This rulemaking followed decisions by three different Circuit Courts to stay EPA’s Feb. 22, 2022, disapproval of the State Implementation Plans (SIPs) for these six states. The SIP-disapproval stays, which are effective as of August 4, 2023, and will be in place while judicial review of the merits of EPA’s decisions are reviewed, effectively render the FIP moot.
Circuit Court Stay Rulings
- May 1 and June 8, 2023 – 5th Circuit Court stays the SIP disapprovals with respect to Louisiana, Mississippi, and Texas
- May 31, 2023 – 6th Circuit Court stays the SIP disapproval with respect to Kentucky
- May 25 and 26, 2023 – 8th Circuit Court stays the SIP disapprovals with respect to Arkansas and Missouri
The Feb. 22, 2022 SIP disapprovals and subsequent FIP affected a total of 22 states (Refer to
Final Ozone Federal Implementation Plan (FIP) Released), and other Circuit Court decisions are still pending. For example, the 10th Circuit Court has just granted similar stays for Oklahoma and Utah.
In this interim final rule, EPA is returning to the status quo (prior to the SIP disapprovals and FIP) using the following logic:
- EGUs in Arkansas, Mississippi, Missouri, and Texas remain in the CSAPR Group 2 trading program;
- EGUs in Kentucky and Louisiana are subject to a revised Group 2 trading program that creates the state emissions budgets, unit-level allowance allocation provisions, and banked allowance holdings that would have been in effect in these states under the Group 3 trading program;
- Two new Group 2 non-interchangeable subtypes of NOx allowances are created: Season Original Group 2 for EGUs in Arkansas, Mississippi, Missouri, and Texas and Expanded Group 2 allowances, for EGUs in Kentucky and Louisiana; and
- None of the FIP provisions for non-EGU industrial sources will take effect.
Stay tuned to Trinity Consultants for additional updates on the Good Neighbor Plan. If you have any questions on what this means to your company, contact your local Trinity Consultants office or contact Trinity Consultants at
866.830.0796.
