Katy R. Lusky

Senior Technical & Policy AdvisorAir Analysis and Support Branch/APTMD

U.S. Environmental Protection Agency, Region 4

NC Air Quality ForumNovember 5, 2015

U.S. EPA Region 4

Air Quality Update

Today’s Topics

Regulatory Updates

NAAQS Updates:

Ozone

SO2

NSPS e-Reporting

Boiler/RICE MACT updates

Additional Regulatory Updates

GHG in Permitting

Climate Action Plan

Enforcement Priorities

Making a Visible Difference in Communities

SEDC

2

Communities Support Section

Amber Davis

Air Data and Analysis Section

Todd Rinck

Air Regulatory Management

Section

Lynorae Benjamin

Air Permitting Section

Heather Ceron

North Air Enforcement

and Toxics Section

Richard Dubose

South Air Enforcement

and Toxics Section

Todd Russo

Chemical Management

and Emergency Planning Section

Robert Bookman

Pesticides Section

Kimberly Bingham

Lead & Asbestos Section

Steve Scofield

Air Analysis and Support Branch

Gregg Worley

Air Planning & Implementation

Branch

Scott Davis

Air Enforcement & Toxics Branch

Beverly Spagg

Chemical Safety & Enforcement

Branch

Anthony Toney

Air, Pesticides & Toxics Management DivisionBeverly H. Banister, Director

Carol L. Kemker, Deputy DirectorJeaneanne M. Gettle, Deputy Director

Immediate Office StaffGrants and Strategic Planning Office

Air, Pesticides and Toxics Management Division

NAAQS Reviews: Status Update(as of September 2015)

Ozone LeadPrimary

NO2

Primary SO2

Secondary

NO2 and SO2

PM CO

Last ReviewCompleted (final rule signed)

Mar 2008 Oct 2008 Jan 2010 Jun 2010 Mar 2012Dec 2012

Aug 2011

Recent or

Upcoming

Major

Milestone(s)1

Oct 1, 2015 2

Final rule signed

January 5, 2015

Proposed rule published in

FR

April 6, 2015Comment

period closed

June 2-3, 2015CASAC

meeting to discuss 2nd

draft ISA and REA Planning

document

Aug. 13, 2015CASAC call to discuss letters

on 2nd draft ISA and REA Planning

Document

Fall 2015

1st draft ISA

Fall 2015

Draft IRP

Dec 2015

Draft IRPTBD3

4

1 IRP – Integrated Review Plan; ISA – Integrated Science Assessment;

REA – Risk and Exposure Assessment; PA – Policy Assessment2 Indicates court-ordered deadline3 TBD = to be determined

Additional information regarding current and previous NAAQS reviews is available at: http://www.epa.gov/ttn/naaqs/

Ozone

Updated standards

The Clean Air Act charges

the EPA Administrator with

setting primary standards that

are requisite to protect public

health with an adequate

margin of safety.

5

2015 Final

Ozone Standards

Primary: 70 ppb

Secondary: 70 ppb

Updated Standard– Primary

In setting the primary standard, the Administrator:

Examined the body of scientific evidence on ozone

and health

Evidence expanded significantly since EPA last

reviewed the ozone standards in 2008.

Focused on new studies that have become

available since 2008.

New clinical studies -- provide the most certain evidence of health effects in adults, clearly show

ozone at 72 ppb can be harmful to healthy,

exercising adults.

Clinical studies also show effects in some adults

following exposures as low as 60 ppb; however, there is uncertainty that these effects are adverse.

6

Primary Standard, cont.

The Administrator also reviewed results of analyses

of exposure to ozone and looked at how different

levels of the standard would reduce risk.

Analyses take into account how people are exposed

to ozone in their daily lives.

Focused on risks to children, particularly due to

repeated exposures to ozone.

7

Primary Standard, cont.8

Based on the science, the Administrator has determined

that the 2008 standard was not adequate to protect

public health.

Revised standard of 70 ppb:

Is requisite to protect public health with an adequate

margin of safety.

Is below the level shown to cause adverse health effects

in the clinical studies.

Essentially eliminates exposures shown to cause adverse

health effects, protecting 99.5 % of children from even

single exposures to ozone at 70 ppb.

Substantially reduces exposures to levels lower than 70

ppb, reducing multiple exposures to 60 ppb by more

than 60%.

Secondary Standard

EPA also is strengthening the secondary

(welfare) standard to 70 ppb.

