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HomeMy WebLinkAbout20040392 RESOLUTION RE: APPROVE EARLY ACTION COMPACT FOR OZONE AND AUTHORIZE CHAIR TO SIGN AMENDMENT WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Denver metro area is voluntarily participating in the U. S. Environmental Protection Agency's Early Action Compact (EAC) Protocol process for the express purpose of deferring the effective date of a non-attainment designation of the Denver area if a violation of the 8-hour ozone National Ambient Air Quality Standards (NAAQS) occurs in the future, and WHEREAS, through a letter from the Colorado Department of Public Health and Environment("State Health Department"),dated January 7,2004,the Board has been presented with an Amendment to the Early Action Compact for Ozone(EAC)--Front Range Metropolitan Area, which includes the Counties of Elbert, Larimer, Morgan, and Weld, and the previously excluded portions of Adams, Arapahoe, and Boulder Counties, and WHEREAS,although the Board understands the rationale behind the EAC,it is concerned that: a. The inclusion of all of Weld County in the proposed boundary for the non-attainment area for the 8-hour ozone NAAQS appears to be based upon data collected from a single monitor without consideration as to how such data may have been affected by sources in close proximity, and without further monitoring at other locations around Weld County,leaving the suspicion that Weld County need not be included in the proposed non-attainment boundary, and b. Modeling work explained by the State Health Department with regards to Weld County appears to not adequately account for ozone produced either naturally or from counties other than Weld, thereby not firmly establishing that the sources of volatile organic compounds("VOC's")in Weld County identified by the State Health Department are the cause of increased ozone levels monitored at the Weld County Tower, and, therefore, in need of regulation, and c. The proposed requirement of oil and gas production facilities in Weld County to include mechanisms to reduce or eliminate the production of VOC's seems likely to have a negligible effect on the overall level of ozone found in front range counties at a high cost to the oil and gas industry, and d. The cost of such mechanisms and their installation most likely will be claimed as deductible expenses for property taxes paid by oil and gas firms,thereby reducing property tax revenues to Weld County and the various special districts in the County, and reducing royalty payments to private oil and gas royalty owners. and WHEREAS, after review,the Board deems it advisable to become a party to the EAC and approve said Amendment, copies of which are attached hereto and incorporated herein by reference. 2004-0392 j1/24-)24/ Cie. : 64 HL0031 /11, Sitiv �7A/ 944F EARLY ACTION COMPACT FOR OZONE PAGE 2 NOW,THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the EAC, as amended, be, and hereby is, approved, under the following understanding: 1. That adequate modeling be performed by the State Health Department to truly identify VOC's being produced in Weld County and the effect such VOC's have on ozone along the front range,and including monitoring and modeling to assure that VOC's are not coming into the front range area from Wyoming. 2. That in creating the State Implementation Plan,the Colorado Air Quality Commission consider the potential economic impact to the oil and gas industry,Weld County and the various school districts in Weld County,of the proposed requirement of oil and gas production facilities to include mechanisms to reduce or eliminate the production of VOC's. 3. That the area of Weld County to be included in the proposed non-attainment boundary be reduced to the area proven by adequate modeling to be creating the VOC's. 4. That the State of Colorado,through its budgetary process,provide"backfill"monies to Weld County and those special districts within the County which may be adversely affected by the loss of tax revenues from oil and gas production due to the requirement of the installation of mechanisms to reduce or eliminate the production of VOC's. BE IT FURTHER RESOLVED by the Board that the Chair be,and hereby is, authorized to sign said amendment. The above and foregoing Resolution was,on motion duly made and seconded,adopted by the following vote on the 4th day of February, A.D., 2004. BOARD OF COUNTY COMMISSIONERS W LD COUNTY, COLORADO ATTEST: fatek, / �ilsa (AYE) . Robert D. Masden, Chair Weld County Clerk to =8 np agt9 lam, (NAY) S:ef. / :r William H. J ke, Pro-Tem BY: Deputy Clerk to the Boar- rs� AYE M. . eile APP AS AYE � 24:. Lon Ur: tto nellAYE g ‘-42/OGlenn Vaad Date of signature: 2004-0392 HL0031 NOTICE On Wednesday, January 28, 2004, the Board of County Commissioners of Weld County, Colorado,will consider approval of and authorization for the Chairman to sign an Amendment to the Early Action Compact for Ozone ("EAC"), which would make Weld County a party to the EAC. Such consideration will take place during the Board's regular business meeting to be held in the Chambers of Weld County Centennial Center, 915 10th Street, First Floor, Greeley, Colorado, at the time specified. The Amendment and the EAC may be examined in the office of the Clerk to the Board of County Commissioners, Weld County Centennial Center, 915 10th Street, Third Floor, Greeley, Colorado. The public is welcome to attend the business meeting and give comments. E-Mail comments sent to an individual Commissioner may not be included in the information for Board consideration. To ensure consideration of your E-Mail correspondence,please send a copy to charding@co.weld.co.us. DOCKET NUMBER: #2004-15 DATE: January 28, 2004 TIME: 9:00 a.m. