1. Sound solutions delivered uncommonly well Understanding the Permitting Impacts of the Proposed Ozone NAAQS Pine Mountain, GA ♦ August 20, 2015 Courtney Adcock

2. Sound solutions delivered uncommonly well Presentation Overview ˃ Proposed Ozone NAAQS ˃ NSR Permitting Impacts on Future Nonattainment Areas ˃ PSD Permitting Impacts on Future Attainment/Unclassifiable Areas ˃ Next Steps

3. Sound solutions delivered uncommonly well Ground Level Ozone Formation Source: Particulate Matter Science for Policy Makers – A NARSTO Assessment, 2003. Good Stratospheric Ozone O2O2 sunlight O + O O + O 2 O3O3 Bad Ground-level Ozone sunlight VOC + NO x O 3 (and other products)

4. Sound solutions delivered uncommonly well Proposed Ozone NAAQS

5. Sound solutions delivered uncommonly well EPA’s Proposed December 2014 Rule ˃ Published in the Federal Register December 17, 2014 ˃ Propose to lower the primary and secondary NAAQS to within the range of 65 to 70 ppb  Current ozone NAAQS is 75 ppb  http://www.epa.gov/groundlevelozone/actions.html http://www.epa.gov/groundlevelozone/actions.html ˃ Add an Appendix U to 40 CFR Part 50 detailing data selection, handling, and reporting requirements for ozone NAAQS ˃ Revise ambient monitoring requirements for ozone monitoring ˃ Add a grandfathering provision to the PSD permitting program exempting pending permits from the revised ozone NAAQS when they are fully promulgated ˃ EPA anticipated to finalize ozone NAAQS in October 2015

6. Sound solutions delivered uncommonly well Current Compliance with Proposed Ozone NAAQS Source: http://epa.maps.arcgis.com/apps/StorytellingSwipe/index.html?appid=a3c9f378699045749a85e9c04728fc79&webmap= 3b3e0960060141c7828fc93b14e3d4d2

7. Sound solutions delivered uncommonly well EPA Projected Compliance with Proposed Ozone NAAQS Source: http://epa.maps.arcgis.com/apps/StorytellingSwipe/index.html?appid=a3c9f378699045749a85e9c04728fc79&webmap= 3b3e0960060141c7828fc93b14e3d4d2

8. Sound solutions delivered uncommonly well 201420162018202020222024202620282030203220342036 Attainment Year - All NAA 10/1/2037 Attainment Year - Serious NAA 10/1/2026 Attainment Year - Moderate NAA 10/1/2023 Attainment Plans 10/1/2020 Attainment Year - Marginal NAA 10/1/2020 SIP Infrastructure Setup 10/1/2018 EPA Finalize Area Designations 10/1/2017 State and Tribe Recommendation for Area Designations 10/1/2016 Final NAAQS Rule 10/1/2015 Proposed Rule 11/25/2014 Non Attainment New Source Review PSD – Grandfathered or Complicated PSD – 2008 NAAQS Proposed Rule Timeline

9. Sound solutions delivered uncommonly well NSR Permitting Impacts on Future Nonattainment Areas

10. Sound solutions delivered uncommonly well NA-NSR Permitting Requirements in Non-Attainment Areas (1 of 2) ˃ Lowest Achievable Emission Rate (LAER) – emissions control level required for each source of ozone (NO X or VOC) emissions  “Most stringent emission limitation contained in any state implementation plan (SIP) or achieved in practice (AIP)”  Irrespective of cost  Review SIP requirements – emission limits adopted by any state agency as a rule, regulation, or permit  Review AIP requirements – EPA RACT/BACT/LAER Clearinghouse (RBLC) for similar emission sources

11. Sound solutions delivered uncommonly well NA-NSR Permitting Requirements in Non-Attainment Areas (2 of 2) ˃ Offsets - to increase release of ozone (NO X or VOC), the source must either:  Reduce emissions of NOx/VOC elsewhere at the plant, or  Purchase the “reduction credits” from another company (emissions banking)  Creditable offsets must be obtained at the appropriate ratio, depending on nonattainment classification of area ˃ Site Justification – Alternative Sites Analysis ˃ State-wide Facility Compliance Certification

12. Sound solutions delivered uncommonly well Nonattainment New Source Review (NA-NSR) and Title V Major Source Definitions PollutantNonattainment Classification NA-NSR and Title V Major Source Thresholds Offset Ratio for NA-NSR Permitting OzoneMarginal100 tpy of VOC or NO X 1.1 to 1 Moderate100 tpy of VOC or NO X 1.15 to 1 Serious50 tpy of VOC or NO X 1.2 to 1 Severe25 tpy of VOC or NO X 1.3 to 1 Extreme10 tpy of VOC or NO X 1.5 to 1

