Air Quality Program Update. SWEP Regulatory Update Meeting Harrisburg, PA November 5, 2015

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Air Quality Program Update SWEP Regulatory Update Meeting Harrisburg, PA November 5, 2015 1

National Ambient Air Quality Standards Under Section 109 of the Clean Air Act (CAA), the U.S. Environmental Protection Agency (EPA) is responsible for establishing National Ambient Air Quality Standards (NAAQS) for criteria pollutants considered harmful to public health and welfare and the environment. EPA has issue NAAQS for the following criteria pollutants: Ground-level ozone Particulate matter Nitrogen oxides Carbon monoxide Sulfur dioxide Lead At least every five years, the EPA must review the criteria and promulgated standards and revise the standards as appropriate. The EPA must designate all areas of the United States as either meeting (attainment) or not meeting (nonattainment) the applicable standard. 2

2008 8-Hour Ozone NAAQS The 2008 8-hour Ozone NAAQS is 75 ppb averaged over 8 hours. At the request of DEP, EPA granted 1-year attainment date extensions for the 2008 ozone NAAQS in the Philadelphia and Pittsburgh-Beaver Valley Areas due to violating monitors in NJ and MD. Based on preliminary 2015 ozone season data, all areas of the Commonwealth are monitoring attainment of the 2008 ozone standards. 3

October 2015 8-Hour Ozone Standards On Oct 1, 2015, EPA issued new primary and secondary ozone NAAQS set at 70 ppb averaged over 8 hours. Based on preliminary data for 2013-2015, eight monitors in Pennsylvania have design values which violate the new ozone standards. The samplers are located in the following areas: Bucks (75 ppb), Delaware (72 ppb), Montgomery (71 ppb) and Philadelphia (73 ppb) Counties in southeastern PA Lebanon County (71 ppb) in Central PA Allegheny (73 ppb), Armstrong (72 ppb) and Indiana (71 ppb) Counties in southwestern PA PA must submit designation recommendations for the 2015 ozone NAAQS to EPA by October 2016. EPA s final designations for attainment and nonattainment areas will take effect in December 2017. 4

Control Measures for the 2008 Ozone NAAQS Rulemakings Based on EPA s Control Techniques Guidelines (CTGs) Flexible Packaging Printing; Offset Lithographic Printing and Letterpress Printing; and revisions to Adhesives, Sealants, Primers and Solvents Limits volatile organic compound (VOC) emissions from inks, varnishes, coatings, adhesives, fountain solutions and cleaning solutions used or applied on, or with, flexible packaging printing presses, offset lithographic printing presses and letterpress printing presses Final Rule Promulgated by the Environmental Quality Board (EQB) on June 28, 2014 (44 Pa.B. 3929) SIP Revision Approved by EPA on June 25, 2015 (80 FR 36481) 5

Control Measures for the 2008 Ozone Control Measures for the 2008 Ozone NAAQS Rulemakings Based on EPA s CTGs Fiberglass Boats Manufacturing Materials Implements measures to control VOC emissions from the manufacture of fiberglass boat hulls, decks, molds and plugs and related boat parts only if hulls, decks or molds are also being manufactured. Proposed by the EQB on July 7, 2014 (44 Pa.B. 4502) IRRC Consideration of Final Rule scheduled on November 12, 2015 6

Control Measures for the 2008 Ozone Control Measures for the 2008 Ozone NAAQS Rulemakings Based on EPA s CTGs Automobile and Light-Duty Truck Assembly Coating Operations and Heavier Vehicle Coatings Proposed Rulemaking - Implements measures to control VOC emissions from the surface coating of new automobile bodies or new light-duty truck bodies or a body part for a new automobile or a new light-duty truck. Proposed by the EQB on August 8, 2015 (45 Pa.B. 4351) Public comment period closed on October 13, 2015 No public comments received EQB consideration of final rulemaking anticipated in early 2016 7

Control Measures for the 2008 Ozone NAAQS Rulemakings Based on EPA s CTGs Miscellaneous Metal Parts and Miscellaneous Plastic Parts Surface Coating Processes and Pleasure Craft Surface Coatings Proposed Rulemaking - Implements measures to control VOC emissions from surface coating of metal and plastic components of products and the products themselves. Proposed by EQB on August 8, 2016 (45 Pa.B. 4366) Public comment period closed on October 13, 2015 Comments received from one commentator EQB consideration of final rulemaking anticipated in early 2016 Industrial Cleaning Solvents Proposed Rulemaking Implements measures to control VOC emissions from the use or application of industrial cleaning solvents not regulated elsewhere in Air Quality regulations. EQB consideration anticipated in early 2016 8

