states and District of Columbia.  Of the 138 million Americans living in the affected states, 31 million Americans will for the first time breathe air that meets the nation's new public health standard for harmful levels of smog as a result of today's action.

     EPA projects that these regional NOx reductions will allow the vast majority of areas to meet EPA's new public health smog standard announced by President Clinton in July 1997 without having to implement any new, costly controls.    

     "Today we take another major step in cleaning up our nation's air," said EPA
Administrator Carol M. Browner.  "This action will bring health benefits to millions of Americans.  It is the centerpiece of our efforts to cost effectively implement EPA's new  public health standard for smog that was announced last year.  This action will help prevent thousands of cases of smog-related illnesses, like bronchitis and exacerbated cases of childhood asthma each year."

     The new plan also is the first effort by EPA and the states to protect public health in
downwind states from smog that crosses their borders from other states.  However, even
"upwind" states will achieve significant clean-air benefits for local communities.

     The new plan allows states maximum flexibility to decide how reductions are to be
achieved, but also recommends that reductions can be achieved most cost effectively by focusing on power plant emissions.  The EPA plan, which is based in part on recommendations from 37 states known as the Ozone Transport Assessment Group and extensive public comments, calls for 22 states and the District of Columbia to reduce their nitrogen oxide emissions by 28 percent overall, or 1.1 million tons, by the year 2007.  States clean air plans come due in September 1999 and needed controls must be in place by 2003.    

          To ensure that the reductions are as cost effective as possible, EPA will work with states to encourage the development of a market-based emissions-trading system for utilities.  The program -- called "cap and trade" --  allows industries great flexibility in choosing pollution controls because they can buy and sell market-based "credits" to reduce their NOx emissions.  EPA has provided a model emissions-trading program to the states as part of the final rule.  The trading program would allow each state to establish a cap on NOx emissions; within this cap, power plants and other sources that reduce these emissions in greater amounts than required can sell this excess as credits.  Other facilities -- that cannot reduce emissions as quickly or as cost effectively -- can use these credits to meet their clean air requirements.  A similar market-based trading program already in effect at EPA has proven successful in allowing power plants to trade sulfur dioxide credits to control acid rain.

     Smog, the most pervasive air pollutant in the United States, aggravates asthma, reduces lung capacity and makes plants and crops more susceptible to pests and disease.  Besides decreasing smog, cutting nitrogen oxide emissions also will help reduce problems with acid rain, contaminated water bodies, airborne particles and regional haze.

     EPA estimates that NOx reductions from power plants can be achieved for as little as
$1500 per ton of emissions reduced, compared with the $2000 - $10,000 per ton that would be needed if states relied on local, rather than regional control programs.  However, today's rule gives states the flexibility to achieve emission reductions from any sources they may choose.

     In July 1997, EPA made final its new public health air standards for smog and small
particles.  At that time, EPA announced an implementation strategy that would take advantage of ongoing initiatives to ensure that states could meet the new standards cost effectively.  Today's plan is the centerpiece of that strategy.  

     The states affected by today's proposal are Alabama, Connecticut, Delaware, Georgia,
Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, West Virginia, Wisconsin and the District of Columbia.    

     EPA also is proposing two additional actions today, both consistent with today's plan.
One of the proposals involves a federal implementation plan to be used as an insurance policy only if the state reductions are not achieved.  Also today, EPA is proposing, in response to petitions filed by eight northeastern states under Section 126 of the Clean Air Act, smog emission reduction requirements for some specific sources of nitrogen oxides.

     Today's regulatory  actions will appear soon in the Federal Register, but can be
downloaded immediately from the EPA Office of Air and Radiation website on the Internet, under "recent actions" at:  https://www.epa.gov/ttn/oarpg/.  For further technical information, there are two contacts in EPA's air program:  Jeff Clark at 919-541-5557, or e-mail him at [email protected]; and Kimber Scavo of EPA's Air Program at 919-541-3354, or e-mail her at:  [email protected].

       Following publication of the Federal Register notice, there will be a 60-day public
comment period, including a public hearing on Oct. 28-29.  The location of the hearing will be published in the Federal Register.

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