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO DATED: January 16, 2004 PUBLISHED: January 22, 2004, in the South Weld Sun .9f y' 2g004-0392 4 2004-0 53 r- NOTICE LEGALES DC', 0 . n CofFt •: 7;being of .ATE OF COLORADO ) Wednesday, January 28, the ' Sea onR68 2004,the Board of County Weld ,the .M.: )s.s. Commissioners of Weld C. COUNTY OF WELD County, Colorado, will consider approval of and TYPE AN OF authorization for the US- - Ruth Pelton-Roby, as manager of Pelton Chairman to sign an oAgicuon to .D for8 y g Amendment to the Early lots with E- s Publishing Company LLC, being duly Action Compact for Ozone and, laes uses ("EAC"),whiwhichwould make Zone Us - cultural sworn, states that it is publisher of the Weld Counyapartyro he . 7.14 acres or space EAC. Such consideration South Weld Sun, a weekly newspaper wit take place during the Genoa Cre published in Keenesburg in said County Board's regular business LOCATION: and meeting to be held in the and State; that said newspaper has a Chambers of Weld County adjacent to0 Centennial Center, 915 aPPreximatel : east general circulation in said County and has 0th Street, First Floor, of CR 29, been continuously and uninterruptedly Greeley, Colorado, at the % time specified. SIZE: 161. more published therein, during a period of at T h e or less. least fifty-two consecutive weeks prior to may cep Rxt min etl in the the EAC n The M be eain held in R•o• 21, 'II be the first publication of the annexed notice; office of the Clerk to the a Board of County County la ing • that said newspaper is a newspaper commissioners, Weld Department, 7th Avenue,Ave,,... .. ... .. within the meaning of the act of the CountyCentnnialCenter 915 10th Street, Third Comments General Assembly of the State of Floor, Greeley, Colorado related to e e The public is welcome to seubgruuest auld •e Colorado, entitled "An Act to regulate the attend the business th g printing of legal notices and mee1ing and give W.IacomY comments. E-Mail Planning -s,1 advertisements" and amendments comments .sent to an h Avon G individual Commissioner Colorado 1 bar, thereto; that the notice of which the may not be included in the the abov date annexed is a printed copy taken from said information for Board presented the w• consideration. To ensure 2�ng bruin'', newspaper, was published in said consideration of your E- Copies BB of newspaper, and in the regular and entire Mall correspondence,please and a copy to are availab' �publ Iv 1bl in5Pecti. . in th Laue of every number thereof, once a ohardIngece"Md.ce,as. Department Planni k for / successive weeks; that Services, ,- N. 7 Avenue,Gr, ,Color... S..,d notice was so published in said DOCKET NUMBER: 80631. Plea :II Don't newspaper proper and not in any 3540,Mayatorn Fax 970)304 supplement thereof, and that the first DATE: January 29.2004 &99,prix to day of he hearing so' `sortable publication of said notice as aforesaid, nit- 9:00 a.m. accommodaf, can be was on the ____da of BOARD OF COUNTY " the Amen ns•withn y themade 2004, and the last CWELD COUNTY, Disabilities . . require COLORADO special` is order to pa .- - in this on the ,/.� o/ , 2004. hearing - h of a aj, day o gryvw�� DATED:January 16,2004 disability. II cases "//�}t scheduled ore the PUBLISHED:January 22, Planning C• lesion for 2004, in the South Weld hearing al subject to PELT��ottIIII PUBLISHING COMPANY LLC Sun— continuance to lack of _._ .. , quorum ol ,,. . NOTICE OF PUBLIC Contact the -pa"rtment of • By .{) _.I,r HEARING 353-6%IM 00, '.:sat(970) Jam-- y` 3534700 3540, for Ruth Pelton- oby Weld C hearing .ntinuance PI Commissi ft informal. hold tic has on •Its: Manager - Tuesda binary 004, Michael r,Chair at 1:30p. r e - Weld C• ty Planning of unsi a nge of Commies Zdile from IlureO Subscribe and d sworn to before me this to PUD for is with Publi -. in the South Estate ZoneU and lot Weld January 22, • [/�/ withAgricunu uses 2000. S/ day OT.