The article “Regional Reports: EPA Region 3” by Gale Lea Rubrecht first appeared in the Air Quality Committee Newsletter, Vol. 10, No. 2, April 2007, Section of Environment, Energy, and Resources, American Bar Association. © Copyright 2007. American Bar Association. All rights reserved. This information or any portion thereof may not be copied or disseminated in any form or by any means or downloaded or stored in an electronic database or retrieval system without the express written consent of the American Bar Association. REGIONAL REPORTS: EPA Region 3 by May 2009, and the remaining reductions are to take place by 2012. The regulations do allow an extension of the May 2009 compliance date if the plant operator is unable to meet the deadline through circumstances beyond its control. The new rule does not prohibit companies in Delaware from selling their surplus SO2 and NOx allowances to facilities in other states but does require the affected plants to meet their State emission limits without the use of allowance purchasing. The trading of mercury is prohibited. DNREC has committed to re-examining the progress of the regulated parties in meeting the requirements in 2010. The plants affected by the new rule are the largest unit at the City of Dover’s McKeen Run plant, three units at Connectiv Delmarva Generation, Inc.’s Edge Moor generator, and NRG Energy, Inc.’s Indian River location, and on Dec. 7, 2006, they filed appeals with the Environmental Appeals Board challenging the new regulations. Gale Lea Rubrecht Jackson Kelly PLLC Charleston, West Virginia galelea@jacksonkelly.com I. EPA Region 3 Developments On Nov. 29, 2006, EPA published a final rule (71 Fed. Reg. 69,022) deferring certain CAA requirements for Early Action Compact areas. The Early Action Compact areas in Region 3 are: Frederick County/ Winchester, Virginia; Roanoke, Virginia; Washington County/Hagerstown, Maryland; and Berkeley and Jefferson Counties, West Virginia. EPA is deferring the 8-hour ozone requirements for these areas from Dec. 31, 2006 to April 15, 2008. The final rule took effect Dec. 29, 2006. 3. NAAQS: On Dec. 6, 2006, EPA published a proposed rule (71 Fed. Reg. 70,702) and a direct final rule (71 Fed. Reg. 70,665) to approve amendments to the definition of “a major source” in Delaware’s state operating permit program. The revision would require all fugitive emissions to be included in major source determinations for sources subject to federal New Source Performance Standards (NSPS) or the National Emissions Standards for Hazardous Air Pollutants (NESHAPs). The amendments make the definition of “a major source” as stringent as the corresponding provision of the federal Title V regulations, which went into effect on Nov. 27, 2001. The rule took effect Feb. 5, 2007. SIP rules to implement CAMR were due to EPA by Nov. 17, 2006. Only Delaware, Pennsylvania, and West Virginia in Region 3 submitted timely rules as revisions to their respective SIPs. II. State Developments A. Delaware 1. Climate Change: Delaware is participating in RGGI. Under the Model Rule developed under RGGI, six electrical generating facilities in Delaware would be regulated. RGGI and the Model Rule are described above. On Dec. 7, 2006, EPA published a proposed rule (71 Fed. Reg. 70,914) and a direct final rule (71 Fed. Reg. 70,883) approving revisions to Delaware’s SIP. The revisions ensure that all pre-construction air quality permits issued pursuant to Delaware’s Regulation 1102 are federally enforceable, regardless of whether they are intended to limit a source’s potential to emit. The rule took effect Feb. 5, 2007. 2. Multi-Pollutant Regulation: In November 2006, the Delaware Department of Natural Resources and Environmental Control (DNREC) adopted a new regulation to reduce mercury, SO2, and NOX emissions. The new rule requires affected plants to cut their allowable emissions of mercury by 80 percent, SO2 by 87 percent, and NOx by 76 percent. Under the new rule, initial emissions reductions are to begin 1 developed by California and is commonly referred to as the low emission vehicles 2 or LEV-2 standard. LEV-2 requires reduced CO2 emissions, which the federal standard does not. 4. Regulations: On Oct. 16, 2006, the DNREC secretary issued Order No. 2006-A-0045 amending Regulation No. 1141, “Limiting Emissions of Volatile Organic Compounds from Consumer and Commercial Products, Section 1—Architectural and Industrial Maintenance Coatings.” The amendments include: (1) a specified finite period for the retention by manufacturers of certain records; and (2) a revised definition of specialty primer, sealer, under-coater product to include sealing in efflorescence. The amendments took effect Nov. 11, 2006. 