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MMA Air Policy Committee — Agenda for 10/1/2019

October 1, 2019 Meeting Agenda
Notice: We will be joined by staff of the Department of Environment, Great Lakes, and Energy during the latter half of the meeting. EGLE staff will arrive at 10:30 a.m. EST.

Action Items:

  1. Title V Air Fees Discussion: MMA is seeking $2 million in General Fund to supplement the fee revenue in order to reduce the amount of fee increases on MMA members.
    1. Senate Bill 137
    2. Senate Bill 137 Conference Report

    Senate Bill 530 (Senator Rosemary Bayer, D-Beverly Hills): SB 530 would amend Part 55 (Air Pollution Control) of the Natural Resources and Environmental Protection Act, the statutory basis for the Department of Environment, Great Lakes, and Energy (EGLE) Air Quality Division's Renewable Operating Permit (ROP) program. The bill would extend the sunset on the ROP program fees for four years, from October 1, 2019, to October 1, 2023. The bill also would adjust and increase annual ROP fees and create a new categorical fee structure. It was introduced on 9/17/19 and referred to the Committee of the Whole on 9/19/19.

    1. Bill Draft
    2. Bill Summary as Reported from Committee
  2. Nonattainment Strategies: Further discussion on Ozone Attainment Strategies is needed – especially considering proposed VOC/NOx RACT categories outlined by EGLE in their recent presentations and based on OTC Recommendations. It should be noted that VOC RACT is often adopted throughout the state and not just in the nonattainment areas. Further committee discussion is needed on how nonattainment area requirements will be implemented in Michigan including timing, requirements for offsets, etc. EGLE may consider filing a petition under 179(B)(b) of the Clean Air Act and MMA should encourage such a petition. Chair Lillian Woolley and Greg Myers of Marathon Petroleum led a meeting with EPA Region 5 Administrator Cathy Stepp on 8/20/19.
    1. Timeline PowerPoint
    2. Meeting Agenda
    3. EGLE Attainment Update PowerPoint
    4. EGLE Response Letter
    5. Letter to EGLE Director Clark
    6. Implementation of the 2015 National Ambient Air Quality Standards
    7. OTC Home Page
    8. Section 179(B)(b) International Border Areas
  3. Ambient Monitoring Project: An offshoot of the Coordinating Research Council is considering additional ambient monitoring in southeast Michigan and/or looking more closely at exceptional events.
  4. NOx/VOC Work Group and/or Transport Work Group: After some additional discussion, EGLE indicated that the new work groups would likely address southeast Michigan only and different work groups will be formed to address the western Michigan nonattainment areas. We have been able to get together some representatives of large NOx sources to join the NOx/VOC Work Group, but only one large VOC source. We do not currently have VOC RACT rules for adhesives – and the recommended definition for adhesives and sealants includes a wide variety of materials one might not immediately label as adhesives. Many are also requesting a Transport Work Group. The committee has been lobbying EGLE to look at a 179(B)(b) petition to argue that SE Michigan is particularly influenced by international transport. Also, EGLE is rewriting the Part 8 (NOx) rules in Michigan, and there is an opportunity to eliminate CEMS for non-EGU CAIR sources (as CAIR has been vacated). Most of these sources have CEMS but no emission limit.
    1. Ozone Work Group List

Parking Lot:

  1. EGLE Releases Annual 2018 Air Quality Report: The report focuses on information for specific pollutants, including those with National Ambient Air Quality Standards and toxic air contaminants.  The report also contains important details on more than 40 monitor locations and over 100 monitors throughout the state; types of monitoring done at each location, concentrations of air pollutants, pollutant trends over time, and Air Quality Index (AQI) information, such as precipitation and temperature information.
    1. Link to Report
  2. Proposed Air Emissions Legislation Packages: Senate Bills 490 and 491 (Senators Stephanie Chang, D-Detroit; and Winnie Brinks, D-Grand Rapids) would require reduction of emissions during certain months and winter thermal inversion action days. These bills were introduced and referred to the Committee on Environmental Quality on 9/4/19.
    1. Senate Bill 490
    2. Senate Bill 491

    House Democrat Air Emissions Legislation Package: House Bills 4840-4849 were introduced and referred to the Committee on Natural Resources and Outdoor Recreation on 8/28/19.

