1. 1 Air Pollution Control Update 10/14/11 Air & Waste Management Association William OSullivan, P.E. Director, Division of Air Quality NJ Department of Environmental Protection

2. 2 Air Pollution Challenges 2012 1.Mobile Sources 2.Air Toxics (especially diesel) focus on disproportionate impacts. 3.Ozone 4.NO2/SO2 1 hour NAAQS 5.Fine Particulates – continued progress 6.GHG – BACT/High Efficiency 6.Mobile Sources

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6. 6 NAAQS Exceeded on 31 days during this period

7. 7 New Jersey State Implementation Plan (SIP) Status Ozone –0.08 ppm USEPA approved RFP, RACM, Conformity, RACT and Control Measures; USEPA proposed disapproval of the attainment demonstration May 2009; NJs Northern NAA: NJ has requested a Clean Data Determination; NJs Southern NAA: NJ received a 1 year extension of the 2009 attainment date. –0.075 ppm NJ submitted designation recommendations April 1, 2009; NJ recommended either a larger multi-state NAA, or the same as the 0.08 ppm NAAs; EPA put them on hold pending the ozone reconsideration, but is now moving forward with implementation. PM2.5 –15 μg/m 3 annual NJ submitted a final SIP March 2009. We are waiting for EPA action; EPA promulgated a Clean Data Determination for NJs Northern NAA; We expect EPA to propose a Clean Data Determination for NJs Southern NAA; –35 μg/m3 24-hour NJ will request a CDD from the USEPA for both NAAs. Regional Haze –Submitted Jul 28, 2009, submitted BART portion in 2011, EPA has proposed APPROVAL on August 11, 2011.

8. 8 Anticipated National Ambient Air Quality Standards Milestones PollutantStandard NAAQS Promulgation Date Designation Effective 110(a) SIPs Due Attainment Demonstration Due Attainment Date Promulgated PM2.535 µg/m3 dailySep-06Dec-09Sep-09 Dec-12, CDD in progress instead Dec-14 Ozone0.075 ppm 8 hourMar-08Mid-12?Mar-11Mid-15? Dec-15 Marginal or Dec-18 Moderate? Lead0.15 µg/m3Oct-08Nov-11?Oct-11NA NO2 Primary100 ppb 1 hourJan-10Feb-12?Jan-13NA SO2 Primary75 ppb 1 hourJun-10Aug-12? For AAs: Jun-13 (maint also) For NAs: Jan-14 (Plan) and by Aug-17 (Demo and maint)? Aug-17? CO No change, new monitoring requirements Aug-11NA Not Yet Promulgated NO2/SO2 Secondary NO2-53 ppb annual, 100 ppb 1 hour, SO2- 0.5 ppm 3 hour, 75 ppb 1 hour? Proposed 8/2011, Final 3/2012? Apr-14?Mar-15?Oct-15?NA PM2.5 12 µg/m3 annual, 30 µg/m3 daily? Proposal end of 2011? Dec-14?Oct-15?Dec-17?Dec-19/24? Ozone8-hour 0.06-0.07 ppm?Jun-14?Jul-16?Jun-16?Jul-19?Jul-24? Updated 9/29/2011, Judy Rand

9. 9 Overview of New 1-hour NAAQS 1-hr NO 2 = 100 ppb (189 ug/m3) Effective on April 12, 2010 Based on 98th percentile of annual distribution of daily max. 1-hr values 1-hr SO 2 = 75 ppb (196 ug/m3) Effective on August 23, 2010 Based on 99th percentile of annual distribution of daily max. 1-hr values

10. 10 1-Hour NO 2 in New Jersey Current New Jersey 1-Hour Background Levels - 37% to 67% of NAAQS EPA and NJDEP guidance memos limit need to model intermittent NOx emissions: –Startup/Shutdown operations –Testing of emergency equipment

11. 11 1-Hour NO 2 Modeling Conclusions NO 2 1-Hour NAAQS is much more easily violated than the current annual NAAQS Principal sources of concern: - smaller sources with low stacks, - large sources with large emissions and no NOx control

12. 12 1-Hour SO 2 in New Jersey Current New Jersey 1-Hour Background Levels – 18% - 47% of NAAQS Sources currently burning No. 2 and lighter oil will become negligible after 2016 (Sulfur in Fuel Rule will limit oil to 15 ppm sulfur)

