Implementing Section 115 Through the SIP Revision Process

This chapter explores some of the key issues pertaining to the implementation of Section 115 through the state implementation plan (SIP) revision process. It discusses how diverse federal, state, and local programs aimed at reducing greenhouse gas (GHG) emissions could be effectively integrated into a Section 115 SIP revision, and how the U.S. Environmental Protection Agency (EPA) could develop a framework to streamline the Section 115 planning process and promote national uniformity across state plans. Two possible planning approaches are considered: a “uniform trading approach,” wherein states would adopt mass-based cap-and-trade programs based on a standardized template developed by EPA, and a “state-led approach,” wherein states that opt out of the uniform trading approach would develop alternate plans for compliance.This chapter also discusses how EPA and the states could coordinate and possibly integrate the planning processes for Section 115 and rules promulgated under Section 111 of the Clean Air Act (CAA), such as the emission standards issued for new and existing power plants. One option would be to establish Section 115 emission reduction targets that encompass emissions from sources regulated under Section 111 while retaining the Section 111 standards as distinct requirements. A second option would be a “nesting” approach whereby the Section 115 targets would encompass emissions from sources regulated under Section 111, but states that are in compliance with Section 115 would not be required to demonstrate separate compliance with the Section 111 standards. A third option would be to establish Section 115 targets that only encompass emissions from sources that are not regulated under Section 111. Three key findings from this analysis are: (1) Section 115 provides a pathway for coordinating existing GHG reduction programs and promoting greater uniformity and cohesiveness in state responses to climate change; (2) the implementation of Section 115 can be streamlined and supported by federal guidance in a fashion that would significantly mitigate the administrative burden on states during the SIP revision process, particularly where states opt into a uniform trading program; and (3) using a “nesting” approach to integrate Section 111 standards under the broader framework of Section 115 would be the best way to introduce a comprehensive emission reduction program that also meets goals related to flexibility, regulatory efficiency, uniformity, and cohesiveness