�iJ',n..n,-7�1 , 2004. openalong with a of . (// open'psis reek) for the 'bed below. val the request ere a 9� (777 - (9�,,A- -i vested opMy t Notary Public promo Coo ado GABE UMBER: My Commission expires/%2 913 /•-• T:Cattail C LLC do PLANNER Sheri Lockman THE EARLY ACTION COMPACT FOR OZONE Front Range Metropolitan Area AMENDMENT The EAC signed in December 2002 applies to the Denver Metropolitan Attainment/Maintenance area for the 1-hour ozone national ambient air quality standard (Adams and Arapahoe counties west of Kiowa Creek, Boulder County excluding RMNP, Broomfield, Denver, Douglas and Jefferson Counties). On December 3, 2003, EPA proposed the boundaries of the nonattainment area for the 8-hour ozone national ambient air quality standard to include all portions of the above mentioned counties plus the Counties of Elbert, Larimer, Morgan and Weld. EPA intends to publish a final decision designating the boundaries of the 8-hour nonattainment area on or about April 15, 2004. The EAC is hereby amended to include the Counties of Elbert, Larimer, Morgan and Weld, and the previously excluded portions of Adams, Arapahoe and Boulder Counties. This expanded EAC attempts to minor the proposed 8-hour ozone area to referred to above, even though the nonattainment boundary may change with EPA's final boundary decision. In addition to the original signatories, the Chairs of the Boards of County Commissioners for the Counties of Elbert, Larimer, Morgan, and Weld are the additional signatories for the Compact. Name Affiliation Signature/Date Jim Scherer, Denver Regional Air Quality �/ Chairman Council (—�3 '.2-O°/ Robert E. Brady, Jr., Colorado Air Quality Control ?"-:-Alwa—te QQ fj Chairman Commission G ' / -2z Douglas H. Benevento, Colorado Department of Public Executive Director Health and Environment J • Thomas Norton, Colorado Department of -10 Executive Director Transportation l ®iral1_S: Bit_ /en-a`/ Melanie Worley, Denver n Regional n Council of r V-t� 01 N W /�_ a Chairman Governments Y �' ! �f'� k'..�-l/(/JXr� Z/d ¢ Robert E. Roberts, U.S. Environmental Protection Regional Administrator Agency, Region 8 Rob Masden, Board of County Commissioners Chair Weld County � al 4/O4- Kathay Rennels Board of County Commissioners Chair Larimer County /me/ ,�'�u� j ao-ol/ Stephen F. Stutz Board of County Commissioners _ // Chair Elbert County �, '� /� ,sy�ir /-,2/499 Board of County Commissioners / Chair Morgan County • STATE OF COLORADO Bill Owens,Governor Douglas H.Benevento,Executive Director oe•cozo Dedicated to protecting and improving the health and environment of the people of Colorado 4300 Cherry Creek Dr.S. Laboratory Services Division +f * Denver,Colorado 80246-1530 8100 Lowry Blvd. 'iB7 ' Phone(303)692-2000 Denver,Colorado 80230-6928 TDD Line(303)691-7700 (303)692-3090 Colorado Department Located in Glendale,Colorado of Public Health http://www.cdphe.state.co.us and Environment January 7, 2004 • Rob Masden, Chair _ Board of County Commissioners U Weld County H� P.O. Box 758 Greeley, CO 80632 Dear Commissioner Masden: Please consider this letter of invitation as our formal request for Weld County to become a partner in the Ozone Early Action Compact(EAC), which is a joint planning effort to address ozone problems in the Front Range. The EAC represents a new approach to dealing with air quality problems in a way we believe is more protective of the health of the citizens in this area while providing more flexibility for planning decisions. I have attached a copy of this Compact for your information and review and would like to explain why we believe it would be valuable for your County to join in this planning effort. You are probably aware that during the summer of 2003, monitors located in Jefferson and Douglas counties showed violations of the new Federal 8-hour ozone standard. Additionally, monitors in Larimer County(next to Rocky Mountain National Park) and in Greeley are close to violating the standard as well. While last summer's ozone levels were some of the highest we have recorded in nearly twenty years, all previous summers' data showed significant levels of ozone on a number of days, bringing us very close to violating the Federal ozone standard. In anticipation of the possibility of violating the ozone standard, the counties of Jefferson, Adams, Arapahoe, Douglas, Boulder, Broomfield, and Denver became parties to a joint air quality planning compact, the EAC, which was submitted to EPA on December 31, 2002. The Regional Air Quality Council (RAQC) represents these counties for air quality planning purposes. This council, along with the Denver Regional Council of Governments (DRCOG), the Colorado Air Quality Control Commission (AQCC), the Colorado Department of Transportation (CDOT), the Environmental Protection Agency(EPA), and the Colorado Department of Public Health and Environment (CDPHE)became the signatories to the EAC. At the time the EAC was developed, the State and EPA Region 8 were not aware that an ozone non- attainment boundary might be set in anticipation that the EAC might fail. In October, EPA Headquarters notified all regional offices that all EAC areas must be proposed for designation to non-attainment with a specified boundary. The key criteria used to propose the boundary include counties that are in exceedance of the 8-hour ozone standard and counties that have emissions sources that cause or contribute to the formation of ozone. This proposed designation occurred on December 3, 2003 and Weld, Morgan, Larimer and Elbert counties were identified as areas that may cause or contribute to the ozone problem. The inclusion of these areas was driven by emissions inventory data, monitoring data, and air shed topography and meteorology. Since