The article “Regional Reports: Region 3” by Gale R. Lea first appeared in the Air Quality Committee Newsletter, Vol. 8, No. 2, January 2005, Section of Environment, Energy, and Resources, American Bar Association. © Copyright 2005. 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: Region 3 and $225,000 to Pennsylvania for a total penalty of $900,000. In addition, the proposed consent decree requires Weyerhaeuser to use SO2 scrubbers that were installed in 2003 “in accordance with standards designed” to reduce SO2 emissions by up to 95 percent. The notice of violation and complaint that gave rise to the proposed consent decree were filed during the Clinton administration when the mill was owned by Willamette Industries. The complaint alleged that the company violated the NSR provisions of the Clean Air Act (CAA) by modifying two coalfired power boilers at its kraft pulp and paper mill in Johnsonburg, Pennsylvania, without installing pollution controls. The complaint also alleged that the company failed to obtain Pennsylvania-issued SO2 permits. The comment period expired Sept. 5, 2004. See 69 Fed. Reg. 47462 (Aug. 5, 2004). Gale R. Lea Jackson Kelly PLLC Charleston, West Virginia galelea@jacksonkelly.com I. EPA Region 3 Developments Air Toxics: EPA has conducted the first test case of the local scale of BenMAP, an economic analysis software for PM2.5. The software matches changes in particulate matter (PM) with known health impacts and the cost of those impacts. The test case was part of the Philadelphia Air Toxics Project and evaluated the economic impact of diesel PM in the fivecounty Philadelphia metropolitan area. The study investigated the diesel on-road and nonroad contribution to PM. The costs of diesel PM were calculated by subtracting the diesel PM from the overall PM concentration – the diesel difference. Health impacts were based on peer-reviewed epidemiological studies. Costs were calculated using willingness to pay, cost of illness and lost wages in year 2000. The evaluation estimates that in 1999 diesel PM caused 260 deaths at a cost of $1.4 billion, 450 non-fatal heart attacks at a cost of $37 million, 32,000 missed days of work at a cost of $11 million in wages and 3,700 asthma attacks at a cost of $160,000. On Sept. 23, 2004, EPA announced a settlement with Torrance State Hospital in Torrance, Westmoreland County, Pennsylvania, concerning alleged particulate emissions from the hospital’s three coal-fired boilers in excess of the facility’s state-issued CAA permit. Under the consent decree, Torrance State Hospital agrees to pay a penalty of $28,940. After EPA issued the notice of violation, the hospital installed a replacement boiler and permanently shut down its highest emitting boiler. On Sept. 27, 2004, EPA lodged a proposed consent decree with Mirant Mid-Atlantic (Mirant) in the U.S. District Court for the Eastern District of Virginia concerning alleged violations by Mirant of the NOx emissions limitations set forth in the company’s operating permit for its Potomac River Generating Station in Alexandria, Virginia. Under the proposed consent decree, Mirant must cap its annual emissions of NOx in the Washington, D.C., Enforcement: On July 22, 2004, EPA lodged a proposed consent decree with Weyerhaeuser Co. in the U.S. District Court for the Western District of Pennsylvania concerning the company’s kraft pulp and paper mill in Johnsonburg, Pennsylvania. Under the proposed consent decree, Weyerhaeuser agrees to pay $675,000 to the United States 1 metropolitan area and install pollution control on four coal-fired units. The four coal-fired power plants consist of 12 units with approximately 3,000 megawatts of generating capacity in Maryland and Virginia. The four coal-fired power plants covered by the proposed consent decree include the Potomac River Generating Station and, in addition, the Morgantown Generating Plant in Charles County, Maryland; the Chalk Point Generating Plant in Prince George’s County, Maryland; and the Dickerson Generating Plant in Montgomery County, Maryland. Under the proposed consent decree, Mirant also agrees to pay a $500,000 penalty to be divided evenly between the Commonwealth of Virginia and the United States. In addition, Mirant will spend at least $1 million to finance environmental projects that are designed to reduce particulate matter and fugitive dust emissions from the Potomac River plant. The proposed consent decree is subject to a 30-day public comment period. Office of Inspector General that the agency needs to increase its oversight of the Title V program. Miscellaneous: On July 27, 2004, Philadelphia’s Channel 6 news aired an energy audit by EPA Region 3 Administrator, Donald S. Welsh, of a home in Bala Cynwyd. The show explains how consumers can protect the environment and save money during the summer months, providing energy-saving tips for air conditioning, ceiling fans, programmable thermostats and ductwork. The show is part of the ENERGY STAR Program’s “Cool Change” Campaign. For more information on the ENERGY STAR Program’s “Cool Change” Campaign, see the Web site at www.energystar.gov. Mobile Sources: EPA Region 3 has launched a compliance assistance effort to all gas stations in Philadelphia and its five surrounding counties, and Delaware. More than 1,500 Stage I and II Self Inspection Handbooks were mailed to all gas stations in the area. On Oct. 5, 2004, EPA announced a settlement with Gerome Manufacturing concerning alleged CAA violations at the company’s Uniontown plant in Fayette County, Pennsylvania. The company manufactures custom sheet metal products, such as enclosures, vehicle panels and magnetic shields, and the Uniontown facility uses chlorine or bromine-based degreasers to clean machines and metal parts. EPA alleges that the company’s Uniontown facility operated its vapor degreaser in violation of CAA regulations, including design, operational and work practice requirements designed to limit air emissions of the trichloroethylene (TCE) solvent. Under the proposed consent decree, Gerome Manufacturing will pay a $19,250 penalty to settle the alleged violations of regulations limiting air emissions of degreasers or halogenated cleaning solvents. In August 2004, EPA Region 3 added its first new hybrid vehicle, a 2004 Honda Civic, to its fleet. Three additional hybrid vehicles are to be delivered during the month of August, and the Environmental Science Center at Fort Meade, Maryland, will also receive a hybrid vehicle. II. State Developments A. Delaware 1. Enforcement: During the third quarter of 2004, the Enforcement Section and the Division of Air and Waste Management of the Delaware Department of Natural Resources and Environmental Control (DE DNREC) handled 1,383 complaints, took 150 enforcement actions and performed 331 proactive patrol checks. Title V: EPA Region 3 has announced that over the next four years the agency will evaluate all state operating permits programs as part of EPA’s program oversight responsibilities. In addition, EPA will respond to the findings of the On Sept. 28, 2004, DE DNREC announced that DE DNREC Secretary John S. Hughes issued a Notice of Administrative Penalty Assessment 2 and Secretary’s Order to Laidlaw Corporation for alleged violations of Delaware’s air regulations and its operating permit for applying coatings that exceeded allowable VOC content at its New Castle facility, which manufactures coated wire clothes hangers. The Order includes a cash penalty of $31,500 and a $1,782.50 as cost recovery reimbursement to DE DNREC for expenses associated with its investigation. Laidlaw Corporation has 30 days to request a public hearing. scrubbers at their Newark, Delaware, facility. These scrubbers are designed to reduce the incidence of a pluggage of nozzles into the combustor and to protect the combustor from hydrochloric acid in the exhaust steam. The scrubbers are expected to reduce hydrochloric acid emissions to the atmosphere, although no change in the permit limit is proposed. The company has also requested a change in their tow coater emission limits to convert the existing ultimate pound-per-hour limits for hydrochloric acid, hydrogen and chlorine to batch average limits. No emissions increases from current operations are expected to result from these changes. The comment period expires Nov. 2, 2004. 2. Legislation: The Delaware Senate has passed an Act to amend Title 29 of the Delaware Code to require state agencies to purchase ENERGY STAR products whenever feasible. Delaware officials and facility managers will be trained on all aspects of the ENERGY STAR program, and will receive training on the ENERGY STAR benchmarking tools. Delaware formally signed with the ENERGY STAR Program in February, and EPA is participating in the Delaware Energy Task Force. For more information on the ENERGY STAR Program, see the web site at www.energystar.gov. ICI Americas, Inc., (d.b.a. Uniqema) has submitted a synthetic minor permit application, pursuant to Delaware Air Regulation No. 2, for construction of a multi-purpose surfactant manufacturing plant within its facility at New Castle, Delaware. The comment period expires Nov. 2, 2004. Pennsy Supply, Inc. (d.b.a. Tilcon Delaware) has submitted a Title V synthetic minor permit application, pursuant to Delaware Air Regulation No. 2 for an amendment to their operating permit at their facility in Dover, Delaware. The company seeks an amendment to its permit to add an in-line, electric powered Recycled Asphalt Paving crusher. The comment period expires Oct. 26, 2004. 3. NAAQS: 8-Hour Ozone: Delaware’s 8-hour ozone State Implementation Plan (SIP) is due April 15, 2007. PM2.5: Delaware’s PM2.5 SIP is due in February 2008. 