Updates and Look Ahead

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1 Arizona Department of Environmental Quality Updates and Look Ahead Arizona Manufactures Council Environmental and Sustainability Summit August 11, 2016

2 Misael Cabrera, P.E., Director ADEQ

3 Agenda Introduction & Overall Strategic Direction Director Misael Cabrera, P.E. LEAN Management System Update Deputy Director Bret Parke Rules Update Administrative Counsel Sherri Zendri 2016 Legislative Summary Chief Policy and Legislative Affairs Officer Amanda Stone Air Quality Update Air Quality Division Director Tim Franquist Waste Programs Update Waste Programs Division Director Laura Malone Water Quality Update Water Quality Division Deputy Director Randy Matas

4 Overall Strategic Direction

5 Bret Parke, Deputy Director LEAN MANAGEMENT SYSTEM UPDATE

6 UST-LUST Process Flow

7 Sherri Zendri, Administrative Counsel RULES UPDATE

8 ADEQ Rule Repeal Schedule FY 2016 FY 2017 (JUL-DEC) FY 2017 (JAN-JUN) FY 2018 FY 2019 FY 2020 Mercury Air Standards -- Repealed in 2015 Arizona Mercury Rule Amendments, 21 A.A.R. 711 Air Emissions Fee FY 11 fee increase -- administratively repealed (did not review in the 5YRR). Hazardous Air Pollutants -- administratively repeal (not reviewed in the August 5YRR). NSR GP Variances current rulemaking Waste fees for FY 11 Solid Waste planning regional boundaries Tank Service Providers Hazardous Waste Fees 1997 SRLs Legislative amendments to allow repeal of rules: Collection, Transportation, and Disposal Of Human Excreta Recycling Emblem Toxic Substances List Swimming Pool Standards and Reviews Collection, Transportation, and Disposal Of Human Excreta Recycling Emblem Toxic Substances List Swimming Pool Standards and Reviews Air Emissions Cap -- administrative repeal by not reviewing in 5YRR AQ Standards of Performance for Existing Sources administrative repeal by not reviewing in 5YRR WQD fee implementation -- administrative repeal by not reviewing in 5YRR

9 ADEQ Rule Repeal Schedule Summer 2017 Hazardous Air Pollutants August 2016 Fall 2016 ADEQ Rule Repeal Breakdown Waste May 2019 Fall 2017 May 2020 Swimming Pool Standards and Reviews Summer 2020 Repealed No Change / Current No Change / Future Statutory Change / Not Enforced Statutory Change /Enforced Summer 2017

10 Amanda Stone, Chief Policy and Legislative Affairs Officer 2016 LEGISLATIVE SESSION

11 2016 Legislation Summary ADEQ Bills: SB1255 Vehicle Emissions and Inspections (VEI) continuation HB2325 ADEQ water bill lead pipe and operator certification fees

12 2016 Legislation Summary Impacting ADEQ: SB1256 Drug Lab Remediation Transfer from BTR to ADEQ HB Governor s Economic Opportunity Office - Water Infrastructure Finance Authority (WIFA) HB2613 Changes to RG classification HB2450 Expedited rulemaking

13 2016 Legislation Summary Budget: HB2331 Small water systems fund $500K in budget Increased Funding for WQARF Increase 26% to $14.2 million mydeq Continued Funding SB Oil and Gas Conservation Commission Support - transfer from AGS to ADEQ

14 Timothy S. Franquist, Director AIR QUALITY DIVISION

15 OZONE

16 Setting and Review of NAAQS Standard 1-hr 0.12 ppm 8-hr ppm 1996 SIP Due 2015 Marginal Attainment NAA 2012 EPA Sets NAA Boundary 2009 Boundary Recommendations Due Plan Submitted 1-hr 0.08 ppm 1975 Attain 2001 Supreme Courts Rules In Favor of USEPA 2004 EPA sets NAA Boundary States and Industry Challenge Standard 2003 Boundary Designations Due 2007 SIP Due 8-hr 0.08 ppm (4 th High in 3-yr average) 2017 EPA Sets NAA Boundaries hr Boundary Recommendations Due 2020 SIP Due and Attain 2015 Standard

17 8-Hour Ozone Design Values

18 Influence on Ozone Topography Meteorology Anthropologic

19 Influences on Arizona Ozone Exceedances The number of days* where the modeled backward trajectory originated from each neighboring state/area California Mexico CA/Mexico NM/Mex/TX NV/UT/CA Utah New Mexico Arizona Total *Only exceedance days in Arizona were modeled

20 Preliminary Design Value Analysis Network Design Value 2015 DV ex/ Flagged Nonattainment 2016 Threshold Apache Cochise CASTNET Coconino SLAMS Gila SLAMS Graham Greenlee La Paz SLAMS Maricopa SLAMS Mohave Navajo CASTNET Pima SLAMS Pinal SLAMS Santa Cruz Yavapai SLAMS Yuma SLAMS

21 Proposed Yuma Nonattainment Area Boundary Option B: Proposed Maricopa-Gila Nonattainment Area* (Persons per Square Mile)

22 Primary Recommendation Option A: Proposal to keep 2008 Maricopa-Pinal Nonattainment Area* (Persons per Square Mile)

23 Alternative Option A Option B: Proposed Maricopa-Gila Nonattainment Area* (Persons per Square Mile) *If Tonto and Queen Valley monitor are attaining given 2016 design values

24 Alternative Option B Option C: Proposed Maricopa-Pinal Nonattainment Area* (Persons per Square Mile) *If Queen Valley is attaining and Tonto monitor is not attaining given 2016 design values.

