## Oregon Department of Environmental Quality

Apr il 15

- 16

, 2015 Oregon Environmental Quality Commission Meeting Rulemaking Action Item : J

Grants Pass Carbon Monoxide and Particulate Matter (PM 10 )

Limited Maintenance Plans



### DEQ recommendation to the EQC

DEQ recommends that the Environmental Quality Commission:

1. A pprove the two limited maintenance plans for Grants Pass in Attachment A as part of chapter 340 of the Oregon Administrative Rules ; 2. Adopt the proposed amendment to OAR 340

- 200

- 0040 in Attachment A to incorporate the proposed rules into the Oregon Clean Air Act State Implementation Plan; and

3. Direct DEQ to submit the SIP revision to the U.S. Environmental Protection Agency for approval.



### Overview

Short summary

DEQ proposes rules to u pdate Oregon maintenance plans designed to protect air quality in Grants

Pass for carbon monoxide (CO) and for p articulate m atter 10 microns and smaller (PM 10 ) as required by federal law

. B ecause CO and PM 10 pollution levels have been very low and the area is unlikely to exceed health standards for these pollutants in the future, the area qualifies for and DEQ proposes limited maintenance plans that streamline requirements and e liminate cost ly computer modeling requirements for transportation conformity analysis. The new CO and PM 10 Limited Maintenance Plans do not establish any new emission reduction strategies. Both plans

ensure that Grants Pass will continue to comply with federal air qua lity health standards

.

DEQ proposes the Oregon Environmental Quality Commission approve the proposed rules for incorporation into the Oregon Clean Air Act State Implementation Plan and submittal to the U. S. Environmental Protection Agency for its approval under the federal Clean Air Act.

B rief history

Under the Clean Air Act, EPA sets air quality standards to protect public health for six common air pollutants. EPA established t he C O standard at 35 parts per million for a 1

- hour average and at 9 parts per million for an 8

- hour average. EPA established t he PM 10 standard at 150 micrograms per cubic meter for a 24

- hour average and at 50 micrograms per cubic meter

Staff Report page | 1for an annual average. The Clean Air Act requires communities that exceed these health standards

to ado pt plans to achieve and maintain good air quality.

In the mid to late 1980s , Grants Pass exceeded the 8

- hour CO standard and the 24

- hour PM 10 standard. The area was designate d as a nonattainment area for CO in 1985 and for PM 10 in 1990. In response, EQC adopted attainment plans with CO and PM 10 control measures to reduce pollution levels within the urban growth boundary to meet the federal standards. This resulted in significa nt improvement in air quality and Grants Pass was reclassified to attainment for CO in

2000 and PM 10 in 2002. EQC adopted t he first maintenance plans for Grants Pass at that time

.

EPA requires Oregon to establish second maintenance plans for the Grants Pass area to e nsure

c ompliance with the standards through 2025. EPA provides an option for s tates to adopt simplified plans, called limited maintenance plans , for low

- risk areas like Grants Pass. Over the last 25 years, Grants Pass’s CO and PM 10 levels hav e steadily declined and the area is unlikely to exceed these standards again. In addition to the PM 10 standard, EPA adopted the PM 2.5 standard in 1997, for smaller or fine particulate matter 2.5 microns in size or less, since the smaller inhalable particle s have been found to pose a greater health risk. Due to the successful PM 10 pollution reduction strategies, Grants Pass has never violated the PM 2.5 standard.

Regulated parties

The proposed rules primarily affect the Middle Rogue Metropolitan Planning O rganization. In the Grants Pass area, this organization is subject to federal transportation conformity rules. Each time a

new r egional t ransportation p lan or t ransportation i mprovement p rogram is adopted, the conformity rules require a demonstrat ion that emissions won’t exceed the transportation emissions budget in the

m aintenance plans

. Under the proposed limited maintenance plans , the emissions budget is no longer needed. DEQ estimates this will save the organization approximately $30,000 for each new p lan or improvement program , by not having to use computer modeling for the conformity analysis

.

In addition, because the proposed rules would simplify transportation conformity requirements, this will benefit DEQ, ODOT, and the federal Highway Administra tion by greatly reducing staff time related to the transportation conformity review process.

The proposed amendment o f OAR 340

- 200

- 0040 to incorporate the limited maintenance plans into State of Oregon Clean Air Act Implementation Plan does not change the regulated parties

.

Request for other options

During the pub lic comment period, DEQ requested public comment on whether to consider other options for achieving the rules ’ substantive goals while reducing the rules’ negative economic impact

on business. DEQ received no comments on this rulemaking

.

