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TENTATIVE AGENDA AND MINIBOOK STATE AIR POLLUTION CONTROL BOARD MEETING THURSDAY, NOVEMBER 16, 2017 CAPITOL BUILDLING HOUSE ROOM 1 STATE CAPITOL RICHMOND, VIRGINIA 23219 Convene – 1000 a.m. TAB I. Review and Approve Agenda II. Minutes September 22, 2017 A III. Final mpt Regulation Federal Documents Incorporated by Reference Rev. E17 Sabasteanski B IV. Proposed Regulation Regulation for Emissions Trading 9VAC5 Chapter 140, Dowd C Rev. C17 V. High Priority Violations Report Nicholas D VI. Public Forum VII. Other Business Division Directors Report ADJOURN NOTE The Board reserves the right to revise this agenda without notice unless prohibited by law. Revisions to the agenda include, but are not limited to, scheduling changes, additions or deletions. Questions on the latest status of the agenda should be directed to Cindy M. Berndt at 804 698-4378. PUBLIC COMMENTS AT STATE AIR POLLUTION CONTROL BOARD MEETINGS The Board encourages public participation in the perance of its duties and responsibilities. To this end, the Board has adopted public participation procedures for regulatory action and for case decisions. These procedures establish the times for the public to provide appropriate comment to the Board for its consideration. For REGULATORY ACTIONS adoption, amendment or repeal of regulations, public participation is governed by the Administrative Process Act and the Boards Public Participation Guidelines. Public comment is accepted during the Notice of Intended Regulatory Action phase minimum 30-day comment period and during the Notice of Public Comment Period on Proposed Regulatory Action minimum 60-day comment period. Notice of these comment periods is announced in the Virginia Register, by posting to the Department of Environmental Quality and Virginia Regulatory Town Hall web sites and by mail to those on the Regulatory Development Mailing List. The comments received during the announced public comment periods are summarized for the Board and considered by the Board when making a decision on the regulatory action. For CASE DECISIONS issuance and amendment of permits, the Board adopts public participation procedures in the individual regulations which establish the permit programs. As a general rule, public comment is accepted on a draft permit for a period of 30 days. In some cases a public hearing is held at the conclusion of the public comment period on a draft permit. In other cases there may an additional comment period during which a public hearing is held. In light of these established procedures, the Board accepts public comment on regulatory actions and case decisions, as well as general comments, at Board meetings in accordance with the following REGULATORY ACTIONS Comments on regulatory actions are allowed only when the staff initially presents a regulatory action to the Board for final adoption. At that time, those persons who commented during the public comment period on the proposal are allowed up to 3 minutes to respond to the summary of the comments presented to the Board. Adoption of an emergency regulation is a final adoption for the purposes of this policy. Persons are allowed up to 3 minutes to address the Board on the emergency regulation under consideration. CASE DECISIONS Comments on pending case decisions at Board meetings are accepted only when the staff initially presents the pending case decision to the Board for final action. At that time the Board will allow up to 5 minutes for the applicant/owner to make his complete presentation on the pending decision, unless the applicant/owner objects to specific conditions of the decision. In that case, the applicant/owner will be allowed up to 15 minutes to make his complete presentation. The Board will then allow others who commented at the public hearing or during the public comment period up to 3 minutes to rcise their rights to respond to the summary of the prior public comment period presented to the Board. No public comment is allowed on case decisions when a AL HEARING is being held. POOLING MINUTES Those persons who commented during the public hearing or public comment period and attend the Board meeting may pool their minutes to allow for a single presentation to the Board that does not exceed the time limitation of 3 minutes times the number of persons pooling minutes, or 15 minutes, whichever is less. NEW INATION will not be accepted at the meeting. The Board expects comments and ination on a regulatory action or pending case decision to be ted during the established public comment periods. However, the Board recognizes that in rare instances new ination may become available after the close of the public comment period. To provide for consideration of and ensure the appropriate review of this new ination, persons who commented during the prior public comment period shall the new ination to the Department of