·         New emission control strategies in the DFW area, combined with existing rules implemented under the previous one-hour federal ozone standard, are predicted to bring the area into attainment of the new, more stringent, eight-hour ozone standard by the EPA’s 2010 deadline.
·         The HGB ozone nonattainment area will take longer to reach attainment.  Texas, therefore, will submit a SIP showing the rate of progress toward attainment as well as new emission control requirements for volatile organic compound (VOC) sources in Houston, strategies for reducing NOx, and elements required by the Federal Clean Air Act such as emissions inventory.

HGB SIP – Items Included:

·         Adoption of a revision to the HGB SIP. This revision includes the Houston-Galveston Area Council's commitment to implement Voluntary Mobile Source Emissions Reduction Programs (VMEP) to achieve reductions of 2.82 tons per day (tpd) of NOX by 2009.  This revision also includes VOC and NOX RACT analysis, and the 2002 HGB periodic emissions inventory.
·         Adoption of the HGB Eight-Hour Ozone Nonattainment Area RFP SIP. This SIP revision demonstrates a 15 percent emissions reduction requirement will be met for the analysis period of 2002 to 2008. The SIP revision establishes baseline emission levels, calculates reduction targets, identifies control strategies to meet emission target levels, and tracks actual emission reductions against established emissions growth and control budgets. This revision also includes MVEBs for the milestone year 2008.
·         Adoption of amendments to 30 TAC Chapter 114, Control of Air Pollution from Motor Vehicles, Subchapter A, Definitions, Section 114.6, and Subchapter H, Low Emission Fuels, Division 2, Low Emission Diesel, Section 114.319 and corresponding revisions to the SIP.
·         Adoption of new Section 115.110 and amendments to Sections 115.112 - 115.117, 115.119, 115.541 - 115.547, and 115.549 of 30 TAC Chapter 115, Control of Air Pollution from Volatile Organic Compounds, and corresponding revisions to the SIP.  The adoption would reduce emissions of VOC from VOC storage and degassing operations by establishing more stringent controls for fittings on floating roof storage vessels, establishing control requirements or operational limitations on landing floating roofs, establishing control requirements for flash emissions from crude oil and condensate storage tanks, and establishing more stringent control requirements for degassing and cleaning of storage, transport and marine vessels.
·         The HGB SIP notes that tremendous progress has taken place in emissions reductions to date as a result of controls on NOx and VOC put into place under the previous EPA-approved SIP. From 1990 to 2003, the total reported emissions of VOC and NOx dropped 48 percent and 43 percent, respectively. The population exposed to eight-hour ozone exceedences was estimated to be 4.6 million in 2000 and is projected to decrease to 1.7 million in 2009, a reduction of 63 percent.

HGB SIP - Commission Discussion, Analysis, and Decision:

·         Chairman White stated that although there is an assumption that reclassification is necessary, that decision is not before the Commission today.  According to the EPA, only the Texas Governor has the authority to make the reclassification request, unless the Governor delegates that authority.
·         Commissioner Soward argued that to have a complete and approvable SIP, there must be an attainment demonstration with photochemical modeling that shows attainment by the current attainment date, or the SIP must include a voluntary reclassification request.  Thus, in his opinion, the SIP is incomplete and not approvable.
·         The TCEQ Chief Engineer testified that the SIP does not contain an attainment demonstration, and that his office is currently working on new episodes and waiting for reclassification.  When reclassification occurs, Texas will supplement the SIP with the control measures needed to achieve attainment.  The SIP, if adopted today, will meet the EPA (Federal Clean Air Act) June 15th statutory requirements.
·         For voting purposes, Commissioner Soward requested that the first item concerning the Houston SIP be separated out from the other HGB agenda items to create two separate voting records (in light of the reclassification issue).  Chairman White agreed to a separate vote and then made a motion to approve the HGB SIP package.  Commissioner Garcia voted in support of adoption, and Commissioner Soward voted “no.”  The remaining HGB items were all agreed upon as indicated by a 3-0 vote.
·         Please see the following links to view the SIP packages and related backup material considered at the Commission agenda:  http://www.tceq.state.tx.us/assets/public/comm_exec/agendas/comm/current/2007/070523.pdf

DFW SIP – Items Included: 