4. Permitting: Allen’s Milling Division – Allen’s Hatcher, Inc. has applied for a Delaware Air Regulation No. 2 permit to install two hammermills with an associated baghouse to replace three existing hammermills at its Delmar, Delaware, facility. The comment period ends Oct. 25, 2004. 5. Title V: On June 30, 2004, DE DNREC issued an Administrative Order for the Title V permit to Dow Reichhold Specialty Latex LLC for its Cheswold facility. The Cheswold facility produces latex. On July 24, 2003, a public hearing was held for the amendment to Delaware Air Regulation No. 2 permits and proposed Title V permit amendment. The amendments were for testing, completed by May 8, 2004, using the emergency generator when the universal power supply failed, changing the type of fuel oil stored in one storage tank and adding a permit shield to the Power Systems Composites, LLC has submitted a Title V synthetic minor permit application, pursuant to Delaware Air Regulation No. 2, requesting a permit amendment to allow operation of two water 3 Title V permit. The order approved issuance of the proposed Title V Operating Permit that contains these amendments. EPA has up to 45 days to review the proposed permit. DE DNREC’s Air Quality Management Section will issue a final permit if EPA approves the proposed Title V Permit. upgrade project and Phase I of the air application was held on Oct. 7, 2004. A public hearing on the Coastal Zone Act Permit application was held on Oct. 14, 2004, and a public hearing on Phase I of the DE DNREC’s review of Premcor’s air permit application for the pollution control upgrades and Phase I permits will be held on Oct. 19, 2004. 6. Miscellaneous: On Aug. 3, 2004, DE DNREC announced that it would begin to inform developers and local government of the impact of proposed development on Delaware’s air quality. DE DNREC first offered these comments at the July 28, 2004 Preliminary Land Use Service meeting. DE DNREC plans to comment on potential increases of air pollutants including VOCs, NOX, SO2, PM2.5 and CO2. In a letter to the three counties in Delaware and the Delaware League of Local Government and the three Delaware counties, DE DNREC Secretary John A. Hughes stated that “local government should be anticipating air (quality) impacts (from development) and planning for (its) mitigation.” Examples of mitigation include limiting large new developments to pre-approve growth areas, concentrating development in areas capable of providing mass transit services, requiring more efficient homes that would lessen air quality impacts, and promoting walking and biking within and between developments and town centers. On Aug. 16, 2004, DE DNREC issued an Administrative Order for the Title V (air) permit renewal for the Wilmington Waste Water Treatment Plant owned by the City of Wilmington. On July 22, 2003, a public hearing was held. As a result of the comments received, the draft permit was modified and incorporated enhanced conditions for odor and visible emission monitoring. The Administrative Order approved issuance of the Proposed Title V operating permit renewal. EPA has up to 45 days to review the proposed permit. DE DNREC’s Air Quality Management Section will issue a final permit if EPA approves the permit as proposed. On Aug. 18, 2004, the Air Quality Management Section of DE DNREC held a public hearing on the Title V (part 3) application of Premcor Refining Group for its refinery in Delaware City, Delaware. Part 3 of Premcor’s Title V application addresses the company’s power plant and repowering project which includes the gasifiers, combustion turbines, the flare, and other components. The comment period on the Response Document to Premcor’s Title V permit application began Oct. 1, 2004 and closed Oct. 22, 2004. B. District of Columbia 1. Litigation: On July 15, 2004, Sierra Club moved the U.S. District Court for the District of Columbia in Sierra Club v. EPA, No. 02-2235 (JR) (D.D.C.), for an order, directing EPA to disapprove the ozone plan for the Metropolitan Washington, DC-MD-VA Ozone Nonattainment Area (NAA). Sierra Club asked the district court to establish a 45-day deadline for final action by EPA on the 1-hour ozone attainment state implementation plan (SIP) for the Metropolitan Washington, DC-MD-VA Ozone NAA. In February 2002, the U.S. Court of Appeals for the District of Columbia Circuit held On Sept. 22, 2004, DE DNREC announced the schedule for a public workshop and two separate hearings on the permit applications of The Premcor Refining Group, Inc. for pollution control upgrades to reduce air emissions at its Delaware City refinery required under federal and state consent decrees. The project will result in a reduction of approximately 30,000 tons annually of SO2 emissions. A workshop for public review of Premcor’s Coastal Zone Act Permit Application for the entire pollution control 4 that EPA’s conditional approval of the 1-hour ozone attainment SIP for the Metropolitan Washington, DC-MD-VA Ozone NAA was improper. Sierra Club v. EPA, No. 03-1084 (D.C. Cir. Feb. 3, 2004). On Aug. 6, 2004, EPA published a “final rule; notice of administrative change” (69 Fed. Reg. 4773) updating the materials submitted by the District of Columbia that are incorporated by reference in the SIP. The action was effective Aug. 6, 2004. Thereafter, Sierra Club moved the U.S. Court of Appeals for the District of Columbia Circuit to enforce a preliminary injunction to have EPA disapprove the attainment demonstration and rate-of-progress plans for the Washington, D.C. ozone NAA. On Sept. 7, 2004, the District of Columbia Circuit denied Sierra Club’s motion. In denying Sierra Club’s motion, the District of Columbia Circuit found that EPA had complied with the court’s Dec. 18, 2002, order to take final action to approve/disapprove those plans when EPA took final action on the plans, even though that action was vacated by the D.C. Circuit and remanded to EPA. EPA is currently reviewing and will take final action on the revised plans submitted by Virginia, Maryland and the District of Columbia. On Sept. 30, 2004, EPA published a notice of withdrawal (69 Fed. Reg. 58433) of its June 22, 2000, adequacy finding on the 2015 and 2020 motor vehicle emission budgets (MVEBs) for the metropolitan Washington, D.C. area. EPA withdrew the June 22, 2000 adequacy finding because the District of Columbia, state of Maryland and the Commonwealth of Virginia, withdrew their SIP submissions containing those MVEBs. EPA’s withdrawal of its June 22, 2000 adequacy finding was made in letters dated Aug. 26, 2004 from EPA Region 3 to the District of Columbia and the other two jurisdictions. As a result of EPA’s withdrawal of the June 22, 2000 adequacy finding, the 2015 and 2020 MVEBs are no longer available for transportation conformity purposes. However, the withdrawal of the June 22, 2000 adequacy finding has no effect whatsoever on EPA’s more recent adequacy finding of Dec. 9, 2003, that the MVEBs of the three jurisdictions’ 2005 ROP Plan and 2005 revised Attainment Demonstration Plan submissions are adequate for conformity purposes. The Dec. 9, 2003 adequacy finding stands, and the MVEBs of the 2005 ROP Plan and 2005 revised Attainment Demonstration Plan remain available for transportation conformity determinations. The Aug. 26, 2004 withdrawal of the June 22, 2000 adequacy finding was effective on Oct. 15, 2004. 2. NAAQS: SIP Revisions: On July 21, 2004, EPA published in the Federal Register a “final rule; technical amendment” (69 Fed. Reg. 43520) vacating a Jan. 3, 2001 final rule (66 Fed. Reg. 586) and an April 17, 2004 final rule (68 Fed. Reg. 19106) by amending 40 CFR part 52 to remove codification of SIP approvals of the 1-hour ozone attainment demonstration and the 1996-1999 Rate of Progress (ROP) plans for the Metro Washington, DC-MD-VA Ozone NAA and vacating an indefinite stay of the underlying SIP approvals (69 Fed. Reg. 19937; Apr.15, 2004). The underlying SIP approvals were vacated by the United States Court of Appeals for the District of Columbia Circuit in Sierra Club v. EPA, 294 F.3d 155, 163 (D.C. Cir. 2002), and Sierra Club v. EPA, 356 F.3d 302304 (D.C. Cir. Feb. 3, 2004), as modified, (D.C. Cir. Apr. 16, 2004). The final rule and vacatur of the stay are effective Aug. 20, 2004. 8-Hour Ozone: The District of Columbia’s 8-hour ozone SIP is due April 15, 2007. PM2.5: The District of Columbia’s PM2.5 SIP is due in February 2008. 3. New Source Review: The District of Columbia is implementing the new federal 5 attainment Prevention of Significant Deterioration (PSD) rules. Nov. 1, 2004, unless EPA received adverse written comment by Sept. 30, 2004. 