Environmental Quality Department staff contact listed below at least 10 days prior to the Board meeting. The Boards decision will be based on the Department-developed official file and discussions at the Board meeting. In the case of a regulatory action, should the Board or Department decide that the new ination was not reasonably available during the prior public comment period, is significant to the Boards decision and should be included in the official file, the Department may announce an additional public comment period in order for all interested persons to have an opportunity to participate. PUBLIC FORUM The Board schedules a public forum at each regular meeting to provide an opportunity for citizens to address the Board on matters other than those on the agenda, pending regulatory actions or pending case decisions. Those persons wishing to address the Board during this time should indicate their desire on the sign-in cards/sheet and limit their presentations to 3 minutes or less. The Board reserves the right to alter the time limitations set forth in this policy without notice and to ensure comments presented at the meeting con to this policy. Department of Environmental Quality Staff Contact Cindy M. Berndt, Director, Regulatory Affairs, Department of Environmental Quality, 629 East Main Street, P.O. Box 1105, Richmond, Virginia 23218, phone 804 698-4378; fax 804 698-4346; e-mail cindy.berndtdeq.virginia.gov. ___________________________________________________________________________________________ Federal Documents Incorporated by Reference Rev. E17 - Request for Board Action on mpt Final Regulation The purpose of the proposed action is to amend the regulations to incorporate newly promulgated federal New Source Perance Standards NSPS, National Emission Standards for Hazardous Air Pollutants NESHAP, and national emission standards for hazardous air pollutants for source categories Maximum Achievable Control Technology, or MACT, Rules 5-5, 6-1, and Rule 6-2, respectively, of the board’s regulations. The board needs to incorporate newly promulgated NSPS, NESHAP, and MACT standards in order for the department to obtain authority from the U.S. Environmental Protection Agency EPA to enforce these standards. If the board does not do so, authority to enforce the standards remains with the federal government. Further, the standards reflect the most current technical research on the subjects addressed by the standards. To continue to follow the old standards would mean relying on inaccurate and outdated ination. The department is requesting approval of draft final regulation amendments that meet federal statutory and regulatory requirements. Approval of the amendments will ensure that the Commonwealth will be able to meet its obligations under the federal Clean Air Act. The regulation amendments update state regulations that incorporate by reference certain federal regulations to reflect the Code of Federal Regulations as published on July 1, 2017. The date of the Code of Federal Regulations book being incorporated by reference is being updated to the latest version. Regulation for Emissions Trading 9VAC5 Chapter 140, Rev. C17 - Regulation Development Report and Request to Publish Proposal for Public Comment cutive Directive 11 ED 11, Reducing Carbon Dioxide Emissions from the Electric Power Sector and Growing Virginias Clean Energy Economy, directs the Director of the Department of Environmental Quality, in coordination with the Secretary of Natural Resources, to take the following actions in accordance with the provisions and requirements of Virginia Code § 10.1-1300 et seq., and Virginia Code § 2.2-4000, et seq. 1. Develop a proposed regulation for the State Air Pollution Control Boards consideration to abate, control, or limit CO2 from electric power facilities that a. Includes provisions to ensure that Virginias regulation is trading-ready to allow for the use of market-based mechanisms and the trading of CO2 allowances through a multi-state trading program; and b. Establishes abatement mechanisms providing for a corresponding level of stringency to limits on CO2 emissions imposed in other states with such limits. 2. By no later than December 31, 2017, present the proposed regulation to the State Air Pollution Control Board for consideration for approval for public comment in accordance with the Boards authority pursuant to Virginia Code § 10.1-1308. The department is requesting approval of a proposal for public comment that meets the requirements of ED 11. To solicit comment from the public on the notice of intended regulatory action, the Department issued a notice that provided for receiving comment during a comment period. The summary and analysis of public is included in the agency background document. To assist in the development of the proposal, the department ed a regulatory advisory panel consisting of affected stakeholders and department