1 Update on Implementing the NAAQS & Regional Haze WESTAR Spring Meeting April 26, 2011

2 Current Schedule for Ongoing NAAQS Reviews (March 2011) MILESTONE POLLUTANT NO 2 PrimarySO 2 Primary Ozone Reconsideration COPM NO 2 /SO 2 Secondary Lead NPRJun 26, 2009Nov 16, 2009Jan 6, 2010Jan 28, 2011 Late 2011 July 12, 2011Nov 2013 NFRJan 22, 2010Jun 2, 2010Jul 29, 2011Aug 12, 2011TBDMar 20, 2012Sept 2014 NOTE: Underlined dates indicate court-ordered or settlement agreement deadlines Next Ozone Review: Proposal in Jun 2013 and Final in Mar 2014

3 Pollutant NAAQS Promulgation Date Designations Effective 110(a) SIPs due (3 yrs after NAAQS promulgation) Attainment Demonstration Due Attainment Date PM 2.5 (2006)Sept 2006Dec 2009Sept 2009Dec 2012 Dec 2014/2019 PbOct 2008 Dec 2010/2011 (extra time for new monitors) Oct 2011 June 2012/2013 Dec 2015/2016 NO 2 (primary)Jan 2010Feb 2012Jan 2013Aug 2013Feb 2017 SO 2 (primary)June 2010July 2012June 2013Jan 2014July 2017 Ozone (all dates tentative) July 2011 No later than Summer 2013 July 2014 No later than Summer 2016 No later than 2019 (moderate) COAugust 2011 September 2013 August 2014 September 2015 September 2018 PM 2.5 (current review) TBD NOx/SOx Secondary Mar 2012April 2014Mar 2015Oct 2015NA Anticipated NAAQS Implementation Milestones Revised April 2011

4 8-hr Ozone NAAQS Reconsideration  A final decision in the 2008 reconsideration is scheduled for the end of July 2011 CASAC supplemented advice regarding the level of the primary standard as requested Will include final decision on deadline for state designation recommendations Plan to propose Implementation Rule in conjunction with final reconsidered NAAQS  “Widespread Use of Onboard Refueling Vapor Recovery and Stage II Waiver” was removed from Implementation Rule. Now a separate proposal package that is at OMB for review. Will address waiver of Serious and above area requirements for Stage II vapor recovery systems at gasoline refueling stations Separate guidance memo will address technical aspects of removing existing Stage II from SIPs  Designations assistance Guidance memo Source apportionment modeling results Other data relevant to 5-factor analysis

5 Draft Ozone Implementation Rule  Planning and control requirements currently required for the 1997 NAAQS that must continue to be implemented under the 2011 NAAQS (i.e., “anti-backsliding” requirements)  Proposed approaches to classifying ozone nonattainment areas Air quality thresholds for Marginal, Moderate, Serious, Severe, and Extreme. Impact of options will be illustrated based on air quality data  Attainment deadlines for each classification  State Implementation Plan (SIP) requirements for primary standard nonattainment areas  Implementation approach for first-ever separate secondary standard, including classification and SIP requirements

6  Transport Rule 2 Will address the revised 2011 ozone NAAQS Review intended to be national in scope and examine contribution from multiple source categories Based on TR1 template (?)  VOC Exemptions Rules: Family of Four Hydrofluoropolyethers (HFPEs) and HFE-347pc-f  Proposed rule expected to be finalized Spring 2011  These compounds have a fairly high global warming potential, but they are within the range of what EPA has approved previously HFO (including HFO-1234yf)  Proposed rule package anticipated OMB review: Spring/Summer 2011  EPA and the European Union are expecting HFO-1234yf to become the replacement for HFC-134a in new vehicle air conditioning systems because it has much lower global warming potential Methyl Iodide and Methyl Bromide  EPA is not planning a near-term proposal on the petitions for VOC exemptions for these compounds  Continuing to review concerns about toxicity Other Ozone-related Actions

7 Western Issues for Ozone NAAQS Revision  Developing appropriate nonattainment area boundaries in large counties  Identifying areas eligible for Rural Transport classification  Working with the States with areas that have high wintertime ozone levels to identify relative source contributions  International transport/background?  Others?