3. NAAQS: On Oct. 10, 2006, EPA published a proposed rule (71 Fed. Reg. 59,413) to approve a Maryland SIP revision pertaining to the control of VOCs. On Oct. 24, 2006, EPA published a final rule (71 Fed. Reg. 62,210) approving a request by Maryland to remove an Aug. 2, 1984 Secretarial Order from the Maryland SIP. The Secretarial Order constituted a Plan for Compliance and an alternative method of assessing compliance at an American Cyanamid Company facility in Havre de Grace, Harford County, Maryland. The Secretarial Order allowed for certain VOC emissions sources at the facility to achieve compliance with emissions limits through averaging or “bubbling” of emissions over a twenty-four-hour period. In lieu of “bubbling,” the sources will now have to comply with the more stringent Maryland SIP requirements. The final rule took effect Nov. 24, 2006. On Oct. 16, 2006, DNREC issued Order No. 2006A-0046 withdrawing the proposed lightering regulation dated Aug. 1, 2001. The regulation has since been superseded by a Nov. 1 proposed regulation. The Nov. 1 proposal would add a new section, Section 46 “Crude Oil Lightering Operations,” to Regulation No. 1124, “Control of Volatile Organic Compound Emissions,” to help control emissions of volatile organic compounds (VOCs) and hazardous air pollutants (HAPs) from crude oil lightering operations. Lightering is the process where the draft of a large ocean-going vessel is reduced by bulk transfer of cargo (usually crude oil) from the ocean-going vessel to smaller service vessels and is necessary for the ocean-going vessel to be able to proceed upriver. Lightering operations represent the single, largest volatile organic compound point source in Delaware. A public hearing on the Nov. 1 proposed regulation was held Dec. 4, 2006. On Nov. 3, 2006, EPA published a proposed rule (71 Fed. Reg. 64,668) and a direct final rule (71 Fed. Reg. 64,647) approving a revision to the Maryland SIP consisting of the NOx allowance allocations for the 2008 ozone season in accordance with Maryland’s approved NOx SIP Call trading program. The rule took effect Jan. 2, 2007. C. Maryland On Dec. 22, 2006, EPA published a final rule (71 Fed. Reg. 76,920) approving a request by Maryland to redesignate the Kent and Queen Anne’s 8-Hour Ozone NonAttainment Area as attainment for the 8-hour ozone NAAQS. In addition, EPA approved the maintenance plan as meeting the requirements of the CAA with respect to the 1-hour ozone maintenance plan update, as well as the adequacy determination for the motor vehicle emission budgets in the maintenance plan and also approved those budgets. The final rule took effect Jan. 22, 2007. 1. Climate Change: Maryland is a participant in RGGI. 2. Mobile Sources: On Dec. 27, 2006, Environment Maryland called for Maryland to adopt the proposed Clean Cars Program, which would tighten Maryland’s auto emissions standards beyond federal requirements. In support of its call for the Clean Cars Program, Environment Maryland cited a report that stated that Maryland had levels of airborne toxins at least ten times higher than the EPA cancer risk standard. The Clean Cars Program would be more stringent than the federal Tier 2 standards. The Clean Cars Program was On Jan. 3, 2007, EPA published a proposed rule (72 Fed. Reg. 68) and a direct final rule (72 Fed. Reg. 18) 2 3. Mobile Sources: On Sept. 19, 2006, the Pennsylvania Environmental Quality Board approved, by a vote of 16-2, Pennsylvania’s Clean Vehicles Program. The final regulation implements much of California’s clean car program. Beginning with the 2008 model year, only those vehicles certified by the California Air Resources Board can be sold and registered in