    1. House Bill 4840
    2. House Bill 4841
    3. House Bill 4842
    4. House Bill 4843
    5. House Bill 4844
    6. House Bill 4845
    7. House Bill 4846
    8. House Bill 4847
    9. House Bill 4848
    10. House Bill 4849
  3. EGLE names Dr. Brandy Brown as Climate and Energy Advisor (Dr. Brandy Brown, EGLE Office of Climate and Energy)
    1. Press Release
  4. EGLE Releases New Mission, Vision and Values Statements: On August 12, 2019, EGLE published a press release announcing new mission, vision and values statements.
    1. Press Release
  5. Update on Pending Rules and Environmental Rules Review Committee (Dave Fielder, EGLE Regulatory Affairs)
    1. EGLE Rules Update Chart
    2. New Rule Promulgation Procedure
    3. Article on ERRC’s First Action
    4. ERRC Page
    5. Michigan Office of Administrative Hearings and Rules Page
    6. Environmental Permit Review Commission Page
  6. ROP Update: A member company had questions about test language. The EPA has made additional comments on ROPs.
    1. EPA Comments
  7. Meaningful Change: EGLE has offered to update the memo on meaningful change or present some alternatives to doing the current analyses included in AQD-025, though MMA must provide them suggestions first as we have in our letter and in separate meeting and discussions with the AQD. More recently, AQD has backtracked on defining a “modification” and threatened to change the flow chart on page 3-18 of the PTI applicability guidebook. Some suggested language: “As a state-only enforceable requirement, the new emission unit will not result in an exceedance of any air toxics standards found in Rule 336.1226 or Rule 336.1227. The permittee shall keep on file, a copy of all demonstrations that the air toxics impact from the new emission unit(s) will comply with the levels specified in Rule 336.1226 or Rule 336.1227. The permittee may devise its own method to perform this demonstration subject to approval by the department.”
    1. Meaningful Change Memorandum
    2. Applicability Guidebook
    3. Meaningful Change Letter
  8. PTI Timing: MMA is engaging EGLE in ways Permit-to-Install Timing can be reduced. An MMA group met with EGLE AQD on April 16, 2019 to discuss opportunities for improvement. We sent a letter summarizing process improvements and best practices that would be beneficial to all parties.
    1. PTI Letter to EGLE
    2. PTI Process Tracking Steps
  9.  “Once in Always in Policy” policy proposed rule: The US EPA has proposed a formal rule to repeal the “Once in, Always in” Policy.
    1. National Law Review Article
    2. EPA Proposed Rule
  10. NOx RACT Review: The AQD is developing its proposed regulatory agenda for next year and it will include both VOC and NOx RACT as well as other updates to the Part 8 Rules. While Michigan has implemented VOC RACT in response to previous Ozone SIPs, no NOx RACT Rules were required at that time. We wanted to review the Illinois RACT Rules and talk about how NOx RACT might be implemented in Michigan.
    1. Illinois RACT Rules
    2. NOx RACT Presentation
  11. Air Quality Advisory Group: The Air Quality Advisory Group met on May 20, 2019 and discussed nonattainment areas, fees and SO2 from landfills and changes in policy associated with supplemental environmental projects (SEPs).
    1. Landfill TRS Information Request Letter
  12. S. 451 (Senator Tammy Duckworth, D-IL)/ H.R. 1165 (Representative Bill Foster, D-IL): This Federal bill would update requirements for chemicals that pose an adverse public health risk, requiring the EPA to publish an updated National Air Toxics Assessment once every two years. The assessment uses emissions data to estimate health risks from toxic air pollutants. The bill also requires the EPA to use data from its Integrated Risk Information System when conducting rulemaking with respect to chemicals that have been assessed in the system. For chemicals that are found to pose an adverse health risk, the EPA shall identify and do additional review on facilities that are significant sources of the chemical to determine whether the facility poses an adverse public health risk. Under the bill, chemicals identified as carcinogenic in the system must have a toxic chemical release form completed by the owner or operator of a facility. The bill requires the Department of Health and Human Services (HHS) to consult with appropriate EPA offices regarding the future schedule of assessments of chemicals to be conducted under the system, the results or existing assessments, and concerns that may merit additional review. HHS must also administer personal exposure tests for chemicals that pose a new adverse public health risk to vulnerable populations, such as children. HHS must establish a Community Outreach Division to communicate risk assessments to affected communities. This bill was introduced in the U.S. Senate on 2/12/19.
