" AIR QUALITY PROGRAM April 8, 1999 Agenda I. WELCOME (5 minutes) Judge Tom Vandergriff II. FEDERAL PERSPECTIVE (15 minutes) Gregg CookelTom Henderson III. STATE PERSPEC1·IVE (15 minutes) Commissioner Ralph Marquez IV. REGIONAL PERSPECTIVE (10 minutes) Judge Lee Jackson V. ACTION PLAN (15 minutes) JUdge Ron Harris COMMITIEE STRUCTURE DESIRED RESULTS VI. QUESTION & ANSWER (10 minutes) Judge Lee Jackson . VII. CLOSING STATEMENT (5 minutes) Judge Lee Jackson 􀁾 .__ _ I {-;? 􀀧􀀬􀁾􀀮 (, CI!OKCB .... I'll'" GOV!IINOK )j STATE Of _TEXAS QPPiCll 01' "I'IiE-􀁇􀁏􀁖􀁾􀁋􀁾􀁏􀁋 March 16, 1999 Mr. Gregg Cooke Region 6 Administrator -United States Environmental Protection Agency 1445 Ross Avenue Dallas, TX 5202-2733 Dear Mr. Cooke: Rncloscd arc amendments that the Texas Natural Resource Conservation Commission adopted on February 24, 1999, to the Texas State Implementation Plan (SIP) fOT the DallasIFort Worth (DIFW) Attainment Demonstration. Implementation oftheso amendments will signifiCantly reduce ozone--fomUng pollutants and improve the air quality in the DIFW area. TNRCC amended Chapters lIS. 116 and 117 ofTitle 30 ofthe Texas Administrative Code to reduce 􀁯􀁺􀁯􀁮􀁾􀁦􀁯􀁲􀁭􀁩􀁮􀁧 emissions in the DIFW area. Owners ofexisting major sources of nitrogen oxides (NOJ in the DIFW area will have to reduce theirNOx emissions under the Chapter 117 reasonably available control technology standards already applicable in the Houston/Galveston and BeaumontIPorl Arthur areas. The The Chapter 116 amendments adopt a nonattaiDmcnt DCW source review permit process for nOW' 50UlCCS ofNOx emissions in the DIYW area. In addition, the Chapter liS vtmt gas JUles for bakeries and the offset lithographic printing roles are revised. I look forward to your expeditiOWi approval orthia revision to the Texas SIP. Enc10aurc COLLIN COUNTY March 24, 1999 DALLAS COUNTY DENTON COUNTY TARRANT COUNTY Mr. Gregg Cooke Regional Administrator, Region 6 U.S. Environmental Protection Agency 1445 Ross Avenue, Suite 1200 Dallas, Texas 75202 Re: DFW SIP Revision Regional Air. Coalition Dear Mr. Cooke: As County Judges, we represent the four Texas counties (Collin, Dallas, Denton and Tarrant) included in the Da11as/Ft. Worth ozone nonattainment area designated by EPA. We have closely followed the development of a new State Implementation Plan for the DFW area by the Texas Natural Resource Conservation Commission, which we understand was recently submitted to you. We support the efforts of the TNRCC to develop reasonable and effective regulatory requirements for this area that will meet the requirements of the Clean Air Act. Tremendous strides already have been made in this area to meet the air quality standard for ozone, efforts which should be recognized by EPA. We strongly urge you to continue to work with the TNRCC and with us to allow sufficient time for the development of a revised Implementation Plan that will be realistic and based on sound scientific principles, as well as meet statutory requirements. We are confident that the State of Texas will develop such a plan in a timely manner and that an imposition of sanctions on the DFW area by EPA at this time will be inappropriate, premature, and unnecessary. . Local governments in this area have made significant efforts to change our transportation system, but in other areas we have deferred almost completely to the planning efforts of the State of Texas. We are now ready to change that approach and become directly involved in all aspects of air quality attainment plans for this region. Within the next few weeks we will sponsor a meeting for elected officials from major municipalities within the four county area, at which we will discuss further development of regulatory requirements for this area and effective means of communication with EPA and the Mr. Cregg Cooke March 24, 1999 Page 2 TNRCC. We anticipate that from this effort will develop a broad based civic, business and elected officials coalition to-represent the various interests affected by new SIP requirements and to lead in efforts to enhance air quality. We plan to present the results of that meeting to the Texas NatUral ResoUrce Conservation Commission and to you, and