John Lyons with the Kentucky Division of Air Quality (KDAQ) spoke today regarding the air program in Kentucky. His remarks focused on four areas: (1) Kentucky’s Title V program; (2) Greenhouse Gas New Source Performance Standards (NSPS); (3) Standards for existing sources (Clean Air Act Section 111(D)); and (4) the Louisville Air Pollution Control District (APCD) audit.
First, Mr. Lyons said that the Title V program encompasses about 80 percent of DAQ’s budget and in the past few years it has reduced the amount of money that it has brought in due to loss of base tons – mainly from power plants. Mr. Lyons said that he is often involved in economic development projects as Kentucky’s Title V program is of interest to manufacturing entities entering the state.
Second, Mr. Lyons gave a brief history of the Greenhouse Gas NSPS. Most recently, under Obama’s Climate Action Plan, EPA was directed to re-propose New Source Performance Standards (NSPS) for CO2 emissions for new electric generating units (CAA Section 111(B)). Mr. Lyons believes that there will be subcategories under the new rule and that EPA will continue to propose a rate-based standard. It is unclear what that rate may be. However, Mr. Lyons believes the rule will probably be unfavorable to coal usage and will encourage use of natural gas.
In addition, EPA will soon propose new standards for existing units (CAA Section 111(D)). States are participating in numerous conference calls on the standard. Currently, NRDC has proposed a rate based emissions standard which sets goals for 2020, 2025 and 2030. NRDC’s proposal is the sole proposal at this time. Mr. Lyons feels that the proposal, if implemented, would disproportionally affect Kentucky and states like ours, whose economies are heavily dependent on manufacturing and coal production. KDAQ plans to meet with EPA and provide input for EPA’s proposed rule which is due to be published in June of 2014. KDAQ’s goal will be to help guide the plan in order to make it as advantageous as possible for Kentucky. Mr. Lyons believes that EPA will give credit to states who have implemented Renewable Fuels Standard and will not allow offsets.
Finally, Mr. Lyons addressed the recent APCD audit that was undertaken by KDAQ. The audit involved only PM 2.5 data and data keeping. One result of the audit is that 2012 data for PM 2.5 will be voided, inciting questions regarding attainment status. However, based on other sources of data, it appears that Jefferson County can meet attainment status under the 1997 standard. KDAQ will audit for the other criteria pollutants in the coming months.