On December 1, 2010, the U.S EPA issued a finding that the U.S. EPA-approved state implementation plans (SIP) of 13 states are substantially inadequate to meet Clean Air Act (CAA) requirements because they do not apply Prevention of Significant Deterioration (PSD) requirements to greenhouse gas (GHG) emitting sources. In addition, the Agency issued a "SIP call" for each of these states, which requires the state to revise its laws and regulations as necessary to correct the inadequacies. Affected states include Arizona; Arkansas; California; Connecticut; Florida; Idaho; Kansas; Kentucky; Nebraska; Nevada; Oregon; Texas; and Wyoming.

Specifically, the Agency found that any state's SIP-approved PSD applicability provisions that do not apply the PSD program to GHG-emitting sources are substantially inadequate to meet CAA requirements, under CAA section 110(k)(5). As an example, if a state's PSD regulation identifies its regulated New Source Review (NSR) pollutants by specifically listing each individual pollutant and the list omits GHGs, then the regulation is substantially inadequate.

The timing of the final rule was necessitated by the U.S. EPA's GHG "tailoring rule", governing the applicability of the PSD program to GHGs, which becomes effective on January 2, 2011. The rule was intended to insure that all facilities constructing new major sources or modifying existing major sources of GHGs after January 2 be subject to the higher applicability thresholds included in the tailoring rule.

The Agency established a deadline for each state to submit its corrected SIP revision. These deadlines, which differ among the states, range from December 22, 2010 to December 1, 2011. For states unable to meet these deadlines, the Agency plans to issue a Federal Implementation Plan (FIP) for GHGs that will authorize the U.S. EPA to issue PSD permits to the GHG sources located in that state or local area until the state's required SIP revision is approved by the U.S. EPA.

More information is available here.