·         Adoption of the DFW SIP to meet the eight-hour ozone National Ambient Air Quality Standard (NAAQS). This SIP revision includes requirements for the following sources: major industrial, commercial, and institutional sources, minor sources, electric generating facilities, cement kilns, and East Texas combustion sources.  This revision also includes a motor vehicle emissions budget (MVEB), VOC and NOX reasonably available control technology analyses (RACT), reasonably available control measures analysis, contingency measures, and emissions inventories.
·         Adoption of the DFW Eight-Hour Ozone Nonattainment Area Reasonable Further Progress (RFP) SIP. This SIP revision demonstrates a 15 percent emissions reduction requirement will be met for the analysis period of 2002 to 2008. This SIP revision establishes baseline emission levels, calculates reduction targets, identifies control strategies to meet emission target levels, and tracks actual emission reductions against established emissions growth and control budgets.
·         Adoption of the repealed and new sections of 30 TAC Chapter 117, Control of Air Pollution from Nitrogen Compounds and corresponding revisions to the SIP.

DFW SIP - Commission Discussion, Analysis, and Decision:

·         The General Counsel divided public testimony into three main topics areas:  1) Brick Kiln and Ceramic Tile Kilns, 2) Cement Kilns, and 3) Compressor Engines.
·         The Commissioners agreed to amend the SIP by changing the brick kiln NOx reduction requirement from 50% to 40% because low NOx burners are not available for brick kilns.
·         After significant opposition to the cement kiln source cap, the Commissioners agreed to slightly modify the SIP by changing the cement kiln source cap calculation by using average annual production from 2003 to 2005 and utilizing one standard deviation with the same emission factor. 
·         Commissioner Soward noted that even if all cement kilns in the area did not exist, only one monitor in the area would move into attainment while three other area monitors would remain in nonattainment status.  Thus, Commissioner Soward argued that current controls are significant, and there is no benefit to going beyond these control measures.
·         The TCEQ learned, just this week, that its inventory on rich burn engines inside the nonattainment area is underestimated by ten fold.  If true, the data would likely indicate an increase in emission reductions from rich burn engines (assuming an accurate inventory).
·         Commissioner Soward argued that with such an underestimation of rich burn engines, the SIP is incorrect.  He stated that he cannot support a SIP when 25% of control measures are based on inaccurate data.  Chairman White argued the TCEQ should move forward to meet the Federal SIP submittal deadlines, and that Texas could always (and will) submit relevant supplemental SIP information to bolster the Weight of Evidence argument.
·         Commissioner Soward floated the idea of continuing this SIP until June 13th to account for legislative direction, local measures that may be implemented, and information from TXU regarding additional emission reductions, but did not have a second vote.
·         EPA sent a letter, just before the start of the May 23rd agenda, to the Chairman and Commissioners stating that after preliminary review of the updated SIP, the SIP “may not be approvable” based on changes made by the TCEQ after proposal.  Specifically, EPA compared the proposed SIP package and the current SIP package and found “significantly fewer reductions in today’s package, on the order of 20-30 tons per day.”
·         After a motion by Chairman White to adopt the SIP package, the vote was 2-0-1, with Commissioner Garcia supporting adoption and Commissioner Soward voting “present.”

TCEQ Highly-Reactive Volatile Organic Compound (HRVOC) Special Emissions Inventory Request/Survey

• The TCEQ Air Quality Division recently asked TCC to provide feedback on the upcoming HRVOC special emission inventory request. 
• The TCEQ states the purpose of the special inventory survey is to gather monitored HRVOC emissions data for the use in developing a more equitable HRVOC allocation methodology.
• TCC received and organized member comments, then submitted the material to the TCEQ.  Currently, the TCEQ is in the process of making revisions to the survey package in response to comments.
• TCEQ staff states that a tentative target date for distribution to member companies is June 1, 2007.  
• Confirmed revision topics include:  instructions language, emission events, FIN data, and the 30 day turnaround.
• Once the survey is completed and submitted back to the TCEQ, the TCEQ plans to take the following actions:
• The TCEQ will hold an advisory group meeting to discuss ideas to revise the allocation, and
• The TCEQ will hold a subsequent meeting once there is a “strawman” proposal to revise the allocation.  The TCEQ will want feedback on the proposal.