Pennsylvania. The Pennsylvania Clean Vehicle Program also includes the California language requiring reductions in CO2 emissions beginning in 2009. On Nov. 2, 2006, the Independent Regulatory Review Commission voted 4-1 to approve the final regulation, and on Dec. 8, 2006, the Pennsylvania attorney general approved Pennsylvania’s Clean Vehicles Program. to approve revisions to the Maryland SIP incorporating by reference EPA’s test methods for PM10. The rule took effect March 5, 2007. On Jan. 11, 2007, EPA approved a final rule (72 Fed. Reg. 1289) approving a Maryland SIP revision pertaining to the control of VOCs from medical device manufacturing. The final rule takes effect Feb. 12, 2007. Also on Jan. 11, 2007, EPA published a final rule (72 Fed. Reg. 1291) approving a revision to the Maryland SIP pertaining to a consent order establishing a VOC reasonably available control technology (RACT) for Perdue Farms, Incorporated. The final rule took effect Feb. 12, 2007. C. Pennsylvania 4. NAAQS: On Sept. 29, 2006, EPA published a final rule (71 Fed. Reg. 57,428) approving a Pennsylvania SIP revision pertaining to: (1) NOx reductions that are required for the Commonwealth to support its approved attainment demonstration for the Philadelphia-Trenton-Wilmington 1-hour ozone nonattainment area, (2) NOx reductions from stationary internal combustion engines to meet the NOx SIP Call Phase II, and (3) NOx reductions from cement kilns to meet the NOx SIP Call. The revisions also include provisions for emission credits for sources that generate zero-emission at renewable energy. The final rule took effect Oct. 30, 2006. 1. Climate Change: On Oct.17, 2006, the Pennsylvania Department of Environmental Protection (PADEP) announced that the Lancaster County Solid Waste Management Authority had become the first public environmental services organization in the United States to become a member of the Chicago Climate Exchange, North America’s only and the world’s first, voluntary, legally binding multi-sector market for reducing and treating GHG emissions. The authority is voluntarily committing to reduce its GHG emissions by 6 percent by 2010 using its emissions in 2000 as the baseline. On Sept. 29, 2006, PADEP announced that Pennsylvania is petitioning EPA to re-designate Tioga County from nonattainment to attainment for the 8-hour ozone NAAQS and submitting an attainment maintenance plan. The maintenance plan includes additional emission reductions from the transportation sector. 2. Mercury: On Sept. 27, 2006, the sixteen-member Air Quality Technical Advisory Committee for PADEP voted 7-4, with one abstention, to send Pennsylvania’s state-specific mercury rule to the Environmental Quality Board for final approval. On Oct. 17, 2006, the 20-member Pennsylvania Environmental Quality Board voted 17–3 to approve the state-specific mercury rule. The Independent Regulatory Review Commission approved Pennsylvania’s mercury rule by a 3-2 vote at its Nov. 16, 2006 meeting, and PADEP submitted Pennsylvania’s rule to EPA as a SIP revision. Pennsylvania’s rule still requires review by the state attorney general before becoming final. The rule requires an 80 percent reduction in mercury emissions by 2010 and a 90 percent reduction by 2015. Pennsylvania’s rule also prohibits trading. On Nov. 9 and 20, 2006, PADEP announced that it also would petition EPA to re-designate Greene County and Franklin County, respectively, from nonattainment to attainment for the 8-hour ozone NAAQS based on 2003 to 2005 ambient air quality concentrations. Reading’s and Franklin County’s proposed maintenance plans, which demonstrate that the areas can maintain air quality at the required levels for the next ten years, include additional emission reductions from the transportation sector. 