Staff Report page | 2

### Statement of need

What need would the proposed rule address?

The current CO and PM 10 maintenance plans for Grants Pass expire in 2015

. EPA requires Oregon to

establish a second set of maintenance plans to ensure Grants Pass continues to comply with the CO

and PM 10 federal health standards through 2025.

Grants Pass’s CO and PM 10 levels have steadily declined and the area is unlikely to exce ed these standards again. EPA guidance allows states the option to adopt a simplified or “limited” maintenance plan if air quality levels are below a certain threshold and there is little risk of a future

health standard violation. Grants Pass’s CO and PM 10 levels are well below this threshold. Under the limited maintenance plan option, neither new control measures nor costly computer modeling for transportation conformity analysis is required

.

How would the proposed rule address the need ?

The proposed rules update the existing maintenance plans for Grants Pass to maintain good air quality for the next 10 years. If adopted, this second set of maintenance plans would be the final maintenance plans required for Grants Pass under the Clean Air Act

.

Under the limited maintenance plan option, the second maintenance plan must continue existing control measures from the first maintenance plan. The exception to this is the transportation conformity requirements

, which apply to new transportation projects. On

- r oad motor vehicles are a major source of CO emissions in Grants Pass and a smaller but significant source of PM 10

. However,

t here have been few new transportation projects in Grants Pass and DEQ expects limited growth in

these emissions. U nder the limited maintenance plan option, Grants Pass can meet the transportation conformity requirements without the need for a motor vehicle emissions budget ( or cap ) on emissions

and without the need to conduct a regional emissions analysis, which avoids the cost of con ducting computer modeling

.

T he CO limited maintenance plan would continue CO control strategies including federal emission

standards for new motor vehicles ; Best Available Control Technology requirements for large

, new or expanding industrial CO sources ; and the residential woodstove curtailment program, which also

reduces CO in addition to PM 10 . Since the majority of CO emissions in Grants Pass are from motor
vehicles

, federal standards for new motor vehicles have been the most effective measure in reduc ing

CO levels.

T he PM 10 limited maintenance plan would continue PM 10 control strategies

, includ ing a residential woodstove curtailment program ; a ban on use of uncertified woodstoves ; Best Available Control Technology requirements for large new or expand ing industrial sources ; outdoor open burning

restrictions ; and prescribed forestry burning smoke management protection.

Both plans would continue to comply with federal health standards . With EPA’s approval, DEQ

discontinued d irect monitoring of CO and PM 10 in Grants Pass in 2008 and 2005 respectively, due to very low pollution levels and budget considerations. Under the proposed PM 10 limited maintenance plan, DEQ could use an existing PM 2.5 monitor in Grants Pass to calculate PM 10 levels and verify

Staff Report page | 3cont inued attainment with the standard

. For CO , no other direct monitoring exists in Grants Pass, so DEQ would determine continued attainment by tracking CO emission trends (mostly from on

- road mobile sources) and confirming that these emissions are continuing to decline

.

B oth plans must have contingency measures that DEQ would implement in the unlikely event that current trends do not continue to show improved air quality. The first part of the contingency plans

addresses the need to prevent a violation of th e health standard

. To prevent a violation, both plans identify a process by which direct CO and PM 10 monitoring would be re

- established

. The second part

addresses action needed if a violation occurs. Should a violation of the federal health standard occur while conducting monitoring, both plans identify a range of corrective actions DEQ would take

.

How will DEQ know the rule addressed the need?

If EQC approves the proposed rules, DEQ would submit the rules including the maintenance plan s to

EPA to be incorporated into the State Implementation Plan required under the Clean Air Act. DEQ

would know the need was addressed if EPA approves the rules and if CO and PM 10 levels in Grants

Pass continue to meet federal health standards.

Staff Report page | 4

### Rules affected, authorities, supporting documents

Lead division Program or activity

Environmental Solutions Air Quality Planning

Chapter 340 action

Amend OAR 340

- 200

- 0040

Statutory authority

ORS 468.020 and 468A.025

Statute implemented

ORS 468A.025 and 468A.035

Documents relied on for rulemaking ORS 183.335(2)(b)(C)



### Document title Document location
EPA guidance document: 2001 Wegman

Memo: Limited Maintenance Plan Option for

Moderate PM 10 Nonattainment Areas www.epa.gov/ttn/caaa/t1/memoranda/lmp_ final.pdf

EPA guidance document: 1995 Paisie Memo: Limited Maintenance Plan Option for

Nonclassifiable CO Nonattainment Areas http://www.epa.gov/ttn/naaqs/aqmguide/co llection/cp2/bakup/19951006_paisie_lmp_ nonclassifiable_co_naa.pdf

Grants Pass PM 10 Maintenance Plan, October 4, 2002 A vailable by contacting DEQ Headquarters

, 811 SW 6th Ave.