to discuss the details of an effective State Implementation Plan for the DFW area. Sincerely yours, £2, 􀁾􀀮􀁾􀁾 Ron 􀁈􀁡􀁲􀁲􀁩􀁾 County Judge, Collin County, Texas seley (]:J.jnJ(Y Judge, Denton County/I 􀁜􀀬􀁌􀁍􀀮􀁬􀁉􀁏􀀻􀀢􀁲􀁾􀁡􀁬􀁬􀁡􀁳County, Texas Tom Vandergriff County Judge, Tarrant C, 7 cc: Governor George W. Bush Carol M. Browner, 􀁁􀁾􀁳􀁴􀁲􀁡􀁴􀁯􀁲􀀬 EPA Robert J. Huston, Chainnan, TNRCC R. B. "Ralph" Marquez, Commissioner, TNRCC John M. Baker, Commissioner, TNRCC Jeffrey A. Saitas, Executive Director, TNRCC 014139.0000 209822 vi \I STATUS OF DFW OZONE ATTAINMENT AREA By 1994, Dallas/Fort Worth (DFW) was classified pursuant to the Clean Air Act (CAA) as a moderate area with respect to nonattainment oithe National Ambient Air Quality Standard (NAAQS) for ozone. The DFW nonattainment area is defined by Collin, Dallas, Denton, and Tarrant Counties. As a moderate nonattainment area, DFW had to demonstrate attainment of the NAAQS by November 15, 1996. 42 U.S.C. § 7511 (a); CAA § 181(a). The State implementation Plan (SIP) filed by the Texas Natural Resource Conservation Commission (TNRCC) in 1994 to'demonstrate attainment by 1996 relied primarily on reductions in volatile organic compounds (VOCs). Due to ozone exceedances in 1996, EPA "bumped up" the DFW area from moderate to serious ozone nonattainment, effective February 18, 1998. See 63 Fed. Reg. 8128 (Feb. 18, 1998). Accordingly, DFW was required to submit a new SIP by March 20, 1999, demonstrating ozone attainment by November 15, 1999. The requirements for a serious ozone nonattainment area include, but are not limited to: (1) attainment and reasonable further progress demonstrations; (2) an enhanced vehicle inspection and maintenance program; (3) clean-fuel vehicle programs; (4) a 50 ton-per-year major source threshold; (5) more stringent new source review provisions; (6) an enhanced monitoring program; and (7) contingency provisions. 42 U.S.C. § 7512(c); CM § 182(c). Prepared by Akin, Gump, Strauss, Hauer &Feld, L.L.P. \; SANCTIONS UNDER THE CLEAN AIR ACT Under the federal Clean Air Act, EPA can sanction a state, or political subdivision thereof, for the following: • failure to submit a plan showing implementation of air quality standards; • failure to submit one or more required elements of a plan; • disapproval ofa implementation plan submitted to EPA; . • failure of a state to submit other required submissions, such as a maintenance plan; • disapproval in whole or in part ofthe other required submission; or • failure to implement an approved plan. The provisions for sanctions are found in Section 179 of the Clean Air Act, 42 U.S.C. § 7509 and in EPA's regulations at 40 C.F.R. § 52.31. See also Selection of Sequence of Mandatory Sanctions for Finding Made Pursuant to Section 179 ofthe Clean Air Act, 59 Fed. Reg. 39832 (Aug. 4, 1994). Sanctions available to EPA include: • withholding grants for support of air pollution planning and control programs; • withholding funds for highways; and • increasing the offset emissions ratio to 2-to-l. It is EPA's policy to first impose offset sanctions. The offset ratio applies to new or modifided sources for which a permit is required. Sanctions to withold highway funds could be imposed six months later if the deficiency noted by EPA still has not been cured. There are a number of exceptions to the highway funding sanction, primarily that highway funds cannot be withheld where 'the principal purpose of the highway project is to improve safety or where the highway project would improve air quality and would not encourage single occupancy vehicle capacity (such as public transit, HOV lanes, improvements in traffic flow to decrease congestion, programs for breakdown and accident scene management, etc.). The offset ratio appliesto new or modified sources for which a permit is required. Timing of Sanctions. The state haS 18 months after EPA's finding, disapproval, or determination, to correct the deficiency before sanctions apply. Note that if after a notice and comment period EPA finds a lack of "good faith", sanctions apply automatically. EPA has stated that it is its policy to work with states so that the vast majority of sanctions clocks are