these counties are not signatories to the current EAC, they are vulnerable to being classified as non-attainment and do not enjoy the protections afforded to the signatories. Areas that are not protected by the EAC, but are within the non-attainment boundary, will automatically be declared in non-attainment on April 15, 2004. All areas that are signatories to the EAC will have a deferred non- attainment status until the end of 2007. What does the EAC commit us to? The EAC requires us to perform complex modeling to predict future ozone levels as well as evaluate any necessary controls to reduce ozone in the future. These ozone controls must be implemented by the end of 2005. If adopted by the AQCC, the legislature must then adopt the plan and the Governor must submit it to EPA before the end of 2004. If the plan cannot be finalized and submitted to EPA, the areas will automatically be designated as non- attainment and the standard planning processes will begin. We believe that there is no downside to joining the EAC at this point since it prevents your county from being designated as non-attainment and thus avoids several restrictive requirements in your county. If your county were to be designated as non-attainment, the sale of lower volatility gasoline would be mandatory, the more stringent"New Source Review"provisions would apply for certain stationary sources seeking new permits, and the conformity rules affecting transportation projects and plans will take effect and will remain in force for all future transportation planning regardless of the future status of the designation. If the EAC fails,we will all be faced with these issues and must adopt a traditional "State Implementation Plan". We believe the EAC approach makes the most sense for all the involved areas. In addition to joining and participating in the Compact,the discussions on the size of the non- attainment boundary and which counties should be in or out of the non-attainment area must occur this month. I am inviting you to provide your input on this matter directly to me by January 23`d so that recommendations can be forwarded to the Governor's office by January 30t. The Governor must then submit recommendations on the boundary to the EPA by February 6th Please feel free to call me if you have any questions about this at 303-692-3115 or Michael Silverstein of my staff at 303-692-3113. We anticipate having all the counties interested in becoming part of the EAC signed up by February 9, at which time we will be sending EPA our letter recommending any changes to their proposed non-attainment boundary. EPA will make a final decision on the actual non-attainment boundary on April 15 and after that, the die is cast. Sincerely, L1W AthiL6) Margie Perkins Director, Air Pollution Control Division Colorado Department of Public Health and Environment cc: Trevor Jiricek, Weld County(same address) Don Warden, Director of Finance and Administration, Weld County(same address) DLit(' 11-c,wi tL L �u eRoc,44,ntaiesOr-ems THE EARLY ACTION COMPACT FOR OZONE Denver Metropolitan Area BACKGROUND INFORMATION The Denver Metropolitan Area's Early Action Compact The Denver metro area is volunteering to participate in the U.S. Environmental Protection Agency's (EPA) Early Action Compact (EAC) Protocol process for the express purpose of deferring the effective date of a nonattainment designation for the Denver area if a violation of the 8-hour ozone NAAQS occurs in the future. The following presents information on the federal ozone standards, the EAC requirements, and the commitments by all parties to implement the EAC. The National Ozone Standards The Federal Clean Air Act (CAA) is the comprehensive law that regulates airborne emissions from area, mobile, and stationary sources nationwide. This law authorizes the EPA to establish National Ambient Air Quality Standards (NAAQS) to protect public health and the environment. The EPA currently has two NAAQS for ozone, the 1-hour peak standard and the 8-hour standard. The 1-Hour Standard and the Denver Metropolitan Area An area must have a monitored hourly peak ozone concentration below 0.125 parts per .. million (ppm) to meet the 1-hour ozone standard: If an area exceeds the standard more than three times in three years, it is subject to a nonattainment designation. The Denver metro area has not violated the 1-hour standard since 1988, and the area was redesignated to attainment for the 1-hour ozone NAAQS on September 11, 2001 (effective October 11, 2001). The 8-Hour Standard and the Denver Metropolitan Area The 8-hour standard is set at a level of 0.08 ppm (or 80 parts per billion) averaged over an eight hour period. To take into account extreme and variable meteorological conditions that can influence ozone formation, a violation of the standard occurs when the three-year average of the fourth maximum values at a monitor exceeds the federal standard. Due to rounding of monitoring values, a violation occurs when the three-year 1 • average is equal to or greater than 0.085 ppm. During the past several years, public education, outreach and voluntary measures have been