4. Miscellaneous: The District of Columbia Department of Health has received Fiscal Year 2004 air funding in the amount of $322,678 to monitor PM. On Sept. 16, 2004, EPA published a proposed rule (69 Fed. Reg. 55791) and a direct final rule (69 Fed. Reg. 55759) to approve a request from the Maryland Department of the Environment for authority to implement and enforce state permit terms and conditions in place of those of the National Emission Standards for Hazardous Air Pollutants (NESHAPs) for Chemical Recovery Combustion Sources at Kraft, Soda, Sulfite, and Stand-Alone Semichemical Pulp Mills, with respect to the operations of MeadWestvaco Company’s Luke Mill, located in Luke, Maryland. Unless EPA received adverse written comment by Oct. 7, 2004, the rule is automatically effective on Nov. 15, 2004. C. Maryland 1. Mobile Sources: At the annual meeting of truckers in Region 3, members of the Maryland Motor Trucking Association heard about the benefits of joining the SmartWay Transport Partnership, a collaborative, voluntary program between EPA and the freight industry. The partnership establishes market-based incentives for companies to improve the environmental performance of their freight operations, including the reduction of greenhouse gas emissions and improvement in air quality. For more information on the partnership, see http://www.epa.gov/smartway/. SIP Revisions: On Aug. 2, 2004, EPA published a proposed rule (69 Fed. Reg. 46124) proposing to approve redesignation of the Kent and Queen Anne’s Counties Ozone NAA to attainment and the one-hour ozone maintenance plan for Kent and Queen Anne’s Counties. The one-hour ozone maintenance plan for Kent and Queen Anne’s Counties provides requirements for continued attainment of the one-hour ozone National Ambient Air Quality Standard (NAAQS) for the next 10 years. The comment period on the proposed rule expired on Sept. 1, 2004. On Sept. 20, 2004, EPA published a final rule (69 Fed. Reg. 56170) approving a Maryland SIP revision pertaining to changes in Maryland’s regulations for new source permitting for major sources of VOC and NOx emissions and regulations requiring RACT on major stationary sources of NOx in the Washington, D.C. ozone NAA. The revision changes the currently approved SIP for the Maryland portion of the Washington, D.C. ozone NAA by: (1) modifying the emissions offset ratio, (2) lowering the applicability threshold of the new source review (NSR) permit program, and (3) lowering the applicability threshold of the NOx RACT rule. The changes were made by Maryland in response to the reclassification of the Washington, D.C. ozone NAA from serious to severe. The rule took effect Oct. 20, 2004. On Aug. 31, 2004, EPA published a proposed rule (69 Fed. Reg. 53026) and a direct final rule (69 Fed. Reg. 53002) to approve a Maryland SIP revision pertaining to a Consent Decree establishing VOC reasonably available control technology (RACT) for Kaydon Ring and Seal, Incorporated, located in Baltimore, Maryland. The direct final rule is automatically effective on 8-Hour Ozone: On Sept. 22, 2004, EPA published a final rule (69 Fed. Reg. 56697) reclassifying the Kent/Queen Anne Counties, Maryland “moderate” 8-hour ozone NAA as “marginal” for the 8-hour ozone NAAQS. EPA re-classified the area pursuant to CAA § 181(a)(4), which provides that an ozone nonattainment area may be reclassified “if the 2. NAAQS: 6 design value in the area were 5 percent greater or 5 percent less than the level on which such classification was based.” The reclassification of the Kent/Queen Anne Counties, Maryland ozone NAA means that the area must attain the new 8-hour NAAQS by 2007 instead of 2010. In addition, the area will have greater flexibility in attaining the 8-hour ozone standard. The final rule takes effect on Nov. 22, 2004. Maryland’s 8-hour ozone SIP is due April 15, 2007. as a backup to ensure that sulfur dioxide limits are not exceeded. Synergics Wind Energy LLC is planning a wind farm in western Maryland. Synergics filed an application with the MPSC in June 2004 for permission to place 24 windmills atop Backbone Mountain south of U.S. 50 near Tablerock in Garret County. The 262-foot turbines would collectively generate about 40 megawatts of electricity for sale. Synergics’ planned wind farm would be the third wind farm in the area. Synergics’ site is about 10 miles south of a 67-turbine wind farm that Clipper Windpower Inc. plans to build along the same ridge, and about 10 miles north of the 44-turbine Mountaineer Wind Energy Center already operating on Backbone Mountain near Thomas, West Virginia. PM2.5: Maryland’s PM2.5 SIP is due in February 2008. 3. Trading: At the annual meeting of the National Conference of State Legislatures (NCSL) in July 2004, Maryland offered a resolution opposing cap-and-trade as an approach to reducing mercury or any other toxin as the official position of the NCSL. The resolution failed. A three-quarters majority vote was required for the resolution to be adopted. The resolution received only 10 out of 24 possible votes. D. Pennsylvania 1. Air Toxics: On Aug. 26, 2004, the Clean Air Council released a report entitled “Beyond Mercury: Why the Bush Administration Plan Means More Arsenic, Lead, Dioxin, and Other Toxic Air Pollution.” The report concludes that Pennsylvania’s power plants are the worst in the nation for arsenic emissions and third worst for lead and chromium emissions. The report also criticizes EPA’s proposed mercury rule as having “weak limits on mercury emissions” and as failing to “require emission limits for more than 60 other power plant air toxics that threaten public health.” 4. Miscellaneous: A decision from the Maryland Public Service Commission (MPSC) on Mirant’s 2001 application to expand its 850 MW Dickerson plant to 1,580 MW is expected by October 2004. A group coordinating the work of seven state agencies relating to construction of power plants known as the Maryland Power Plant Research Program recommended in a letter dated July 16, 2004 that the PSC approve the project, provided certain pollution controls are installed. The list of controls includes an NSR permit. In addition, Mirant has agreed to convert two 147 MW gas-fired simple cycle combustion turbines to a combined cycle unit and to install selective catalytic reduction (SCR) units on the converted combined cycle unit and on a new combined cycle unit that is to be built. The two new units will have oxidation catalyst systems to control carbon monoxide and VOC emissions. The two new units are to have limits on operating hours when they burn low sulfur fuel oil 2. Citizen Suits: On Oct. 5, 2004, a Pennsylvania public interest group, known as Citizens for Pennsylvania’s Future or PennFuture, announced plans to file a citizen suit against Allegheny Energy for emitting excess particulate matter (PM) from its Hatfields Ferry plant in Greene County, Pennsylvania. PennFuture sent a 60-day notice of intent to sue to Allegheny Energy with a copy to EPA and the Pennsylvania Department of Environmental Protection (PA DEP). According to the notice of 7 intent to sue, Allegheny Energy’s Hatfields Ferry plant failed to meet opacity and PM standards set out in the Clean Air Act (CAA) and Pennsylvania air quality rules. Hatfields Ferry has wet electrostatic precipitators to reduce PM and low-NOx burners to control NOx and is in the process of installing selective non-catalytic reduction units, but has no scrubbers to capture SO2 emissions, which can also reduce opacity. 3. Climate Change: The Pennsylvania Roundtable has announced that seventy percent of its member companies, which represent every sector of the United States economy, are participating in its Climate RESOLVE program. The Pennsylvania Roundtable Climate RESOLVE program is designed to address greenhouse gas emissions and is voluntary. 5. Legislation: S.B. 1211, which was introduced by Pennsylvania State Sen. Stewart Greenleaf, would allow the operation of low speed, neighborhood electric cars on certain roadways in Pennsylvania. The electric vehicles would not be subject to vehicle emissions testing under Pennsylvania’s Inspection and Maintenance Program. The Senate and House Environmental Resources and Energy Committee are considering three Portfolio Standards bills. The three bills are: H.B. 2250 (Ross, R-Chester), S.B. 962 (Ferlo, D-Allegheny), and S.B. 1030 (Erickson, R-Chester). All three bills would advance renewable energy and clean energy technology in Pennsylvania. The bills vary on roll out periods for implementation and categories of eligibility. Copies of the bills are available at: http://www.legis.state.pa.us/index.cfm. 4. Enforcement: PA DEP has reached an agreement with Eureka Stone Quarry Inc., the owner of stone crushing plants, asphalt plants and one batch asphalt plant in Bucks County, Pennsylvania, for alleged air quality violations. Pursuant to the agreement, Eureka Stone Quarry Inc. has paid a $41,000 civil penalty for fugitive emission and record-keeping violations noted at its Rush Valley Quarry in Wrightstown Township and Chalfont Quarry in Warrington Township during inspections from October 2000 through September 2003. On Sept. 30, 2004, the Philadelphia City Council passed a resolution urging the Pennsylvania General Assembly and Gov. Rendell to set energy efficiency standards for common appliances bought and sold in Pennsylvania. Two days earlier, the Pittsburgh City Council passed a similar resolution. The Pennsylvania Senate is currently considering legislation that would establish energy efficiency standards for a set of eight common appliances in Pennsylvania, including exit signs, traffic signals and industrial air conditioners. The legislation is projected to reduce demand on coal-fired power plants. PA DEP has cited Waste Management Inc. for replacing turbines at the company’s Pottstown Landfill in Montgomery County, Pennsylvania, without notifying PA DEP. Waste Management Inc.’s permit requires the company to notify PA DEP when the company replaces turbines so that PA DEP can ensure the company installs turbines with the best available technology to mitigate emissions. The violations were discovered during an inspection of the facility’s turbine maintenance records. PA DEP also cited Waste Management Inc. in July 2004 for exceeding allowable emissions under its Pottstown permit. The violations will result in a financial penalty. On Oct. 6, 2004, the Pennsylvania Legislative Budget Committee met to discuss and release a report on the examination of costs and test prices in the “Drive Clean Pennsylvania” emission inspection program. 