Air Quality Division Update - PowerPoint Presentation

Air Quality Division Update Kristin Jacobsen SIP Team Leader, Air Quality Division Presented to the Advanced Air Permitting Seminar October 8, 2019

Agenda Nonattainment Area Requirements and Classifications State Implementation Plan (SIP) Updates and What’s Next?

SIP Requirements for Ozone Nonattainment Areas MARGINAL (3 years) Emissions Inventory Emissions Statements Nonattainment NSR Program & Emissions Offsets RACT Fixups I/M CorrectionsConformity MODERATE (6 years) Basic I/MRACT & RACM Emissions ReductionsAttainment DemonstrationContingency MeasuresRFP – 15% VOC Reductions Within 6 Years SERIOUS(9 years) Enhanced Monitoring and I/MModeled Attainment Demonstration3% Per Year VOC Reductions After 6 YearsRFP Milestone Contingency MeasuresClean Fuels ProgramVMT Demonstration SEVERE (15-17 years) VMT Growth OffsetMajor Source Fees for Failure to Attain(185 fees) EXTREME(20 years) Clean Fuels and Controls for BoilersTraffic Controls During Congestion 1.1:1 100 1.15:1 100 1.2:1 50 1.3:1 25 1.5:1 10 Major Source Threshold (tons per year) New Source Review (NSR) Offset Ratios

NAAQS Revision and SIP Revision Cycle

SIP Updates Revoked Ozone Standards and the South Coast II decision 2008 Eight-Hour Ozone Standard Serious Reclassifications 2015 Eight-Hour Ozone Standard Marginal Nonattainment Areas

Anti-Backsliding Requirements Anti-Backsliding requirements are intended to ensure that air quality in nonattainment areas does not get worse after a standard is revoked. Examples include: nonattainment new source review (NSR) permitting, contingency measures, Failure to Attain fees. Areas still designated nonattainment for a revoked standard remain subject to applicable anti-backsliding requirements until the requirements are lifted. Anti-backsliding obligations are removed through redesignation.

Texas Nonattainment Areas for the Revoked One-Hour and 1997 Eight-Hour Ozone NAAQS

Redesignation Request and Maintenance Plan SIP Revision The Redesignation Request describes how a nonattainment area meets redesignation requirements and how the area will continue to meet the standard once redesignated to attainment. The Maintenance Plan contains: attainment inventory; maintenance demonstration; verification of continued attainment; monitoring network; andcontingency plan.Two 10-year maintenance plans are required.

Houston-Galveston-Brazoria (HGB) Area HGB One-Hour and 1997 Eight-Hour Ozone Redesignation Request and Maintenance Plan SIP Revision Submitted to EPA on December 14, 2018 Beaumont-Port Arthur (BPA) Area BPA One-Hour Ozone Redesignation Request and Maintenance Plan and 1997 Eight-Hour Ozone Second 10-Year Maintenance Plan SIP Revision Submitted to EPA on February 5, 2019 Dallas-Fort Worth (DFW) AreaDFW One-Hour and 1997 Eight-Hour Ozone Redesignation Request and Maintenance Plan SIP RevisionSubmitted to EPA on April 5, 2019El Paso AreaEl Paso One-Hour Ozone Redesignation Request and Maintenance Plan SIP RevisionSubmitted to EPA on May 10, 2019Redesignation Request and Maintenance Plan SIP Revisions

Standard is 0.075 parts per million (ppm) Design values of 75 parts per billion (ppb) or lower are attainment EPA finalized designations May 21, 2012. July 20th established as the attainment date of each relevant calendar year Initial nonattainment designations: Eight-County HGB Marginal Nonattainment Area Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller Counties10-County DFW Moderate Nonattainment AreaCollin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, Tarrant, and Wise Counties2008 Eight-Hour Ozone Standard

HGB 2008 Eight-Hour Ozone Nonattainment Area The EPA reclassified the HGB area from marginal to moderate nonattainment on December 14, 2016. July 20, 2018 moderate attainment date 2017 attainment year (area had to attain by the end of 2017) Moderate area Attainment Demonstration and Reasonable Further Progress (RFP) SIP revisions were adopted December 15, 2016.

2008 Eight-Hour Ozone Standard Serious Reclassifications HGB and DFW moderate nonattainment areas did not attain by the end of 2017. EPA published final notice to reclassify both areas to serious on August 23, 2019. The reclassification is effective September 23, 2019. Both areas are subject to major source thresholds of 50 tons per year and NSR offset ratios of 1.2:1. Serious area attainment date is July 20, 2021 with a 2020 attainment year. Serious classification SIP revisions are due to EPA by August 3, 2020.