3 imposes operating restrictions on the facility’s boilers and the shutdown of the remainder of the facility. The rule took effect Dec. 18, 2006. On Jan. 3, 2007, EPA published a final rule (72 Fed. Reg. 200) updating the materials submitted by Pennsylvania that are incorporated by reference into the Pennsylvania SIP. The final rule took effect Jan. 3, 2007. On Dec. 26, 2006, EPA published a proposed rule (71 Fed. Reg. 77,353) proposing to approve revisions to the Virginia SIP. The revisions expand the VOC and NOx emissions control areas and extend the geographic applicability of the VOC and NOx regulatory rules into the new 8-hour ozone nonattainment areas. The counties and cities in the corresponding new 8-hour ozone nonattainment areas that were not previously listed in the Virginia VOC and NOx areas include Spotsylvania County and Fredericksburg City in the Fredericksburg area, Gloucester County and Isle of Wight County in the Hampton Roads area, and Prince George County and Petersburg City in the Richmond area. D. Virginia 1. Climate Change: On Jan. 1, 2007, Arlington County, Virginia, adopted a GHG initiative, known as the Fresh Arlington Initiative to Reduce Emissions (Fresh AIRE), aimed at cutting the county’s emissions by 10 percent by 2012. Fresh AIRE calls on the local government to: increase its purchase of wind energy from 3 percent to 5 percent, install solar technology in one or two county buildings by 2012, increase energy efficiency in government buildings to lower energy use by 2 percent through 2012, draft a county-wide energy and climate-action plan, require new public buildings to achieve Leadership in Energy Efficient Design certification, and plant 1,200 trees in 2007. On Jan. 8, 2007, EPA published a proposed rule (72 Fed. Reg. 697) and a direct final rule (72 Fed. Reg. 653) approving revisions to the Virginia SIP consisting of the addition of counties to the Northern Virginia nonattainment area for the PM2.5 NAAQS. The counties and local areas included in the nonattainment area are: Arlington County, Fairfax County, Loudon County, Prince William, Alexandria City, Fairfax City, Falls Church City, Manassas City, and Manassas Park City. The rule took effect March 9, 2007. 2. Mercury: On Oct. 19, 2006, the Virginia Department of Environmental Quality (VADEQ) announced the opening of the public comment period on Virginia’s proposed mercury rule. The proposal consists of adding three new parts for the control of mercury emissions from coal-fired electric steam generating units. The three new parts are: (1) a state model rule that meets the EPA requirements for participation in the federal mercury emissions trading program and is to be submitted to EPA to meet the requirements of CAMR, (2) a state-specific rule that addresses mercury reductions to meet Virginia’s environmental needs, and (3) a state-specific rule for nonattainment areas that addresses mercury compliance obligations and non-attainment areas. Under the proposal, mercury emission reductions are required beginning in 2010. 4. New Source Review: On Oct. 10, 2006, VADEQ announced a policy adopting the current EPA guidance on interim implementation of new source review for PM2.5, which directs states to use PM10 as a surrogate for PM2.5 New Source Review (NSR) until such time as the state establishes a more appropriate implementation methodology, EPA promulgates revised implementation guidance or policy, or EPA promulgates final regulations. 3. NAAQS: On Nov. 16, 2006, EPA published a final rule (71 Fed. Reg. 66,679) approving a SIP revision removing a consent agreement currently in place for the control of sulfur dioxide (SO2) emissions from Burlington Industries located in Clarksville, Virginia. The consent agreement has been superseded by a federally enforceable state operating permit that 5. Regulations: On Nov. 3, 2006, VADEQ announced that the final regulations for case-by-case RACT determinations for existing stationary sources had been submitted for publication in the Virginia Register. The amendments clarify and re-codify the existing provisions covering case-by-case RACT determinations (Article IV) and create a new Article 51 4 in which to separate the RACT-specific requirements from the general process requirements of Article IV. In addition, the amendments add the new 8-hour ozone NAAQS requirements. On Oct. 2, 2006, EPA published two proposed rules (71 Fed. Reg. 57,894 and 71 Fed. Reg. 57,905) proposing to approve re-designation requests and state implementation plan revisions for the West Virginia portions of the Wheeling, WV-OH area and the Steubenville-Weirton, OH-WV area from