implemented in the Denver area as ozone concentrations have approached and occasionally exceeded the value permitted by the 8-hour ozone NAAQS. Based on the 2000-2002, 3-year average, the Denver region currently attains the 8-hour ozone NAAQS. On November 14, 2002, the EPA announced that each State Governor and Tribal Chief or Leader submit designations, based on the 2000-2002 monitoring data, for the 8-hour NAAQS by April 15, 2003. For the Denver Metropolitan Area, these data demonstrate attainment with the standard. The Colorado Air Quality Control Commission (AQCC) will review these data at a public hearing on February 20, 2003 and is expected to adopt an attainment designation for the Denver area. It is also anticipated that the Governor will submit this designation to EPA in the first quarter of 2003. Metro Denver's highest three-year average of the 4th maximum concentrations for the 2000-2002 period is 0.084 ppm (Rock Flats North site). The second and third highest three-year averages for the 2000-2002 period are 0.082 ppm (National Renewable Energy Laboratory) and 0.080 ppm (Chatfield Reservoir site). There are six other monitoring sites in the Denver area, all with three-year average concentrations less than 0.085 ppm. The EPA will also consider the 2003 monitoring data when promulgating the designations by April 2004. While the region currently attains the 8-hour standard, the Denver area is extremely close to the standard. For this reason, it is the State of Colorado's desire to develop and implement an EAC in order to avoid a nonattainment designation if the area violates the 8-hour ozone NAAQS in the future. Protocol for Early Action Compacts The EPA developed the Protocol for Early Action Compacts (EAC Protocol) on June 19, 2002, supplemented on October 18, 2002. The protocol establishes a two-step process that offers a more expeditious time line for achieving clean air than expected under EPA's 8-hour implementation rulemaking in exchange for relief from certain provisions of the nonattainment requirements. The EAC Protocol allows a region to enter into a memorandum of agreement (MOA) by December 31, 2002, committing to develop and implement a detailed technical plan to reach attainment by 2007. 2 The principles of the EAC Protocol to be executed by Local, State and EPA officials are: • Early planning, implementation, and emission reductions leading to expeditious attainment and maintenance of the 8-hour ozone standard; • Local area control of the measures to be employed, with broad-based public input; • State support to ensure technical integrity of the early action plan; • Formal incorporation of the early action plan into the SIP; • Deferral of the effective date of nonattainment designation and related requirements so long as all terms and milestones are met; and • Safeguards to return areas to traditional SIP requirements should terms and/or milestones be unfulfilled, with appropriate credit given for emission reduction measures implemented. EAC Protocol Versus Traditional Nonattainment The primary differences between the process outlined in the EAC Protocol and the traditional nonattainment area process are: • EAC Protocol is designed to achieve clean air sooner than expected under the traditional nonattainment process'. • EAC Protocol ensures deferral of the effective date of nonattainment designation and related requirements, as long as EAC terms and milestones are met. This would alleviate any stigma associated with a nonattainment designation. • Transportation conformity and nonattainment area New Source Review permitting requirements would not take effect under an EAC Protocol. Should any milestones be missed in designing or implementing the EAC, the region will forfeit its participation in the EAC and will revert to traditional nonattainment/attainment requirements based on the latest quality assured monitoring data. Appropriate credit will be given for emission reduction strategies already implemented. Under the traditional nonattainment process, emissions reduction strategies are unlikely to be implemented before 2007. Under the EAC Protocol, emissions reduction strategies will be fully implemented by 2005. 3 The Area Encompassed by the EAC The EAC encompasses the Denver Metropolitan Attainment/Maintenance area for the 1-hour ozone NAAQS, as described in 40 CFR 81.306. This area includes the City and County of Denver, Boulder County excluding Rocky Mountain National Park, Jefferson County, Douglas County, the City and County of Broomfield, and Adams and Arapahoe Counties west of Kiowa Creek. Signatories and Their Responsibilities The entities that will sign this EAC are: the Chairman of the Denver Regional Air Quality Council (RAQC), the Chairman of the AQCC, the Executive Director of the Colorado Department of Public Health and Environment (CDPHE), the Executive Director of the RAQC, the Chairman of the Denver Regional Council of Governments (DRCOG), the Executive Director of the Colorado Department of Transportation (CDOT), and the Regional Administrator of EPA Region 8. The development and implementation of this EAC will follow the