Control Measures for the 2008 Ozone NAAQS Additional Reasonably Available Control Technology (RACT) Requirements for Major Sources of NOx and VOCs Implements additional control measures to fulfill 8-Hour ozone RACT Requirements for major sources Proposed by EQB on April 19, 2014 ( 44 Pa.B. 2392) EQB consideration of final rulemaking expected this fall. 9

2012 Annual PM2.5 NAAQS Only three counties in PA are designated nonattainment for the 2012 annual PM2.5 standard (12 micrograms per cubic meter). Allegheny, Delaware, and Lebanon Counties. Based on preliminary 2015 PM2.5 ambient air data, Delaware and Lebanon Counties should be eligible for Clean Data Determinations suspending the requirement for the submission of attainment demonstrations to EPA by October 2016. The Allegheny County Health Department will develop an attainment demonstration for the county. The attainment date for the 2012 PM2.5 NAAQS is five years after the effective date of the designations (April 2015). 10

Implementation of the 2010 1-Hour SO2 NAAQS On August 10, 2015, the EPA Administrator signed the final Data Requirements Rule for the 2010 1-Hour SO2 NAAQS. The rule is designed for agencies to assess ambient air concentrations of SO2 near large air contamination sources. By January 15, 2016, DEP must submit to the EPA a listing of all sources within the Commonwealth with actual SO2 emissions of 2,000 tons per year (tpy) or more; the EPA Regional Administrator may identify additional sources. 11

Implementation of the 2010 1-Hour SO2 NAAQS Data Requirements Rule for the 2010 1-Hour SO2 NAAQS cont. By July 1, 2016, DEP must notify EPA if air quality modeling or ambient air monitoring will be used to characterize emissions for each listed SO2-emitting source. Alternatively, DEP may notify EPA by July 1, 2016, that federally enforceable SO2 emission limits will be established below the 2,000 tpy threshold. If DEP selects ambient air monitoring to characterize SO2 emissions, information concerning new or relocated SO2 monitors must be included in the Annual Ambient Air Monitoring Network Plan due to EPA by July 1, 2016; the monitors must be operational by July 1, 2017. 12

Mercury and Air Toxics Standards In February 2012, EPA issued the Mercury and Air Toxics Standards (MATS) Rule, setting emissions limits for new and existing coal- and oil-fired power plants. The MATS Rule regulates emissions of air contaminants including the following: Metals including mercury, arsenic, beryllium, cadmium, chromium, cobalt, lead, manganese, nickel and selenium Filterable particulate matter as a surrogate for toxic metals Acid gases including hydrogen chloride and hydrogen fluoride; hydrogen chloride is used as a surrogate for acid gases Organic HAPS including Dioxins and Furans New units must comply with the MATS Rule upon start-up MATS-affected units must comply by April 16, 2015, unless a 1-year extension is granted for the installation of controls. The CAA also authorizes an additional 3-year extension for waste coal units. 13

Mercury and Air Toxics Standards The MATS Rule was challenged in the U.S. Court of Appeals for the District of Columbia Circuit and subsequently reviewed by the U.S. Supreme Court. The Supreme Court held that EPA interpreted Section 112(n)(1)(A) of the CAA unreasonably when it deemed cost irrelevant to the decision to regulate power plants and remanded the decision back to the DC Circuit Court for further proceedings. The MATS Rule is still in place pending a ruling by the DC Circuit Court. This court will ultimately determine whether the MATS Rule is vacated, stayed, or remains in effect, while the EPA reconsiders cost for its appropriate and necessary finding to regulate mercury from power plants. EPA s Proposed Rule Considering Cost is Appropriate and Necessary Finding for the Mercury and Air Toxics Standards was submitted to the Office of Management and Budget on October 21, 2015. 14

Mercury and Air Toxics Standards In Pennsylvania there is a total of 48 MATS-affected coal- and oil-fired EGUs The owners/operators of two affected EGUs are planning to fuel switch to ultra-low sulfur diesel and operate as peaking units. The owners/operators of 14 affected EGUs are planning to either fuel switch to or to co-fire natural gas. DEP received and granted 1-year MATS compliance date extensions to the owners/operators of 13 facilities, extending the compliance deadline to April 16, 2016. DEP has received requests and granted 3-year compliance extensions to the owners/operators of four waste coal facilities, extending the compliance deadline to April 16, 2019. 15

Concepts for Additional Air Quality Fee Schedules Concepts for the comprehensive fee schedule amendments were discussed with AQTAC on August 6, 2015. In addition to amending existing fee schedules for plan approvals and operating permits, the DEP is considering fee schedules for the following: Requests for Determination (RFD) of Changes of Minor Significance and Plan Approval/Operating Permit Exemptions; Risk Assessments; and Asbestos notifications for abatement and demolition/renovation projects. 16