stopped before the 18 months expire and EPA has actually imposed sanctions in only a limited number of cases. As a general rule, the sanctions process is as follows: EPA publishes a notice in the Federal Register if it determines that a state has failed to submit a plan or EPA has disapproved of a plan or other submission. From that point, the state has 18 months within which to correct the deficiency (usually by submitting a revised plan) before the offset sanction is applicable. As noted above, EPA's policy is to first impose the offset sanction, followed six months later by the sanction on highway funds (Note that EPA can reverse this sequence in particular circumstances through notice and comment rulemaking.) If, during the 18-month sanction window, the state does submit a revised plan for which EPA indicates tentative approval, sanctions shall be deferred until EPA takes final action on the revised submittal. If 217703 vI \ ... 􀁾 "1../EPA approves the plan, no sanctions apply. If EPA disapproves the plan, the offset sanctions apply either 18 months after EPA's original finding or the date of disapproval, whichever is later. The highway fund sanctions would then go into effect 6 months after the offset sanctions. The general rule is that once EPA issues a finding of disapproval, the state has 18 months to correct the deficiency, which will defer imposition of the offset sanctions, which in tum defers imposition ofthe highway fund sanctions. Potential timing and impact in DFW area. The TNRCC submited a SIP for the DFW nonattainment area to EPA on March 16, 1999. It is assumed that EPA will take action to approve or disapprove the plan within the next 90 days. Assuming EPA disapproves the plan, the State of Texas will have 18 months to cure deficiencies in the SIP before the offset sanctions kick in. TNRCC has stated that it intends to submit a more complete SIP by March 2000. Because this revised plan would be submitted within the 18-month sanctions window, no sanctions should apply to DFW. If, however, EPA ultimately disapproved of TNRCC's March 2000 SIP submittal, the offset sanctions would apply at one of the following dates, whichever is later: 18 months from EPA's original disapproval or the date ofEPA's disapproval ofthe March 2000 submittal. Under this scenario, the earliest date at which offset sanctions could be imposed 􀁾􀁯􀁵􀁬􀁤 be the last quarter of 2000 and highway fund sanctions would not be imposed prior to the send quarter of 2001. Of course, if EPA approves the March 2000 submittal, sanctions would not apply. Prepared by Akin, Gump, Strauss, Hauer &Feld, L.L.P. ...... . , , 0. Serious Ozone Nonattainment Areas Atlanta, GA Baton Rouge, LA Boston-Lawrence-Worcester (E. MA), MA-NH Dallas-Fort Worth, TX EIPaso, TX Greater Connecticut . Phoenix, AZ Portsmouth-Dover-Rochester, NH Providence (All RI), RI San Diego, CA San Joaquin Valley, CA Santa Barbara-Santa Maria-Lompoc, CA Springfield (Western MA), MA . Washington, DC-MD-VA 􀁾􀀮 .'" '!: .. f; CAA . EPA I&M LEV NAAQS OTAG RACT RFG .SIP TCAS TNRCC VOC 216055 GLOSSARY Clean Air Act Environmental Protection Agency Inspection and Maintenance Program Low Emission Vehicle National Ambient Air Quality Standard Ozone Transport Assessment Group Reasonably Available Control Technology Refonnulated Gasoline State Implementation Plan Texas Clean Air Strategy Texas Natural Resource Conservation Commission Volatile Organic Compounds '. ) REGIONAL PERSPECTIVE ·AREAS OF POLICY CONCERN ·IMPLICATIONS OF SANCTIONS IMPLICATIONS OF-BUMP-UP --TOSEVERE 􀁾 IMPLICATIONS OF NOT SUBMITTING A COMPLETE RATE OF PRGRESS PLAN --􀁾 .A HISTORY OF AIR QUALIry CONTROL ACTIVITIES ,-yO DALLAS-FORT WORTH OZONE NONATTAINMENT AREA '.