Denver region's established air quality planning and regulatory adoption process. The DRCOG will provide necessary socio- economic and transportation assumptions and data sets. The Air Pollution Control Division (APCD) will develop the technical information and will provide policy analyses to support the EAC. The RAQC will recommend the appropriate emission control programs and assist with developing the technical and administrative information. All revisions to the State Implementation Plan (SIP) that result from the EAC will be subject to review and approval by the AQCC. The public will be provided opportunity to participate throughout the planning and adoption processes before the RAQC and the AQCC. EPA Region 8 will provide technical and policy support as well as review and approval of all submitted information supporting the EAC. 4 THE EARLY ACTION COMPACT FOR OZONE Denver Metropolitan Area MEMORANDUM OF AGREEMENT This Early Action Compact (EAC) is a Memorandum of Agreement between the Colorado Department of Public Health and Environment, the Denver Regional Air Quality Council, the Colorado Air Quality Control Commission, the Denver Regional Council of Governments, the Colorado Department of Transportation, and EPA Region 8. It is for the express purpose of deferring the effective date of a nonattainment designation for the Denver area if a violation of the 8-hour ozone NAAQS occurs in the future in exchange for earlier than required compliance with the ozone NAAQS. This agreement sets forth a schedule for the development of technical information and the adoption and implementation of the necessary control measures into the SIP in order to comply with the 8-hour ozone standard by December 31, 2007, and maintain the standard beyond that date. This agreement does not impose any air quality control measures on the Denver area. Failure to meet the obligations of this agreement, listed ' below, will result in immediate reversion to the traditional nonattainment process. A. The signatory parties commit to develop, implement and maintain the EAC according to EPA Protocol for Early Action Compacts issued June 19, 2002, and adhere to all terms and conditions stated in the guidelines. See Appendix A for EPA's "Protocol for Early Action Compacts Designed to Achieve and Maintain the 8-Hour Ozone Standard" as supplemented in a letter dated October 18, 2002, from Gregg Cooke, EPA, to Robert Huston, Texas Commission on Environmental Quality". B. If the region does not meet all the terms of the EAC, including meeting agreed- upon milestones, then it will forfeit its participation and may be designated, if applicable, to nonattainment according to EPA's 8-hour ozone implementation rules. 5 C. Before formal adoption of the Ozone Action Plan into the SIP, this agreement may be modified or terminated by mutual consent of all signatory parties, or any party may withdraw from the agreement. If a party's withdrawal from the agreement prevents remaining signatories from satisfying any of the terms and milestones of the original agreement, the MOU will be void and the region may be designated, if applicable, to nonattainment according to EPA's 8-hour ozone implementation rules. Once the Ozone Action Plan is incorporated into the SIP, any modifications will be treated as SIP revisions. D. The signature date of the EAC is the start date of the agreement's term and the agreement remains in effect until December 31, 2007. Milestones EAP Milestones March 31, 2004 Additional emission reduction strategies selected RAQC will complete a proposed Ozone Action Plan and submit the plan to the AQCC for public rulemaking hearing December 31, State will complete public rulemaking hearings, adopt the 2004 Ozone Action Plan, including all necessary control measures and attainment demonstration for December 31, 2007, and submit the plan to EPA for approval December 31, Additional emission reduction strategies implemented no 2005 later than this date December 31, Attainment of the 8-hour standard demonstrated 2007 6 Reporting In order to facilitate self-evaluation and communication with EPA, stakeholders, and the public,the RAQC and the AQCC will assess and report progress towards milestones in a regular, public process, at least every six months, beginning in June 2003 and concluding on December 31, 2007. Included in the reports will be analyses of monitoring data, implementation of and compliance with strategies, and the analyses of growth assumptions for population, traffic, and area/stationary sources. Through the region's existing air quality planning process, the RAQC and APCD include modeling updates and modeling assumption verification (particularly growth assumptions) concurrent with the tracking and reporting process for the Ozone Action Plan. This update and verification will be an ongoing process between the signatories, stakeholders and the public. Modeling updates and planning/adoption processes must consider and evaluate all relevant actual new point sources, the impacts from potential new source growth, and future transportation patterns and their impact on air quality in a manner