, Portland,

OR 97204

Grants Pass CO Maintenance Plan, September 13, 1999 A vailable by contacting DEQ Headquarters

, 811 SW 6th Ave.

, Portland,

OR 97204

Staff Report page | 5

### Fee Analysis

This rulemaking does not involve fees.

Staff Report page | 6

### Statement of fiscal and economic impact ORS 183.335 (2)(b)(E)

Fiscal and Economic Impact

The proposed rules, including the proposed limited maintenance plans, have slight positive fiscal and economic impacts. The limited maintenance plans would streamline existing requirements, require no

new control measures and e liminate the need for costly computer modeling for the transportation conformity analysis. For Grants Pass t o qualify for these limited plans

, DEQ’s proposal would carry

over control measures from existing plan s that expire in 2015 to the proposed plan s

.

Statement of Cost of Complian ce

1. State and federal agencies

The proposed rules would not affect state or federal agencies directly

. Because the proposed rules would greatly simplify transportation conformity requirements, the rules would have a slight positive fiscal and economic effect on DEQ indirectly in the form of reduced staff time spent evaluating Grants Pass’s compliance with the limited maintenance plans.

2. Local governments

The proposed rules would have some positive effect on local government in the form of cost savings.

Under the federal Clean Air Act and federal transportation act, metropolitan planning organizations

in maintenance areas are subject to transportation conformity rules. The organization for the Grants

Pass area is the Middle Rogue Metropolitan Planning O rganization.

Each time a new Regional Transportation Plan or Transportation Improvement Program is ado pted, the conformity rules require the organization to demonstrate that emissions won’t exceed the transportation emissions budgets in the m aintenance plans . The organization demonstrates this by preparing a regional emissions analysis which combines compu ter modeling of the highway system and computer modeling of emission characteristics of the area’s cars and trucks. One benefit of the proposed limited maintenance plans is that an emissions budget is no longer needed and the organization can demonstrate c onformity without a regional analysis. DEQ estimates that not having to conduct this analysis would save the organization approximately $30,000.

3. Public

The proposed rules would not affect the pu blic directly

. Air pollution creates public health problems that can have negative economic impacts. The proposed rules could create positive economic benefits and improvements in public health and welfare by ensuring Grants Pass continues to comply

with the CO and PM 10 federal health standards.

4. Large businesses

- businesses with more than 50 employees

The proposed rules would not affect l arge business es directly because the rules would not create new requirements for businesses.

Staff Report page | 7DEQ anticipates CO or PM 10 pollution levels would continue to decline under the proposed limited maintenance plans. However, t he proposed rules could have some negative fiscal or economic effect on large businesses indirectly if CO or PM 10 pollution levels were to increase and the Grants Pass

area were to violate the federal health st andards.

Both limited maintenance plans contain contingency plans in the unlikely event of a violation, which would trigger more stringent requirements for new and expanding industry. A violation would trigger DEQ having to reinstate the New Source Revie w requirement for Lowest Achievable Emission Rate and emission offsets for new and expanding industrial sources pursuant to O regon A dministrative R ule Chapter 340 Division 224 . Based on recent trends, DEQ anticipates very little industrial growth in the Grants Pass area, and any new or expanding emission sources that are large businesses may not be large enough trigger the New Source Review requirements. At this time, DEQ

canno t accurately estimate the possible fiscal and economic impacts should the contingency plan be triggered, because such impacts are inherently case

- specific and DEQ lacks the necessary data to provide an estimate that would not be speculative.

5. Small businesses

– businesses with 50 or fewer employees ORS 183.336

The proposed rules would not affect small business es directly because the rules would not create new requirements for small business es. The proposed rules would likely have no effect on small

business indirectly. As noted for large businesses, both limited maintenance plans contain contingency plans in the unlikely event that the Grants Pass area violates the CO or PM 10 standards.

A vi olation would trigger more stringent New Source Review requirements for new and expanding industry. However, small businesses are unlikely to have large enough emission quantities to trigger the requirements.

a. Estimated number of small

businesses and types of

businesses and industries with small businesses subject to proposed rule. No ne

b. Projected reporting, recordkeeping and other administrative activities, including costs of professional services, required for small businesses to comply with th e proposed

rule. No ne

c. Projected equipment, supplies,

labor and increased administration required for small businesses to comply with the proposed rule. No ne

Staff Report page | 8d. Describe how DEQ involved

small businesses in developing this proposed

rule. DEQ did not involve small businesses in developing the proposed rules because the

rules would likely not affect small

businesses.