8 Litigation and Reconsideration on 1997 Ozone NAAQS Rules  Remand of Subpart 1 Classifications Proposed January 2009 to reclassify under Subpart 2 using 2003 DVs and retroactively effectuating attainment date extensions and bump ups Would not affect areas that have been redesignated to attainment before final rule OMB review completed  Remand/vacatur of Reasonable Further Progress – credit for reduction from outside the NA area We proposed in December 2010 to limit credit only to reductions “in the area” The final rule is currently undergoing OAR review – expected August 2011  Vacatur of 1-hr nonattainment NSR exemption Proposed August 2010 to retain nonattainment NSR requirements specific to the 1-hr NAAQS under certain circumstances when implementing the hr NAAQS Public hearing held 10/12/10, comment period closed 11/13/10 Final rule projected for Fall 2011

9  Section 110(a) Infrastructure SIPs for 1997 Ozone and PM 2.5 Consent decree requires EPA to take final action for 21 states for the 1997 ozone and PM 2.5 NAAQS by April 29, WildEarth Guardians and the Sierra Club filed a lawsuit on the 110(a)(2) SIPs for the 2006 PM 2.5 NAAQS. This lawsuit includes the PSD and visibility elements under 110(a)(2)(D)(i)(II). 1-Hour Ozone Implementation  Failure to make finding for 1-hour ozone areas that did not attain EarthJustice petition for San Joaquin Valley Sierra Club petition on non-California nonattainment areas Adverse Decision in Association of Irritated Residents (AIR) case against EPA approval/disapproval of South Coast plan adverse 9th Circuit SIP decisions.  8-Hour Ozone Implementation Consent decrees with NRDC for signature on final South Coast and San Joaquin Valley 8-hour ozone plans by 12/15/11. Sierra Club complaint filed for failure to act on submitted SIPs within 18 months and promulgate FIPs for clocks started in Feb WildEarth Guardian complaint filed in Northern District of CA for not making findings of failure to submit SIPs for subpart 1 nonattainment areas. Sierra Club NOI for failure to make Moderate area attainment determinations - Boston (E. MA & NH), Chicago (IL only), NYC, Springfield, St. Louis, and Charlotte Litigation and Reconsideration on 1997 Ozone NAAQS Rules (cont.)

10 The Next Ozone NAAQS  Current Schedule Propose in 2013 Final rule in 2014 Not court ordered  First external review draft of Integrated Science Assessment available online: tml

11 PM 2.5 NAAQS Implementation  SIP timeline for 2006 standards Designations effective in December 2009 Attainment SIPs due December 2012  If 2012 review results in new/revised standards Designations no later than 2014 Attainment SIPs would be due no later than 2017 Proposed revisions to implementation guidance/rule likely at the time of final NAAQS  2006 Standards - Working on guidance memo to clarify several issues Framework of existing implementation rule is appropriate for attainment planning for 2006 PM 2.5 standards Policies on RFP Baseline year Policies for contingency measures  Strategies for Reducing Residential Wood Smoke (Oct. 2009)  PSD Program SIP revisions due May Sunset of 1997 PM10 Surrogate Policy.

12 CO NAAQS Implementation  Proposed to retain current standard on January 28, 2011  Proposed changes to ambient air monitoring requirements Co-locate CO monitors with “near-road” NO 2 monitors in urban areas having populations of 1 million or more Approximately 77 CO monitors within 53 urban areas, as part of the overall CO monitoring network.  There are currently no CO nonattainment areas  Existing guidance, regulations, and policies continue to be appropriate

13 Pb NAAQS Implementation  0.15 µg/m 3 NAAQS promulgated October 2008  Round 1 nonattainment designations effective December areas; attainment deadline December 2015  Round 2 nonattainment/attainment/unclassifiable in October 2011 Est. 4 additional violating areas; attainment deadline December 2016  Infrastructure SIPs due October 2011 Working on guidance  Updating RACT/RACM guidance Expected Fall 2011; timing contingent upon the budget  Updating the 1993 Lead Guidelines Document Updating basic information and modeling guidance. Draft technical note on modeling available at  Implementation webinar held in early April (see Topics covered included: general implementation issues, monitoring, and modeling

14 NO 2 NAAQS Implementation  New 1-hr 100 ppb standard promulgated January 2010  Intend to designate areas unclassifiable/attainment based on the existing community-wide monitoring network Deadline is January day letters expected to go out in Summer 2011 New monitoring network required by January 2013 Infrastructure SIPs due January 2013  Guidance on NO 2 PSD permit modeling issued June 29, Includes recommended interim significant impact level Estimating ambient NO 2 concentrations and determining compliance with the new 1-hour NO 2 standard. Modeling emergency equipment

