Air Quality Division Update Kristin Jacobsen SIP Team

Air Quality Division Update Kristin Jacobsen SIP Team Leader, Air Quality Division Presented to the Advanced Air Permitting Seminar October 8, 2019

Agenda • Nonattainment Area Requirements and Classifications • State Implementation Plan (SIP) Updates and What’s Next? Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 2

SIP Requirements for Ozone Nonattainment Areas MARGINAL (3 years) Emissions Inventory Emissions Statements Nonattainment NSR Program & Emissions Offsets RACT Fixups I/M Corrections Conformity MODERATE (6 years) Basic I/M RACT & RACM Emissions Reductions Attainment Demonstration Contingency Measures RFP – 15% VOC Reductions Within 6 Years SERIOUS (9 years) Enhanced Monitoring and I/M Modeled Attainment Demonstration 3% Per Year VOC Reductions After 6 Years RFP Milestone Contingency Measures Clean Fuels Program VMT Demonstration SEVERE (15 -17 years) VMT Growth Offset Major Source Fees for Failure to Attain (185 fees) EXTREME (20 years) Clean Fuels and Controls for Boilers Traffic Controls During Congestion Major Source Threshold (tons per year) 100 1. 1: 1 100 1. 15: 1 50 1. 2: 1 25 1. 3: 1 New Source Review (NSR) Offset Ratios 10 1. 5: 1

NAAQS Revision and SIP Revision Cycle

SIP Updates • Revoked Ozone Standards and the South Coast II decision • 2008 Eight-Hour Ozone Standard Serious Reclassifications • 2015 Eight-Hour Ozone Standard Marginal Nonattainment Areas Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 5

Anti-Backsliding Requirements • Anti-Backsliding requirements are intended to ensure that air quality in nonattainment areas does not get worse after a standard is revoked. • Examples include: nonattainment new source review (NSR) permitting, contingency measures, Failure to Attain fees. • Areas still designated nonattainment for a revoked standard remain subject to applicable anti-backsliding requirements until the requirements are lifted. • Anti-backsliding obligations are removed through redesignation. Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 6

Texas Nonattainment Areas for the Revoked One-Hour and 1997 Eight-Hour Ozone NAAQS

Redesignation Request and Maintenance Plan SIP Revision • The Redesignation Request describes how a nonattainment area meets redesignation requirements and how the area will continue to meet the standard once redesignated to attainment. • The Maintenance Plan contains: – attainment inventory; – maintenance demonstration; – verification of continued attainment; – monitoring network; and – contingency plan. • Two 10 -year maintenance plans are required. Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 8

Redesignation Request and Maintenance Plan SIP Revisions • Houston-Galveston-Brazoria (HGB) Area – HGB One-Hour and 1997 Eight-Hour Ozone Redesignation Request and Maintenance Plan SIP Revision – Submitted to EPA on December 14, 2018 • Beaumont-Port Arthur (BPA) Area – BPA One-Hour Ozone Redesignation Request and Maintenance Plan and 1997 Eight -Hour Ozone Second 10 -Year Maintenance Plan SIP Revision – Submitted to EPA on February 5, 2019 • Dallas-Fort Worth (DFW) Area – DFW One-Hour and 1997 Eight-Hour Ozone Redesignation Request and Maintenance Plan SIP Revision – Submitted to EPA on April 5, 2019 • El Paso Area – El Paso One-Hour Ozone Redesignation Request and Maintenance Plan SIP Revision – Submitted to EPA on May 10, 2019 Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 9

2008 Eight-Hour Ozone Standard • Standard is 0. 075 parts per million (ppm) – Design values of 75 parts per billion (ppb) or lower are attainment • EPA finalized designations May 21, 2012. – July 20 th established as the attainment date of each relevant calendar year • Initial nonattainment designations: – Eight-County HGB Marginal Nonattainment Area § Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller Counties – 10 -County DFW Moderate Nonattainment Area § Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, Tarrant, and Wise Counties Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 10

HGB 2008 Eight-Hour Ozone Nonattainment Area • The EPA reclassified the HGB area from marginal to moderate nonattainment on December 14, 2016. – July 20, 2018 moderate attainment date – 2017 attainment year (area had to attain by the end of 2017) • Moderate area Attainment Demonstration and Reasonable Further Progress (RFP) SIP revisions were adopted December 15, 2016. Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 11

2008 Eight-Hour Ozone Standard Serious Reclassifications • HGB and DFW moderate nonattainment areas did not attain by the end of 2017. • EPA published final notice to reclassify both areas to serious on August 23, 2019. – The reclassification is effective September 23, 2019. – Both areas are subject to major source thresholds of 50 tons per year and NSR offset ratios of 1. 2: 1. • Serious area attainment date is July 20, 2021 with a 2020 attainment year. • Serious classification SIP revisions are due to EPA by August 3, 2020. Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 12

DFW Area Permitting Classification EPA Action (Effective Dates) Effective Classification for Permitting (most stringent requirement applies) ØOne-Hour and 1997 eight-hour ozone NAAQS serious classifications still applied Serious ØJuly 20, 2012: DFW area designated as moderate nonattainment for the 2008 eight-hour ozone NAAQS ØDecember 8, 2016: One-Hour and 1997 Eight-Hour Ozone Redesignation Substitute approved ØAugust 3, 2018: DFW area designated as marginal nonattainment for the 2015 eight-hour ozone NAAQS ØSeptember 23, 2019: DFW 2008 eight-hour ozone nonattainment area reclassified to serious Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 13 Moderate Serious

