1. Background: the Federal Clean Air Act and the Ozone NAAQS Air Improvement Resources Advisory Committee Meeting Alamo Area Council of Governments January 17, 2013

2. What is ozone? Ozone is an odorless, colorless gas. Ground-level ozone can cause: –shortness of breath –coughing or wheezing –headaches nausea –throat and lung irritation Ground-level ozone’s effects are most profound on children, the elderly, and those with reduced lung capacity.

3. What Causes Ozone? Oxides of Nitrogen ( NOx ) & Volatile Organic Compounds ( VOC ) Note: NOx = NO + NO2 (<= criteria)

4. Clean Air Act & National Ambient Air Quality Standards Federal Clean Air Act requires EPA to set – National Ambient Air Quality Standards for – Pollutants harmful to public health & environment – Six “Criteria” Air Pollutants: Carbon Monoxide, Lead, Nitrogen Dioxide, Particulate Matter, Sulfur Dioxide & – Ozone A community will meet the eight-hour ozone standard when the three-year average of the annual fourth highest daily maximum eight-hour ozone concentration measured at each monitoring site is less than 76 parts per billion (ppb). Compliance with Eight-Hour Ozone Standard KEY

5. Violations and Nonattainment of the Ozone Standard in the AACOG region Violation: the three year average of ozone levels on local monitors was too high. On August 21, two monitors violated the 2008 ozone standard. The “Three-Year Average” needs to be less than 76 parts per billion (ppb). Monitoring Site FourthHighestAverage Current Three-Year 201020112012*Average Camp Bullis C58787587 80 Calaveras Lake C59677170 69 San Antonio Northwest C23727981 77 * quality assurance/checks by TCEQ required prior to finalization Data: http://www.tceq.state.tx.us/cgi-bin/compliance/monops/8hr_attainment.pl KEY

6. Requirements vs. Discretion Requirements: The current 2008 ozone standard is now under review: – May be revised in 2013 according to the five-year review cycle. IF the standard revised in 2013, and timeline did not change: – Proposal for a revised standard would be published in 2013 – Final standard promulgated in 2014. – Nonattainment designations promulgated in 2016. Designations would be made based on 2013-2015 data. Next summer: possibly the 1 st year in the 3-year average for designations under a more stringent ozone standard. Now is a great time to initiate dedicated air quality improvements. KEY

7. Ozone Trends, San Antonio Region, 1980-2012

8. Emission Trends for VOC and NOx in San Antonio / New Braunfels MSA 1996 to 2018 San Antonio 8-County MSA Population

9. Eagle Ford Not Included DRAFT

10. Draft NOx Emissions in tons per day from 24-county Eagle Ford shale play Emissions Source2011 * 2012 estimations for Production does not include all sources. Production may create up to 20 additional tons of NOx/day in 2012. Exploration and Pad Construction1.0 Drilling25.8 Hydraulic Fracturing16.3 Wellhead Compressors22.3 Wellhead Flares21.3 Midstream Facilities18.3 Total* Estimated Emissions105.0 NOx Emissions in tons per day from Point Sources, 8-County San Antonio-New Braunfels MSA Type of Industry / Year200820132018 Electricity Generation46.542.9 Cement Industry20.925 Petroleum Industry5.7 Manufacturing1.1 1.4 Military Bases0.9 Other Sources0.6 Total75.976.476.6 Initial Estimations: EFS, 2012 DRAFT

11. Source: U.S. Energy Information Administration, http://www.eia.gov/oil_gas/rpd/shaleusa9.pdf Eagle Ford & SA-NB Metropolitan Statistical Area

12. FacilityFuel Capacity (MW) In Service J K Spruce 2Coal750Nov-09 VH Braunig 6NG185Jan-10 Bosque expansionNG255Apr-09 Dansby 3NG48Oct-09 Point ComfortPetcoke300Aug-11 Winchester Power ParkNG178Apr-09 Pearsall Expansion - 1NG100Oct-09 Pearsall Expansion - 2NG100Mar-10 S. Houston Green PowerNG244Apr-09 Cypress Peaking PowerNG1682009 Cedar Bayou 4NG539Mar-09 Texas Medical CenterNG50May-10 Engine PlantNG50May-10 Jack County 2NG620Aug-11 Jones 3NG168Jun-11 Sandow 5Coal581Apr-09 Barney M. DavisNG360Aug-09 Nueces BayNG701Oct-09 Oak Grove 1Coal855Aug-09 Oak Grove 2Coal855Jun-10 Jacinto Peaking Power Fac.NG1682009 Comanche Peak 1,2 upgradeNuc86Jan-10 Sand Hill expansionNG94Jan-10 New Power Generation in East Texas (Completed 2009-2011)

13. Proposed Power Generation in East Texas (After March 2013) FacilityFuel Capacity (MW) In Service Sandy Creek 1Coal92513-Mar White Stallion Energy CenterCoal1,20014-Jul Coleto Creek 2Coal66016-Jan Limestone 3Coal800 King Power StationNG1,38016-Jan Colorado Bend Energy CenterNG275 Deer Park Energy Center exp.NG400 GreenvilleNG1,792 Lakeside Energy CenterNG640 Madison Bell Energy CenterNG550 Mountain Creek expansionNG700 ShermanNG500 Las Brisas Energy CenterPetcoke62016-Oct ES JoslinPetcoke303 FreeportPetcoke400 SweenyPetcoke683

14. Rural Sources Cars Trucks Locomotives Small Engines Vegetation Major Combustion Sources Power Generation Cement Industry Manufacturing Urban Sources Cars Trucks Buses Airports Industries Construction Lawn & Garden Equipment Vegetation Rural Background Ozone Level Relatively low Wind Direction Ozone Increases Downwind from Major Combustion Sources Ozone Increases Further Due to Numerous Urban Sources High Ozone Extends Downward from Urban Areas Courtesy TCEQ

15. Transport Image courtesy of the Capital Area Council of Governments