15 SO 2 NAAQS Implementation  On April 7, 2011, DC Circuit Court denied the motion to stay the 1-hr 75 ppb SO 2 NAAQS  SO 2 designations guidance issued March 24, State recommendations due June “Nonattainment” areas are identified with most recent monitoring data or available appropriate air quality dispersion modeling showing a violation of the NAAQS “Attainment” areas are identified by air quality modeling results and where available, monitoring data showing no violations All other areas “unclassifiable”  Areas with no SO 2 monitors and no modeling would be “unclassifiable”  Areas with no or de minimis sources (i.e., no modeling necessary) would be “unclassifiable”  For nonattainment areas designated in June 2012 (effective August 2012), states must submit attainment demonstration SIPs to EPA within 18 months of the effective date (o/a February 2014) Attainment date is 2017, probably based on monitor data where applicable

16 SO 2 NAAQS Implementation (cont.)  110(a)(1) SIP revisions addressing “unclassifiable” areas due no later than June 2013  Consistent with providing for “implementation, maintenance, and enforcement” of the NAAQS, EPA expects these SIP revisions to demonstrate, through refined modeling, that sources contributing to monitored and modeled violations will be sufficiently controlled to ensure timely attainment and maintenance of the new SO 2 NAAQS Timely expected to mean no later than the attainment date for nonattainment areas (o/a August 2017)  EPA plans to issue additional SIP guidance after an opportunity for public review and comment This will include additional modeling guidance for SIP attainment demonstrations  On August 23, 2010, EPA provided guidance on screening tools for NSR and PSD (SILs, SMC, and SER)

17  No final action on any Regional Haze SIPs to date  Proposals: BART FIP for NO x for the Four Corners Power Plant, NM  Consent Decree (WildEarth Guardians): deadline for final action is Aug 2011 Approval of BART for Idaho (no action on Reasonable Progress)  Consent Decree (WildEarth Guardians): deadline for final action is 6/22/11 Approval of BART for Oregon (no action on Reasonable Progress)  Consent Decree (WildEarth Guardians): deadline for final action is 6/22/11 Approval of California's entire regional haze SIP  Consent Decree (WildEarth Guardians): deadline for final action is 5/10/11 BART FIP for SO 2 for 3 EGUs (6 total units) for Oklahoma  Consent Decree (WildEarth Guardians): deadline for final action is 5/10/11 EPA Actions on RH SIPs

18  Possible upcoming BART FIP for NO x for several sources in North Dakota Consent Decree (WildEarth Guardians): deadline for proposal is 7/21/11  EPA has received notices of intent to sue from multiple environmental groups for: Failure to take action on submitted SIPs that did not receive a 'finding of failure to submit' notice in January 2009 Failure to promulgate FIPs for states that did receive a 'findings' notice Would apply to all 50 states plus DC and the Virgin Islands We are negotiating settlement schedules to take final action on all of these SIPs/FIPs EPA Actions on RH SIPs (cont.)

19 5-year reviews & 2018 RH SIP revisions  We do not currently expect to issue formal guidance on 5- year reviews Regions will work with states as needed to clarify expectations  Need to fully satisfy RH rule requirements (51.308(f) and (g)) Comprehensive SIP revision due July 31, 2018, with revised reasonable progress goals, if necessary Planning a future meeting with RPOs to discuss the requirements, answer questions, and develop a strategy to meet the requirements We are interested in your ideas on possible changes in the rules or the guidance  Consistent with the recent Executive Order encouraging federal agencies to "look back" at current rules  If there is a need to make adjustments, we would need to get them underway soon

20 Co-Regulator Input Opportunities  Exceptional Events  2018 Regional Haze SIP requirement  Transport Rule 2  Developing GHG general permits  SIP and PSD rules/guidance for revised PM standards  Designations guidance for revised PM standards  Procedures for modeling background concentrations for PM 2.5  SIP and PSD rules/guidance for NO x /SO x Secondary NAAQS  Update AERR for Reporting Lead Emissions  Streamlining the SIP Process  Improving Title V implementation (2006 Task Force recommendations)