On August 29, 2017, EPA proposed to conditionally approve1 New York State Department Environmental Conservation's (NYSDEC's) SIP revision regarding Cross-State Air Pollution Rule (CSAPR) NOx annual and SO2 Group 1 allocations to New York for the control periods starting in 2017. This has the potential to affect large electricity generating units throughout the state. The proposed approval does not address the SIP submittal addressing NOx ozone season emissions.

In 2015, NYSDEC finalized 6 NYCRR Part 244 and 245 to address CSPAR requirements and replace previous rules that were based on the Clean Air Interstate Rule (CAIR) regulations. Following the proposed conditional approval, CSPAR allowances will be made according Parts 244 and 245 instead of 40 CFR Part 97. For existing units, New York's allocation methodology is based on the average of recent emissions (i.e., the average of the 3 last years for which data is available) from all New York Transport Rule units. Five percent of the statewide budgets for annual emissions of SO2 and NOx would be set aside for new units, and the remainder of the statewide budgets, but at least ten percent, will be allocated to the Energy Efficiency and Renewable Energy Technology (EERET) account. If the allocation to the EERET account would be less than the prescribed minimum, allocations to existing units would be reduced to ensure that the minimum of 10% funding level for EERET is met.

The NYSDEC will distribute all allowances at no cost with the exception of allowances held in the EERET account, which will be administered by the New York State Energy Research and Development Authority (NYSERDA). The sale of allowances by NYSERDA will be used to fund energy efficiency projects, renewable energy, or clean energy technology. Any EERET allowances that are not sold or distributed by NYSERDA within required timelines will be returned to the DEC for retirement or reallocation.

For questions about this proposed rule or compliance with CSPAR or other rules affecting your power plant, contact Trinity today at (518) 205-9000 or email Brian Noel the Manager of the Trinity Albany Office, or Carla Adduci , Managing Consultant.

For more information regarding EPA's conditional approval, please click here .

1 The proposed conditional approval is based upon DEC's commitment to make the necessary changes, identified in the July 14, 2016, March 4, 2017, and July 6, 2017 commitment letters by December 29, 2017. Under CAA section 110(k)(4), the EPA may approve a SIP revision based on a commitment by a State to adopt specific enforceable measures by a date certain, but not later than one year after the date of final conditional approval. If the State fails to meet its commitment to submit a revised SIP by the deadline or if EPA finds the State's revisions to be incomplete, or the EPA disapproves the State's revisions, the conditional approval will, by operation of law, become a disapproval.