What Will It Take?

1. What Will It Take? Meeting the New Ozoneand Sulfur Dioxide Standards 2013 Power Plant Regulations Stakeholder Meeting - October 21, 2013

2. Topics Covered The new standards for ground level ozone and sulfur dioxide (SO2) Background Maryland status Ozone Implementation What the science tells us Efforts to address ozone transport Maryland efforts to adopt new local pollution control programs SO2 Implementation Current status

3. The Good News

4. Progress in Cleaning Maryland’s Air 8-Hour Ozone Annual Fine Particulate Daily Fine Particulate 1-Hour Ozone p. 4

5. Air Quality Trend Maps p. 5

6. Continuous Air Quality Progress Number of Maryland’sOzone Exceedance Days Number of 90 Degree Days at BWI p. 6

7. One-Hour SO2 Trends Phase 1 SO2 controls under the MD Healthy Air Act

8. A Ten Second Celebration

9. No Rest for the Weary Comparing the Old and NewOzone Standards Problem areas for the old 85 ppb ozone standard Problem areas for the 75 (or 60 to 70) ppb ozone standard Who is in nonattainment under the old standard? Who might be nonattainment under the new standard? 9

10. The New Challenges

11. The New Ozone Standard - Background Finalized by EPA in 2008 75 ppb as an 8-hour standard Delayed in 2010 EPA announced plans to adopt an even more stringent standard (in the 60 to 70 ppb range) This range was consistent with EPA’s science advisors 2011 - Decision to not move ahead with more stringent standard announced June 2012 – EPA designates 3 areas in Maryland as “nonattainment” Other areas across the Country also designated nonattainment

12. The New SO2 Standard - Background Finalized by EPA in 2010 75 ppb as a 1-hour standard August 2013 – EPA only designated areas of the country that were monitoring nonattainment Rest of country, including all of Maryland, has not been designated: Neither “unclassified/attainment” nor “nonattainment” designation Undesignated areas will be designated in 2017-2020, based on monitoring or modeling data yet to be collected Early attainment option also included in draft EPA guidance

13. Implementing the New Standards Ozone Maryland must submit an updated NOx RACT SIP for the new 75 ppb standard by July 2014 SO2 Maryland can take advantage of “early action” concepts in EPA’s Feb. 2013 strategy paper: Avoid “nonattainment” designation for 1-hr SO2 A Multi-Pollutant Approach for power plants and these new standards Additional reductions from power plants will be needed to meet both new standards MDE plans to adopt regulations that address both pollutants at once More efficient, avoids inconsistent requirements, but some timing challenges

14. Implementing the New Ozone Standard

15. Baltimore – The Last Purple Dot • Only area in the East designated as a “Moderate” nonattainment area • 2015 SIP & 2018 attainment • Rest of the East is “Marginal” • 2013-2015 attainment • No requirements to do anything • Still not meeting old 85 ppb standard <71 71-73 74-75 76-85 (mar) >85 (mod) Parts per Billion (ppb) 15

16. A Little Glimpse at the Science 20 plus year “science partnership” with UMCP, UMBC, HU, PSU, EPA and others Local emissions in Cities (nonattainment areas) Reducing local emissions is always important Three distinct types of transport Short range - City to city “Ground level” transport Washington to Baltimore, Baltimore to Philadelphia, etc. Westerly, Long range (up-over-and-down) “Aloft” transport - 100s of miles Generally from W or NW Southerly, Nocturnal Low Level Jet (NLLJ) “Aloft” transport at night !!! 100s of miles SW to NE – a “jet” of air funneled between the Atlantic Ocean and the Appalachian Mountains June 8, 2011 Map is courtesy of EPA AIRNow. Where Does Our Ozone Come From? There are Four Distinct Parts

17. Will Regional Controls Work? Case study – 2004 NOx SIP Call The classic ozone transport story Incoming ozone levels (as high as 80 ppb) collect in an elevated reservoir over night Real world programs like the NOx SIP call have shown that Adding regional controls Results in regional NOx emission reductions … Which lead to reduced ozone in the elevated reservoir … Which lead to lower ozone at ground level and public health protection! Ground Level Ozone Drops Dramatically in the Same Time Frame Ozone Levels in the Elevated Reservoir Reduced by 25% after 2004 Regional NOx Emissions Drop Dramatically in 2004 Huge Investment in SCRs in 2003 and 2004 Morning Elevated Reservoir of Ozone Above the OTR 80 ppb at 2000 ft. at 6 a.m.

