Revisions to the Model Rule, SIP Text, and MOU for Implementing the Regional Backstop Emissions Trading Program for SO2

Last summer, under the auspices of its Air Managers Committee, the WRAP convened a Model Rule Work Group to update the draft model rule and memorandum of understanding (MOU) submitted to EPA as part of the Annex to the Grand Canyon Visibility Commission Final Report. The purpose of the model rule and MOU are to facilitate consistent, multi-jurisdictional implementation of a regional backstop emissions trading program for sulfur dioxide (SO2) from large stationary sources in western states and tribes submitting regional haze implementation plans under Section 51.309 of the U.S. EPA's regional haze rule (or under the Tribal Authority Rule).

Project support was provided under contract to the WESTAR Council.

The work group was comprised of state, tribal, and EPA legal experts and regulatory developers. Early in the revision process, it became clear that much of the draft rule's material was more appropriate to place in the state or tribal implementation plan, and not in the rule itself. That is, the implementation plans contain provisions enforceable upon the state, and the rule contains provisions enforceable upon the sources. Hence, what was a set of two documents are now three.

The WRAP is providing an opportunity for public comment on these three documents until 10:00 a.m. MST, Monday, March 10.

The three documents are:

• Draft Model Rule (02/07/03)
• Draft Model SIP/TIP Text (02/07/03)
• Draft MOU (02/07/03)

Comments must be provided in writing via electronic or standard mail to:

Lee Alter
Western Governors' Association
1515 Cleveland Place, Suite 200
Denver, CO 80202
lalter@westgov.org

After review of public (and Market Trading Forum) comments, the above material will be revised where appropriate and submitted to the WRAP Board for consideration and potential endorsement at its April 2-3 meeting.

Note, some aspects of the draft model rule and SIP/TIP text are still under development. Most notably, the SIP text is being developed for the allocation of emission allowances to utility sources. Also, the model rule text for emissions monitoring, recordkeeping, and reporting is under development, as are the monitoring protocols for non-utility sources.

Finally, specifications for an emissions and allowance tracking system (to be used in the event the backstop trading program is triggered) will be developed soon as an appendix to the SIP/TIP text.