Agenda Item II-1_Concept Description_GHG EGU EG

Agenda Item II-1 Page 1 of 1
Concept Adoption of Standards of Performance for Greenhouse Gas (GHG) Emissions from Existing
Fossil Fuel-Fired Electric Generating Units (EGUs) under Clean Air Act Section 111(d) (565)
Reason for Action To adopt new rules regulating GHG emissions, in the form of carbon dioxide (CO2) emissions, from existing fossil fuel-fired steam generating EGUs to satisfy the requirements of the Emission
Guidelines (EG) promulgated by the United States Environmental Protection Agency (U.S. EPA)
under Title 40 of the Code of Federal Regulations (40 CFR), Part 60, Subpart UUUUb.
Scope/Nature/Summary On May 23, 2023, the EPA proposed five separate actions under section 111 of the Clean Air Act (CAA) addressing GHG emissions from fossil fuel-fired EGUs. This included proposing revised New Source Performance Standards (NSPS) for GHG emissions from new fossil fuel-
fired stationary combustion turbine EGUs under 40 CFR Part 60, Subpart TTTT and new NSPS for GHG emissions from fossil fuel-fired steam generating units that undertake a large modification under 40 CFR Part 60, Subpart TTTTa, based upon the 8-year review required by the CAA. The EPA also proposed EG for GHG emissions from existing fossil fuel-fired steam
generating EGUs, which include both coal-fired and oil/gas-fired EGUs, and EG for existing
large stationary combustion turbines, both under 40 CFR Part 60, Subpart UUUUb. Finally, the
EPA proposed the repeal of the Affordable Clean Energy (ACE) Rule.
On May 9, 2024, the EPA finalized four of the five proposed actions. First, the EPA finalized the repeal of the ACE Rule. Second, the EPA finalized the EG for GHG emissions from existing fossil fuel-fired steam generating EGUs, which include coal-fired, oil-fired, and natural gas-fired
steam generating EGUs under 40 CFR Part 60, Subpart UUUUb. Third, the EPA finalized revisions to the NSPS for GHG emissions from new and reconstructed fossil fuel-fired stationary combustion turbine EGUs. Fourth, the EPA finalized revisions to the to the NSPS for GHG emissions from fossil fuel-fired steam generating EGUs that undertake a large modification,
based on the 8-year review required by the CAA. The EPA did not finalize the EG for existing
fossil fuel-fired stationary combustion turbines and intends to take final action on these sources
at a later date.
While NSPS requirements promulgated under CAA Section 111(b) apply directly to affected facilities and are incorporated by reference under 15A NCAC 02D .0524, EG requirements promulgated under CAA Section 111(d) do not apply directly to facilities; rather, EG
requirements apply to States, who must establish standards of performance consistent with the EG for designated facilities in their jurisdiction. The States then submit a CAA 111(d) State Plan to EPA specifying how their standards of performance meet the requirements of the EG and the State Plan Implementing Regulations under 40 CFR Part 60, Subpart Ba, which were revised on
November 17, 2023.
The primary steps for the EG are: 1) the EPA identifies the Best System of Emission Reduction (BSER) for existing sources within the source category; 2) States establish standards of performance for designated facilities within their jurisdiction based on application of BSER; and then 3) regulated sources comply with the standards using either BSER or non-BSER methods. This EG allows states two years after publication of the final EG rule to develop and submit their
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State Plans for reducing GHG emissions from existing coal-fired and oil/natural gas-fired EGUs in accordance with EG. The emission reduction requirements and compliance deadlines vary
depending on the EGU’s fuel type and retirement date.
The DAQ is initiating rulemaking to establish and codify standards of performance for the designated coal-fired, oil-fired, and natural gas-fired EGUs in North Carolina, along with the necessary monitoring, recordkeeping and reporting requirements, such that the State Rule(s) can
be incorporated into a State Plan consistent with the requirements of the EG, State Plan
Implementing Regulations under 40 CFR Part 60, Subpart Ba, and CAA Section 111(d), on or
before the State Plan submittal deadline of May 8, 2026.
Statutory Authority
G.S. 143-215.3(a)(1); 143-215.65; 143-215.66; 143-215.107(a)(5), (10)