TCEQ To Adopt One Total Maximum Daily Load (TMDL) for Bacteria in Upper Oyster Creek at the June 13th Commission Agenda

·         Upper Oyster Creek extends for approximately 54 miles in rapidly urbanizing Fort Bend County, and has a watershed area of 110 square miles. It is located in the Brazos River Basin southwest of Houston.
·         The goal of this TMDL project is to determine the allowable bacteria loading that will enable upper Oyster Creek to meet its contact recreation use.
·         The commission will consider adoption of this TMDL at their Agenda meeting on June 13, 2007.
·         For more information on this TMDL please see the following website:  http://www.tceq.state.tx.us/assets/public/implementation/water/tmdl/25oystercreek/25-upperoysterforadoption.pdf
·         The TCEQ’s TMDL Program works to improve water quality in impaired or threatened water bodies in Texas. The program is authorized by and created to fulfill the requirements of Section 303(d) of the Federal Clean Water Act.  The goal of a TMDL is to restore the full use of a water body that has limited quality in relation to one or more of its uses. The TMDL defines an environmental target and, based on that target, the state develops an implementation plan to mitigate anthropogenic (human-caused) sources of pollution within the watershed and restore full use of the water body.  For more information on TMDLs and how they are implemented, please see the following website:  http://www.tceq.state.tx.us/implementation/water/tmdl/tmdlprogram.html#info

EPA Proposes to Modify the Definition of Solid Waste

• EPA has issued a new supplemental proposal that streamlines the regulation of hazardous secondary materials to encourage beneficial recycling and help conserve resources. (See 40 CFR March 26, 2007, 72 FR 14171-14218). The proposed rule would provide for the recycling of such materials as solvents, metals, and certain other chemicals.
• The proposed rule provides exclusions for:
• Materials that are generated and reclaimed under the control of the generator;
• Materials that are generated and transferred to another person or company for reclamation under specific conditions; and
• Materials that EPA deems nonwaste through a case-by-case petition process.
• The proposal defines legitimate recycling to ensure that only legitimate recycling activity benefits from the streamlined requirements, not treatment or disposal under the guise of recycling.
• The comment period has been extended to June 25, 2007.

EPA Expands Requirements for Annual Reporting of Dioxins

·         EPA issued new dioxin reporting requirements for the agency’s Toxics Release Inventory (TRI).
·         EPA currently requires that facilities report the total amount of 17 dioxin and dioxin-like compounds released or transferred from a facility.  The final rule, issued May 10, will require facilities to report the quantity for each individual compound.\
·         EPA is also adjusting the reporting form for the dioxin compounds to be consistent with common analytical reports that list the compounds in order of ascending chlorination.  The final rule goes into effect July 9th and applies to each reporting year beginning January 1, 2008. 

EPA Air Chief Resigns Effective June 1st

• Acting EPA air chief Bill Wehrum, whose controversial tenure was marked by Senate skepticism over his ties to industry, announced his resignation to agency staff effective June 1. 
• The resignation clears the way for the Bush administration to choose a new replacement for the slot, which has been vacant since Wehrum's predecessor, Jeffrey Holmstead, resigned in the summer of 2005. Robert Meyers, Wehrum’s deputy, recently interviewed with the administration as a possible replacement.
  The acting air chief's decision to step aside should end speculation by some industry sources that Wehrum could win a recess appointment to the slot, even though the Bush administration withdrew his pending nomination last month.
• Any replacement will likely face intense scrutiny from Senate environment committee Chairwoman Barbara Boxer (D-CA). In an April 11 statement following the withdrawal of Wehrum's nomination, Boxer “strongly” urged the administration to select nominees for EPA “who have the experience and expertise for their jobs, and who have demonstrated their commitment to protecting the air we breathe, the water we drink, and the health of our families and communities.”

TCC Committee Reminders

·         TCC Water and Waste Management Committee meeting:  July 19th at the Houston Hobby Hilton.
·         TCC Air Conservation Committee meeting:  August 16th at the Houston Hobby Hilton.

If you have any questions, comments or need additional information, please contact TCC Regulatory Director, Greg Merrell, at merrell@txchemcouncil.org or (512) 646-6404.