that is consistent with the most current adopted Long Range Transportation Plan and most current trend and projections of local motor vehicle emissions. Emissions Inventories All emission inventories will be developed by November 30, 2003. These inventories will be developed for summer episode day for the years 1999 or later, 2007, 2012, and possibly other interim years using 1) EPA's MOBILE6 emissions model and the latest transportation information; 2)area sources using a combination of EPA's NONROAD model data, latest demographics information, local equipment populations and usage rates, area source data, and local survey and information data when possible, and 3) the latest stationary sources emissions information. Future year inventories will sufficiently account for projected future growth in ozone precursor emissions through 2007, particularly from stationary, area, and mobile sources. Emissions inventories will be compared and analyzed for trends in emission sources over time. Dispersion Modeling Base and future case dispersion modeling will be completed by January 31, 2004. If necessary, one or more modeled control cases will be completed by February 28, 2004. All modeling 1) will be SIP quality and performed within EPA's accepted margin of accuracy; 2) will be carefully documented; 3) will sufficiently account for projected future growth in ozone precursor emissions; 4) will be concurrently reviewed by EPA; and 5) 7 will be used to determine the effectiveness of NOx and/or VOC reductions. The control case(s)will be used to determine the relative effectiveness of different emission reduction strategies and to aid in the selection of appropriate emission reduction strategies. Modeling will be based on the "Draft Guidance on the Use of Models and Other Analyses in Attainment Demonstrations for the 8-hour Ozone NAAQS" (EPA-454/R-99-004, May 1999). The modeling will follow the guidance as facilitated by EPA Region 8. Emission Reduction Strategies All adopted Federal and State emission reduction strategies that have been or will be implemented by the December 31, 2007 attainment date will be included in all emission inventories. Additional, necessary State and local emission reduction strategies under consideration for inclusion in the Ozone Action Plan will be identified and described by June 16, 2003. Any additional emission reduction strategies needed to demonstrate attainment by December 31, 2007 will be proposed by the RAQC to the AQCC by March 31, 2004 and adopted by the AQCC by December 31, 2004. The selected strategies will be implemented as soon as practical, but no later than December 31, 2005. The emission reduction strategies will be specific, quantified, permanent and enforceable. The strategies will also include specific implementation dates and detailed documentation and reporting processes. Maintenance for Growth The plan must include a component to address emissions growth at least 5 years beyond December 31, 2007, ensuring that the area will remain in attainment of the 8- hour standard during that period. This future attainment maintenance analysis may employ one or more of the following or any other appropriate techniques necessary to make such a demonstration: • Modeling analysis showing ozone levels below the 8-hour standard in 2012; • An annual review of growth (especially mobile and stationary source) to ensure control measures and growth assumptions are adequate; • Identification and quantification of federal, state, and/or local measures indicating sufficient reductions to offset growth estimates. 8 • The choice of methods and the resultant analyses to demonstrate maintenance through 2012 will be agreed upon by the RAQC, the APCD, the AQCC, and the EPA. The analysis will be completed as part of the SIP revision package by March 31, 2004 and will be submitted to EPA by December 31, 2004. The plan must also detail the continuing planning process that includes modeling updates and modeling assumption verification (particularly growth assumptions). Modeling updates and planning processes must consider and evaluate all relevant actual new point sources, impacts from potential new source growth, and future transportation patterns and their impact on air quality in a manner that is consistent with the most current adopted Long Term Transportation Plan and most current trend and projections of local motor vehicle emissions. This update and verification will be an ongoing process and reported in the six-month updates described above. If the review of growth demonstrates that adopted control measures are inadequate to address growth in emissions, additional measures will be added to the plan. If warranted, additional control measures revealed by analysis for growth will be included as part of an additional SIP revision to be submitted after December 31, 2004, the date for submitting the original SIP revision to the EPA. Public Involvement Public involvement will be conducted in all stages of planning by the signatory parties. Outreach may include one or more of the following techniques: public meetings and presentations, stakeholder