Regional Haze, PM, and Permits Update WESTAR Fall Meeting September 26, 2006

Chicago Cub Update World Series Champions (1907 and 1908) World Series Champions (1907 and 1908) National League Championships - 16 (Last one in 1945) National League Championships - 16 (Last one in 1945) Tied for most wins in a season (116) Tied for most wins in a season (116) Longest dry spell in all pro leagues between championships (NFL, NHL, NBA, MLB) Longest dry spell in all pro leagues between championships (NFL, NHL, NBA, MLB) Current year – Worst record in National League Current year – Worst record in National League Best hope – Change in rules so that the last will be first. Best hope – Change in rules so that the last will be first.

Upcoming Policy/Regulatory Actions Flexible Permits Rule Flexible Permits Rule PM2.5 Implementation Final (with NSR) PM2.5 Implementation Final (with NSR) Regional Haze Regional Haze BART Trading Rule BART Trading Rule Reasonable Progress Guidance Reasonable Progress Guidance State Consultations State Consultations PM NAAQS ANPR PM NAAQS ANPR Exceptional and Natural Events Exceptional and Natural Events Removal of Clean Unit and PCP Direct Final Removal of Clean Unit and PCP Direct Final Response to Court Decision on PTE Response to Court Decision on PTE Proposal of SILs and SMCs for PM2.5 Proposal of SILs and SMCs for PM2.5

Upcoming Policy/Regulatory Actions Supplemental proposal on emission test for EGUs Supplemental proposal on emission test for EGUs Final action on Federal Major/Minor NSR for tribal lands Final action on Federal Major/Minor NSR for tribal lands Final action on major source definition and corn milling operations Final action on major source definition and corn milling operations Final action on debottlenecking, aggregation and project netting Final action on debottlenecking, aggregation and project netting Final action on the scope of monitoring for State and Federal operating permits Final action on the scope of monitoring for State and Federal operating permits Proposal on Potential to Emit (PSD and MACT) Proposal on Potential to Emit (PSD and MACT) Reconsideration of Fugitive Emissions (2002 Reform) Reconsideration of Fugitive Emissions (2002 Reform) Final Appendix S Final Appendix S

PSD Increments (North Dakota and WESTAR) Plan to begin responding to these issues with a rulemaking this year Plan to begin responding to these issues with a rulemaking this year Will like take on things in multiple actions Will like take on things in multiple actions Modeling and emission estimation techniques Modeling and emission estimation techniques Cumulative analyses and periodic review Cumulative analyses and periodic review Role of monitoring Role of monitoring Response to finding of increment violation Response to finding of increment violation FLM/State Coordination FLM/State Coordination

Forest County Potawatomi (FCP) February 14, 1995 – FCP submitted a request to redesignate part of their tribal land as Class I February 14, 1995 – FCP submitted a request to redesignate part of their tribal land as Class I June 1995 – EPA proposed to approve the request June 1995 – EPA proposed to approve the request Size of the land Size of the land Air quality related values for the land Air quality related values for the land The States of Michigan and Wisconsin raised concerns and asked EPA to initiate intergovernmental dispute resolution under Section 164(e) of CAA The States of Michigan and Wisconsin raised concerns and asked EPA to initiate intergovernmental dispute resolution under Section 164(e) of CAA

Forest County Potawatomi (FCP) June 1999 – FCP and Wisconsin completed a memorandum of understanding which resolved the dispute. Michigan did not come to a resolution of its issues. June 1999 – FCP and Wisconsin completed a memorandum of understanding which resolved the dispute. Michigan did not come to a resolution of its issues. EPA is planning to propose a FIP to redesignate the land requested by the FCP as Class I EPA is planning to propose a FIP to redesignate the land requested by the FCP as Class I After public comment, EPA will make its final decision and to the degree it is moving forward on the redesignation will also make final decisions on resolving the disputes relate to Michigan and Wisconsin. After public comment, EPA will make its final decision and to the degree it is moving forward on the redesignation will also make final decisions on resolving the disputes relate to Michigan and Wisconsin.

