TEXAS COMMISSION ON ENVIRONMENTAL QUALITY AGENDA ITEM REQUEST for State Implementation Plan Revision Adoption AGENDA REQUESTED: June 30, 2021 DATE OF REQUEST: June 11, 2021 INDIVIDUAL TO CONTACT REGARDING CHANGES TO THIS REQUEST, IF NEEDED: Jamie Zech, (512) 239-3935 CAPTION: Docket No. 2020-0924-SIP. Consideration for the adoption of the 2021 Regional Haze State Implementation Plan (SIP) Revision to address the regional haze requirements of Federal Clean Air Act, §169A. The SIP revision addresses regional haze in Big Bend and Guadalupe Mountains National Parks and Federal Class I areas located outside Texas that may be affected by emissions from within the state. The SIP revision contains the core federal Regional Haze Rule (40 Code of Federal Regulations §51.308) requirements, including: calculations of baseline; current and natural visibility conditions; progress-to-date and the uniform rate of progress; a long-term strategy for regional haze; reasonable progress goals; a monitoring strategy; and a statewide emissions inventory. (Margaret Earnest, John Minter) (Non-Rule Project No. 2019-112-SIP-NR) Tonya Baer Donna F. Huff Director Division Deputy Director Jamie Zech Agenda Coordinator Copy to CCC Secretary? NO ES Y Texas Commission on Environmental Quality Interoffice Memorandum To: Commissioners Date: June 11, 2021 Thru: Laurie Gharis, Chief Clerk Toby Baker, Executive Director From: Tonya Baer, Director Office of Air Docket No.: 2020-0924-SIP Subject: Commission Approval for Adoption of the 2021 Regional Haze State Implementation Plan (SIP) Revision for the Second Planning Period 2021 Regional Haze SIP Revision Non-Rule Project No. 2019-112-SIP-NR Background and reason(s) for the SIP revision: Federal Clean Air Act (FCAA), §§169A and B require the United States Environmental Protection Agency (EPA) to adopt regulations to reduce visibility impairment resulting from anthropogenic air pollution in 156 mandatory Class I Federal areas (Class I areas). Big Bend and Guadalupe Mountains National Parks are the two Class I areas in Texas. States are required to submit periodic plans demonstrating how they made, and will continue to make, progress towards achieving their visibility improvement goals. The 2021 Regional Haze SIP Revision examines the need to implement measures to reduce Texas’ visibility impacts in Class I areas in and around Texas. Model simulations were conducted to estimate visibility conditions at the end of the second planning period in 2028. The Regional Haze Rule allows states to adjust the glidepath to account for impacts from anthropogenic sources outside the United States. Both Big Bend and Guadalupe Mountains National Parks are projected to be below the adjusted glidepath at the end of the second planning period. The FCAA and the Regional Haze Rule require states to consider four factors when evaluating control measures for selected sources: 1) cost of compliance; 2) time necessary for compliance; 3) energy and non-air quality environmental impacts of compliance; and 4) remaining useful life. Sources were selected for evaluation under these four factors using a two-pronged screening analysis that combined sulfate and nitrate weighted residence times (known as areas of influence) with emissions over distance (Q/d). The screening analysis resulted in a list of 18 sources for evaluation. Source selection was further refined using a cost threshold of $5,000 per ton for nitrogen oxides (NOX) and sulfur dioxide (SO2). The four-factor analysis identified potential additional emission controls for the sources with a total annualized control costs of approximately $200 million. A sensitivity analysis of the potential additional controls showed a maximum visibility benefit of 0.56 deciviews at one Class I area, the Caney Creek Wilderness Area in Arkansas. The Texas Commission on Environmental Quality (TCEQ) determined that it is not reasonable to implement new measures to improve visibility to a degree that is imperceptible to the human eye at the costs described above. Therefore, no new emission control measures for the 18 identified sources are included with this SIP revision. Commissioners Page 2 June 11, 2021 Re: Docket No. 2020-0924-SIP Scope of the SIP revision: A.) Summary of what the SIP revision will do: This SIP revision addresses the regional haze requirements of FCAA, §169A for Big Bend and Guadalupe Mountains National Parks and Class I areas located outside of Texas that may be affected by emissions from Texas. This SIP revision contains the core federal Regional Haze Rule (40 Code of Federal Regulations (CFR) §51.308) requirements, including: calculations of baseline; current and natural visibility conditions; progress-to- date and the uniform rate of progress; a long-term strategy for