DFW Area Permitting Classification EPA Action (Effective Dates) Effective Classification for Permitting (most stringent requirement applies) One-Hour and 1997 eight-hour ozone NAAQS serious classifications still applied July 20, 2012: DFW area designated as moderate nonattainment for the 2008 eight-hour ozone NAAQS Serious  December 8, 2016: One-Hour and 1997 Eight-Hour Ozone Redesignation Substitute approvedAugust 3, 2018: DFW area designated as marginal nonattainment for the 2015 eight-hour ozone NAAQSModerateSeptember 23, 2019: DFW 2008 eight-hour ozone nonattainment area reclassified to serious Serious

HGB Area Permitting Classification EPA Action (Effective Dates) Effective Classification for Permitting (most stringent requirement applies) One-Hour and 1997 eight-hour ozone NAAQS severe classifications still applied July 20, 2012: HGB area designated as marginal nonattainment for the 2008 eight-hour ozone NAAQS November 19, 2015: One-Hour Ozone Redesignation Substitute approved (1997 eight-hour ozone NAAQS severe classification still applied) Severe December 8, 2016: 1997 Eight-Hour Ozone Redesignation Substitute approvedMarginal December 14, 2016: HGB 2008 eight-hour ozone nonattainment area reclassified to moderateAugust 3, 2018: HGB area designated as marginal nonattainment for the 2015 eight-hour ozone NAAQSModerate September 23, 2019: HGB 2008 eight-hour ozone nonattainment area reclassified to seriousSerious

2008 Eight-Hour Ozone NAAQS Serious Classification SIP and Rule Revisions One RFP SIP revision for both HGB and DFW serious nonattainment areas Attainment Demonstration SIP revisions for HGB and DFW areas Modeling, supported by weight of evidence, to demonstrate areas will attain by 2020 attainment year Associated rulemakings to address reasonably available control technology (RACT) requirements

Public Comment and Hearing Information SIP revisions and rules proposed September 11, 2019 Public comment period opened September 13, 2019 Comment period closes October 28, 2019 Adoption scheduled for March 4, 2020

What’s Next for 2008 Eight-Hour Ozone Serious Nonattainment Areas? HGB and DFW serious nonattainment areas must attain by the end of 2020. Failure to attain would result in reclassification to severe, unless eligible for an extension. Reclassification would likely occur in late 2021 or early 2022. State would likely have one year after reclassification to submit federally required severe classification SIP revisions. Attainment would be required by the end of 2026. Attainment would allow for submittal of a redesignation request and maintenance plan SIP revision.

2015 Eight-Hour Ozone Standard Designations Standard is 0.070 ppm Design values of 70 ppb or less are attainment Six-county HGB marginal nonattainment area Brazoria, Chambers, Fort Bend, Galveston, Harris, and Montgomery Counties (Liberty and Waller Counties removed) Effective August 3, 2018 Nine-county DFW marginal nonattainment areaCollin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Tarrant, and Wise Counties (Rockwall County removed)Effective August 3, 2018Bexar County marginal nonattainment areaEffective September 24, 2018

Texas Nonattainment Areas for Current Ozone NAAQS Texas Air Quality Nonattainment Areas Ozone

2015 Eight-Hour Ozone Standard Emissions Inventory SIP Revision Establishes 2017 base year inventory HGB and DFW emissions inventory SIP revisions due by August 3, 2020 Bexar County emissions inventory SIP revision due by September 24, 2020 One SIP revision for all three areas: Proposal November 2019 Adoption June 2020Submittal by August 3, 2020

What’s Next for 2015 Eight-Hour Ozone Marginal Nonattainment Areas? The attainment year for 2015 eight-hour ozone marginal nonattainment areas is 2020. If an area’s three-year design value is 71 ppb or greater, the area is reclassified to moderate, unless eligible for an extension. Reclassification would likely occur in late 2021 or early 2022, if needed. States usually have one year after reclassification to submit federally required SIP revisions. Attainment would be required by the end of 2023.

FCAA, §179B Demonstration Demonstrates that an area could attain the NAAQS by the attainment date “but for” emissions emanating from outside the U.S. Optional submittal Not restricted to areas adjoining international borders Would not set SIP emissions years for banking and trading EPA approval of a §179B Demonstration for a nonattainment area that fails to attain: An area would remain nonattainment but would not be bumped-up to a higher classification.Nonattainment area requirements under the existing classification would continue to apply until the area is redesignated to attainment.

2015 Eight-Hour Ozone §179B Demonstration SIP Revision The TCEQ is currently evaluating impacts of international transport on 2015 eight-hour ozone standard nonattainment areas. A §179B Demonstration SIP revision is scheduled for proposal in January 2020 and adoption in July 2020. EPA approval would prevent reclassification of 2015 eight-hour ozone marginal nonattainment areas to moderate.

What Else is Next? EPA’s review of the ozone NAAQS: EPA is scheduled to propose any revisions to the NAAQS in early 2020. The final NAAQS revision is anticipated in late 2020. Potential designations are anticipated in late 2022.

Contact Information Kristin Jacobsen SIP Team, Air Quality Planning Section (512) 239-4907 kristin.jacobsen@tceq.texas.gov Contact the SIP Team or join our e-mail list http://www.tceq.texas.gov/airquality/sip/sipcontact.html