  13. H.R. 585 (Representative Yvette Clarke, D-NY): This Federal bill would amend the Clean Air Act to revise requirements for hazardous air pollutants. Emissions from oil or gas exploration or production wells and emissions from pipeline compressors or pump stations would be aggregated with emissions from other similar sources and regulated as a major source of toxic air pollutants, emissions from those wells to be aggregated for purposes of emissions standards for hazardous air pollutants, and the EPA would have to issue a final rule adding hydrogen sulfide to the list of hazardous air pollutants; and revise the list of air pollution sources within 365 days after issuing the rule to include categories and subcategories of major sources and area sources of hydrogen sulfide, including oil and gas wells.
  14. H.R. 2605 (Representative Haley Stevens, D-MI): This Federal bill would direct the EPA Administrator to issue a final rule adding PFAS and PFOS with at least one fully fluorinated carbon atom to the list of hazardous air pollutants under section 112(b) of the Clean Air Act (42 U.S.C. 7412(b)). This bill was introduced in the US House of Representatives on 5/8/19.
  15. SB 255 (LaSata): Senate Bill 255 would amend Part 55 (Air Pollution Control) of the Natural Resources and Environmental Protection Act to require the owner of a process, source, or process equipment, if electronic notification were used, to notify the Department of Environment, Great Lakes, and Energy (DEGLE) at least the specified number of days in advance of a change of location. It was scheduled for a hearing Tuesday, May 28, 2019; though this meeting of the Senate Committee on Environmental Quality was cancelled. It was referred to the Committee on Natural Resources and Outdoor Recreation on 9/4/19.
    1. Senate Bill 255
    2. Bill Summary
  16. SB 326 (Chang)/ HB 4624 (Garza): Senate Bill 326 and House Bill 4624 would require an impact study and consideration of cumulative pollution levels prior to the issuance of air quality permits in certain locations. SB 326 was introduced and referred to the Committee on Environmental Quality on 5/16/19, and HB 4624 was introduced and referred to the Committee on Natural Resources and Outdoor Recreation on 5/21/19. How would the requirements of SB 326 and HB 4624 change how PTIs are currently reviewed? What about PTIs with a net reduction in emissions?
  17. SB 60 (Chang)/ HB 4264 (T. Carter): Senate Bill 60 creates Air Quality Enforcement & Mitigation Fund (AQEM) with revenue from civil and administrative fines and penalties. Funds are to be distributed within “environmental protection communities” according to prescribed criteria. SB 60 was referred to the Committee on Environmental Quality on 1/24/19, and House Bill 4264, the companion bill, was referred to the Committee on Natural Resources and Outdoor Recreation on 2/26/19.
  18. EGLE Modeling Guidance: A revised memo should be issued shortly for our review. EGLE has agreed to some changes that were requested, but not others. Some member companies have expressed concern over use of the new modeling guidance, especially the treatment of the “qualitative analysis.” MMA has a mark-up of the memo and has proposed some changes to allow more qualitative analyses; though this does not address all our requested changes.
    1. Modeling Guidance
    2. Memo with Markup
  19. EGLE has released the final guidance on the repair and replacement of LFG engines and MMA has requested some additional changes. MMA met with EGLE AQD on our concerns. We now have comments from the AQD on how they propose to handle our concerns.

Contact Eleanor Surtman

Eleanor SurtmanGovernment Affairs Coordinator
Call 517-487-8552