New studies add to evidence that repeated

exposure to ozone reduces growth and has

other harmful effects on plants and trees. These

types of effects have the potential to harm

ecosystems.

9

Air Quality Index 10

Ozone Monitoring Seasons

Final rule extends ozone monitoring season for 32

states and D.C.

One month extension for 22 states and D.C.

Additional extensions of two months to seven months

for 10 states, including states where ozone can be

elevated during the winter;

Year-round seasons for all NCore multi-pollutant sites.

EPA Regional Administrators will still be allowed to

approve changes to states’ ozone monitoring

seasons without rulemaking.

Does not affect the CSAPR trading program ozone season (remains May 1 – Sept 1).

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Ozone Monitoring Seasons

12

4-10

3-10

3-10

3-11

1-121-12

1-12

1-12 1-12

1-12

5-9

5-9

3-10

3-11

3-10

3-10

4-9

4-9

1-12

1-12

1-9

3-9

3-10 3-10/15 3-10

3-10

3-10

3-103-10

3-10

3-10

3-10

3-10

3-103-103-103-10

1-12

3-11

1-12

3-10

4-9

4-9

3-10

3-10

3-10NJDEMDDC

3-9NH RIMACT

1-12

Season Change

No Change

Effective January 1, 2017

Ozone Designations and Implementation:

Tentative Timeline

Designation Schedule

Schedule Tentative Date

State and Tribe

Recommendations

Within 1 year after

NAAQS promulgation

October 1, 2016

EPA responds to

state and tribal

recommendations

June 1, 2017

Final Designation Within 2 years after

NAAQS promulgation

(Administrator has

discretion to extend

the deadline by one

year to collect

sufficient

information.)

October 1, 2017

Effective date may vary.

(Air quality data years: 2014 –

2016)

Implementation Schedule

Infrastructure SIP Within 3 years after

NAAQS promulgation

October 2018

Attainment Plans

Due

Within 36 - 48 months

after designations

depending on

classification

October 2020-2021

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Attainment Schedule by Classification

Classification Schedule*

Marginal 3 years to attain

Moderate 6 years to attain

Serious 9 years to attain

Severe 15 to 17 years to attain

Extreme 20 years to attain

*Areas must attain as expeditiously as practical, but

not later than the schedule in the table. Two one-

year extensions are available in certain

circumstances based on air quality.

Sulfur Dioxide (SO2) NAAQS

Implementation

EPA revised primary SO2 standard on June 3, 2010

(75 ppb/1-hour)

Attainment plans for 29 areas currently designated

nonattainment were due April 4, 2015

5 Areas in Region 4 – none in NC

• Sullivan Co., TN

• Hillsborough, FL

• Nassau, FL

• Campbell Co., KY

• Jefferson Co., KY

2010 SO2 NAAQS Designations

Consent decree entered on March 2, 2015, by U.S.

District Court for Northern California “triggered” the

following deadlines:

July 2, 2016 - The EPA must complete a round of designations for

areas associated with 68 EGUs in 24 states and any undesignated

areas with violating monitors

December 31, 2017 - The EPA must complete an additional

round of designations for any area a state has not elected to

monitor per the provisions of the DRR starting January 1, 2017

December 31, 2020 - The EPA must complete all remaining

designations (primarily expected to be areas where states

have elected to monitor per the provisions of the DRR)

Plaintiff states have appealed the March 2, 2015 court

order, and in a separate action, North Carolina has filed

its own designations deadline suit

15

2010 SO2 Designations Due on July 2, 2016

Under Consent Decree

Initial group of designations include:

Areas with violation of the 2010 SO2 NAAQS (based on 2013-2015 data)

Preliminarily (based on final 2012 – 2014 data):

Chatham County, Georgia

Hawaii County, Hawaii

Iron County, Missouri

Williams County, North Dakota

Brown County, Wisconsin

Carbon County, Wyoming

16

2010 SO2 Designations Due on July 2, 2016

Under Consent Decree

Initial round of designations also includes:

Areas where there are sources (electric power plants)

that as of March 2, 2015, have not been “announced for retirement,” and meet one of the following

emissions thresholds:

16,000 tons of emitted in 2012 or

2,600 tons of SO2 emitted in 2012 with an average

emission rate of at least 0.45 pounds of SO2 per

mmBtu

Yields 68 sources in 24 states

17

18

R4 State County Facility Name

GA Monroe Robert W Scherer Power Plant (Plant Scherer)