regional haze; reasonable progress goals; a monitoring strategy; and a statewide emissions inventory. This SIP revision covers a 10-year period from 2019 through 2028 showing that Texas’ two Class I areas, when adjusted for international transport, will both be under the uniform rate of progress for 2028. Analysis shows only one Class I area that Texas impacts, Salt Creek in New Mexico, is expected to not meet the 2028 goals. B.) Scope required by federal regulations or state statutes: This SIP revision addresses the regional haze requirements of FCAA, §169A and the core federal Regional Haze Rule requirements in 40 CFR §51.308. C.) Additional staff recommendations that are not required by federal rule or state statute: None. Statutory authority: The authority to adopt SIP revisions is derived from the Texas Water Code (TWC), §5.102, General Powers, TWC, §5.103, Rules, and TWC, §5.105, General Policy, which provide the commission with the general powers to carry out its duties and authorize the commission to adopt rules necessary to carry out its powers and duties under the TWC; and TWC, §5.013, General Jurisdiction of Commission, which states the commission’s authority over various statutory programs. This SIP revision is also adopted under Texas Health & Safety Code (THSC), §382.002, Policy and Purpose, which establishes the commission’s purpose to safeguard the state’s air resources consistent with the protection of public health, general welfare, and physical property; THSC, §382.011, General Powers and Duties, which authorizes the commission to control the quality of the state’s air; and THSC, §382.012, State Air Control Plan, which authorizes the commission to develop a general, comprehensive plan for the control of the state’s air. Effect on the: A.) Regulated community: None. B.) Public: The analysis included in this SIP revision shows that visitors will continue to experience improved visibility conditions at Big Bend and Guadalupe Mountains National Parks. Commissioners Page 3 June 11, 2021 Re: Docket No. 2020-0924-SIP C.) Agency programs: This SIP revision would have no new effect on agency programs. Stakeholder meetings: The TCEQ hosted meetings in March and August 2020 via calls and webinars presenting air quality planning updates, photochemical modeling, discussions on the four-factor analysis, the results of the four-factor analysis, and the TCEQ’s proposed conclusions regarding reasonable progress. Attendees included representatives from the sources selected for four-factor analysis. Consultation calls and webinars with Federal Land Managers (FLM), Arkansas, New Mexico, and Oklahoma were held in 2020 through March 2021 to share the same information provided to the sources selected for four-factor analysis and respond to questions. TCEQ staff also participated in a teleconference with Missouri regarding sources it requested the TCEQ consider the appropriateness of evaluating as part of its four-factor analysis. Consultation with other states and the FLMs is ongoing and because other states are at different stages of development of their regional haze SIP revisions, this adopted SIP revision includes documentation of consultation through March 31, 2021. Public comment: The public comment period opened on October 9, 2020 and closed on January 8, 2021. The comment period was originally scheduled to close on December 9, 2020, but after receiving a request to allow for more time for public review of the proposal, the comment period was extended to January 8, 2021. The commission offered a virtual public hearing on December 8, 2020. Notice of the public hearing was published in the Texas Register as well as the Fort Worth Star Telegram, Houston Chronicle, Austin American Statesman, and El Paso Times newspapers. The notice was published in English and Spanish in the El Paso Times. The TCEQ received written and oral comments from Air Alliance Houston, Earthjustice, Environment Texas Research and Policy Center, Environmental Integrity Project, Luminant, Mid-Atlantic/Northeast Visibility Union, National Park Service, National Parks Conservation Association, New Jersey Department of Environmental Protection, New Mexico Environment Department, One Breath Partnership, Oxbow Calcining LLC, Public Citizen, the Sierra Club, Lone Star Chapter Sierra Club, Sierra Club Beyond Coal Campaign, United States Forest Service, and 414 individuals. The environmental groups and state and federal agencies requested that the TCEQ revise aspects of its source selection methodology to evaluate area sources and include additional out-of-state Class I areas to its analysis. These commenters also requested that the TCEQ perform a four-factor analysis on additional sources, revise aspects of the four- factor analysis to include additional