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14. 14 1-Hour SO 2 Modeling Conclusions SO 2 1-Hour NAAQS is much more easily violated than the 3 and 24-Hour NAAQS Principal sources of concern are older, large sources burning No. 6 oil or coal (in other states)

15. 15 Columbia Lake NJ Monitor Data collected since Sept. 23, 2010 31 exceedances of the 1-hour SO 2 NAAQS recorded from Sept. 23, 2010 to Sept. 15, 2011 Confirms model predictions of NAAQS violations due to Portland Power Plant

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17. 17 USEPAs NATA National-Scale Air Toxics Assessment EPA released 2005 NATA in March 2011. (2002 NATA was released to public in June 2009.) NATA is generated for every 3rd year.

18. 18 USEPAs NATA 2005 For 177 air toxics + diesel particulate matter Compile emissions inventory for point, nonpoint & mobile sources Dispersion modeling Estimate ambient concentrations for each census tract nationwide Estimate public health risk

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22. 22 NJ Facility-Wide Cancer Risk Guidelines Risk < 10 in a million (1x10 -5 ) Negligible risk 10 in a million < Risk 100 in a million Pursue long-term (5-year) risk minimization strategy. 100 in a million < Risk < 1000 in a million Pursue short-term (<1 year) and long-term risk minimization strategy. Risk > 1000 in a million (1x10 -3 ) Unacceptable risk. Pursue N.J.A.C. 7:27-5 enforcement action for existing facilities.

23. 23 Mobile Sources 1.Diesel a. Port b. Retrofit Program c. Idling Program d. Inspection and Maintenance 2.Gasoline a. Inspection and Maintenance

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26. 26 Diesel Retrofit Program Closed crankcase technology installed on 7,310 school buses. Tailpipe control technology installed on 1,400 garbage trucks. 800 NJ Transit buses underway & almost done. 1,500 commercial transit buses in process. 6,500 other public diesel vehicles and larger off- roads begin retrofit Fall 2011.

27. 27 Other retrofit opportunities Governors Executive Order #60 requires nonroad retrofits on DOT construction projects Targeted at urban areas 175 retrofits over 3 years Evaluation after 3 years before expanding to all projects Funding from grants and enforcement settlement ($2.5 million) Builds on NJ Clean Construction efforts underway

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29. 29 Back to School Reminder 3 minute idling limit for all gasoline and diesel vehicles (this includes school buses and parents).

30. 30 Diesel I/M Program ~85,000 heavy-duty diesel trucks are inspected annually at private inspection facilities. ~11,000 heavy-duty diesel (in & out of state) trucks are inspected by State diesel roadside teams. Smoke opacity standards were lowered and enforcement began April 2010. –Annual inspections saw a 1% increase in emission failures –Roadside inspections saw a 10% increase in emission failures Opacimeter in stack

31. 31 NJ has about 5 million gasoline vehicles that require periodic inspection. 80% of inspections performed at 120 centralized lanes and 20% at over 1,100 decentralized garages. Almost 3 million inspections per year. Overall initial failure rate is 12%. 96% of vehicle owners show up for inspection on time and/or have a valid inspection sticker.

32. 32 New Jerseys Inspection & Maintenance (I/M) Program was revised in early 2010 –On Board Diagnostics (OBD) test for all 1996 and newer cars including light-duty diesels –Dynamometer-based emissions test replaced with two-speed idle emission test for pre-1996 cars

33. 33 Future I/M program designs will focus on the use of On-Board Diagnostics (OBD) for all vehicles including heavy-duty diesel. The use of advanced OBD inspection technologies will enable future I/M programs to become more cost-effective by reducing inspection costs while focusing on the M, i.e., maintenance side of I/M to maximize emission reductions.