13. Sound solutions delivered uncommonly well PSD Permitting Impacts on Future Attainment/Unclassifiable Areas

14. Sound solutions delivered uncommonly well How Can The New Ozone NAAQS Impact PSD Permitting? (1 of 3) ˃ “Grandfathering” of permitting regarding non-attainment designations should occur until October 2017  http://www.epa.gov/region7/air/nsr/nsrmemo s/extend14.pdf http://www.epa.gov/region7/air/nsr/nsrmemo s/extend14.pdf  Review final standard and ozone background concentrations in your area carefully  It may be time to dust off those project plans ˃ Careful review of the preamble documentation necessary……

15. Sound solutions delivered uncommonly well How Can The New Ozone NAAQS Impact PSD Permitting? (2 of 3) ˃ 79 FR No. 242, pg. 75376  Consistent with this interpretation, any revised ozone NAAQS finalized through this rulemaking will need to be addressed by PSD permit applicants and permitting authorities, in permits issued on or after the date when the revised NAAQS become effective, unless the permit application has been grandfathered through rulemaking, as described below in this proposal.

16. Sound solutions delivered uncommonly well How Can The New Ozone NAAQS Impact PSD Permitting? (3 of 3) ˃ 79 FR No. 242, pg. 75376  At present, the EPA is evaluating the models and techniques available to address atmospheric chemistry of ozone formation in assessing such single source impacts, and as part of that evaluation has conducted discussions of such tools with the regulatory modeling community. Consistent with its commitment to engage in a rulemaking process to determine whether updates to Appendix W in 40 CFR part 51 are warranted, the EPA is planning to propose a rulemaking in the spring of 2015 to consider whether to update Appendix W. If the EPA concludes that it is technically and scientifically appropriate, it will propose appropriate regulatory updates to Appendix W as part of that rulemaking and may also make related updates to technical guidance, as appropriate.

17. Sound solutions delivered uncommonly well What Interpretation? ˃ 1-hr NO 2 NAAQS in 2010 caused quite a stir ˃ April 1, 2010 Memo – Applicability of the Federal Prevention of Significant Deterioration Permit Requirements to New and Revised NAAQS  From OAQPS to the EPA Regions  Formalized that applicants were required to address new promulgated NAAQS as part of the application process – if a new or revised NAAQS became effective prior to the issuance date of a final PSD permit, applicant required to address those new or revised NAAQS  Only exception – if grandfathering provisions included in the NAAQS rulemaking

18. Sound solutions delivered uncommonly well Proposed Grandfathering Provisions for the New Ozone NAAQS Proposal ˃ EPA is proposing a grandfathering provision for pending PSD permits  Similar to grandfathering provisions for PM 2.5 NAAQS effective in 2013 ˃ Grandfathering applicable to:  Facilities that have received a completeness letter from the state agency for their PSD permit application  Facilities that have received a draft PSD permit, for states that do not issue official completeness letters  Timing is critical!

19. Sound solutions delivered uncommonly well Single Source Ozone Impacts Modeling? ˃ Proposed Guideline on Air Quality Models (40 CFR Part 51 Appendix W) updates published in the Federal Register on July 29, 2015  http://www.epa.gov/ttn/scram/11thmodconf/EPA- HQ-OAR-2015-0310-0001.pdf http://www.epa.gov/ttn/scram/11thmodconf/EPA- HQ-OAR-2015-0310-0001.pdf ˃ Proposed revisions address the secondary chemical formation of ozone and PM2.5 associated with precursor emissions from single sources ˃ Currently unclear how this will impact future PSD applications for NOx/VOC ˃ Appendix W updates large topic of discussion at EPA 11 th Modeling Conference (August 12-13, 2015)

20. Sound solutions delivered uncommonly well Next Steps

21. Sound solutions delivered uncommonly well What Can You Do? ˃ Review proposed ozone standard  https://www.federalregister.gov/articles/2014/12/ 17/2014-28674/national-ambient-air-quality- standards-for-ozone https://www.federalregister.gov/articles/2014/12/ 17/2014-28674/national-ambient-air-quality- standards-for-ozone ˃ Understand ozone trends in your area ˃ Evaluate timing of future projects  Apply for PSD permits as soon as possible! ˃ Determine site-wide Potential to Emit  Will Title V be triggered?  Will other programs be triggered? ˃ Review recent RACT/BACT/LAER determinations for similar sources