--./ -c PROPOSED AIR QUALITY COMMITTEE STRUCTURE ." '---' DESIRED RESULTS ! AIR QUALITY RELATED LEGISLATION IDGHLIGHTS HB 1550 -(Chisum) -3-15-99/Pending in Committee (Environmental Regulation) . Vehicle Inspection Program Waivers -County Option Rep. Warren Chisum introduced a bill to allow counties to opt into a program allowing owners of vehicles from model years 1994-1999 to pay a $10 annual mitigation fee to exempt the vehicle from annual emissions inspection. The money collected for this waiver would be used to help defray costs to low-income Texas of repairing vehicles which fail the required inspections, as well as the costs ofa vehicle scrappage program for old, highpolluting vehicles. The bill would allow counties in non-attainment and near nonattainment areas to voluntarily opt-in to vehicle 11M programs. Another key provision of the bill would institute gas cap pressure tests in non-attainment counties' where they are not currently required. . On March 15, 1999, the bill was heard in Rep. Chisum's Environmental Regulation Committee and was the subject of much opposition from various groups. Contact with Rep. Chisum's office indicates he would amend several parts of the bill in an effort to reduce opposition. Two key provisions eliminated would be the sticker requirement to indicate the county of registration and the requirement for an inspection on resale of the vehicle. He intends to maintain the gas cap check and make all the other provisions voluntary. While an optional program, if several counties opted in we might get some credit from the EPA once implemented. The Dallas -Fort Worth area only has two members on the Committee -Rep. Ray Allen is Vice-Chairman and Rep. Sue Palmer is a Committee member. SB 889 (Harris) and HB 2087 (Goodman) -Pending in Senate Natural Resources Air Quality Standards for Certain Airports (DFW) These bills are very important to DFW Airport and how TNRCC places control strategy requirements on DFW. Currently, the FAA cannot authorize, approve, or support a development or construction project on an airport until the sponsor airport can prove that it is in confonnity with its air quality State Implementaiton Plan (SIP). This bill ensures that the DFW Airport is only held accountable under the SIP for those emissions over which it has direct control. The bill is scheduled for a hearing on April 6, 1999, in the Senate Natural Resources Committee. The Committee is chaired by Sen. Buster Brown, with Senators Haywood and Ratliff the only area members. .. .' 􀁾 RESOLUTION # _ A RESOLUTION OF THE DALLAS REGIONAL MOBILITY COALITION (DRMC) EXECUTIVE COMMITTEE EXPRESSING SUPPORT TO THE TEXAS NATURAL RESOURCE CONSERVATION COMMISSION (TNRCC) TO INCLUDE THE BROADEST POSSIBLE REGION OF TEXAS IN A STATE IMPLEMENTATION PLAN . TO SHOWAIR QUALITY ATTAINMENT IN THE DALLAS -FORTWORmAREA WHEREAS, the DRMC Executive Committee has reviewed presentations from area officials, the TNRCC, the Greater Houston Partnership, and other groups regarding logical·and acceptable methods for TNRCC to submit the required SIP to the EPA to show air quality attainment in the Dallas -Fort Worth four county non-attainment area; and, WHEREAS, there has been some indication that failure to extend some control measures outside the four county area could result in the EPA rejecting a more narrow regional approach; and, WHEREAS, non-acceptance of a SIP by the EPA from Texas could trigger certain sanctions on federal assistance to Texas and the area relating to highway funding and other economic • development issues; and, WHEREAS, elected and appointed officials ofthe State need to be apprised of the support of the DRMC for TNRCC detenninations on the most inclusive region and control strategies to receive EPA acceptance ofthe SIP; NOW THEREFORE BE IT RESOLVED BY THE DALLAS REGIONAL MOBILITY COALmONEXECUTIVE COMMI1TEE ONTInS THE 2ND DAY OF APRIL, 1999, THAT: 1. DRMC endorses efforts ofthe TNRCC to include the broadest possible area ofTexas for extension of necessary control strategies in the State Implementation Plan (SIP) to be submitted to the EPA in late 1999 or early 2000 to show attainment of air quality standards. Such control measures may include use of reformulated gasoline, Stage I vapor recovery at fueling stations, and implementation of low emission vehicles when available'. These strategies are now or will be in place in the four-county non-attainment area. 2. This position shall be communicated to appropriate local, state, and federal elected and appointed officials as soon as possible. possible. ATIEST: Lee Jackson, Chairman, DRMC Grady Smithey, Secretary