1. ADEM Air Update Ron Gore November, 2012

2. National Issues EPA is delaying many controversial decisions and issues: Implementation of new SO 2 NAAQS Setting of new ozone and fine particle NAAQS Redesignations of areas from non- attainment Regional haze approvals

3. One-hour SO 2 issues EPA has punted the modeling-vs-monitoring issue until Summer, 2013 EPA is not designating areas as non-attainment even when monitoring data shows violations Will EPA come back to modeling? SO 2 modeling for PSD is still there

4. SSM It is likely that EPA will soon ask 30 to 40 States to remove SSM from their rules Will generate political and legal battles

5. Continued EPA use of FIP’s when SIP’s are the appropriate legal mechanism -Cross-State ruling is a big setback for EPA Continued use of settlements to drive EPA actions and timelines -SSM -Infrastructure SIP’s

6. Continued 40- year old concept of localized non- attainment areas is outdated CAA needs to be amended Local control measures cannot achieve attainment by themselves

9. Ozone, continued If EPA revises standard to 70 ppb, areas which do not attain include: Birmingham Mobile Huntsville-Decatur

10. If the new standard is 65 ppb, add: Montgomery Columbus, GA/Phenix City, AL Tri-cities (Muscle Shoals)

11. If the new standard is 60 ppb; All monitors in Alabama except Tuscaloosa fail

12. Fine Particles Highest monitor in Alabama is 12.9 ug/m 3 in Birmingham for the annual standard Highest monitors are 27 ug/m 3 in Phenix City and Birmingham for the 2y-hr standard If EPA sets annual standard at 12ug/m 3, Phenix City and Birmingham fail

13. Permitting No really controversial permits or regulation changes in last year Have not yet acted on any PSD permits which include greenhouse gas issues New or modified sources with significant SO 2 emissions will have problems meeting SO 2 modeling requirements

14. Enforcement Number of NOV’s, number of penalty actions and penalty amounts relatively unchanged Serious violations trending toward small to medium sized sources rather than Title V sources Many State/Federal joint enforcement actions ongoing

15. Major Compliance Issues Trend is that more violations occur at small to medium size facilities Violations at larger facilities tend to be due to complexity, not laxity or deliberate ignoring of requirements

16. Boiler MACT EPA is re-writing the major source MACT Plan is to re-initiate the 3- year compliance schedule