Concepts for An Air Quality Fee Schedule Proposal DEP has developed concepts for air quality fee schedules including the following: Ambient air modeling associated with certain plan approval applications. Maintenance fees for Title V low-emitters of regulated pollutants (e.g. up to 100 tpy for a facility). Annual operating permit administrative fees for any synthetic minor facility. o A facility whose potential to emit has been restricted in a federally enforceable permit to less than the major source thresholds specified in the Title V Facility definition codified in 25 Pa. Code 121.1. 17

Interstate Transport of Ozone Precursors Good Neighbor SIP Revisions/EPA s Failure to Submit findings On July 13, 2015, EPA issued Failure to Submit findings for the transport ( Good Neighbor ) provisions in Section110 (a)(2) (D)(i) of the Clean Air Act; the finding was issued for 24 states including Pennsylvania. The final rule, effective on August 12, 2015, started a 2-year clock for EPA to issue a Federal Plan addressing interstate transport of ozone precursor emissions. The Federal Implementation Plan will be designed to address significant contribution to nonattainment and interference with maintenance in downwind areas. 18

Interstate Transport of Ozone Precursors Good Neighbor SIP Revisions/EPA s Failure to Submit findings As a partial remedy, EPA will propose revisions to the NOx emission caps established in the Transport Rule. The proposed rule, Interstate Transport Rule for the 2008 Ozone NAAQS, was submitted to OMB for review on September 29, 2015. The proposed Transport Rule amendments are expected to be published for public review and comment in November 2015. 19

Implementation of the 2008 Lead NAAQS Attainment demonstrations for the 2008 lead nonattainment areas were due to EPA in June 2012 for the following: Lyons and North Reading nonattainment areas in Berks County Lower Beaver Valley nonattainment area in Beaver County On February 25, 2014, EPA issued a Failure-to-Submit finding for the lead nonattainment areas, triggering a mandatory 18-month sanction clock under Section 179 of the Clean Air Act (79 FR 10391). The sanctions include 2-to-1 emission offsets for the construction of new or modified major sources in lead nonattainment areas for the 2008 lead NAAQS and the loss of federal highway funds in these nonattainment areas. 20

Implementation of the 2008 Lead NAAQS A Clean Data Determination was issued for the Lyons Area suspending the SIP obligation for the area. EPA determined that the SIP revisions for the Lower Beaver Valley and North Reading Areas were administratively complete prior to August 25, 2015 and stopped the Mandatory Sanctions Clock. 21

Pending Regulatory Revisions to PA s SIP Chapter 139 Condensable Particulate Matter Clarifies the process used for determining compliance with filterable and condensable particulate matter emission limitations. Promulgated by the EQB on April 12, 2014 (44 Pa.B. 2236). SIP Revision submitted to EPA for approval on June 29, 2015; EPA notice of proposed approval pending. 22

EPA s Proposals for the Oil and Natural Gas Sector On September 18, 2015, the EPA proposed measures to cut methane and VOC emissions from the oil and natural gas industry and clarify permitting requirements to combat climate change, reduce air pollution that harms public health, and provide greater certainty about Clean Air Act permitting requirements for the oil and natural gas industry. The proposed measures include the following: Draft Control Technique Guidelines (CTG) for the Oil and Gas Industry. Proposed New Source Performance Standard (NSPS) - Oil and Natural Gas Sector: Emission Standards for New and Modified Sources. Proposed Source Determination Rule - This proposed rule would clarify EPA s air permitting rules as they apply to the oil and natural gas industry. http://www3.epa.gov/airquality/oilandgas/actions.html DEP will submit comments to EPA by November 17, 2015. 23

Final Clean Power Plan EPA Actions PA Will Act On EPA has issued the final Carbon Pollution Emissions Guidelines for Existing Stationary Sources: Electric Utility Generating Units, also known as the Clean Power Plan (CPP) (80 FR 64662, October 23, 2015). The CPP sets carbon dioxide emission standards for existing power plants and establishes customized goals for states to reduce carbon dioxide. Carbon dioxide accounts for approximately 84% of all U.S. GHG emissions. Under the CAA, each state is required to develop a state-specific compliance plan to meet individual state targets set by EPA or be subject to the Federal Plan. DEP is holding 14 Listening Sessions across Pennsylvania accepting comment on how PA should develop the State Plan Comments are due to DEP by November 12, 2015. PA s CPP will be submitted to EPA by September 2016. 24

Susan Foster Division of Compliance and Enforcement sufoster@pa.gov 25