18. The Path Forward We understand the science of ozone better than ever We’ve implemented programs that have worked in the real world We need a two-part strategy Local (Baltimore and Washington) controls are still critical Can help reduce about 1/3 of the ozone problem in most OTC cities National/super-regional controls are now essential to reduce transport Incoming ozone is already measured at levels above the 75 ppb standard Regional contribution represents approximately 2/3 (or more) of the ozone problem in most OTC cities

19. Will This Strategy Get Us to 75 ppb? PRELIMINARY OTC MODELING, “SCENARIO 4,” GENERALLY GETS US TO THE 75 PPB STANDARD Before After Benefits Outside of the OTR are even More Dramatic 19

20. Potential Transport Actions A group of Mid-Atlantic and Northeast states have been working together to push for a clear action plan to address transport A great deal of frustration Earlier efforts by EPA have fallen short or ended up in Court Clean Air Act “Tools” that are in the works: Pushing & supporting federal measures Making recommendations for very large nonattainment areas (Section 107) Challenging upwind states’ “Transport SIPs” (the Section 110(a)(2)(D) “Good Neighbor” SIP) Filing Section 176A Petition to expand the Ozone Transport Region Filing Section 126 petitions against stationary sources Creating another “state partnership” effort, like OTAG “Those of us in the Northeast have a simple message for our friends upwind: it is time for you to act. While we have invested heavily in cleaning up our power plants for too long, many states have failed to do the same. This failure threatens the health of our citizens, damages sensitive ecosystems, and distorts economic activity,” said Connecticut Gov. Dan Malloy (D) in an address at the meeting. “Let me be clear about this -- our patience has run out. The time to curb these emissions is now. If necessary, the Northeast states will press this case at the highest levels of our federal government and the highest courts in our nation,” Malloy said. ECOS Meeting - June 7, 2012

21. Working on Transport Data through 9/28/2011 • Individual or groups of states – Not OTC – can consider taking action. • Some states (MD, DE, CT and DC) have already taken action under Sections 107 and 110 • NY, MD, DE, CT, DC, MA, RI and VT are close to filing a petition under Section 176A

22. Other Transport Activities EPA’s Proposed Tier 3 and Low Sulfur Fuel Regulation The most important control program left to reduce ground level ozone Will dramatically reduce mobile source NOx emissions by 2018 The Cross-State Air Pollution Rule Focused on power plants Rejected/Vacated by DC Circuit Court U.S. Supreme Court case starts December 10, 2013 EPA Meetings on Transport EPA will develop a rule establishing “good neighbor” responsibilities for upwind states Will leave “remedy” or “solution” to the states

23. Pushing Local Controls Maryland continues to push new local controls Lessons learned from the $2.6 Billion Healthy Air Act Moving forward with strengthening regulations Tougher controls on distributed generation sources, incinerators, cement kilns, and more Multiple new area source control efforts (many through OTC Committees) Mobile sources reductions & conformity regulation effort Our science tells us that the #1 local emissions to target for reductions is NOx from mobile sources

24. Reducing Mobile Source Emissions in MD Maryland Clean Cars program Last update just approved EPA’s Tier 3 and Low Sulfur Fuel program Critical to Maryland Largest NOx emission reducing program left Support from many – including Maryland Maryland’s Long Range Planning Targets for Transportation Planning Regulation Briefed AQCAC several times already Designed to further reduce NOx emissions from local (Baltimore and Washington) mobile sources Still controversial Electric Vehicle Initiatives