KYOhio D B Wilson Generating Station

Pulaski John S. Cooper Power Station

MS Lamar R D Morrow Senior Generating Plant

NC Brunswick CPI USA North Carolina Southport

TN Sumner TVA: Gallatin Fossil Plant

Sources External to R4 that May Be Impacting R4 States

State County Facility Name

IL Massac Joppa Steam Coal Power Plant

INPosey A B Brown Generating Station

Jefferson Clifty Creek Power Plant

OH Clermont W H Zimmer Generating Station

Region 4 Sources* Subject to

July 2, 2016, Deadline for CD

* Source in AL previously included but AL able to provide

proof that source should not be subject to July 2, 2016

round of designations.

Schedule for Completing 2010 SO2 NAAQS

Designations Due on July 2, 201619

Milestone Date

Court Order March 2, 2015

Impacted states may submit

updated recommendations and

supporting information for area

designations to the EPA

No later than September 18, 2015

The EPA notifies impacted states

concerning any intended

modifications to their

recommendations (120-day letters)

On or about January 22, 2016, but

absolutely no later than 120 days prior

to final designations (March 2, 2016)

End of 30-day public comment

periodOn or about March 4, 2016

Impacted states provide additional

information to demonstrate why an

EPA modification is inappropriate

On or about April 8, 2016

The EPA promulgates final SO2 area

designations (no later than 16 months

from Court Order)

No later than July 2, 2016

SO2 NAAQS Data Requirements Rule

Final Data Requirements Rule - issued on August

10, 2015

Establishes requirements to monitor or model ambient

SO2 levels in areas with largest sources of SO2 emissions

At a minimum, must characterize air quality

around sources that emit 2,000 tons per year (tpy)

or more of SO2 or adopt enforceable emission

limits that ensure that the source will not emit more

than 2,000 tpy of SO2

Final rule establishes a schedule for air agencies to

characterize air quality and to provide that air

quality data to the EPA

20

SO2 NAAQS Data Requirements Rule:

Implementation Timeline

January 15, 2016: Air agency identifies sources

exceeding threshold and other sources for which air

quality will be characterized

July 1, 2016: Air agency specifies (for each

identified source) whether it will monitor air quality,

model air quality, or establish an enforceable limit

Air agency also accordingly submits a revised

monitoring plan, modeling protocols, or descriptions

of planned limits on emissions to less than 2,000 tpy

21

SO2 NAAQS Data Requirements Rule:

Implementation Timeline Continued

January 2017

New monitoring sites must be operational

by Jan. 1, 2017

Modeling analyses must be submitted to

EPA by Jan. 13, 2017

Documentation of federally enforceable

emission limits and compliance must be

submitted to EPA by Jan. 13, 2017

Early 2020: Monitoring sites will have 3 years of

quality-assured data, which must be

submitted to EPA

22

NSPS e-Reporting Update

Signed on February 26, 2015 (FRN on 3/20/15)

Public Comment Period ended on June 18, 2015

EPA is currently reviewing and responding to

comments

Expected Final in 2016

Affects MOST NSPS sources, such as:

Pulp Mills, Stationary Combustion Turbines, Coating

Operations, Landfills, Glass Manufacturing, etc…

Requires electronic reporting using the Compliance

and Emissions Data Reporting Interface (CEDRI)

through EPA’s Central Data Exchange (CDX)

Allows some sources to maintain electronic records

Contact: Gerri Garwood (OAQPS) 919-541-2406

Boiler MACT Update

Final Rule – March 21, 2011

Final Amendments – January 31, 2013

Compliance Date – January 31, 2016

10 Petitions for Reconsideration

EPA granted reconsideration for 3 issues:

o Definition of Work practice for S/S periods

o Revised CO limits for certain subcategories

o Use of PM CEMS

Add’l Rule Amendments proposed – January 21, 2015

Ongoing Litigation from environmental groups and industry

Issues: MACT floor, Boiler subcategories, Use of CO as a

surrogate, Health based compliance alternatives, Authority to

require energy assessments

Hearing on litigation scheduled for Dec 3, 2015

RICE MACT Update

Final Rule amendments – January 30, 2013

3 Petitions for Reconsideration

No changes were made to regulations – Aug 15, 2014 decision by EPA

Court vacates emergency RICE provisions – May 1, 2015 and amends decision on July 21, 2015

Vacated exemption for 63.6640(f)()2)(ii)-(iii) only

(ii) Emergency Demand Response

(iii) 5% deviation of voltage or frequency

Did not vacate exemption for maintenance and testing

Court grants EPA’s motion to delay mandate to vacate until May 1, 2016

Court accepts EPA’s voluntary remand of 63.6640(f)(4)(ii)

50 hour/year exemption to supply power as part of a financial arrangement.