staff. Ination gathered from experts in the field, its own analysis and from the panel s the basis for the department recommendation. A copy of the panel report containing the recommendations of the panel has been forwarded to the board. Summary of Draft Regulation Amendments 1. The primary purpose of the regulation is to implement a declining cap on carbon emissions. The administrative means of accomplishing this will be effected by linking Virginia to RGGI, which is an established emissions trading program. An allowance will be issued for each ton of carbon emitted by an electricity generating facility. The company must then decide if it will reduce carbon emissions and sell the resulting additional allowances, or if it will not reduce carbon emissions and make up the difference with purchased allowances. The proposal includes two options on the base budgets, 33 million tons and 34 million tons, which will determine, based on a 3 annual reduction, the annual budgets and allocations for future years. 2. The mechanism for determining the cost of allowances will be a consignment auction. 3. A cost containment reserve allowance will be offered for sale at an auction by the department for the purpose of containing the cost of CO2 allowances in the event of higher than anticipated emission reduction costs. An emission containment reserve allowance will be withheld from sale at an auction by the department for the purpose of additional emission reduction in the event of lower than anticipated emission reduction costs. 4. Monitoring, recording, and recordkeeping requirements will be implemented to track compliance. 5. Conditional allowances will be allocated to the Department of Mines, Minerals and Energy DMME in order to assist the department for the abatement and control of air pollution, specifically, CO2. Regulatory Text 9VAC5 CHAPTER 140. REGULATION FOR EMISSIONS TRADING. PART VII. CO2 Budget Trading Program Article 1 - CO2 Budget Trading Program General Provisions. 9VAC5-140-6010. Purpose. This part establishes the Virginia component of the CO2 Budget Trading Program, which is designed to reduce anthropogenic emissions of CO2, a greenhouse gas, from CO2 budget sources in an economically efficient manner. 9VAC5-140-6020. Definitions. A. As used in this part, all words or terms not defined here shall have the meanings given them in 9VAC5-10 General Definitions, unless otherwise required by context. B. For the purpose of this part and any related use, the words or terms shall have the meanings given them in this section. C. Terms defined. Account number means the identification number given by the department or its agent to each COATS account. Acid rain emission limitation means, as defined in 40 CFR 72.2, a limitation on emissions of sulfur dioxide SO2 or nitrogen oxides NOX under the Acid Rain Program under Title IV of the CAA. Acid Rain Program means a multi-state SO2 and NOX air pollution control and emission reduction program established by the administrator under Title IV of the CAA and 40 CFR Parts 72 through 78. Adjustment for banked allowances means an adjustment applied to the Virginia CO2 Budget Trading Program base budget for allocation years 2021 through 2025 to address allowances held in general and compliance accounts, including compliance accounts established pursuant to the CO2 Budget Trading Program, but not including accounts opened by participating states, that are in addition to the aggregate quantity of emissions from all CO2 budget sources in all of the participating states at the end of the control period in 2020 and as reflected in the CO2 Allowance Tracking System on March 17, 2021. Administrator means the administrator of the U.S. Environmental Protection Agency or the administrator’s authorized representative. Allocate or allocation means the determination by the department of the number of CO2 conditional allowances allocated to a CO2 budget unit or the Department of Mines, Minerals and Energy DMME. Allocation year means a calendar year for which the department allocates CO2 conditional allowances pursuant to Article 5 9VAC5-140-6190 et seq. of this part. The allocation year of each CO2 conditional allowance is reflected in the unique identification number given to the allowance pursuant to 9VAC5-140-6250 C. Allowance means an allowance up to one ton of CO2 purchased from the consignment auction in accordance with Article 9 9VAC5-140-6410 et seq. of this part and may be deposited in the compliance account of a CO2 budget source. Allowance auction or auction means an auction in which the department or its agent offers CO2 allowances for sale. Alternate CO2 authorized account representative means, for a CO2 budget source and each CO2 budget unit at the source, the alternate natural person who is authorized by the owners and operators of the source and all CO2 budget unit
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