OTC Control Strategy Committee Meeting Tad Aburn, Chair, Multi-P Workgroup October 5, 2005 The OTC Multipollutant Model Rule

2 Overview Background CAIR Plus Status of the model rule The Regional Partnership Key Dates

3 Background Multipollutant Chronology –March 4, 2003: Multipollutant Statement of Principles –September 24, 2003: Resolution on EGU emissions –January 27, 2004: Multipollutant Position adopted –November 10, 2004: Charge to SAS Committee on Multipollutant Control –June 8, 2005: Resolution on Regional Strategy for EGUs & Other Sources

4 Background “CAIR Plus” –On June 8, 2005 the OTC adopted a resolution that asked the Multipollutant Workgroup to analyze and if necessary develop a model rule to further reduce NOx and SO2 emissions from power plants. –Linked to potential controls in other sectors –Inside and outside of the OTR –Promotes a regional partnership

5 CAIR Plus Will CAIR Plus be needed? –OTC modeling looking to see if CAIR and new local measures will provide for attainment Implementation - Basic concept –Work from the existing CAIR framework –Simply allocate fewer NOx and SO2 allowances Several options to ratchet down on allocations under review November/December meeting with stakeholders to discuss options

6 Status – The Model Rule Will clearly build off of EPA model rule Key Issues –Mechanism to ratchet down on allocations –Level of regional cap –Relationship to the CAIR “FIP” –Multiple other technical issues Timing –Regional coordination ongoing –Contractor soon to be on board –Draft for discussion with stakeholders (without caps) toward the end of the year –Near final rule Special February OTC meeting –MOU and final model rule June 2006 OTC Annual Meeting

7 Status – The Regional Partnership Midwest and South have recognized significance of interstate pollution transport –NC §126 Petitions Proposals for CAIR Plus –MWRPO’s EGU1 and EGU2 Strategies –NC Clean Smokestacks Discussions at staff and Commissioner level to continue through 2006

8 Key Dates November 2/3, 2005 –OTC Winter Meeting –Update on CAIR Plus November/December/ January, 2005/2006 –Partnership effort on CAIR Plus –Meetings with stakeholders on model rule issues February 2006 –Special OTC Meeting –More detailed briefing on CAIR Plus model rule June 7/8, 2006 –OTC Spring Meeting –MOU and final model rule June 2007/February 2008 –Ozone and PM SIPS due