GHG Permitting: Post Supreme Court Decision Status Update

June 23, 2014 Supreme Court Decision in Utility Air

Regulatory Group (UARG) v EPA

Key outcomes:

EPA may not treat GHGs as an air pollutant for

purposes of determining whether a source is a major

source required to obtain a PSD or Title V permit

EPA could continue to require that PSD permits

otherwise required based on emissions of non-GHG

pollutants, contain limitations on GHG emissions

based on the application of BACT

26

D.C. Circuit Amended Judgment

on Motions to Govern

On April 10, 2015, the D.C. Circuit Court of Appeals issued an

‘amended judgment’ in response to parties’ motions to

govern which was consistent with the relief requested by the

EPA

The court vacated only those regulations that implement

Step 2 of the PSD and Title V Greenhouse Gas Tailoring Rule

and required EPA to study whether it was feasible to take

additional steps to phase-in permitting requirements for

smaller sources

The judgment did not vacate the EPA regulations that

implement Step 1 of the Tailoring Rule and preserves the

ongoing application of the Best Available Control

Technology (BACT) requirement to greenhouse gas emission

from sources that are required to obtain a PSD permit based

on emissions of pollutants other than greenhouse gases

(“anyway sources”)

27

GHG Regulatory Updates Post

Supreme Court

In April 2015, EPA issued a final rulemaking action revising EPA’s PSD regulations to enable the EPA to rescind EPA-issued PSD permits.

In Aug. 2015, EPA issued a final rulemaking to remove certain provisions from PSD and title V that were vacated. 80 FR 50199

The EPA is working on a proposed rule to establish a significant emissions rate for GHGs under the PSD program.

This will be a proposed rulemaking and available for public comment

28

Regional Haze: Status of Actions

The initial round of RH SIPs is nearly complete

Only two actions remain to satisfy the consent decree:

Texas and Oklahoma

Litigation lingers in several states

Next round of comprehensive planning SIPs are due July 31, 2018

EPA plans to propose rule amendments to:

Shift the due date for these next SIPs to July 2021

Change the schedule and process for submitting 5-year Progress Reports

Revise aspects of RAVI provisions

29

Regional Haze Looking Forward:

Planning for the Next Cycle of SIPs

EPA plans to develop guidance for two key

aspects of the program:

Reasonable Progress (RP) Guidelines

RP Goals (Glidepath Metrics)- Setting the reasonable

progress goals based on visibility impacts from

controllable, anthropogenic emissions instead of all

sources

Timing – draft guidance and/or rulemaking in early

2016

30

Status of Transport Rule Efforts

EPA began implementation of this rule on January 1, 2015. It addresses interstate transport obligations for the 1997 ozone, 1997 PM2.5 and 2006 PM2.5

NAAQS

On July 28, the D.C. Circuit issued its opinion on the remaining issues raised with respect to CSAPR

Transport Rule to address the 2008 ozone NAAQS

EPA issued preliminary interstate transport modeling on January 22, 2015

EPA issued updated modeling for public notice and comment on July 23. The comment period will close October 23.

We intend to propose this rule by the end of this year

Additional information at http://www.epa.gov/airtransport/

31

Response to SSM Petition, Final Policy

and SIP Call

Final action was signed May 22, 2015, in response to

a Sierra Club petition for rulemaking concerning

startup, shutdown and malfunction (SSM)

SIP Call applies to 36 states (45 jurisdictions), the

majority of which were named in the original

petition

Deadline for state action to remove provisions from

their rules and make corrective SIP submissions is

November 22, 2016

Litigation from multiple parties filed with DC Circuit

32

Mercury Air Toxics Standard (MATS)

December 21, 2011: EPA final standards issued

June 29, 2015: Supreme Court remands MATS

back to Appeals Court finding that EPA interpreted

the Act unreasonably when it deemed cost

irrelevant to the decision to regulate power plants.

EPA is developing a response that addresses costs.

