State of the Air – Port Region March 2, 2017 Shelley Whitworth H-GAC Air Quality Program Manager

The Houston-Galveston Region Region’s population is currently 5.9 million, and is expected to reach 10 million by 2040 Metropolitan area covers almost 9,000 mi2 Economy has a broad industrial base in the energy, aeronautics, medical, and technology industries Home to over 5,000 energy related firms Port of Houston is the 10th largest port in the world and ranks 1st in the U.S. in international commerce

NAAQS Compliance NAAQS = National Ambient Air Quality Standards Federal standards designed to protect human health and the environment Regions need to meet standards in a range of pollutants including ozone Houston is moderate nonattainment (does not meet the standard for) ozone.

NAAQS Compliance EXTREME SEVERE SERIOUS MODERATE MARGINAL (3 years to attain) MODERATE (6 years to attain) SERIOUS (9 years to attain) SEVERE (15/17 years to attain) EXTREME (20 years to attain) PENALTY FEE PROGRAM FOR MAJOR SOURCES LOW VOC REFORMULATED GAS (as appropriate) VMT GROWTH OFFSET (& TCMs if needed) VMT DEMONSTRATION (& TCMs IF NEEDED) NSR REQUIREMENTS FOR EXISTING SOURCE MODS ENHANCED MONITORING PLAN 18% RFP OVER 6 YEARS MODELED DEMO OF ATTAINMENT MILESTONE CONTINGENCY MEASURES FOR RFP ENHANCED I/M CLEAN FUELS PROGRAM (If applicable) STAGE II GASOLINE VAPOR RECOVERY BASIC I/M CONTINGENCY MEASURES FOR FAILURE TO ATTAIN 15% RFP OVER 6 YEARS MAJOR SOURCE VOC/NOx RACT ATTAINMENT DEMONSTRATION BASELINE EMISSION INVENTORY (EI) PERIODIC EMISSION INVENTORY UPDATES TRANSPORTATION CONFORMITY DEMONSTRATION MAJOR SOURCE EMISSION STATEMENTS NEW SOURCE REVIEW PROGRAM TRAFFIC CONTROLS DURING CONGESTION (if appropriate) CLEAN FUELS REQUIREMENT FOR BOILERS

NAAQS Compliance: Timeline June 2017 EPA recommends nonattainment designations for 2015 standard October 2017 EPA will finalize designations for 2015 standard October 2019 Emissions inventories due for 2015 standard October 2020-2021 State Implementation Plans due

NAAQS Compliance 8-Hour Design Value Expected 2015 Designation Ozone 8-Hour 1997 NAAQS: 84 ppb 2008 NAAQS: 75 ppb Source: TCEQ

Houston Area Air Quality: Ozone Following efforts to address industrial emissions, the number of days with dangerous ozone levels has decreased Introduction of VOC emissions reporting standards Reducing mobile emissions plays a critical role in Houston’s ozone mitigation strategy

On-Road Mobile Emissions Mobile NOx Emissions Inventory On-Road Mobile Emissions Ozone Season VMT Source: Texas Commission on Environmental Quality

Funding Considerations Funding to assist with the development of emission reduction programs is limited The Houston region meets emission reduction targets by setting an investment ratio of cost per ton reduced This approach allows private and public entities to apply for funding, with the cost effectiveness of projects defining the amount received Allows funds to be stretched beyond minimum local match requirements Ensures an equitable distribution of funds Includes built-in performance measures

Vehicle and Technology Upgrades: Diesel Engine Replacements • Waste/refuse trucks • Construction vehicles • Delivery trucks • School and transit buses • Short-haul drayage trucks serving local ports Investment Ratios: Diesel-to-diesel: $10,000-$15,000 per ton Diesel-to-alternative fuels: $35,000-$45,000 per ton > 5,500 tons of NOx emission reductions contracted > $100 million dispersed > 3,300 diesel engines replaced

Vehicle and Technology Upgrades: Maritime Vessel Engine Replacement Provided nearly $2 million in federal (EPA) funds awarded to local tug companies to repower high-emitting vessels with cleaner diesel engines For vessels operate primarily within Houston’s ozone nonattainment area Investment ratio: $2,500-$5,000 per ton of reduced NOx emissions

Trans. Demand Management: Vehicle Miles Traveled (VMT) Reductions Over 144 million miles driven daily on the 25,000 miles – including 205 miles of HOV/HOT lanes – comprising the region’s road network Houston is one of the most traffic congested cities in the U.S.: Commuters spend about 52 hours per year in traffic delays idling Approx. 80% of commuters drive alone Source: EPA Motor Vehicle Emission Simulator, G. Lubertino (H-GAC)

Vehicle/Engine Replacement: NOx Reductions (tons) Drayage Loan Program 80.5 tons

Upcoming Initiatives: VW Settlement Volkswagen has agreed to spend up to $14.7 billion to settle fraud allegations regarding diesel emissions. Funds will be used to buy back and/or modify vehicles, and to support national- and state-level projects to reduce NOx emissions.

Upcoming Initiatives: VW Settlement National-level projects: Electrify America Investments totaling $2 billion over 10 years Initial focus on EV infrastructure; will focus on other project types later State-level projects Will work directly with states to send emission reduction funds to the most effected areas. Houston expects to receive nearly $50 billion

Upcoming Initiatives: Idle Reduction & Zero Emissions Develop local program focused on reducing idling within the region Focus on freight: Provide low or no emission vehicle replacements Purchase electric reefer trailers and electric chargers Focus on police and security vehicles Assist agencies in purchasing APUs to reduce idling