25. Stationary (Smokestack) Sources Power Plants The topic of today’s meeting Have seen huge NOx, SO2 and mercury reductions from the Healthy Air Act That said, were working to address several issues that need to be addressed Short-term emissions Plant-by-plant controls Distributed generation sources Focus on making sure that behind the meter units that run as part of demand response programs are clean – bad timing Cement kilns More …

26. MDE works with 13 other states that are part of the Ozone Transport Commission (OTC) to evaluate and develop model rules or model programs for priority categories Current efforts include: Consumer Products Architectural and Industrial Maintenance Coatings Solvent Degreasing Demand Response Asphalt Paving Ports Idling More … New Regional Control Efforts

27. Highest Priority Transport Highest Priority for Local Control Mobile sources Tier 3/LSF EV initiatives Long Range Planning Target for Transportation Planning Regulation Second Highest Priority for Local Control Power Plants Distributed Generation sources Other Priorities All other initiatives Priorities

28. Implementing the New SO2 Standard

29. A Different Kind of Standard • New SO2 standard is very different: • Focus is on ambient air quality in areas around and impacted by larger stationary sources • Other standards, such as ozone and PM: • Linked to diverse set of sources • Power plants, cars, and many other sources • High levels can be found anywhere across a broad region • This standard shines a spotlight on power plants and other large stationary sources of SO2 – and requires us to look at exposures close to the source

30. The EPA Process • Standard finalized in 2010 • 2011 - EPA issues draft guidance that based nonattainment designations primarily on modeling analyses • Linked to the source-specific nature of the standard • 2012 – EPA has a series of discussions and meetings • Multiple stakeholders involved • Early 2013 – EPA releases a strategy paper and technical assistance documents that moved away from the modeling focused approach • Now proposing a “hybrid” approach that could include monitoring and/or modeling

31. The Hybrid Approach for Designations • Basic pieces: • The role for modeling • The role for monitoring • Early action alternative to avoid a nonattainment “designation” all together • Expect legal challenges • Maryland plans to use the early action alternative to insure expeditious public health protection

32. Hybrid Approach – The Schedule • 2013 – Earliest time for states to take action • The early action option in EPA strategy • 2016 – Modeling protocols for states choosing to use modeling to support designations • 2017 – Monitoring operating for states that choose to use monitors to support designations • Need 3 years of data to support designations • Designations • Never – If using early action provisions • If modeling path chosen – as early as 2017 • If monitoring path chosen – as early as 2020 • State Implementation Plans (SIPs) due: • 2019 for modeling path • 2022 for monitoring path • Controls would be required in the 2020 to 2023 timeframe as part of the SIPs

33. Implementation in Maryland • All of Maryland’s coal fired power plants will need to be analyzed, and if necessary, controlled to comply with this new standard • To use the early attainment alternative, states must work with sources to: • Review emissions and controls • Establish appropriate short-term SO2 emission limits • Model to show that those emissions will not cause exceedances of the new standard • Add controls if the modeling shows that additional controls are necessary

34. Maryland’s 2013 Power Plant Regulations • Power plants are critical emission sources for both the new ozone and sulfur dioxide standards • For ozone, Maryland must update it’s power plant regulations by July of 2014 • For SO2, states may work to take early action and insure attainment as early as 2013 • Maryland plans to adopt multi-pollutant power plant regulations in 2014 to comply with the two new standards

35. Proposed Regulatory Schedule • Earlier 2013 • Preliminary discussions with interested stakeholders • October 21, 2013 • First formal stakeholder meeting • November 2013 to April 2014 • Additional stakeholder meetings and discussions • April/May 2014 • Proposed Regulation to Maryland Air Quality Control Advisory Council (AQCAC) • July 2014 • Regulation fully adopted • RACT SIP submitted to EPA

36. Questions?