33

The Clean Power Plan Overview

Relies on a federal-state partnership to reduce carbon pollution from the biggest sources – power plants

EPA identified 3 “Building Blocks” as BSER and calculated performance rates for fossil-fueled EGUs and another for natural gas combined cycle units

Then, EPA translated that information into a state goal –measured in mass and rate – based on each state’s unique mix of power plants in 2012

The states have the ability to develop their own plans for EGUs to achieve either the performance rates directly or the state goals, with guidelines for the development, submittal and implementation of those plans

34

CPP Implementation

EPA has established a national CPP

implementation team

The team includes representatives from EPA

Headquarters Offices (HQ) and all 10 EPA Regions

The Office of Air Quality Planning and Standards

(OAQPS) is the lead for managing CPP

implementation

The Regions are the first point of contact (POC) for

states and will coordinate with HQs to provide assistance to states in an efficient and effective way

National CPP Website with guidance and tools

http://www2.epa.gov/cleanpowerplan

35

CPP: Plan Implementation Timeline36

Submittals Dates

State Plan OR initial submittal with extension

request

September 6, 2016

Progress Update, for states with extensions September 6, 2017

State Plan, for states with extensions September 6, 2018

Milestone (Status) Report July 1, 2021

Interim and Final Goal Periods 1 Reporting

Interim goal performance period (2022-2029) 2

- Interim Step 1 Period (2022-2024) 3 July 1, 2025

- Interim Step 2 Period (2025-2027) 4 July 1, 2028

- Interim Step 3 Period (2028-2029) 5 July 1, 2030

Interim Goal (2022-2029) 6 July 1, 2030

Final Goal (2030) July 1, 2032 and every 2 years beyond

1 State may choose to award early action credits (ERCs) or allowances in 2020-2021, and the EPA may provide matching ERCs or allowances, through the Clean Energy Incentive Program. See section VIII.B of the final rule preamble for more information.2 The performance rates are phased in over the 2022-2029 interim period, which leads to a glide path of reductions that “steps down” over time. States may elect to set their own milestones for Interim Step periods 1, 2, and 3 as long as they meet the interim and final goals articulated in the emission guidelines.3 4 5 State required to compare EGU emission levels with the interim steps set forth in the state’s plan. For 2022-2024, state must demonstrate it has met its interim step 1 period milestone, on average, over the three years of the period. For 2025-2027, state must demonstrate it has met its interim step 2 period milestone, on average, over the three years of the period. For 2028-2029, state must demonstrate it has met its interim step 3 period milestone, on average, over the two years of the period. See section VIII.B of the final rule preamble for more information.6 State required to compare EGU emission levels with the interim goal set forth in the state’s plan. For 2022-2029, state must demonstrate it has met its interim goal, on average, over the eight years of the period.

CPP Implementation

Region 4 contacts:

Overall Coordination – Ken Mitchell

mitchell.ken@epa.gov

North Carolina Contact – Dave McNeal

mcneal.dave@epa.gov

South Carolina Contact – Katy Lusky

lusky.kathleen@epa.gov

37

Compliance and Enforcement Priorities

NSR/PSD Investigations and Enforcement

Glass – Container and Flat Glass Acid – Sulfuric and Nitric Cement Coal-Fired Utilities

Air Toxics – Cutting Toxic Air Pollution

Leak Detection and Repair Flares Excess Emissions

Energy Extraction – Land-based Natural Gas Extraction and Production

FY 2016 Region 4 intends to sample VOC emissions at condensate tanks at the well-heads

38

Making a Visible Difference

in Communities

Enhance coordination across Federal agencies

and with state partners

Improve effectiveness of existing efforts

Improve overall coordination within EPA across

media

Strengthen decisions impacting communities

through science

39

Village Green Monitoring Stations

Park Bench

Durham, NC Library

Installed in June 2013

Purpose: Research and

educational outreach

Air instruments (PM2.5 & Ozone)

Meteorological Instruments

Solar-powered

One minute data uploaded to

publically available website

40

Southeast Diesel Collaborative

(SEDC)

SEDC turns 10 years old!!

2015 Annual Meeting on August 18-19th

Diesel Revolution: Creating Sustainable

Neighborhoods One Engine at a Time

100+ attendees

SmartWay workshop on August 17th

2016 Annual Meeting tentatively scheduled

for June

DERA Competitive Grant Competition

CONGRATS to Mecklenburg Co.!

QUESTIONS?