Documents relied on for fiscal and economic impact



### Document title Document location
EPA guidance document: 2001 Wegman

Memo: Limited Maintenance Plan Option for

Moderate PM 10 Nonattainment Areas www.epa.gov/ttn/caaa/t1/memoranda/lmp_ final.pdf

EPA guidance document: 1995 Paisie Memo: Limited Maintenance Plan Option for

Nonclassifiable CO Nonattainment Areas http://www.epa.gov/ttn/naaqs/aqmguide/co llection/cp2/bakup/ 19951006_paisie_lmp_ nonclassifiable_co_naa.pdf

Grants Pass PM 10 Maintenance Plan, October 4, 2002 A vailable by contacting DEQ Headquarters

, 811 SW 6th Ave.

, Portland,

OR 97204

Grants Pass CO Maintenance Plan, September 13, 1999 A vailable by contacting DEQ Headquarters

, 811 SW 6th Ave.

, Portland,

OR 97204

Advisory committee

DEQ did no t convene an advisory committee because the proposed rules w ould not create new control measures, they will only extend the applicability of current control measures for another ten years as required under the federal Clean Air Act.

DEQ consult ed with the Middle Rogue Metropolitan Planning Organization Technical Advisory

Committee during development of the limited maintenance plans to confirm that regional emissions analyses and modeling would no longer be needed to demonstrate conformity and to discuss the schedule for this rulemaking.

Housing cost

To comply with ORS 183.534

, DEQ determined the proposed rule s would have no effect on the development cost of a 6,000

- square

- foot parcel and construction of a 1,200

- square

- foot detached, single

- family dwelling on that parcel. The proposed rules affect the Middle Rogue Metropolitan Planning Organization and are not related to housing costs.

Staff Report page | 9

### Federal relationship

"It is the policy of this state that agencies shall seek to retain and promote the unique identity of Oregon by considering local conditions when an agency adopts policies and rules. However, since there are many federal laws and regulations that apply to activities that are also r egulated by the state, it is also the policy of this state that agencies attempt to adopt rules that correspond with equivalent federal laws and rules..." ORS 183.332

Relationship to federal requiremen ts

This section complies with OAR 340

- 011

- 0029 and ORS 468A.327 to clearly identify the relationship

between th e proposed rules and applicable federal requirements

.

The proposed rules are not “different from or in addition to federal requirements” and impose stringency equivalent to federal requirements.

The proposed rules would ensure that DEQ continues to comply with federal requirements in the

Clean Air Act. The proposed limited maintenance plans must demonstrate that the Grants Pass area

will continue to meet federal CO and PM 10 standards for the next 10 years. EPA policy allows areas that are at low risk of exceeding these standards the option of submitting a simplified limited maintenance plan. The limited maintenance plans provide streamlined requirements, no new control

measures and e liminate the ne ed for costly computer modeling for the transportation conformity analysis.

What alternatives did DEQ consider if any?

Since this action is necessary to comply with the requirements of the Clean Air Act, DEQ has not considered other options for this pr oposal.

Staff Report page | 10

### Land use

“It is the (Environmental Quality) Commission's policy to coordinate the Department's (DEQ’s) programs, rules and actions that affect land use with local acknowledged plans to the fullest degree possible.” OAR 340

- 018

- 0010

Land

- use considerations

To determine whether the proposed rules involve programs or actions that are considered a land

- use action , DEQ considered :

• S tate wide planning goals for specific references. Section III, subsection 2 of the DEQ State Agency Coordination Program document identifies the following statewide goal relating to DEQ's authority:

Goal Title

5 Open Spaces, Scenic and Historic Areas, and Na tural Resources

6 Air, Water and Land Resources Quality

11 Public Facilities and Services

16 Estuarial R esources 9 Ocean Resources

• OAR 340

- 018

- 0030 for EQC rules on land

- use coordination

. Division 18 requires DEQ to determine whether proposed rules will significantly affect land use . If yes , how DEQ will:

o C omply with statewide land

- use goals

, and

o E nsure compatibility with acknowledged comprehensive plans

, which DEQ most commonly achieve s by requiring a Land Use Compatibility Statement

.

• DEQ’s mandate to protect public health and safety and the environment.