nonattainment to attainment of the 8-hour NAAQS. Specifically, EPA is proposing to approve a request by WVDEP that the Marshall and Ohio County, West Virginia portion of the Wheeling, WV-OH area and the Brooke and Hancock County, West Virginia portion of the Steubenville-Weirton, OH-WV area be redesignated as attainment for the 8-hour ozone standard. In addition, EPA is proposing to approve West Virginia’s maintenance plans for the Wheeling area and the West Virginia portion of the Weirton area that provide for continued attainment of the 8-hour ozone standard for the next twelve years. EPA is also proposing to approve the motor vehicle emission budgets that are identified in the maintenance plans for purposes of transportation conformity. E. West Virginia 1. Climate Change: The West Virginia Department of Environmental Protection (WVDEP) has proposing another climate change bill during the 2007 Regular Session of the West Virginia Legislature. The bill, if passed, would establish a GHG inventory, requiring facilities to report emissions to the state, and would set up a voluntary reporting registry for voluntary reductions. The bill is intended to determine if West Virginia is a net sink or emitter of GHGs and whether GHGs could be developed as an asset for economic development. The bill would establish a mandatory reporting program for all stationary, mobile, and agricultural sources of GHG and require tracking of GHG sinks in West Virginia. 2. Mercury: On Nov. 1, 2006, WVDEP released its mercury study evaluating technology for the control of mercury air emissions from coal-fired electric generating units and other industrial stationary sources. The study concludes that commercially available mercury-specific technology for coal-fired power plants does not exist and that research and development and commercial demonstrations as well as technical and economic evaluations are needed. With respect to other industrial facilities, the study concludes that federal and state rules for hazardous air pollutants will control mercury air emissions from the single mercury-cell chlor alkali plant in West Virginia, as well as industrial/commercial/institutional boilers and process heaters. WVDEP is required to make a finding in 2007 as to whether the citizens of West Virginia or regions of West Virginia are exposed to potential health risks because of mercury contamination. On Nov. 2, 2006, EPA published two final rules (71 Fed. Reg. 64,470 and 71 Fed. Reg. 64,468) approving amendments to West Virginia’s prevention of significant deterioration preconstruction and nonattainment NSR permit program regulations, 45 CSR 14 and 45 CSR 19, respectively as revisions to the West Virginia SIP. The amendments exclude from the West Virginia state implementation plan the “Clean Unit” and “Pollution Control Project” exemption and thereby make the West Virginia prevention of significant deterioration and nonattainment NSR programs consistent with the June 24, 2005 ruling of the United States Court of Appeals for the District of Columbia Circuit in New York v. EPA, 413 F.3d 3 (D.C. Cir. 2005). The final rule took effect Dec. 4, 2006. On Jan. 12, 2007, EPA published a proposed rule (72 Fed. Reg. 1474) proposing to approve a redesignation request and a state implementation plan revision submitted by West Virginia for the Parkersburg portion of the Parkersburg-Marietta, WV-OH area from non-attainment to attainment of the 8-hour ozone NAAQS. West Virginia is requesting that the Wood County, West Virginia (Parkersburg) portion of the area be re-designated as attainment for 3. NAAQS: On Sept. 28, 2006, EPA published a proposed rule (71 Fed. Reg. 56,921) and a direct final rule (71 Fed. Reg. 56,881) converting a conditional approval of West Virginia’s Phase II NOx SIP Call Rule to a full approval. The rule automatically took effect Nov. 27, 2006. 5 the 8-hour ozone NAAQS. EPA is also proposing to approve the maintenance plan for Parkersburg that provides for continued attainment of 8-hour ozone standards for the next twelve years and is proposing to approve the motor vehicle emission budgets that are identified in the Parkersburg maintenance plan for purposes of transportation conformity. 6