The Clean Air Interstate Rule (CAIR) was replaced by the U.S. EPA with the Cross State Air Pollution Control Rule (CSAPR) starting in 2015.

CAIR, Cross-State Air Pollution Rule (CSAPR) and Transport Rule Timeline

April 29, 2014: The U.S. Supreme Court Issued an opinion reversing an August 21, 2012 D.C. Circuit decision that had vacated CSAPR. Following the remand of the case to the D.C. Circuit, U.S. EPA requested that the court lift the CSAPR stay and toll the CSAPR compliance deadlines by three years. On October 23, 2014, the D.C. Circuit granted U.S. EPA’s request. Accordingly, CSAPR Phase 1 implementation is now scheduled for 2015, with Phase 2 beginning in 2017.

March 29, 2013: The U.S. Solicitor General has petitioned the Supreme Court to review the D.C. Circuit Court's decision on CSAPR.

January 24, 2013: The U.S. Court of Appeals for the D.C. Circuit denied U.S. EPA's petition for rehearing of the Court's August 2012 decision to vacate CSAPR.

October 5, 2012: The United States filed a petition seeking rehearing of the U.S. Court of Appeals for the D.C. Circuit's August 21, 2012 decision regarding U.S. EPA's CSAPR.

August 21, 2012: The U.S. Court of Appeals for the D.C. Circuit issued its ruling on CSAPR – to vacate the rule. Therefore CSAPR is stayed and the 2005 CAIR rule remains in effect until a decision has been made.

July 6, 2011: U.S. EPA finalized a rule that protects the health of millions of Americans by helping states reduce air pollution and attain clean air standards. This rule, known as the Cross-State Air Pollution Rule (CSAPR), requires states to significantly improve air quality by reducing power plant emissions that contribute to ozone and/or fine particle pollution in other states. In a separate, but related, regulatory action, U.S. EPA finalized a supplemental rulemaking on December 15, 2011 to require five states - Iowa, Michigan, Missouri, Oklahoma, and Wisconsin - to make summertime NOX reductions under the CSAPR ozone season control program.

December 23, 2008: The United States Court of Appeals for the D.C. Circuit issued its ruling on the petitions for rehearing of the court’s July 11 decision to vacate the Clean Air Interstate Rule (CAIR) and the associated federal implementation plan. The Court denied the petitions for rehearing en banc. However, the panel granted the petition for rehearing to the extent that it remanded the rule without vacatur.

March 10, 2005: U.S. EPA signed CAIR requiring 28 states and the District of Columbia to submit state implementation plan (SIP) revisions to reduce emissions of sulfur dioxide (SO2) and nitrogen oxide (NOx) from fossil-fuel-fired power plants. CAIR consists of three cap and trade programs: an annual SO2 trading rule that builds on the existing Acid Rain program; an ozone season NOx trading rule that builds on the existing NOx SIP Call program; and a new annual NOx trading program. Reductions are required to take place in two phases: 2009 and 2015 for NOx and 2010 and 2015 for SO2. Indiana has included non-EGUs from the NOx SIP Call in the CAIR ozone season trading program so that non-EGUs that were part of the NOx SIP Call trading rule (326 IAC 10-4) can continue to trade allowances.

CAIR NOx Allocations

Representatives from NIPSCO recently advised IDEM that heat input numbers for the Bailly Station units had been transposed and requested that IDEM correct the heat input data. The spreadsheets below contain the revised CAIR 2015+ Electric Generating Units (EGUs) Ozone Season and Annual Control Period allocations. We are reopening the comment period due to these revisions. Note that the original calculated allocations were posted on July 30, 2010. Per the current rules 326 IAC 24-1-8 and 326 IAC 24-3-8:

"The department shall make available for review to the public the CAIR NOx allowance allocations under subdivision (2) {subdivision (1)(B) for 326 IAC 24-3-8} on July 31 of each year allocations are made and shall provide a thirty (30) day opportunity for submission of objections to the CAIR NOx allowance allocations. Objections shall be limited to addressing whether the CAIR NOx allowance allocations are in accordance with this section. Based on any such objections, the department shall consider any objections and input from affected sources and, if appropriate, adjust each determination to the extent necessary to ensure that it is in accordance with this section."

We at IDEM acknowledge that the federal Transport Rule or Cross State Air Pollution Rule (CSAPR) has been going through the courts and once it is finalized, it will replace CAIR and these revised CAIR allocations will become obsolete. That could happen any time now. However, we have to follow through with CAIR until it no longer exists. We are submitting these allocations to you for your comments. If you have any comments or questions, please submit them to me by September 26, 2014.

Compliance Supplement Pool
CAIR Permit Applications

The following forms come from U.S. EPA and are currently available on the IDEM Forms page:

  • CAIR Permit Application (Sources Covered Under the CAIR SIP) - Part 96
  • CAIR Permit Application (Sources Covered Under the FIP) - Part 97

Please include the GSD-01 form and coversheet (available on the IDEM Forms page)with all CAIR permit application submissions.

Questions, Comments, and Contact:

Submit CAIR permit applications by mail to the Indiana Department of Environmental Management. If you have any questions or comments, contact the Air Permits Branch

Non-EGU Budget Demonstration

Indiana CAIR rule had included large non-EGU boilers and combustion turbines, referred to as large affected units, in the CAIR NOx Ozone Season Trading Program, however large non-EGU units were not brought into the CSAPR trading program FIP. Large non-EGUs remain subject to the federal Ozone Transport NOx SIP Call (commonly referred to as the NOx SIP Call) rule requirements at 40 CFR 51.121; therefore, IDEM proposes to adopt NOx monitoring requirements into state rules for these units at 326 IAC 10-2 (LSA #15-414).

U.S. EPA has offered several options for States to show continued compliance with the NOx SIP Call requirements with regard to large non-EGUs. IDEM has evaluated these options, and based on the emissions data of the large non-EGU sources in Indiana, IDEM has selected the streamlined demonstration option, which demonstrates that the total ozone-season NOx emissions from large non-EGUs could not exceed the large non-EGU budget imposed by the NOx SIP Call, even if these units were to operate every hour of the ozone season.