25 Alternative Option C Option D: Proposed Maricopa-Pinal-Gila Nonattainment Area* (Persons per Square Mile) *If Tonto monitor is attaining and the Queen Valley is not attaining given 2016 design values.

26 Progression of Ozone Non-attainment Source = EPA Region 9 presentation to Arizona Regulators

27 2015 Ozone Standard Challenges to Arizona Emission Reductions from Federal Programs (Boilers, RICE MACT, Hg/Toxics) Large Metropolitan Statistical Areas (MSA) Vehicle Emissions (Tier II & III, CAFE) Interstate & International Transport Perpetual Marginal NAA Scarcity of Ozone Offsets for New & Modified Major Sources (Rural & Urban NAAs)

28 Arizona s Approach State Implementation Plan New Source Review Permitting Emission Offsets for Major Sources (1:1) Emissions Inventory Transportation Conformity Law Suite Arizona Filed on April 22, 2016 Nine State Included In Suite Oral Arguments Summer of 2016 Decision Winter of 2016/2017 Clean Air Act Revisions International Rural Transport Timely Action on Transport Demonstrations

29 Construction of the Program Re-dispatch from Coal to Natural Gas Increase Efficiency of Energy Production Add Renewable Energy

30 lbs CO2/MWh August 3, 2015 Final Rule 1,800 Arizona Goal Rates EPA s Final Rule: 1,600 1,400 1,200 1, Proposal Final Baseline (2012) Goal (2030) Reduction 34% 1,552 lbs CO 2 /MWhr 1,031 lbs CO 2 /MWhr 200 -

31 Where Are We Now?

32 Regional Haze

33 What s Next: On the Horizon or In-Progress NSR Submission SIP Deficiencies Corrections Removal of 10% Emission Decrease for ERC Bank mydeq Permit Streamlining Volkswagen Settlement Voluntary Retrofit & Repair (VVRR)

34 Laura Malone, Director WASTE PROGRAMS DIVISION

35 Underground Storage Tank (UST) Program (HB2636) New UST Program is focused on uniting UST owners, UST vendors, UST insurance providers, and ADEQ in our efforts to responsibly identify and cleanup petroleum contaminated properties impacted by releases from regulated UST systems. ADEQ has launched the following programs: Time-Barred Claims Pre-Approval Program (up to 1M per facility) Non-Corrective Action (State Lead) ADEQ working on the following programs Baseline Assessments (7 year period) Grant Program (up to 100K per facility)

36 Significant UST/LUST Issues CURRENT CONDITIONS: Open LUSTs (data from 6/16/2015): 691 at % of reported releases have been closed fewer releases are being reported from upgraded UST systems USTs (Open and in Temp. Closure): approx. 6,458 (at 2,317 facilities)

37 Water Quality Assurance Revolving Fund (WQARF) Continue to improve processes Community Involvement Kaizen PRAP/ROD Kaizen Listing Kaizen WQARF 11 new WQARF sites Result of evaluating PI Sites 2 sites have been public noticed Received additional funding Funding not sustainable Continue to look for alternative funding sources

38 WPD Re-Organization Solid/Hazardous Waste Section Solid Waste Unit Emergency Response Team Hazardous Waste Unit

39 WPD Re-Organization UST-LUST Section Installations/Inspections, Compliance and Enforcement Unit State Lead Unit Site Investigation & Remediation Unit Information & Support Unit

40 WPD Re-Organization Remedial Projects Section WQARF Unit Federal Projects, VRP & Brownfields Community Involvement & Support Unit

41 Randy Matas, Deputy Director WATER QUALITY DIVISION

42 Waters of the US Status of Court Cases

43 Waters of the US Appendix B Surface Waters List Review (AAC Title 18 Chapter 11 )

44 Reuse Rulemaking Reuse Per Person, 2014 Irrigating athletic field with reclaimed water, U of A

45 Reuse Rulemaking Agency files Docket Opening Agency prepares Notice of Proposed Rulemaking Public Hearing on proposed rules Agency prepares Notice of Final Rulemaking and submits it to GRRC 3 weeks Agency works with stakeholders on proposed changes 30 days public comment Rule changes effective 60 days later SOS publishes docket opening We are here SOS publishes Notice of Proposed Rulemaking GRRC reviews and decides on rule changes SOS publishes Notice of Final Rulemaking 45

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