6. Mercury: On Aug. 13, 2004, environmental, labor, sporting and women’s rights groups filed a petition requesting that Pennsylvania regulate toxic emissions from power plants located in Pennsylvania. The groups requesting relief are 8 Citizens for Pennsylvania’s Future, Pennsylvania State Building and Construction Trades Council, Pennsylvania Federation of Sportsmen’s Clubs, Pennsylvania Trout, Pennsylvania National Organization for Women, Planned Parenthood Pennsylvania Advocates, Women’s Law Project, WomenVote PA, PennEnvironment, and Sierra Club Pennsylvania Chapter. PA DEP found the petition to be complete and appropriate for consideration by the Pennsylvania Environmental Quality Board (PA EQB). PA DEP has no position on the merits of the petition. PA EQB will consider the petition at its meeting on Oct. 19. The petition and attachments are available on the PA EQB Web site at http://www.dep.state.pa.us/dep/subject/ eqb/eqb2004.htm. PA EQB is not expected to render its decision until the fall of 2004. standards simply by switching fuels or burning sub-bituminous coal.” The press release states that “these MACT floors are inequitable because they require little or no reductions from units using sub-bituminous coal.” According to the press release, the rule essentially establishes sub-bituminous coal as a compliance coal. The press release states that: “Bituminous coal-fired units contribute virtually all of the mercury reductions contemplated under the rule. That encourages fuel switching and a shift away from the Pennsylvania coal industry in favor of western states.” 7. Mobile Sources: In August 2004, PA DEP filed comments with EPA in support of the agency’s efforts to reduce pollution from new locomotives and marine diesel engines. PA DEP supports after treatment-based engine standards that reduce emissions of PM2.5 and NOx by at least 90 percent and that take effect in 2011. PA DEP favors application of the standards and schedules to both new diesel locomotives and marine engines and rebuilt/ remanufactured engines. In addition to imposing rigorous new engine standards, PA DEP wants EPA to ensure continued clean operation of these engines. For new and in-use locomotives and marine engines, PA DEP favors mandatory idling reduction technologies, not-to-exceed standards, and an in-use testing regime. PA DEP also urges EPA to characterize emissions from these sources to help guide policies in the future. On Oct. 1, 2004, PA DEP announced that PA DEP Secretary Kathleen A. McGinty and representatives from the Pennsylvania coal industry have requested a meeting with EPA Administrator Michael O. Leavitt to discuss EPA’s proposed mercury reduction rule. In a letter to EPA Administrator Leavitt, Secretary McGinty, Pennsylvania Coal Association President George Ellis and United Mine Workers of America District 2 President Edward Yankovich contended that EPA’s proposed mercury reduction rule is “bad for public health and bad for Pennsylvania.” The PA DEP’s press release complains that EPA’s proposed mercury reduction rule would establish emission standards “based on the type of coal instead of the class, type, or size of the source of emissions.” The press release explains that EPA’s proposed mercury reduction rule “singles out the cleaner-burning coal mined in Pennsylvania and other Eastern states by putting up unfair market barriers to promote the use of dirtier coal mined in the West.” The press release further explains that “owners of coal-fired units that generally burn bituminous coal could comply with the proposed [maximum achievable control technology] MACT emissions On Oct. 7, 2004, EPA Region 3 announced that the Upper Darby School District in Pennsylvania would receive a grant in the amount of $485,000 to begin work on its Clean School Bus program. The funds will be used by the school district to retrofit 61 of its diesel-powered school buses with emission reduction equipment and to fuel the entire fleet of 115 buses with cleaner diesel fuel. The equipment, in combination with cleaner fuel, will reduce pollutant emissions from the diesel buses by 60 to 90 percent. 9 EPA has awarded $1 million in grants to decrease truck idling. PA DEP announced Oct. 15, 2004 that Pennsylvania was one of nine states to share in the $1 million in grants. The grant funds will be used to study the effectiveness of using technologies, such as truck stop electrification and shore power, to decrease engine idling. enforceable state operating permit (FESOP) program submitted by PA DEP on behalf of the Allegheny County Health Department. The FESOP program will be implemented by the Allegheny County Health Department for sources located in Allegheny County, Pennsylvania. The final rule was effective Sept. 29, 2004. 8. NAAQS Carbon Monoxide: On Aug.16, 2004, PA DEP held a hearing to receive comments on a proposed revision to the Pennsylvania State Implementation Plan (SIP) for maintaining the carbon monoxide NAAQS for the years 20072017 in Philadelphia County. SIP Revisions: On July 21, 2004, EPA published a final rule in the Federal Register (69 Fed. Reg. 43522) approving state implementation plan (SIP) revisions submitted by the Commonwealth of Pennsylvania on behalf of the Allegheny County Health Department. The SIP revisions include: (1) a regulation change to the allowable sulfur oxide emission limits for fuel burning equipment; (2) a modeled demonstration of attainment of the national ambient air quality standards (NAAQS) for sulfur dioxide (SO2) in the Hazelwood nonattainment area (NAA) and the Monongahela River Valley unclassifiable area, located in the Allegheny Air Basin in Allegheny County, Pennsylvania; and (3) a combined maintenance plan for both areas. In addition, EPA is redesignating the Hazelwood NAA and the Monongahela River Valley unclassifiable area to attainment for the SO2 NAAQS. The final rule took effect Aug. 20, 2004. On Aug. 5, 2004, EPA published a withdrawal (69 Fed. Reg. 47366) of a direct final rule (69 Fed. Reg. 39854) that was published on July 1, 2004, to amend Pennsylvania’s 10-year maintenance plan for the 1-hour ozone NAAQS in the Pittsburgh-Beaver Valley Ozone NAA. EPA withdrew the direct final rule because the agency received adverse comments. EPA will address the comments received in a final action based upon the proposed rule that was also published on July 1, 2004. On Aug. 30, 2004, EPA published a final rule (69 Fed. Reg. 52831) to approve a federally 8-Hour Ozone: On July 9, 2004, PA DEP requested in a letter that EPA upgrade Lancaster County’s air quality designation from “moderate” non-attainment to “marginal” nonattainment for the newly designated 8-hour ozone air quality standard, pursuant to CAA § 181(a)(4), which allows the EPA administrator to adjust the classification of an area if it has an 8-hour ozone design value within 5 percent of another category (marginal, moderate, serious, severe or extreme). Moderate areas must attain the 8-hour standard no later than June 2010, whereas marginal areas must attain the 8-hour standard no later than June 2007. EPA granted the request by letter dated July 22, 2004, and published a final rule (69 Fed. Reg. 56697) reclassifying the “moderate” Lancaster County ozone non-attainment area on Sept. 22, 2004. The final rule takes effect Nov. 22, 2004. The reclassification gives PA DEP greater flexibility in the design of a control program to bring the county into attainment with the 8-hour standard. On Aug. 5, 2004, PA DEP Secretary Kathleen A. McGinty, on behalf of Gov. Edward G. Rendell, awarded $242,740 to Pennsylvania’s four air quality partnerships. The purpose of the grant is to help residents understand the danger of ground-level ozone and recognize the steps they can take to clean the air, improve the 10 environment and enhance public health. The four grant recipients are: (1) Southwest Pennsylvania Air Quality Partnership Inc. – $59,700 to fund air quality activities in Allegheny, Armstrong, Beaver, Butler, Fayette, Washington and Westmoreland counties; (2) American Lung Association of Pennsylvania – $55,200 to fund the Lehigh Valley/Berks Air Quality Partnership for Berks, Lehigh and Northampton counties; (3) Tri-County Regional Planning Commission – $62,840 to support the Susquehanna Air Quality Partnership for Cumberland, Dauphin, Lancaster, Lebanon and York counties; and (4) Delaware Valley Regional Planning Commission – $65,000 to fund the Southeast Air Quality Partnership in Philadelphia and Bucks, Chester, Delaware and Montgomery counties. During August 2004, the Susquehanna and Lehigh Valley Air Quality Partnerships sponsored television spots that featured environmental tips to help reduce ozone concentrations. The tips advised people to save energy by using electricity wisely, to avoid topping off the car’s gas tank, to replace old gas cans with the new environmentally friendly gas cans and to avoid letting the car idle. The television spots were aired on WFMZ-TV (Lehigh Valley) and WGAL (Susquehanna Valley) and featured the TV weather personalities. On Aug. 14, 2004, the Susquehanna Air Quality Partnership and Coach Ozone participated in the 2004 Lancaster Fest in Southcentral, Pennsylvania. Representatives of the Susquehanna Air Quality Partnership explained the effects of ground-level ozone on the environment and people’s health and explained how people could help reduce ozone concentration. On Aug. 16, 2004, the Lehigh Valley/Berks County Air Quality Partnership sponsored Ozone Action Night at First Energy Stadium in Reading, Pennsylvania. Coach Ozone and representatives of the Lehigh Valley/Berks County Air Quality Partnership distributed air quality and ozone educational information to fans of the Double A Philadelphia Phillies minor league affiliate. On Aug. 21, 2004, the Lehigh Valley/Berks County Air Quality Partnership distributed 500 