1. Air Quality Regulations – What’s New? (for Ethanol Plants) Shelley Schneider Air Quality Division Administrator

2. 2 Presentation Overview National Ambient Air Quality Standards Revisions –Implications Greenhouse Gas Regulation –Mandatory Reporting Rule –PSD and Title V Tailoring Rule Opportunities for More Information

3. Ambient Air Quality Standards Previous StandardRevised StandardFinalized Lead 1.5 ug/m 3, quarterly average Lead 1.5 ug/m 3, quarterly average 0.15 ug/m 3, rolling 3- month average October 2008 Nitrogen Dioxide 53 ppb, annual ave Nitrogen Dioxide 53 ppb, annual ave 100 ppb, 1-hour January 2010 Sulfur Dioxide 30 ppb, annual ave 140 ppb, 24-hour max Sulfur Dioxide 75 ppb, 1-hour 30 ppb, annual ave 140 ppb, 24-hour max June 2010 (revoked in most areas, but apply in areas not attaining) 3

4. 4 Ambient Air Quality Standards Implications for Nebraska Ethanol Plants NO2 –Sources model when permitting –April 2010 Steve Page memo SO2 –Monitoring in Douglas County indicates non-compliance Non-compliance = non-attainment Douglas County only (at this time)

5. 5 Ambient Air Quality Standards SO2 –EPA to require modeling for designation process Nonattainment = monitored OR modeled violations Attainment = modeled AND modeled evidence of no violations Unclassifiable = all other areas, INITIALLY only

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8. 8 Ambient Air Quality Standards Proposed Revision to Ozone Standard –EPA will finalize by August 31 st Proposed PM Standards –EPA plans to propose in February 2011 –Finalize in October 2011 Secondary NO2 and SO2 standards –Looked at together in separate rulemaking Modeling compliance with NAAQS expected

9. 9 Ambient Air Quality Standards Implications for Nebraska Ozone proposal –Monitoring in Omaha area indicates potential issues –NDEQ working with IDNR on plan Voluntary measures if appropriate Non-attainment plan if appropriate Community Based Planning approach

10. Ambient Air Quality Standards 10/11/2015 Free Template from www.brainybetty.com 10 Omaha Core Based Statistical Area

11. 11 GHG Mandatory Reporting Rule EPA implemented –Report electronically to EPA 25,000 metric tons actual emissions CO 2equiv or more must report Begin reporting for CY 2010 –Deadline March 31, 2011 No 3 rd Party verification required Monitoring plan in place by April 1, 2010

12. 12 GHG Mandatory Reporting Rule Ethanol Facilities –Covered ONLY through combustion emissions –≥ 25,000 metric tons CO 2equiv actual emissions All combustion units Aggregate units No exemptions for space heaters or insignificant units (except emergency equip) –Fermentation emissions don’t count (for now)

13. 13 GHG Tailoring Rule –“Tailors” PSD & Title V program for GHGs –Finalized May 2010 –Without Tailoring Rule, 250 and 100 tpy threshold apply Nebraska has ~ 100 Title V sources subject to current program

14. 14 GHG Tailoring Rule –Does NOT mirror Reporting Rule Short tons, not metric Biogenic sources (ex. fermentation) count toward applicability –Phases in program –Expressed as CO 2equiv

15. 10/11/2015 Free Template from www.brainybetty.com 15

16. 10/11/2015 Free Template from www.brainybetty.com 16

17. 17 GHG Tailoring Rule Implications for Nebraska Rulemaking necessary to appropriately manage program EPA requiring a letter outlining state’s plans by August 2 nd –If rule isn’t adopted, EPA will be responsible for that piece of program –If rule is adopted, NDEQ and the appropriate local programs would be responsible –NDEQ plans to move forward with rulemaking in Fall 2010 Program will mirror federal program

18. 18 GHG Tailoring Rule Implications for Nebraska –Preliminary estimates All /most ethanol plants will likely be major –Due to fermentation emissions –Actual emissions ~ 30 to 50 minor sources may be ‘major’ for GHG emissions –Due to fuel combustion –Based on PTE Increase Class I sources 30 to 50%

19. GHG Tailoring Rule 10/11/2015 From Iowa DNR 2009 Emission Inventory Report for 2008 19

20. GHG Tailoring Rule Iowa Data on Actual Emissions Fermentation only (need to include fuel too) –121 MM gal plant 0.33 MMt CO 2equiv (396,000 tons CO 2equiv ) –110 MM gal plant 0.30 MMt CO 2equiv (360,000 tons CO 2equiv ) –77 MM gal plant 0.21 MMt CO 2equiv (252,000 tons CO 2equiv )

21. 21 Opportunity for More Information Air Waves E-Newsletter –Contact Tracy Thompson 402-471-4272 –Tracy.thompson@nebraska.govTracy.thompson@nebraska.gov Air Program Updates –August 3 rd in Grand Island –August 4 th in Scottsbluff –August 10 th in Norfolk –August 18 th in Lincoln

22. 22 Air Program Updates Topics to be Covered –Engines (everything you need to know!) –Air Regulations Update –Permitting – New Permit Review Policy, Greenhouse Gas Tailoring Rule, Modeling –Compliance – NAAQS, Chapter 34, Stack Testing –Air Toxics & NSPS Updates –The Air DVD – Your Guide to the Nebraska Air Quality Regulations

23. 23 Air Program Updates Reminders and Changes –Register through NDEQ website –$10 registration fee Payable 2 weeks in advance (preferred) At the door Cash or check only –Morning snacks, beverages, and lunch provided Vegetarian meals can be provided –CDs with workshop materials

24. 24 Questions?