Fact Sheet - Final Rule Including Delaware and New Jersey in the Clean Air Interstate Rule (CAIR) for Fine Particles

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Action

On March 15, 2006 the Environmental Protection Agency (EPA) took another step to advance the largest reduction in air pollution in more than a decade by adding Delaware and New Jersey to the Clean Air Interstate Rule (CAIR) because emissions from their states contribute to non-attainment of the fine particle pollution (PM2.5) National Ambient Air Quality Standards in other states.

Including Delaware and New Jersey under CAIR for fine particles will reduce emissions of sulfur dioxide (SO2) by an additional 48 tons per year and emissions of nitrogen oxides (NOx) by an additional 11 tons per year by 2015.

On a per square mile basis, Delaware and New Jersey emit nearly as much pollution as their neighboring states and they are in close proximity to areas that are not in attainment with EPA's protective air quality standards for PM2.5. EPA has determined that reducing emissions of SO2 and NOx in Delaware and New Jersey will help other states meet the air quality standards for PM2.5.

Including Delaware and New Jersey under CAIR for PM2.5 is based on certain criteria with respect to both states for assessing when emissions from upwind states may be considered to contribute significantly to downwind states that are not in attainment with EPA’s air quality standards. To address this situation, EPA analyzed the downwind impact of the combined emissions from Delaware and New Jersey.

Delaware and New Jersey can choose to achieve the required emission reductions by joining the EPA-administered CAIR cap-and-trade program. If they do, this rule would increase the direct costs of the CAIR program by an estimated $30 million per year in 2010 and $40 million per year in 2015. These costs represent less than 2 percent of the costs of the CAIR. By 2015, CAIR is expected to offer dramatic health benefits of as high as 39 times greater than the cost.

Delaware and New Jersey are already subject to ozone-related requirements in the CAIR to reduce NOx emissions during the summer ozone season. Today’s final action keeps all of the CAIR states on the same implementation schedule.

Background

On March 10, 2005, EPA signed the CAIR, a rule that will achieve that largest reduction in air pollution in more than a decade. In the final CAIR, EPA found that sulfur dioxide (SO2) and nitrogen oxides (NOx) emissions from 23 states and the District of Columbia contribute to levels of fine particles (PM2.5) that are above the health-based air quality standards in downwind states. In addition, NOx emissions in 25 eastern states and the District of Columbia contribute to levels of 8-hour ozone that are above the health-based air quality standards in other downwind states.

SO2 and NOx contribute to the formation of PM2.5 and NOx contributes to the formation of ground-level ozone. PM2.5 and ozone are associated with thousands of premature deaths and illnesses each year. Additionally, these pollutants reduce visibility and damage sensitive ecosystems.

Based on an assessment of the emissions contributing to interstate transport of air pollution and available control measures, EPA has determined that achieving the emission reductions required by CAIR by controlling emissions from power plants is highly cost effective.

Under CAIR, states must achieve the required emission reductions using one of two compliance options: 1) meet the state’s emission budget by requiring power plants to participate in an EPA-administered interstate cap and trade system that caps emissions in two stages, or 2) meet an individual state emissions budget through measures of the state's choosing.

The CAIR provides a Federal framework requiring states to reduce emissions of SO2 and NOx that contribute to interstate transport of air pollution. Through the use of the proven cap and trade approach, CAIR achieves substantial reductions of SO2 and NOx emissions and will help over 450 counties in the eastern U.S. meet EPA’s protective air quality standards for ozone or PM2.5. EPA anticipates that states will achieve the required reduction primarily by reducing emissions from the power generation sector. These reductions will be substantial and cost-effective, and in many areas the reductions are projected to be large enough to meet the air quality standards in combination with existing local and federal controls. Some areas may still need to take additional local actions in order to attain the standards. The CAIR reductions will lessen the need for additional local controls.

The CAIR rule provides cleaner air while allowing for continued economic growth. By enabling states to address air pollutants from power plants in a cost-effective manner, this rule will protect public health and the environment without interfering with the steady flow of affordable energy for American consumers and businesses.

EPA proposed to include Delaware and New Jersey in the CAIR for fine particles on March 10, 2005 when it signed the final CAIR.

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