meetings, websites, print advertising and radio. Public education programs will be used to raise awareness regarding issues, opportunities for involvement in the planning process, implementation of emission reduction strategies, and any other issues important to the area. Interested stakeholders will be involved in the planning process as early as possible. The DRCOG, the RAQC and the AQCC shall establish and schedule adequate stakeholder meetings, which will be open to the public with posted meeting times and locations. EAC drafts will be publicly available, and the drafting process will have sufficient opportunities for comment from all interested stakeholders. Public comment on the Ozone Action Plan will follow the normal SIP revision process as implemented by the RAQC and the AQCC. Semi- annual reports detailing, at a minimum, progress toward milestones, will be publicly presented and publicly available. 9 Roles and Responsibilities of the DRCOG, RAQC, APCD and AQCC The implementation of this EAC will follow the established air quality planning and regulatory adoption process in place in Denver for many years. The RAQC is the lead agency for air quality planning in the Denver area, the APCD provides technical, policy and administrative assistance, and the AQCC considers and adopts regulations and SIPs throughout the State. In addition, DRCOG and CDOT provide technical assistance and coordination with transportation planning activities in the Denver region. Specific responsibilities for this EAC include the following: 1. Provide necessary socio-economic and transportation assumptions and data sets - DRCOG; 2. Development of emission inventories, dispersion modeling, trend analyses and quantification, and comparison of emission reduction strategies - APCD and RAQC; 3. Compiling information on all Federal and State adopted emission reduction strategies which affect the area -APCD and RAQC; 4. Technical and strategic assistance, as appropriate, in the selection and implementation of emission reduction strategies - APCD and RAQC; 5. Maintenance of monitors and reporting and analysis of monitoring data - APCD; 6. Promote and support for public education efforts - APCD and RAQC; 7. Reporting and tracking progress - APCD and RAQC; and 8. Adoption of emission reduction strategies into the SIP-AQCC. Roles and Responsibilities of the Environmental Protection Agency 1. The EPA will provide technical assistance to the State and local area in the development of the early action plan. 2. The EPA will move quickly to review and approve completed plans by no later than nine months after submission of the SIP revision by the State. 3. When EPA's 8-hour implementation guidelines call for designations, EPA will defer the effective date of any nonattainment designation and related requirements for participating areas that fail to meet the 8-hour ozone standard as long as all terms and milestones of the compact are being met, induding submission of the early action SIP revision by December 31, 2004. 4. If the nonattainment designation is deferred, EPA will move expeditiously to designate the area as attainment and impose no additional requirements, provided that the monitors in the area reflect attainment by December 31, 2007. 10 5. If at any time the area does not meet all the terms of this compact, including meeting agreed-upon milestones, then it will forfeit its participation and its attainment or nonattainment designation (or redesignation if necessary) will become effective. The EPA will offer such an area no delays, exemptions or other favorable treatment because of its previous participation in this program. 6. If the area violates the standard as of December 31, 2007, and the area has had the effective date of any nonattainment designation deferred, such nonattainment designation will become effective. The State will then submit a revised attainment demonstration SIP revision according to the Clean Air Act (CAA) and EPA's 8-hour implementation rule, unless the 8-hour implementation schedule requires SIPs from 8-hour nonattainment areas before December 31, 2008. In that event, a revised attainment demonstration SIP revision for the participating area will be due as soon as possible but no later than December 31, 2008. In no event will EPA extend the attainment date for the area beyond that required by the CAA and/or EPA's 8-hour implementation rule. 7. The region will not be allowed to renew this EAC after December 31, 2007, or to initiate a new compact if it has previously forfeited its participation. 11 Signatures: . >Cala. . . /i-/ 9 — Zooz— cherer, Chairman Regional Air Quality Council l Robert E. Brady;Jr., Chairm n Air Quality Control Commission ( } a/-c2 La Douglas H. Benevento, Executive Director (acting) Colorado Department of Public Health and Environment iz -20-7°)2--- Thomas Norton, Executive Director Colorado Department of Transportation ,,J..L ..,. / / J,z,. ___2 /z. zi-OZ Sharon L. Richardson, Chairman Denver Regional Council of Governments Y1, .1.* (- IA ,A9C7 /0//02- Robert E. Roberts, Regional Administrator U.S. Environmental Protection Agency, Region 8 12 Hello