A&WMA Georgia Regulatory Update Conference Current State of the Air in GA Jac Capp, GA EPD, Branch Chief, Air Protection Branch April 16, 2013

Existing Nonattainment Areas (except ozone for 2008 NAAQS) All these areas are now meeting the air quality standards ozone NAAQS (84 ppb 8-hr ave.) 1997 PM 2.5 annual NAAQS (15 ug/m3 annual average) EPD is working to get all these areas redesignated back to attainment. Ozone SIP submitted to EPA 4/4/12 Proposed Approval in FR 2/4/13 PM 2.5 SIPs: Floyd: Submitted to EPA 6/21/12 Macon: Submitted to EPA 6/21/12 Chattanooga: Submitted to EPA 9/14/12 Atlanta: Submitted to EPA 8/31/12 EPA must publish approval of all plans in the Federal Register

Pollutant NAAQS Prom. Date Governor’s Rec. Due to EPA Designations Effective 110(a) SIPs Due (3 yrs after NAAQS promulgation) Attainment Dem. Due Attainment Date Notes & Impacts to GA OzoneMarch 2008March 2009July 2012March 2011 N/A (Marginal) Dec (Marginal) 1. Only Atlanta is above this standard (75 ppb). 15 counties designated nonattainment. 2. If Atlanta does not meet attainment deadline, then bump up to Moderate w/ Dec deadline. NO 2 (primary) Jan 2010Jan 2011Feb 2012Jan 2013N/A 1. 1 roadside NO 2 monitor required in Atlanta by Jan more in Atlanta by Jan and 1 in Augusta by Jan All areas in GA meeting this standard 3. Permitting new NO 2 (combustion sources) more difficult. SO 2 (primary) June 2010June ? Deferral? June 2013 Desig months Desig. + 5 years 1. All areas in GA meeting this standard (Rome and Savannah are close) 2. Permitting new SO 2 sources more difficult 3. Implementation for “deferred” areas very uncertain CO August 2011 N/A 1. Standard unchanged 2.One roadside monitor in Atlanta by All areas in GA meeting this standard NO 2 /SO 2 Secondary March 2012N/A EPA retained the current secondary standards. PM 2.5/10 December 14, 2012 December 14, ? (based on data?) December 2015 Desig months Desig. + 6 years 1.Annual PM 2.5 lowered to 12 ug/m3 2.One roadside PM 2.5 monitor in Atl. by Some areas currently above standard 4.Subpart 4 vs. 1 Court decision raises questions Ozone 2014?2015? 2016? (based on data)? 2017?2019?? 2022?? (Moderate) 1. More nonattainment areas possible 2. Areas classified as “moderate” or above by EPA required to implement I/M programs. 3. Boundary determinations are sensitive Anticipated NAAQS Implementation Milestones

Ozone Design Values

8-hr Ozone, Annual 4 th Highest Value (ppm) for Each MSA ppm standard

EPA Lowered Annual PM 2.5 NAAQS on December 14, 2012

Annual PM 2.5 Design Values

PM 2.5 Annual Averages (µg/m 3 ) and 2012

PM 2.5 Annual Averages (µg/m 3 ) Highest for Each MSA 12.0 µg/m 3 standard

24-hour PM 2.5 Design Values

PM Hour, 98 th % (µg/m 3 ) Highest for Each MSA 35 µg/m 3 standard *2012 partial year 35 µg/m 3 standard

SO 2, Three Year Average 99 th % Daily Max 1-Hour Averages (ppb)

NO 2, Three Year Average 98 th % Daily Max 1-Hour Averages (ppb)

EPD’s First Near-Road Monitoring Site: NO 2 – January 1, 2014

Startup, Shutdown, Malfunction (SSM) Proposed SIP Call June 30, Sierra Club submitted petition to EPA February 22, EPA publishes in FR proposed findings of substantial inadequacy SIP calls May 13, 2013 – Comment Deadline After SIP Call is finalized, expect ~18 months for States to submit SIP, ~18 months for EPA to review and approve/disapprove SIP… If EPA finalizes it by September 2013, a SIP revision would likely not be submitted prior to Spring 2015 and EPA would likely not make a decision on our SIP revision before Fall All of this is sequential, so a delay at any step results in an equivalent delay of EPA’s final action on a possible SIP revision. EPA may finalize a FIP at any time after EPA has disapproved a SIP or has found that the state has failed to make a required submission.

Startup, Shutdown, Malfunction (SSM) Proposed SIP Call Preliminary concerns with EPA’s proposal –EPA did not consult with States or hold any public stakeholder meetings prior to its proposal –Interferes with State’s right to develop its own SIP –EPA did not review all relevant sections of Georgia’s SIP –Georgia’s SIP complies with the Clean Air Act –EPA is applying a different standard to States’ SIPs than it is with its own standards under the NSPS or NESHAP programs –EPA doesn’t know what the practical implications are of their action (because they made no attempt to do so)

 The permit fee program has been required under the Clean Air Act since it was amended in Congress assumed that a permit fee of $25/ton, adjusted to the CPI, would be necessary to fund the required permit fee program. Permit Fees In FY2013, Air Program funding is projected to total $18.8 million (does not include Radiation Program or pass through funds), with $12.4 million from permit fees (66%), $3.7 million from federal grants (20%) and $2.7 million from vehicle emission testing program fees (14%).

If no changes were made to permit fees, in FY2014 we project a deficit of nearly half million dollars. –Not due to staffing increases. Permit fee staffing levels have actually been decreasing. Deficit primarily due to significant increases in employer’s share of health and retirement expenses. Proposal: –Increase the industry and coal power plant $/ton fees by $1.50/ton –Increase the Title V minimum fee by $400 Permit Fees

Other Important Issues We Are Following Interstate Transport of Air Pollution – CAA Section 110(a)(2)(D)(i) Sulfur Dioxide designations by EPA (or lack thereof) PM2.5 Court Decision Regarding Subpart 1 vs. Subpart 4 implementation –Precursors Expedited Permitting