HGB Area Permitting Classification EPA Action (Effective Dates) ØOne-Hour and 1997 eight-hour ozone NAAQS severe classifications still applied ØJuly 20, 2012: HGB area designated as marginal nonattainment for the 2008 eight-hour ozone NAAQS ØNovember 19, 2015: One-Hour Ozone Redesignation Substitute approved (1997 eight-hour ozone NAAQS severe classification still applied) ØDecember 8, 2016: 1997 Eight-Hour Ozone Redesignation Substitute approved Effective Classification for Permitting (most stringent requirement applies) Severe Marginal ØDecember 14, 2016: HGB 2008 eight-hour ozone nonattainment area reclassified to moderate ØAugust 3, 2018: HGB area designated as marginal nonattainment for the 2015 eight-hour ozone NAAQS Moderate ØSeptember 23, 2019: HGB 2008 eight-hour ozone nonattainment area reclassified to serious Serious Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 14

2008 Eight-Hour Ozone NAAQS Serious Classification SIP and Rule Revisions • One RFP SIP revision for both HGB and DFW serious nonattainment areas • Attainment Demonstration SIP revisions for HGB and DFW areas – Modeling, supported by weight of evidence, to demonstrate areas will attain by 2020 attainment year • Associated rulemakings to address reasonably available control technology (RACT) requirements Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 15

Public Comment and Hearing Information • SIP revisions and rules proposed September 11, 2019 • Public comment period opened September 13, 2019 • Comment period closes October 28, 2019 • Adoption scheduled for March 4, 2020 Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 16

What’s Next for 2008 Eight-Hour Ozone Serious Nonattainment Areas? • HGB and DFW serious nonattainment areas must attain by the end of 2020. • Failure to attain would result in reclassification to severe, unless eligible for an extension. – Reclassification would likely occur in late 2021 or early 2022. – State would likely have one year after reclassification to submit federally required severe classification SIP revisions. – Attainment would be required by the end of 2026. • Attainment would allow for submittal of a redesignation request and maintenance plan SIP revision. Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 17

2015 Eight-Hour Ozone Standard Designations • Standard is 0. 070 ppm – Design values of 70 ppb or less are attainment • Six-county HGB marginal nonattainment area – Brazoria, Chambers, Fort Bend, Galveston, Harris, and Montgomery Counties (Liberty and Waller Counties removed) – Effective August 3, 2018 • Nine-county DFW marginal nonattainment area – Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Tarrant, and Wise Counties (Rockwall County removed) – Effective August 3, 2018 • Bexar County marginal nonattainment area – Effective September 24, 2018 Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 18

Nonattainment Areas for Current Ozone NAAQSOzone Texas Air Quality Nonattainment Areas

2015 Eight-Hour Ozone Standard Emissions Inventory SIP Revision • Establishes 2017 base year inventory • HGB and DFW emissions inventory SIP revisions due by August 3, 2020 • Bexar County emissions inventory SIP revision due by September 24, 2020 • One SIP revision for all three areas: – Proposal November 2019 – Adoption June 2020 – Submittal by August 3, 2020 Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 20

What’s Next for 2015 Eight-Hour Ozone Marginal Nonattainment Areas? • The attainment year for 2015 eight-hour ozone marginal nonattainment areas is 2020. • If an area’s three-year design value is 71 ppb or greater, the area is reclassified to moderate, unless eligible for an extension. • Reclassification would likely occur in late 2021 or early 2022, if needed. • States usually have one year after reclassification to submit federally required SIP revisions. • Attainment would be required by the end of 2023. Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 21

FCAA, § 179 B Demonstration • Demonstrates that an area could attain the NAAQS by the attainment date “but for” emissions emanating from outside the U. S. – Optional submittal – Not restricted to areas adjoining international borders – Would not set SIP emissions years for banking and trading • EPA approval of a § 179 B Demonstration for a nonattainment area that fails to attain: – An area would remain nonattainment but would not be bumped-up to a higher classification. – Nonattainment area requirements under the existing classification would continue to apply until the area is redesignated to attainment. Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 22

2015 Eight-Hour Ozone § 179 B Demonstration SIP Revision • The TCEQ is currently evaluating impacts of international transport on 2015 eight-hour ozone standard nonattainment areas. • A § 179 B Demonstration SIP revision is scheduled for proposal in January 2020 and adoption in July 2020. • EPA approval would prevent reclassification of 2015 eight-hour ozone marginal nonattainment areas to moderate. Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 23

What Else is Next? • EPA’s review of the ozone NAAQS: – EPA is scheduled to propose any revisions to the NAAQS in early 2020. – The final NAAQS revision is anticipated in late 2020. – Potential designations are anticipated in late 2022. Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 24

Contact Information • Kristin Jacobsen – SIP Team, Air Quality Planning Section – (512) 239 -4907 – kristin. jacobsen@tceq. texas. gov • Contact the SIP Team or join our e-mail list – http: //www. tceq. texas. gov/airquality/sipcontact. html Air Quality Division • Air Quality Division Update • KEJ • October 8, 2019 • Page 25