1. Jerry Beasley, Ph.D., P.E. Mississippi Dept. of Environmental Quality MMA Environmental & Safety Conference and Expo October 16, 2015

2. National Ambient Air Quality Standards The Clean Air Act requires EPA to set NAAQS for wide-spread pollutants considered harmful to public health and the environment There are six air pollutants that have air quality standards: Ground-Level Ozone - O 3 Particulate Matter - PM 10, PM 2.5 Nitrogen Dioxide - NO 2 Sulfur Dioxide - SO2 Carbon Monoxide - CO Lead - Pb

3. 2015 Mississippi Ambient Air Quality Monitoring Sites Ozone Particulate Matter Sulfur Dioxide Nitrogen Oxides Multipollutant Site

4. Annual 4 th highest daily 8-hour maximum, averaged over 3 years Current Standard = 70 ppb (0.070 ppm) 2013-2015* 8-Hour Ozone Design Values * Incomplete Data

5. Mississippi 8-Hour Ozone 2012-2015 County2012201320142015* 3-Year Average 2012 – 2014 3-Year Average 2013 – 2015* Bolivar766560636762 DeSoto756567606964 Hancock676369606664 Harrison736273666967 Hinds**6461** Jackson746675637168 Lauderdale636158596059 Lee676159586259 Yalobusha635762516056 * Incomplete Data

6. Memphis Area Ozone 2012-2015 Monitoring Sites 2012201320142015* 3-year average 2012- 2014 3-year average 2013- 2015* Hernando – DeSoto Co., MS 756567606964 Memphis – Shelby Farms – Shelby Co., TN 866966 7367 Memphis – Frayser – Shelby Co., TN 836967657367 Orgill Park – Shelby Co., TN 846365647064 Marion – Crittenden Co., AR 7967 667166 * Incomplete Data

7. Ozone Timeline EPA issued the ozone standard on October 1, 2015. It becomes effective 60 days after publication in the Federal Register. Governor’s designation recommendations will be due by late 2016 based on 2013-15 data. EPA plans to issue the Ozone Implementation Rule in 2017. Final EPA designations will be issued in late 2017 based on 2014-16 data.

8. Implications of “Nonattainment” Status Potential economic development constraints (e.g., limits to industrial growth) Offsets LAER Longer & more complicated permitting process Transportation Conformity - Potential transportation improvement constraints (e.g., restrictions on highway expansion and development)

9. Sulfur Dioxide The SO2 standard is a 1-hr average of 75 ppb, averaged over three years. The 2014 design value at Pascagoula was 27 ppb and the design value at Jackson was 14 ppb (data not complete).

10. Sulfur Dioxide Consent Decree Issued on March 2, 2015, affected facilities that emitted more than 16,000 tons of SO 2 in 2012 or emitted more than 2,600 tons of SO 2 and had an emission rate of at least 0.45 lbs of SO 2 per mmbtu in 2012. In Mississippi, South Mississippi Electric Power Association, R.D. Morrow Generating Plant was the only facility affected by the consent decree. This facility was required to demonstrate attainment by using modeling. Modeling results demonstrated attainment with an ambient air concentration of 56 ppb. Based on these results, the Governor recommended to EPA that the Lamar County area be designated as attainment/unclassifiable. EPA issues final designations on July 2, 2016.

11. Sulfur Dioxide Data Requirements Rule EPA issued the final rule on August 10, 2015. The rule affects facilities that exceed 2,000 tons per year of actual annual SO 2 emissions based on the most recent data available. States will be required to submit a list of sources exceeding this threshold to EPA by January 15, 2016. Mississippi Power Company – Plant Watson, Harrison County Mississippi Power Company – Plant Daniel, Jackson County The Chemours Company FC, LLC (formerly DuPont – Delisle), Harrison County Pursue Energy Corporation – Thomasville Gas Plant – Rankin County Choctaw Generation LLP – Red Hills Generation Facility, Choctaw County

12. Sulfur Dioxide Data Requirements Rule The following information must be submitted to EPA by July 1, 2016: States will specify for each source whether it will characterize air quality with modeling, monitoring, or establish a federally enforceable requirement limiting annual emissions of the source to less than 2,000 tons/year. States will be required to submit modeling protocols for sources that be characterized with modeling. States will be required to submit their SO 2 monitoring network modifications intended to satisfy the DRR as part of their Annual Monitoring Network Plan. States will be required to submit descriptions of planned emission limits for sources where enforceable emission limits will be established as an alternative to air quality characterization.

13. Sulfur Dioxide Data Requirements Rule By January 1, 2017, SO 2 source monitors intended to satisfy the DRR are required to be operational. By January 13, 2017, states electing to model are required to provide modeling analyses to EPA. By January 13, 2017, states are required to submit documentation for any source identified for the emission limit approach showing that limits requiring annual emissions less than 2,000 tons/year are effective and federally enforceable. By December 2017, EPA will issue final designations based on modeling data and the emission limit approach. By December 2020, EPA will issue final designations based on 2017 – 2019 source monitoring data and ambient air monitoring data.

14. Standard = 12 µg/m 3 Annual mean, averaged over 3 years 2012-2014 Annual PM 2.5 Design Values

15. 98th Percentile, averaged over 3 years Standard = 35 µg/m 3 2012-2014 24-hour PM 2.5 Design Values

16. PM 10 The PM 10 24-hour standard averaged over a three-year period is 150 µg/m 3. The 2014 design value at Jackson was 32 µg/m 3 (data not complete).

17. Nitrogen Dioxide The NO 2 standards are a 1-hour average of 100 ppb, averaged over three years and an annual average of 53 ppb. The 2014 1-hour design value at Pascagoula was 32 ppb and the 2014 annual design value was 4 ppb. Near-Road monitoring is not required at this time for Mississippi, but may be required by January 1, 2017, for the Jackson area.

18. Lead and Carbon Monoxide The lead standard is 0.15 µg/m 3 rolling quarterly average. For 2014, the lead design value was 0.002 µg/m 3 (data not complete). The CO 1-hour annual standard is 35 ppm and the 8-hr annual standard is 9 ppm. In 2014, the CO 1-hour design value was 2.2 ppm and the 8-hour design value was 1.5 ppm.