EPA’s PM Standards: Old and New September 21, Standards 2006 Standards Annual24-hourAnnual24-hour PM2.5(Fine) 15 µg/m 3 Annual arithmetic mean, averaged over 3 years 65 µg/m 3 Annual arithmetic mean, averaged over 3 years 15µg/m 3 Annual arithmetic mean, averaged over 3 years 35µg/m 3 Annual arithmetic mean, averaged over 3 years PM10(Coarse) 50µg/m 3 Annual average 150µg/m 3 24-hr average (99 th percentile) Revoked 150µg/m 3 24-hr average (singled expected exceedance)

Counties Exceeding New NAAQS Levels, Based on Monitoring Data Data from AQS 7/10/2006 Data completeness computed per CFR 7/10/2006 LegendNumber of Counties County with monitor exceeding: both annual and 24-hour PM2.5 standards 55 ONLY the 24-hour PM2.5 standard 69 ONLY the annual PM2.5 standard 17 Total Counties Exceeding141 Counties Exceeding New NAAQS Levels, Based on Monitoring Data

Status of Current PM 10 Nonattainment Counties (Counties with one or more current nonattainment areas, based on air quality data)  Nonattainment area(s) violate NAAQS [12 counties]  Nonattainment area(s) meet NAAQS [25 counties]  Nonattainment area(s) are incomplete [7counties]  One area meets, one area incomplete [1 county]  One area meets, one area violates [1 county]

EPA Response to Title V Task Force Recommendations Lots of recommendations (100), lots of discussions in EPA, and still trying to figure out how best to respond. Lots of recommendations (100), lots of discussions in EPA, and still trying to figure out how best to respond. Priority areas for more immediate work Priority areas for more immediate work Types of response Types of response Input sought from CAAAC Input sought from CAAAC

Title V Task Force Recommendations: Principles EPA used in developing its response Improve public participation while minimizing burden to states Improve public participation while minimizing burden to states Reduce costs to industry while preserving benefits Reduce costs to industry while preserving benefits Need to reduce petitions Need to reduce petitions Consistency with statute and with ongoing or upcoming rules Consistency with statute and with ongoing or upcoming rules

Title V Task Force Recommendations: EPA Implementation methods Share Best Practices/Promote Good Ideas Share Best Practices/Promote Good Ideas Issue Guidance Issue Guidance Undertake Rule-making Undertake Rule-making Remain neutral; Defer to State Remain neutral; Defer to State Adjust Internal EPA process Adjust Internal EPA process Offer Training/Technical Assistance Offer Training/Technical Assistance Conduct Case-studies Conduct Case-studies More Research / Further Deliberation More Research / Further Deliberation Do Not Implement Do Not Implement

Title V Task Force Recommendations: EPA’s priority recommendation areas (short list) Citation to application requirements: general citation; paraphrasing Citation to application requirements: general citation; paraphrasing IEU’s: exempt by rule IEU’s: exempt by rule Public hearings: standard for granting hearing Public hearings: standard for granting hearing Public notice: alternatives to newspaper Public notice: alternatives to newspaper Response to comments: written response expected Response to comments: written response expected

Title V Task Force Recommendations: EPA’s priority recommendation areas (continued) Permit reopenings: clarify permit revision process under current rule Permit reopenings: clarify permit revision process under current rule Petition process: improved EPA response and website Petition process: improved EPA response and website Statement of basis: clarify content Statement of basis: clarify content Title I/ Title V integration: coordination of NSR/title V processes; processing of pending SIP revisions Title I/ Title V integration: coordination of NSR/title V processes; processing of pending SIP revisions

Title V Task Force Recommendations: Other EPA Priority Areas Compliance certifications: “short form;” applies only if permittee obligated to comply Compliance certifications: “short form;” applies only if permittee obligated to comply Startup, shutdowns, malfunctions: applicability of emergency defense Startup, shutdowns, malfunctions: applicability of emergency defense Permit reopenings: rule change to allow broader use of administrative amendment and minor modification processes Permit reopenings: rule change to allow broader use of administrative amendment and minor modification processes Public notice: improve online notice and access to documents Public notice: improve online notice and access to documents

Can anybody remember when the times were not hard and money not scarce? Ralph Waldo Emerson Grant Dollars (States and RPOs) Grant Dollars (States and RPOs) Still uncertainty as to FY07 levels – December 2006? Still uncertainty as to FY07 levels – December 2006? Monitoring Monitoring Shift of PM2.5 monitoring costs Shift of PM2.5 monitoring costs Potential cuts in IMPROVE network Potential cuts in IMPROVE network FY08?? FY08??