34. 34 New Jerseys Low Emission Vehicle (LEV) Program Adopted by DEP in 2005, became mandatory in January 2009 Light-duty vehicles sold in NJ must meet California emission limits; The program includes emission standards for NMOG, NOx, CO, and Greenhouse Gases(CO2, CH4, N2O, HFCs) The Zero Emission Vehicle (ZEV) requirement promotes advanced technologies such as Battery Electric, Fuel Cell Electric, Plug-In Hybrids and Hybrid Electric Vehicles

35. 35 LEV Program Metrics: Cleaner Vehicles Sold in NJ PZEVs Partial Zero Emission Vehicles, ultra-low emitting, AT PZEVs are Hybrid-Electrics; sales has increased to about 26% in 2009/2010; 15 years / 150,000 miles warranty, 10 years on battery Placed in NJ: 110 BMW BEV Mini-E, 30+ full range electric Tesla vehicles; Nissan Leaf and PHEV Chevrolet Volt are coming too

36. 36 Stationary Sources 1.OTC Regional Control Strategies 2.General Permits 3.Transformation 4.ISG

37. 37 OTC Regional Control Strategies NO x Sources: Model Rules/MOUs: 1.EGUs (Oil and Gas-fired Boilers)* 2.High Electric Demand Day (HEDD) Turbines* 3.New Small Boilers 4.Stationary Generators Draft Model Rules: 5.Non-Road Equipment Idling* 6.Natural Gas Compressor Stations Categories Under Review: 7. Municipal Waste Incinerators 8.Promote Energy Efficiency/ Renewable Energy 9.Coal-fired Boilers (EPA) VOC Sources: Model Rules/MOUs: 1.Large VOC Stationary Storage Tanks* 2.Autobody Refinishing 3.Consumer Products 4.Architectural/Industrial Coatings Draft Model Rules: 5.Solvent Cleaning (Industrial/Commercial) 6.Paint Thinners (Consumer) Category Under Review: 7.Stage 1 and 2 Vapor Recovery *Existing NJ Rule Equivalent to Model Already Adopted

38. 38 General Permits/ General Operating Permits Under Development GP NumberTitleStatus GP-021/GOP- 005 CHP using Turbines Available for Use Sept. 19, 2011 GP-022/GOP- 006 CHP using Spark Ignited Engines Available for Use Sept. 19, 2011 GOP-003Emergency Generators Propose winter 2012

39. 39 TRANSFORMATION Air Permit Review & Process

40. 40 ITEMS DISCUSSED Permit Format Streamlining of Compliance Plans Level of monitoring Level of monitoring as it relates to enforcement history Permit application supplemental information Redefining insignificant sources in NJ Title V program

41. 41 ITEMS DISCUSSED Hold on-site pre/post application meetings Offer Plant-wide Applicability Limits (PAL) Develop General Operating Permits Shortening Permit Processing Time Classify More significant Modifications as Minor Modifications Like-kind Replacement of Equipment Minimize the number of appeals

42. 42 IMPLEMENTATION General Permits (GPs & GOPs) –Combined Heat & Power (Engines & Turbines) – Available 9/19/11 –Emergency Generators GOP – in progress Pre-application Checklists – in progress –Administrative & Technical Completeness Pre-application Meetings – on-going –On-site if necessary

43. 43 PERMIT PROCESS - LEAN Produced results in manufacturing industry Identified OP Sig. Mod. Process Review Process Fairly Efficient Overall Info Requests Throughout Rev. Process –Due To Application Incompleteness –Missing/Incomplete Info Identified Late in Review Process Moving Completeness Review To Front of Review Process Will Improve Efficiency

44. 44 PILOT PROJECT Six-month Project (OP Sig. Mods initially) Pre-application Meetings –On-site if necessary Completeness Checklists –Rule Applicability/Compliance Demonstrations –Process Description/Air Flow Diagram –Emission Calculations/Supporting Documentation –Need for Modeling/Risk Assessment –Level of Public Interest & Outreach Full Applicant Cooperation

45. 45 Air Permitting/ Industrial Stakeholders Group (AP/ISG) Open to anyone with an interest in AQ Permits. Composed primarily of DEP AQ permitting staff, DEP AQ enforcement staff and representatives of regulated industries, and other parties interested in Air Permitting The group meets quarterly to discuss ways of: – promoting effective and consistent permits –that are protective of the environment –consider the concerns of the regulated community. Most recent meeting held on September 16, 2011 Materials on past and future meeting can be found at http://www.state.nj.us/dep/aqpp/isg.html http://www.state.nj.us/dep/aqpp/isg.html