Arizona Department ofEnvironmental Quality

Updates and Look Ahead

Arizona Manufactures CouncilEnvironmental and Sustainability Summit

August 11, 2016

ADEQ

Misael Cabrera, P.E., Director

Agenda

Introduction & Overall Strategic Direction – Director Misael

Cabrera, P.E.

LEAN Management System Update – Deputy Director Bret

Parke

Rules Update – Administrative Counsel Sherri Zendri

2016 Legislative Summary – Chief Policy and Legislative Affairs

Officer Amanda Stone

Air Quality Update – Air Quality Division Director Tim Franquist

Waste Programs Update – Waste Programs Division Director

Laura Malone

Water Quality Update – Water Quality Division Deputy Director

Randy Matas

Overall Strategic Direction

LEAN MANAGEMENT SYSTEM UPDATE

Bret Parke, Deputy Director

UST-LUST Process Flow

RULES UPDATE

Sherri Zendri, Administrative Counsel

ADEQ Rule Repeal Schedule

FY 2016

• Mercury Air

Standards --

Repealed in 2015

Arizona Mercury

Rule

Amendments, 21

A.A.R. 711

• Air Emissions Fee

FY’ 11 fee

increase --

administratively

repealed (did not

review in the

5YRR).

FY 2017 (JUL-DEC)

• Hazardous Air Pollutants --administratively repeal (not reviewed in the August 5YRR).

• NSR GP Variances – current rulemaking

• Waste fees for FY’ 11

• Solid Waste planning regional boundaries

• Tank Service Providers

• Hazardous Waste Fees

• 1997 SRLs

FY 2017 (JAN-JUN)

•Legislative

amendments

to allow repeal

of rules:

•Collection,

Transportation,

and Disposal

Of Human

Excreta

•Recycling

Emblem

•Toxic

Substances List

•Swimming

Pool Standards

and Reviews

FY 2018

•Collection,

Transportation,

and Disposal Of

Human Excreta

•Recycling

Emblem

•Toxic

Substances List

•Swimming Pool

Standards and

Reviews

FY 2019

• Air Emissions Cap --administrative repeal by not reviewing in 5YRR

FY 2020

• AQ Standards of Performance for Existing Sources – administrative repeal by not reviewing in 5YRR

• WQD fee implementation -- administrative repeal by not reviewing in 5YRR

ADEQ Rule Repeal

Breakdown

May 2019

Hazardous Air Pollutants

Waste Repealed

No Change / Current

No Change / Future

Statutory Change / Not Enforced

Statutory Change /Enforced

August 2016

Fall 2016

Summer 2017

Summer 2017

Fall 2017 May 2020

Summer 2020

Swimming Pool Standards and Reviews

ADEQ Rule Repeal Schedule

2016 LEGISLATIVE SESSION

Amanda Stone, Chief Policy and Legislative Affairs Officer

ADEQ Bills:

SB1255 – Vehicle Emissions and Inspections (VEI) continuation

HB2325 – ADEQ water bill – lead pipe and operator certification fees

2016 Legislation Summary

2016 Legislation Summary

Impacting ADEQ:

SB1256 – Drug Lab Remediation Transfer from BTR to ADEQ

HB2666 - Governor’s Economic Opportunity Office -Water Infrastructure Finance Authority (WIFA)

HB2613 – Changes to RG classification

HB2450 – Expedited rulemaking

2016 Legislation Summary

Budget:

HB2331 – Small water systems fund – $500K in budget

Increased Funding for WQARF – Increase 26% to $14.2 million

myDEQ Continued Funding

SB1059 - Oil and Gas Conservation Commission Support - transfer from AGS to ADEQ

AIR QUALITY DIVISION

Timothy S. Franquist, Director

OZONE

Setting and Review of NAAQS Standard

1971 1979 1997 2008 2015

1-hr 0.08 ppm

1-hr 0.12 ppm

8-hr 0.08 ppm (4th High in 3-yr average)

8-hr 0.075 ppm

2015 8-hr 0.070

1972 – Plan Submitted

1975 Attain

1991 - NAA

1996 – SIP Due

1997 - States and Industry Challenge Standard2001 – Supreme Courts

Rules In Favor of USEPA

2003 – Boundary Designations Due

2004 – EPA sets NAA Boundary

2007 – SIP Due

2009 – Boundary Recommendations Due

2012 – EPA Sets NAA Boundary

2015 – Marginal Attainment

2016 – Boundary RecommendationsDue2017 –EPA

Sets NAA Boundaries

2020 –SIP Due and Attain 2015 Standard

8-Hour Ozone Design Values

Influence on Ozone

Meteorology

Anthropologic

Topography

Influences on Arizona Ozone Exceedances

2011 2012 2013

California 6 6 1

Mexico 6 8 6

CA/Mexico 4 4 2

NM/Mex/TX 3 10 4

NV/UT/CA 4 3 0

Utah 0 1 0

New Mexico 0 0 2

Arizona 2 1 0

Total 25 33 15

The number of days* where the modeled backward trajectory originated from each neighboring state/area

*Only exceedance days in Arizona were modeled

Preliminary Design Value Analysis

Network 2012 2013 2014 2015 Design Value

2015 DV ex/

Flagged

Nonattainment

2016 Threshold

Apache -- -- -- -- -- -- --

CochiseCASTNET 73 73 71 68 68 80

Coconino SLAMS 72 72 71 70 70 70

Gila SLAMS 74 75 74 72 72 68

Graham -- -- -- -- -- -- --

Greenlee -- -- -- -- -- -- --

La Paz SLAMS 72 72 72 70 70 72

Maricopa SLAMS 81 81 80 78 77 --

Mohave -- -- -- -- -- -- --

NavajoCASTNET 70 70 70 66 66 84

Pima SLAMS 71 73 71 69 69 78

Pinal SLAMS 76 76 73 71 71 71

Santa Cruz -- -- -- -- -- -- --

Yavapai SLAMS 69 69 71 69 69 69

Yuma SLAMS 77 76 77 76 76 --

Option B: Proposed Maricopa-Gila Nonattainment Area*

(Persons

per Square

Mile)