free California Air Resource Board (CARB) compliant gasoline cans in exchange for old gas cans. The CARB-compliant gasoline cans are evaporation and spill-proof. Also in Lehigh Valley, PA DEP, the Lehigh Valley/Berks County Air Quality Partnership and the Lehigh/North Hampton Transportation Authority (LANTA) sponsored Ride Free on Ozone Action Days, a program that offers residents free bus rides on any weekday designated as an Ozone Action Day. On Oct. 1, 2004, PA DEP announced that ozone levels in 2004 averaged a record low. The PA DEP’s press release reports that PA DEP monitors registered 13 days that exceeded the 8-hour ozone standard, the lowest number in the last 10 years, and that no state monitors exceeded the 1-hour ozone standard. Pennsylvania’s 8-hour ozone SIP is due April 15, 2007. PM2.5: By letter dated Aug. 30, 2004, PA DEP Secretary Kathleen A. McGinty urged EPA to reconsider its proposed PM2.5 designations. PA DEP Secretary McGinty objected to EPA’s proposal to include the following Pennsylvania counties: Mercer County in the Youngstown area; Lawrence, Butler, Armstrong, and Greene counties in the Pittsburgh area; Indiana County in the Johnstown area; Lebanon County in the Harrisburg area; and Bucks and Montgomery counties in the Philadelphia area. In her letter, PA DEP’s Secretary McGinty opposes EPA’s “recently developed ‘weighted emissions’ approach [that] expands non-attainment areas to include counties monitoring attainment solely because of the emissions from certain major sources, including coal-fired power plants, 11 located in those counties.” Pennsylvania takes the position that “emissions from large point sources, including power plants, must be addressed by national or regional legislation or regulation.” The letter also cites EPA’s failure to propose an implementation rule for the PM2.5 standard. In addition, in her Aug. 30, 2004 letter, PA DEP’s Secretary McGinty recommends a designation of two additional non-attainment areas within the Pittsburgh nonattainment area. The letter explains that these areas have unique, local PM2.5 problems and should not be included within the Pittsburgh nonattainment area. The problems are in the vicinities of the Liberty Burrow, Clairtown and North Braddock monitors. Pennsylvania’s PM2.5 SIP is due in February 2008. branch will evaluate Pennsylvania’s Title V state operating permits program. EPA will interview Pennsylvania permit managers and staff writers regarding all aspects of Pennsylvania’s program. 9. New Source Review: Pennsylvania is implementing the new federal attainment PSD rules. Pennsylvania has initiated a stakeholder group to look at the new federal nonattainment NSR rules. PA DEP has submitted a request to EPA that its grants be consolidated into a performance partnership grant (PPG) for FY2005. The programs that would be included are: air pollution control, state indoor radon, water pollution control, non-point source, public water system supervision, hazardous waste management and underground storage tanks. The primary purpose of such an agreement is to simplify fiscal administration of EPA grants. 10. Permits: On Oct. 2, 2004, PA DEP issued the proposed following general plan approvals and/or general operating permits (GPs) which contain pre-determined Best Available Technology (BAT) and other regulatory requirements: (1) BAQ-GPA/GP-9 (Diesel or No. 2 Fuel-fired Internal Combustion Engines), (b) BAQ-GPA/GP-11 (Non-road Engines), and (c) BAQ-GPA/GP 12 (Fugitive Dust Sources and Diesel-fired Internal Combustion Engines at Coal and Coal Refuse Mining Sites). The GPs will apply to the construction, operation and modification of the above-mentioned sources unless the source is subject to the requirements of the Pennsylvania PSD or NSR rules. The proposed GPs set forth applicable emission limits as well as compliance demonstration, monitoring, record-keeping, and reporting requirements. The comment period ends Nov. 16, 2004. 11. Title V: EPA’s Region 3 Air Protection Division’s permits and technical assessment 12. Miscellaneous: From July 20 through Aug. 15, 2004, scientists from three U.S. Department of Energy (DOE) national laboratories sampled the skies over Western Pennsylvania. The scientists conducted regional air-sampling flights from Latrobe Airport, which is located about 25 miles east of Pittsburgh, in Westmoreland County, Pennsylvania. The scientists sampled the air for aerosol pollutants and evaluated their effects on the Earth’s climate. On Aug. 24, 2004, PA DEP issued a plan approval to Aconcagua Timber Corp. for the installation of a new scrubber at its medium density fiberboard plant in Paint Township, Clarion County, Pennsylvania. This means that the facility can reactivate other sources at the facility and begin production. Under the plan approval, the facility must demonstrate compliance with existing emission limits and incorporate maintenance and record keeping and other conditions to ensure compliance with the CAA. At the 2004 Renewable Energy Conference: Enhancing our Economy and Environment, on Aug. 31 and Sept. 1, 2004, in Champion, Somerset County, Pennsylvania, PA DEP Secretary Kathleen A. McGinty spoke about 12 how Pennsylvania’s indigenous resources could be used to boost Pennsylvania’s economy while helping to fight the rising prices of imported fuel. Opportunities cited by PA DEP Secretary McGinty included: deployment of coal-mine methane, wind energy deployment; fuel and solar cell manufacturing, solar water-pumping deployment, biomass co-firing, and small-scale wind and anaerobic digesters. In response to requests from residents of Shippingport, Beaver County, Pennsylvania, the PA DEP’s mobile analytical unit, or MAU, also known as the sniffer bus, began testing air quality in Shippingport the end of August 2004. The residents claim that emissions from First Energy’s Bruce Mansfield power station are impacting their community. PA DEP is expected to report to the residents in October 2004 after all of the samples are tabulated. At a hearing before the Pennsylvania Senate Environmental Resources and Energy Committee, PA DEP Secretary Kathleen A. McGinty testified that PA DEP intends to encourage the use of waste coal and is considering waste coal as a potential part of Pennsylvania’s renewable energy portfolio. Environmental groups oppose the inclusion of waste coal as part of Pennsylvania’s renewable energy portfolio. On Sept. 8, 2004, the Union of Concerned Scientists released a study, concluding that a national renewable electricity standard of 20 percent by 2020 would produce more than 5,800 jobs in Pennsylvania and would also save Pennsylvania consumers $1.8 billion on their energy bills through 2020. On Sept. 10, 2004, PA DEP Secretary Kathleen A. McGinty announced the approval and transfer of NOx emission reduction credits from Hershey Foods Corp. to the Chesapeake Bay Foundation. Hershey Foods Corp. created the credits by shutting down a boiler and by reducing actual emissions from boilers at their Dauphin County plant. The Chesapeake Bay Foundation will permanently retire all of the transferred credits for the restoration and protection of the Chesapeake Bay and its watershed. On Sept. 15, 2004, PA DEP Northwest Regional Director Kelly Burch, Presque Isle Partnership, and Presque Isle State Park representatives activated a new wind turbine at Presque State Park. The new wind turbine will provide power to the Stull Interpretive Center and excess energy will be fed back into the grid. The Presque Isle wind energy project uses a Bergey Excel-S 10-kilowatt wind turbine on a 120-foot tower at Barracks Beach across from the Stull Interpretive Center. The wind turbine will provide 17,000-kilowatt hours per year. The wind energy project was financed in part with a grant in the amount of $42,106.00 from the Energy Harvest Grant Program. On Sept. 16, 2004, PA DEP Secretary Kathleen A. McGinty, legislators, dignitaries and Dominion Energy officials and employees celebrated the completion of Fairless Energy Works. Fairless Energy Works is a gas-fired power plant with two natural gas-fired, steamdriven turbine units that can each generate 590 megawatts. The gas-fired power plant cost $800 million and took two years to build. The plant is located along the Delaware River on a portion of the former USX Steel site in Fairless Hills, Bucks County, Pennsylvania. Also on Sept. 16, 2004, PA DEP Secretary Kathleen A. McGinty activated a new 4.8-kilowatt solar panel installed on the roof of the Media Armory Building in Media, Delaware County, Pennsylvania. The solar panel will generate nearly 5,000 kilowatt hours per year. This will result in a twenty percent savings in Media Borough’s electric bill for the Armory. In addition, the solar panel will help to reduce CO2, NOx and SO2 emissions. The solar panel project was funded in part with a grant in the amount of $15,925.00 from the Energy Harvest Grant Program. 