Good Neighbor Rule Summary

This document is intended to summarize the information published by U.S. Environmental Protection Agency (EPA) regarding the “Good Neighbor” Plan addressing 23 states’ obligations to eliminate significant contribution to nonattainment or interference with the 2015 Ozone NAAQS under the “good neighbor” or “interstate transport” provision of the Clean Air Act (CAA). It should be noted that the information published online by EPA is not the official version of the rule for compliance purposes. EPA has submitted this information for publication in the Federal Register in Docket No. EPA‐HQ‐OAR‐2021‐0668. This summary memo will be updated as future publications become available. This summary memo should be used for high level informational purposes only and is not intended to be used for compliance purposes.

On March 15, 2023, the EPA announced the final Good Neighbor Plan, a rule that will significantly cut smog‐forming nitrogen oxide pollution from power plants and other industrial facilities in 23 states. Beginning in the 2023 ozone season, power plants in 22 states will participate in a revised and strengthened Cross‐State Air Pollution Rule (CSAPR) ozone season trading program.

Emissions Limitations for EGUs

This final rule implements the necessary emissions reductions as follows. The EPA is issuing Federal Implementation Plan (FIP) requirements that apply the provisions of the CSAPR NOx Ozone Season Group 3 Trading Program as revised in the rule to EGU sources within the borders of the following 22 states: Alabama, Arkansas, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, Texas, Utah, Virginia, West Virginia, and Wisconsin.

Emissions Limitations for Non‐EGUs

Beginning in the 2026 ozone season, EPA is setting enforceable NOx emissions control requirements for certain sources at existing and new industrial facilities that have significant impacts on downwind air quality and the ability to install cost‐effective pollution controls. The EPA is establishing industry‐specific emissions limitations beginning in 2026 for non‐EGU sources located within 20 states: Arkansas, California, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, Texas, Utah, Virginia, and West Virginia. The final rule establishes NOx emissions limitations during the ozone season for the following:

This final rule requires each state to submit a State Implementation Plan (SIP) that ensures sources within the state do not contribute significantly to nonattainment or interfere with maintenance of the NAAQS in other states. Each state must make this new SIP submission within 3 years after promulgation of a new or revised NAAQS.

Additional Information:‐announces‐final‐good‐neighbor‐plan‐cut‐harmful‐smog‐ protecting‐health‐millions‐03/FRL%208670‐02‐ OAR_Good%20Neighbor_Final_20230314_Signature_ADMIN%20%281%29.pdf

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