Proposed Yuma Nonattainment Area Boundary

Option A: Proposal to keep 2008 Maricopa-Pinal Nonattainment Area*

(Persons

per Square

Mile)

Primary Recommendation

Option B: Proposed Maricopa-Gila Nonattainment Area*

(Persons

per Square

Mile)

*If Tonto and Queen Valley monitor are attaining given 2016 design values

Alternative Option A

Option C: Proposed Maricopa-Pinal Nonattainment Area*

(Persons

per Square

Mile)

*If Queen Valley is attaining and Tonto monitor is not attaining given 2016 design values.

Alternative Option B

Option D: Proposed Maricopa-Pinal-Gila Nonattainment Area*

(Persons

per Square

Mile)

*If Tonto monitor is attaining and the Queen Valley is not attaining given 2016 design values.

Alternative Option C

Progression of Ozone Non-attainment

Source = EPA Region 9 presentation to Arizona Regulators

2015 Ozone Standard Challenges to Arizona

Emission Reductions from Federal Programs (Boilers, RICE MACT, Hg/Toxics)

Interstate & International Transport –Perpetual Marginal NAA

Large Metropolitan Statistical Areas (MSA)

Scarcity of Ozone Offsets for New & Modified Major Sources (Rural & Urban NAAs)

Vehicle Emissions (Tier II & III, CAFE)

Arizona’s Approach

State Implementation

Plan• New Source Review

Permitting• Emission Offsets for Major

Sources (1:1)

• Emissions Inventory• Transportation Conformity

Law Suite• Arizona Filed on April 22,

2016• Nine State Included In Suite• Oral Arguments Summer of

2016• Decision Winter of

2016/2017

Clean Air Act Revisions

• International • Rural Transport • Timely Action on

Transport Demonstrations

Construction of the Program

Increase Efficiency of Energy ProductionRe-dispatch

from Coal to Natural Gas

Add RenewableEnergy

August 3, 2015 Final Rule

EPA’s Final Rule:

Baseline (2012)

1,552 lbs CO2/MW-hr

Goal (2030)

1,031 lbs CO2/MW-hr

Reduction 34%

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

lbs

CO

2/M

Wh

Arizona Goal Rates

Proposal

Final

Where Are We Now?

Regional Haze

What’s Next: On the Horizon or In-Progress

NSR Submission• SIP Deficiencies Corrections• Removal of 10% Emission Decrease

for ERC Bank • myDEQ • Permit Streamlining

Volkswagen Settlement

Voluntary Retrofit & Repair (VVRR)

WASTE PROGRAMS DIVISION

Laura Malone, Director

Underground Storage Tank (UST) Program (HB2636)

New UST Program is focused on uniting UST owners, UST vendors, UST insurance providers, and ADEQ in our efforts to responsibly identify and cleanup petroleum contaminated properties impacted by releases from regulated UST systems.

ADEQ has launched the following programs:

Grant Program

(up to 100K per facility)

Baseline Assessments

(7 year period)

Pre-Approval Program

(up to 1M per facility)

Non-Corrective Action

(State Lead)Time-Barred Claims

ADEQ working on the following programs

Significant UST/LUST Issues

CURRENT CONDITIONS:

Open LUSTs (data from 6/16/2015): 691 at 377

92% of reported releases have been closedfewer releases are being reported from upgraded UST systems

USTs (Open and in Temp. Closure): approx. 6,458 (at 2,317 facilities)

Water Quality Assurance Revolving Fund (WQARF)

Received additional

funding

• Funding not sustainable

• Continue to look for alternative funding sources

11 new WQARF

sites

• Result of evaluating PI Sites

• 2 sites have been public noticed

Continue to improve

processes

• Community Involvement Kaizen

• PRAP/ROD Kaizen

• Listing Kaizen

WQARF

WPD Re-Organization

Solid/Hazardous Waste Section

Solid Waste UnitEmergency

Response TeamHazardous Waste Unit

WPD Re-Organization

UST-LUST Section

Site Investigation & Remediation Unit

Information & Support Unit

Installations/Inspections, Compliance and

Enforcement UnitState Lead Unit

WPD Re-Organization

Remedial Projects Section

Community Involvement & Support Unit

WQARF UnitFederal Projects, VRP

& Brownfields

WATER QUALITY DIVISION

Randy Matas, Deputy Director

Waters of the US

Status of Court Cases

Appendix B Surface Waters List Review (AAC Title 18 Chapter 11 )

Waters of the US

Reuse Rulemaking

Irrigating athletic field with reclaimed water, U of A

Reuse Per Person, 2014

Agency

files

Docket

Opening

Agency

prepares

Notice of

Proposed

Rulemaking

Public

Hearing

on

proposed

rules

Agency prepares

Notice of Final

Rulemaking and

submits it to GRRC

SOS

publishes

docket

opening

SOS

publishes

Notice of

Proposed

Rulemaking

SOS

publishes

Notice of

Final

Rulemaking

3

weeks

30 days

public

comment

Agency

works with

stakeholders

on proposed

changes

GRRC

reviews and

decides on

rule

changes

Rule changes effective

60 days later

We

are

here

Reuse Rulemaking

45

Emerging Contaminants