PA Chamber of Business And Industry DEP Quarterly Meeting May 6, 2010

1. PA Chamber of Business And IndustryDEP Quarterly MeetingMay 6, 2010 Dean E. Van Orden Assistant Director Bureau of Air Quality PA Department of Environmental Protection dvanorden@state.pa.us 717-783-9264

2. PM2.5 Update Current designations for annual and 24-hour standards. Status of attainment plans. Permitting requirements.

3. PM2.5 Attainment Designations In 2004, EPA issued final designations for the annual PM2.5 National Ambient Air Quality Standard (NAAQS). With the exception of the Philadelphia, Pittsburgh-Beaver Valley and the Liberty/Clairton areas, the remainder of the Commonwealth is monitoring attainment of the 1997 annual PM2.5 NAAQS. EPA has made clean data findings for these areas monitoring attainment of the standard; however, they are not designated as attainment. On October 8, 2009, EPA issued final designations for the revised 24-hour PM2.5 NAAQS. Published in the Federal Register on November 13, 2009; effective on December 13, 2009. Attainment demonstrations are due to EPA no later than December 13, 2012.

4. Annual Fine Particulate Nonattainment Areas

5. 24-hour Fine Particulate Nonattainment Areas

6. Status of Attainment Plans The State Implementation Plan (SIP) revision for the Pittsburgh/Beaver Valley area demonstrating attainment by April 2010 was submitted to EPA on November 10, 2009. On November 20, 2009, EPA issued a finding that Pennsylvania failed to submit the PM2.5 SIP attainment demonstrations for the Philadelphia and Liberty/Clairton nonattainment areas. The notice established an 18-month sanction clock for the submission of complete SIP revisions. The sanction clock �turns off� when EPA determines the SIP revision is complete. The SIP revision for the Philadelphia nonattainment area was submitted on April 12, 2010. The SIP revision for the Liberty/Clairton nonattainment area has been adopted by the Allegheny County Board of Health; the Allegheny County Council has adopted the implementing regulation. The SIP revision is expected to be submitted to DEP within the next two weeks.

7. PM2.5 Permitting Requirements EPA�s PM2.5 requirements for the Prevention of Significant Deterioration (PSD) program are adopted by reference under 25 Pa. Code Chapter 127, subchapter D. Applicable sources must comply with BACT. Currently, major facilities located in PM2.5 nonattainment areas in Pennsylvania are subject to the provisions of 40 CFR Part 51 Appendix S for PM2.5 (related to emission offset interpretative ruling). Applicable sources must comply with LAER and offsets.

8. PM2.5 Precursors Applicability to PM2.5 Precursors SO2 in for NSR and PSD. NOx presumed in for NSR and PSD. VOC presumed out for NSR and PSD. NH3 presumed out for NSR; out for PSD. State or EPA may rebut presumption or demonstrate need to include for specific nonattainment areas. Remember- Each precursor is treated independently for applicability purposes. Precursors should not be added to direct PM2.5. Under Appendix S (for interim implementation) Only SO2 is a precursor

9. Condensable PM2.5 Emissions Transition Period for Condensable PM2.5 Emissions � Now until January 1, 2011 Condensable emissions are not required to be included for applicability determinations. Permits are not required to establish limits on condensable emissions. Impact Analyses and Offsets do not need to consider condensable emissions. Permitting Authorities May Consider Condensables now.

10. PM2.5 Permitting Requirements The Environmental Quality Board has proposed to add requirements to certain sections of 25 Pa. Code Chapter 127, Subchapter E (relating to new source review) to incorporate the federal PM2.5 requirements into the nonattainment NSR program to include emissions of PM2.5 and its precursors including sulfur dioxide (SO2) and nitrogen oxides (NOx). NSR is a Federally mandated preconstruction permitting program for major affected facilities in nonattainment areas. It requires state-of-the-art air pollution controls for new major facilities or major modifications to existing major facilities. It also applies in an attainment or unclassifiable areas only if the emissions impact a nonattainment area in excess of significance levels.

11. PM2.5 Permitting Requirements Applicability: These requirements would apply to the owner or operator of an affected facility to which a plan approval will be issued by the Department after the effective date of adoption of the final-form rulemaking. The proposed rulemaking applies to: construction of a major stationary facility modification at an existing major facility. The PM2.5 threshold for a new major facility is 100 tons per year of PM2.5. The PM2.5 threshold for major modifications at existing facility is 10 tons per year of PM2.5.

12. PM2.5 Permitting Requirements The proposal was published in the PA Bulletin on February 6, 2010. Three public hearings were held; the public comment period closed April 12, 2010. The Department is summarizing the comments and will discuss the issues with the Air Quality Technical Advisory Committee. The Independent Regulator Review Commission (IRRC) comments are due May 12, 2010. A final rulemaking package is expected to be considered by the EQB in the Fall 2010.

13. PM2.5 Emission Reduction Measures Implementation of Phase 1 of the Clean Air Interstate Rule. Installation of SO2 scrubbers and SCR at electric generating units. NOx RACT, NOx emissions at cement kilns, small sources, large IC engines. Pennsylvania Diesel Idling Law. Voluntary retrofits of diesel buses in various fleets. Woodstove change out program in Allegheny County. Upgrades to facilities including USX Clairton Coke Works, Edgar Thompson Works, and RRI Energy Elrama Plant.

14. Thank you! On behalf of the Honorable John Hanger Secretary PA Department of Environmental Protection