13 On Sept. 30, 2004, Pennsylvania Gov. Edward G. Rendell dedicated Reliant Energy’s new waste coal power station in East Wheatfield Township, Indiana County, Pennsylvania. The new power station will use coal refuse piles, known as culm, from the Conemaugh Valley and areas near the Allegheny River and the West Branch of the Susquehanna River. On Oct. 1, 2004, EPA Region 3 Administrator Donald S. Welsh presented a $248,500 check to Children’s Hospital of Philadelphia for their Community Asthma Prevention Program (CAPP). CAPP increases the knowledge and understanding of asthma and asthma management in urban communities and works with parents to eradicate environmental tobacco smoke from the child’s environment. CAPP has added environmental tobacco smoke (i.e., second-hand smoke) as an additional component to its asthma prevention program. On Oct. 8, 2004, PA DEP and Pennsylvania Department of Community and Economic Development sponsored an Industrial Energy Alternatives Forum in Harrisburg, Pennsylvania. The forum focused on landfill gas and coal-mine methane as potential alternatives to natural gas in manufacturing and large commercial operations. The forum also reviewed opportunities to recycle energy through combined heat and power projects. From Oct. 5 through Nov. 3, 2004, PA DEP will offer statewide workshops to help small business owners learn how to reduce energy costs and increase profits. Brochures and registration forms are available by contacting the PA DEP’s Office of Energy Technology Development at (717) 783-8411 or by visiting the PA DEP’s Web site at www.dep.state. pa.us, Keyword “Ombudsman”. On Oct. 14, 2004, at PennFuture’s fifth annual “GreenPower: Turn It On!” awards ceremony in Philadelphia, Pennsylvania, PA DEP Secretary Kathleen A. McGinty announced that the Commonwealth has doubled its green electricity purchase from 5 percent to 10 percent. The Commonwealth will purchase 100,000 megawatt hours per year, or 10 percent of state government’s electricity, from renewable sources such as wind, waste coal and hydroelectric energy, all at a premium rate of only 0.34 cents per kilowatt hour, pursuant to four-year contracts with Community Energy Inc. and Strategic Energy LLC. E. Virginia 1. Enforcement: Smurfit-Stone Container Corporation and EPA have entered into a consent decree arising out of the company’s alleged violations of air pollution laws dating from September 1997. The alleged violations involved failure to limit emissions of sulfur, sulfur dioxide, nitrogen oxides and particulate matter at the company’s box factory in Hopewell, Virginia. Under the consent decree, SmurfitStone Container Corporation agrees to pay $501,000 to the federal government and $334,000 to Virginia. The consent decree is subject to a 30-day comment period and approval by the U.S. District Court for the Northern District of Virginia. Mirant Mid-Atlantic has entered into a separate agreement with the Virginia Department of Environmental Quality (VA DEQ), in addition to a proposed consent decree with EPA, the Commonwealth of Virginia, and the state of Maryland that was lodged on Sept. 27, 2004, in the U.S. States District Court for the Eastern District of Virginia, to conduct a study of the company’s emissions from its Potomac River Generating Station in Alexandria, Virginia. The study will use computer modeling to determine whether key pollutants, such as mercury and ozone, exceed air quality standards. If they do, Mirant will be required to reduce the pollution. 2. NAAQS: SIP Revisions: On Aug. 9, 2004, EPA published in the Federal Register a proposed rule (69 Fed. Reg. 48186) and a direct final rule 14 (69 Fed. Reg. 48150) to approve a State Implementation Plan (SIP) revision submitted by Virginia specifying that the Northern Virginia Ozone Nonattainment Area (NAA) is now subject to the severe major source permitting requirements and lowering the major stationary source threshold for NOx from 50 tons per year to 25 tons per year. The direct final rule automatically took effect on Oct. 8, 2004, unless EPA received adverse written comment by Sept. 8, 2004. On Aug. 25, 2004, EPA published a proposed rule (69 Fed. Reg. 52220) and a direct final rule (69 Fed. Reg. 52174) to convert a conditional approval to a full approval of a Virginia SIP revision changing the start date of flow control in Virginia’s NOx Budget Trading Program from 2006 to 2005. The flow control provision limits the number of banked allowances that can be used for compliance purposes and is triggered when the region-wide total of banked allowances exceeds a specified threshold. Flow control is required to start in the second year of the trading program, and the year 2005 will be the second year of Virginia’s NOx Budget Trading Program. Unless EPA received adverse written comment by Sept. 24, 2004, the direct final rule will take effect automatically on Oct. 25, 2004. On Sept. 2, 2004, EPA published a correction (69 Fed. Reg. 53778) to the table, which pertains to EPA-approved regulations in the Virginia SIP, in the Aug. 25, 2004 direct final rule (69 Fed. Reg. 52174) concerning the revision to the flow control date in the NOx Budget Trading Program. On Sept. 8, 2004, EPA published a final rule (69 Fed. Reg. 54216) updating the materials submitted by the Commonwealth of Virginia that are incorporated by reference into the Virginia SIP. The final rule took effect immediately on Sept. 8, 2004. On Sept. 9, 2004, EPA published a proposed rule (69 Fed. Reg. 54601) and a direct final rule (69 Fed. Reg. 54578) to approve NOx RACT for the Prince William County Landfill located in Prince William County, Virginia. The rule is automatically effective on Nov. 8, 2004, unless EPA received adverse written comment by Oct. 12, 2004. On Sept. 9, 2004, EPA published a proposed rule (69 Fed. Reg. 54600) and a direct final rule (69 Fed. Reg. 54574) to approve NOx RACT for two individual sources in Fairfax County, Virginia. The two individual sources are the Central Intelligence Agency and the National Reconnaissance Office. Unless EPA received adverse written comment by Oct. 12, 2004, the rule takes effect on Nov. 8, 2004. On Sept. 10, 2004, EPA published a proposed rule (69 Fed. Reg. 54759) and a direct final rule (69 Fed. Reg. 54753) to approve Virginia’s hospital/medical/infectious incinerator § 111(d)/ 129 plan. The plan applies to commercial and industrial solid waste incinerator units for which construction commenced on or before Nov. 30, 1999. The plan establishes emission limits, monitoring, operating, and record-keeping requirements for commercial and industrial solid waste incinerator units. The rule takes effect on Nov. 9, 2004, unless EPA received written comment by Oct. 12, 2004. When the rule becomes effective, the federal plan (65 Fed. Reg. 49868, Aug. 15, 2000) will no longer apply. On Oct. 6, 2004, EPA published a proposed rule (69 Fed. Reg. 59839) and a direct final rule (69 Fed. Reg. 59812) to approve NOx RACT from Washington Gas Company, Ravensworth Station, Registration No. 72277, located in Fairfax County, Virginia. The rule takes effect on Dec. 6, 2004, unless EPA receives adverse written comment by Nov. 5, 2004. On Oct. 28, 2004, VA DEQ will hold a hearing on a proposed revision to the Virginia State Implementation Plan (SIP) consisting of a portion of a state operating permit for the Mirant Mid-Atlantic, LLC (Mirant), Potomac River Generation Station (PRGS) in the city of 15 Alexandria, Virginia. The proposed permit is being issued to make enforceable under the federal Clean Air Act portions of a consent decree lodged in the U.S. District Court for the Eastern District of Virginia on Sept. 27, 2004, affecting PRGS. The proposed permit includes a cap on total NOX emissions from PRGS that becomes increasingly more stringent each year until leveling off in 2010 at 1,475 tons per ozone season. The permit would also include the consent decree’s requirement for additional environmental projects pertaining to the PRGS, primarily for the control of ash and coal dust. 8-Hour Ozone: On Sept. 22, 2004, EPA published a final rule (69 Fed. Reg. 56697) reclassifying the Richmond, Virginia “moderate” 8-hour ozone non-attainment area as “marginal” for the 8-hour ozone NAAQS. EPA re-classified the area pursuant to CAA § 181(a)(4), which provides that an ozone non-attainment area may be reclassified “if the design value in the area were 5 percent greater or 5 percent less than the level on which such classification was based.” The reclassification of the Richmond, Virginia ozone non-attainment area means that the area must attain the new 8-hour NAAQS by 2007 instead of 2010. The area also has greater flexibility in the design of a control program to attain the 8-hour ozone standard. The final rule takes effect on Nov. 22, 2004. Virginia’s 8-hour ozone SIP is due April 15, 2007. PM2.5: Virginia is meeting the NAAQS for PM2.5. Because there were no areas exceeding the NAAQS for PM2.5 for the years 2001-2003, Virginia recommended in a February 2004 letter that all areas of the Commonwealth be designated attainment with the PM standards. EPA, however, announced its intention in June 2004 to include the Northern Virginia area on the list of non-attainment areas for PM2.5. On Sept. 1, 2004, Virginia again recommended to the EPA that Northern Virginia not be designated non-attainment for PM2.5. EPA plans to make its final designations in November 2004. Virginia’s PM2.5 SIP is due in February 2008. 3. New Source Review: The federal New Source Review (NSR) reforms are extremely controversial in Virginia. On July 12, 2004, Virginia initiated the rulemaking process by notice of intent to adopt the federal NSR rules. Comments were due on Sept. 8, 2004. An ad hoc group has been established to assist VA DEQ in developing the VA NSR regulation. Tables comparing each section of the Virginia Chapter 80 regulations to each section of the EPA regulations (Article 8 to 40 CFR 51.166 and 52.21; Article 9 to 40 CFR 51.165) are available at http://www.deg.viginia.gov/air/ regulations/nsrweb.html. On Oct. 18, 2004, the VA DEQ advisory committee will meet on the major NSR reform at the VA DEQ central office in Richmond, Virginia. For updates on the NSR reform process in Virginia, see http://ww.deg.virginia. gov/air/regulations/nsrweb.html. VA DEQ is expected to issue an NSR permit for a new gas-fired 520 MW plant in Warner County. Warner County is an ozone attainment area. The proposed plant will be close to a transmission line and gas pipeline but will also be near the Shenandoah National Park. At the suggestion of the developers, VA DEQ will require the developers to demonstrate that the plant will reduce 175 tons of NOx from other stationary sources which have an impact on the park and would not otherwise have been controlled. 