Regional Reductions: Clear Skies and Transport Rule

1. Regional Reductions: Clear Skies and the Transport Rule • Transport rule will proceed in concert with legislative effort to pass Clear Skies Act • Need to follow both paths to achieve reductions as expeditiously as possible • During the next decade significant reductions can be achieved more quickly and cost-effectively through the Clear Skies Act • But, we cannot guarantee legislation will be enacted • To move forward expeditiously to achieve reductions through a Transport Rule, we have looked at the most aggressive schedule we think possible • Aim to propose in late 2003/early 2004 • Final early to mid-2005

2. Transport Rule Activities • Identify states and tribal areas whose future emissions will “contribute significantly” to downwind nonattainment if nothing more is done to reduce them. • Establish emissions budgets, but give flexibility: • Statewide budget, leaving states to decide what sources to control. • Provide an optional cap-and-trade program for sources. • Include compliance schedule, monitoring, reporting, and accountability provisions.

3. Transport Rule Activities, cont. • Conduct regional-scale air quality modeling using the latest available emissions inventories • Conduct analysis of air quality and other data to provide insights into the nature of transport • Data from speciation trends network • Source apportionment by receptor models • Meteorological data • Develop framework for interstate emissions trading program

4. Transport Rule: Current Work • Compiling and reviewing source apportionment studies published in last 3 years • Conducting back trajectory analyses for 12 eastern sites • Evaluating potential interface between Title IV allowance trading and transport rule trading • Collaboration with Government Partners • State & Local air pollution agencies (through STAPPA/ALAPCO) • Tribes (through NTAA) • Federal Land Managers • Covering technical and trading rule issues