4. Permits: VA DEQ has received applications for State Operating Permits, pursuant to 9 VAC 5 Chapter 80, Article 5 of the Virginia Regulations for the Control and Abatement of Air Pollution, from: Lafarge Building Materials Incorporated – Chesapeake Terminal, Chesapeake, Virginia, to limit the source’s potential-to-emit levels below the 1990 Clean Air Act Amendments’ Title V major sources 16 threshold; and from Des Champs Technologies to operate an industrial heating, ventilation and air conditioning manufacturing plant. Also pending is a Phase II Acid Rain permit for Virginia Electric and Power Company to operate the Mecklenburg Power Station in Clarksville, Virginia. In addition, VA DEQ has received an application for a Prevention of Significant Deterioration (PSD) permit from Island Creek Coal Company for a major modification to the VP #8 Garden coal preparation facility. VA DEQ is also considering an air permit application from MasterBrand Cabinets to construct a cabinet manufacturing and coating facility that will be a major emission source of volatile organic compounds (VOCs). sensing. In general, the regulation needs to be amended to reflect new emission standards detected to be remote sensing as well as criteria for conducting random testing of motor vehicle emissions, procedures to notify owners of tests results and assessment of civil charges for noncompliance with emissions standards in the current regulation. Two specific changes to the regulation as a result of changes to the state code include the model coverage for vehicles subject to remote sensing to include model year 1968 and newer model vehicles, and the requirement to establish a program to subsidize repair costs of some vehicles identified by remote sensing. Comments were due Oct. 8, 2004. 5. Regulations: On Sept. 9, 2004, the Virginia Air Pollution Control Board (VA APCB) held public hearings on two proposed regulations: (1) Regulation for the Control and Abatement of Air Pollution (9 VAC 5 Chapter 40), Revision G03, concerning Consumer Products; and (2) Regulation for the Control of Motor Vehicle Emissions in Northern Virginia (9 VAC 5 Chapter 91), Revision MJ, concerning Remote Sensing. On Oct. 24, 2004, VA DEQ published in the Virginia Register a Notice of Intended Regulatory Action (NOIRA) proposing to revise regulations for the control and abatement of air pollution concerning open burning. The purpose of the proposed action is to reduce emission of VOCs and NOX from open burning and special incineration devices in Virginia’s emissions control areas, i.e., Northern Virginia, Hampton Roads, and Richmond, to attain and maintain the federal NAAQS for ozone and NOX. A public hearing on the amendment to the regulation for the control and abatement of air pollution concerning open burning was to be held on Nov. 10, 2004 at the VA DEQ central office in Richmond, Virginia. Comments were due Nov. 10, 2004. The proposed regulation concerning consumer products will add a new rule that applies only to sources in the Northern Virginia volatile organic compounds (VOCs) emissions control area designated in 9 VAC 5-20-206. The regulation will limit VOC emissions from consumer products such as adhesives, adhesive removers, aerosol products (like cooking and dusting sprays), air freshner, antiperspirants and deodorants, facial toners and astringents, waxes and polishes (for cars, floors, etc.), tile cleaners, tar removers, bug sprays, rug cleaners, charcoal lighter fluid, disinfectants, cosmetics and soaps. Comments were due Oct. 8, 2004. The proposed regulation concerning remote sensing make a number of revisions to conform to changes in Virginia law pertaining to remote 6. Title V: VA DEQ has received an application for a Title V or federal operating permit from Philip Morris USA, Inc. Richmond Manufacturing Center to operate the facility’s tobacco processing equipment. Also pending are applications for renewal of Title V permits for the following sources: Royal Mouldings Limited’s wood and plastic moulding manufacturing facility; Valle Proteins, Inc. – Winchester Division’s rendering facility; Valley Proteins, Inc. – Linville’s rendering facility. In addition, VA DEQ has received applications from Huber 17 Engineered Woods, LLC, for a significant amendment to a Modified Stationary Source Permit and a significant modification to a Title V Federal Operating Permit. The draft permits will allow Huber Engineered Woods, LLC, to operate an oriented strandboard manufacturing facility. 7. Miscellaneous: The Virginia Department of Environmental Quality has received Fiscal Year 2004 air funding in the amount of $750,891 to monitor PM. Virginia is one of seven states seeking to be the site of American Electric Power’s (AEP) proposed 1,000 megawatt coal gasification plant. The plant will use integrated gasification combined cycle (IGCC) technology. The technology turns coal into a synthetic gas, which is then used as a feedstock. Emissions reductions are well below those required under the Clean Air Act. AEP is not expected to choose a site until 2005. In making a decision, AEP will consider: rate recovery, availability of redevelopment sites or room for expansion at existing sites, access to river or rail transport, adequate power transmission capacity and ability for load growth, impact on wildlife and natural lands, proximity to industrial development and community support. In September 2004, VA DEQ published the Virginia Ambient Air Monitoring 2003 Data Report. The report states that ambient concentrations of CO, NOX, and SO2 met EPA’s NAAQS during 2003. The report also states that Virginia is meeting the NAAQS for both PM10 and PM2.5. The report recognizes that Virginia continues to experience problems with summertime ozone pollution, particularly in Northern Virginia, Richmond, and Hampton Roads. In 2003, Northern Virginia had two days when a 1-hour ozone average greater than 0.12 ppm was recorded at one or more monitoring stations in the area. Richmond and Hampton Roads each had one day greater than 0.12 ppm. The report is available at http://www.deq. virginia.gov/airmon/publications.html. VA DEQ has granted a variance to Merck and Company, Inc.’s Stonewall Plant from some portions of Virginia’s regulations for the control and abatement of air pollution and has issued to Merck and Company, Inc. a Prevention of Significant Deterioration (PSD) permit which will act in lieu of those regulations. The variance and PSD Permit are part of EPA’s Project XL. On Nov. 11, 2004, VA APCB was scheduled to meet and hold its annual meeting with the advisory board in Virginia Beach, Virginia. F. West Virginia 1. Enforcement: In July 2004, the West Virginia Division of Air Quality (WV DAQ) issued a notice of violation (NOV) to AEP for alleged fugitive emissions of fly ash or coarse particulate matter at the company’s John E. Amos plant. The leaks occurred in the duct conveying flue gas between the Unit #3 boiler and the electrostatic precipitator (ESP) as well as in and around the ESP. The leaks have been repaired. AEP’s response to the NOV was due July 17, 2004. AEP’s John E. Amos plant is the 10th largest coal-fired plant in the United States. 2. Litigation: Coal-fired power plants in the Midwest (including West Virginia) and the Southeast, are targeted in a public nuisance action filed on July 21, 2004, seeking to reduce CO2 emissions. Eight States and New York City filed the climate change action against five utilities in the United States District Court for the Southern District of New York on July 21, 2004. The eight states filing suit are: California, Connecticut, Iowa, New Jersey, New York, Rhode Island, Vermont and Wisconsin. The five utility defendants are: American Electric Power Co., Southern Co., Tennessee Valley Authority, Xcel Energy Co. and Cinergy Corp. On July 29, 2004, GenPower LLC and certain environmental groups reached a settlement on emission restrictions at the proposed 600 MW 18 coal-fired Longview power plant in the Fort Martin area near Morgantown in Monongalia County, West Virginia. The settlement on emission restrictions exceeds the requirements of the facility’s air permit that was issued on March 2, 2004. The March 2, 2004 permit was the subject of an appeal by the environmental groups pending before the West Virginia Environmental Quality Board (WV EQB). The environmental groups include the West Virginia Chapter of the Sierra Club, Trout Unlimited, and the National Parks Conservation Association. Under the settlement agreement, GenPower agrees to cap the plant’s SO2 emissions at 2,417 tons per year and NOx emissions at 1,739 tons per year. The permit allowed approximately 25 percent more SO2 emissions than the settlement and established a NOx emission rate of 0.08 lbs/mmBtu. GenPower also agreed to install a continuous emission monitoring system for mercury. In addition, GenPower agreed to pay $500,000 a year for the first 10 years and $300,000 for the life of the plant to fund a newly created non-profit that will include GenPower and various environmental groups to focus on greenhouse gas issues or any other issue that the non-profit agrees to consider. WV DEP must approve the settlement agreement. On Aug. 27, 2004, the West Virginia Public Service Commission (WV PSC) issued a siting permit for the Longview power plant. WV PSC found that the project’s positive impact outweighed its “negative aspects.” According to GenPower LLC, Longview will employ approximately 60 people and create up to 1,600 construction jobs. When completed, the company says that Longview will use more than 2 million tons of coal per year. In issuing the siting permit, WV PSC set several conditions that Longview must meet. Specifically, the company must provide detailed plans for the plant and its equipment, conduct a study on the plant’s noise impact, demonstrate financial viability and calculate a reasonable tax estimate. On Sept. 27, 2004, Citizens for Alternatives to Longview Power filed an appeal with the Supreme Court of Appeals of West Virginia, contending that the conditions set by WV PSC should have been met before the application was approved. In addition, the appeal claims that WV PSC did not set any standards for the information that Longview is required to submit, and did not provide an opportunity for the public to review or challenge it. 3. NAAQS: 8-Hour Ozone: West Virginia’s 8-hour ozone SIP is due April 15, 2007. PM2.5: By letter dated Aug. 31, 2004, West Virginia Department of Environmental Protection (WV DEP) Cabinet Secretary Stephanie Timmermeyer responded to EPA’s proposed modifications to the preliminary PM2.5 designation recommendations for the state of West Virginia. Timmermeyer objected to EPA’s proposal to expand West Virginia’s designation recommendations by adding four counties to the potential PM2.5 non-attainment areas (Harrison, Mason, Monongalia and Pleasants). In her Aug. 31, 2004 letter, Timmermeyer complained that: “The agency seems poised to subject these counties to the whole gamut of non-attainment requirements just because they contain power plants.” The letter points out that monitors in two of the counties (Monongalia and Harrison) show attainment with the PM2.5 standard. The letter further states that the non-attainment designations are unnecessary, explaining that “[t]he WVDEP possesses the authority to regulate any stationary source within the State that may require emissions control to achieve and maintain the National Ambient Air Quality Standards, regardless of whether the source is located in a non-attainment area” and promising to “exercise this authority as needed to achieve attainment in a timely manner.” WV DEP Cabinet Secretary Timmermeyer’s Aug. 31, 2004 letter is available at http://www.dep.state. 19 wv.us/item.cfm?ssid=8&ss1id=19. West Virginia’s PM2.5 SIP is due in February 2008. 4. New Source Review: West Virginia is the farthest along of all of the Region 3 States in adopting the new federal NSR rules. A public hearing was held on West Virginia’s proposed NSR rules, 45 CSR 14, “Permits for Construction and Major Modification for Major Stationary Sources of Air Pollution for the Prevention of Significant Deterioration (PSD),” and 45 CSR 19, “Permits for Construction and Major Modification of Major Stationary Sources of Air Pollution Which Cause or Contribute to Non-attainment,” on Aug. 2, 2004. Except for the equipment replacement rule, West Virginia is proposing to adopt the federal NSR reforms. On Aug. 2, 2004, the West Virginia Manufacturers Association (WVMA) submitted comments on the proposed changes to 45 CSR 15 and 45 CSR 19. WVMA supports the incorporation of the federal NSR revisions by West Virginia as part of its state implementation plan (SIP) and also supports the WV DAQ’s proposed revisions to cure deficiencies in the current rules where inconsistencies appear. WVMA recommended a number of changes to address inconsistencies in proposed definitions in Rule 14 and Rule 19. For example, WVMA noted that WV DAQ has modified the definition of “actual emissions” under Rule 19, but not Rule 14, and WVMA recommended that WV DAQ adopt the same proposed language for the definition of “actual emissions” for both Rule 14 and Rule 19. WVMA also recommended that the existing definition of “allowable emissions” be identical under both Rules 14 and 19. WVMA recommended that the WV DAQ revise the definition of “regulated pollutant” to “regulated NSR pollutant” in order to be consistent with the federal regulations. In addition to the recommendations concerning proposed definitions, WVMA suggested that WV DAQ include a cross reference in Rule 14 to use the provisions in 45 CSR 13, “Permits for Construction, Modification, Relocation and Operation of Stationary Sources of Air Pollutants, Notification Requirements, Administrative Updates, Temporary Permits, General Permits, and Procedures for Evaluation,” for administrative updates and minor modifications for a major source permit. WVMA urged WV DAQ to define “minor source baseline concentration” and to clarify whether this increase is a cap or applies on a facility basis. WVMA opposed the WV DAQ’s proposed revision that information included in an application can be the subject of an enforcement action even if the information is not contained within the permit. WVMA also opposed the WV DAQ’s proposal that a source that has not operated at least 500 hours in one 12-month period within the previous 5-year period may be considered permanently shutdown. On Aug. 25, 2004, WV DAQ filed with the West Virginia Secretary of State’s Office the final approved versions of Rule 14 and Rule 19. WV DAQ adopted many of the WVMA’s suggestions, including revisions to many of the definitions in order to provide consistency between Rules 14 and 19. WV DAQ agreed that the procedure for an administrative update or minor modification of a Rule 14 permit was unclear, but instead of adding a cross-reference to the procedure contained in Rule 13 as recommended by WVMA, WV DAQ deleted “and 45 CSR 19” from 45-14-21.1 and 45-1421.1.b. WV DAQ also declined to define “minor source baseline concentration” as referenced in the Federal Class I requirement provisions. WV DAQ stated it believes the term is clear in its meaning and that it is unwilling to define a term that was coined by EPA. WV DAQ suggested that WVMA request a definition from EPA. In addition, WV DAQ rejected the request to revise the provision that any owner or operator who constructs, modifies or relocates any stationary source not in accordance with the application submitted to WV DAQ shall be subject to enforcement action. WV DAQ stated that the language was taken from the federal 20 regulation, 45 CFR 52.21. Finally, WV DAQ agreed to delete the proposed permanent shutdown provisions. WV DAQ concluded that other provisions in the rule would provide consistency with Rule 13. 5. Permits: On July 15, 2004, WV DAQ issued for comment a draft General Permit for emergency generators, as a Class II General Permit. Comments were due Aug. 15, 2004. 6. Quarterly DAQ Workshops: WV DAQ has cancelled the Oct. 28, 2004 Workshop. The next Workshop will be held early spring 2005 at the new office of WV DEP in Charleston, West Virginia. Suggested topics for the Spring 2005 Workshop include: non-attainment designation impacts, NOx SIP Call, recently promulgated Maximum Achievable Control Technology (MACT) standards, Title V semi-annual/annual report information, Method 22 visual observations, concurrent Title V/Rule 13 permit update, and 40 CFR 60 and 40 CFR 63 Subpart A general provisions. WV DEP invites submission of topics of interest. 7. Regulations: On Aug. 2, 2004, WV DAQ held a public hearing on proposed revisions to the following existing legislative rules: (1) 45 CSR 14, “Permits for Construction and Major Modification of Major Stationary Sources of Air Pollution for the Prevention of Significant Deterioration” (PSD); (2) 45 CSR 15, “Emission Standards for Hazardous Air Pollutants Pursuant to 40 CSR Part 61;” (3) 45 CSR 16, “Standards of Performance for New Stationary Sources Pursuant to 40 CSR Part 60;” (4) 45 CSR 19, “Permits for Construction and Major Modification of Major Stationary Sources of Air Pollution Which Cause or Contribute to Nonattainment;” (5) 45 CSR 25, “To Prevent and Control Air Pollution From Hazardous Waste Treatment, Storage, or Disposal Facilities;” and (6) 45 CSR 34, “Emission Standards for Hazardous Air Pollutants for Source Categories Pursuant to 40 CSR Part 63.” Upon authorization and promulgation to provisions to 45 CSR 15, 45 CSR 16 and 45 CSR 34, WV DAQ will provide to EPA the updated final rules as part of West Virginia’s program delegation of the New Source Performance Standards and National Emission Standards for Hazardous Air Pollutants, which became effective Jan. 8, 2002. Upon authorization and promulgation of revisions to 45 CSR 14 and 45 CSR 19, WV DAQ will submit the final rules to EPA as a revision to the SIP pursuant to the federal Clean Air Act (CAA). Upon authorization and promulgation and revisions to 45 CSR 25, WV DAQ will submit to EPA the final rule for approval as part of the State Hazardous Waste Management Program. The proposed legislative rules are available on line at www.wvdep.org by selecting “Offices – Division of Air Quality.” Under the General Information heading, select “Public Notice and Comment.” 8. Miscellaneous: West Virginia is one of seven states seeking to be the site of AEP’s proposed 1,000 megawatt coal gasification plant. The plant will use integrated gasification combined cycle (IGCC) technology. The technology turns coal into a synthetic gas, which is then used as a feedstock. Emissions reductions are well below those required under the CAA. During the week of Oct. 11-15, 2004, the West Virginia Division of Air Quality (WV DAQ) will be relocating to a new WV DEP consolidated “Green” building. Beginning Oct. 18, 2004, the mailing address and phone numbers will change. The new mailing address for the WV DAQ will be WV DEP, Division of Air Quality, 601 57th St. SE, Charleston, WV 25304. 21