• Whether DEQ is the pri mary authority responsible for land

- use programs or actions in the proposed rules.

• Present or future land uses id entified in acknowledged comprehensive plans.

Determination

DEQ determined that the proposed rules do not affect existing rules, programs or activities

considered land

- use programs and actions in OAR 340

- 018

- 0030 or in the DEQ State Agency Coordination Program.

Staff Report page | 11

### Stakeholder and public involvement

Advisory committee

DEQ did not convene an advisory committee because the proposed rules w ould not create new control measures, they will only extend the applicability of current control measures for another ten years as required under the federal Clean Air Act.

DEQ consulted with the Middle Rogue Metropolitan Planning Organiz ation Technical Advisory Committee during development of the limited maintenance plans to confirm that regional emissions analyses and modeling would no longer be needed to demonstrate conformity and to discuss the schedule for this rulemaking.

EQC prior involvemen t

DEQ shares general rulemaking information with EQC through the monthly Director’s Report . DEQ did not present additional information specific to this proposed rule revision.

Public notice

DEQ provided notice of the Notice of Proposed Rulemaking with Hearing for this rulemaking as

follows:

DEQ submitted notice to Secretary of State for publication in the J anuary 2015 Oregon Bulletin

On Dec. 16, 2014, DEQ provided notice to:

• EPA

• The public through its Rulemaking Web

page http://www.oregon.gov/deq/RulesandRegulations/Pages/2014/R GPLMP.aspx

• Approximately 7,848 interested parties on the agency’s Rulemaking list and

Medford

- Ashland Air Quality list through GovDelivery.

• The following key legislators required under ORS 183.335 :

o Paul Holvey , Chair, House Energy and Environment Committee

o Michael Dembrow, Chair, Senate Environment and Natural Resources

Committee

o Representative Wally Hicks

o Senator Herman Baertschiger Jr.

• Two principle contributors to the limited maintenance plans from the Middle Rogue Metropolitan Planning O rganization

Staff Report page | 12DEQ published legal notices in the following newspapers:

Grants Pass Daily Courier

- Dec. 16, 2014 The Oregonian

- Dec. 17, 2014 The Mail Tribune (Medford)

- Dec. 16, 2014

Close of public comment period

The comment period close d Monday, Jan. 26, 201 5 at 5 p.m

.

Public hearings and comment

DEQ held one public hearing. There were three attendees , but no testimony was provided

. DEQ received no comments on this rulemaking

.

Presiding Officers’ Record

Hearing 1

Date January 22, 2015

Time Convened 6 p.m.

Time adjourned 6:32 p.m.

Address Grants Pass City Council Chambers

101 NW 'A' Street

City Grants Pass, OR 97526

Presiding officer Brian Finneran

Staff presenter Brian Finneran

T he presiding officer convened the hearing and summarized procedures for the hearing including notification that DEQ was recording the hearing. The presiding officer a sked people who wanted to present verbal comments to complete, sign and submit a registration form or, if attending by Web conference to use the “chat” feature to indicate their intent to present

comments

.

According to Oregon Administrative Rule 137

- 001

- 0030

, the presiding officer summarized the

conten t of the notice given under Oregon Revised Statute 183.335

.

DEQ added all names, addresses and affiliations provided on the registration form and attendee list to DEQ interested parties list for thi s rule.

Staff Report page | 13

### Summary of comments and DEQ responses

DEQ did not change the proposed rules in response to comments because no comments were

received

.

Staff Report page | 14

### Implementation

Notification

If approved, t he proposed rules would become effective up on filing with Secretary of State, approximately April 16 , 2015

.

DEQ will submit the rules to the U.S. Environmental Protection Agency as a revision to the Oregon State Implementation Plan.

T he Middle Rogue Metropolitan Planning O rganization i s the primary affected party

, and is currently updating its regional transportation plan

. If the limited maintenance plan s are approved , DEQ will notify the Middle Rogue Metropolitan Planning Organization of this action, and provide periodic update s on the EPA submittal and approval process

. Final EPA approval of the plans will mean the organization no longer need s to conduct computer modeling for the update to the regional transportation plan, which is a considerable cost savings.

DEQ will also notify ODOT, Federal Highways, and other DEQ staff in the region around Grants Pass on the adoption and general provisions in these new maintenance plans and the new transportation conformity requirements.

Compliance and enforcement

These maintenance plans contain provisions for verifying how compliance with air quality standards will be maintained. Additionally, both plans contain a contingency plan with additional measures that will apply if air quality worsens and standards are violated in the future. This is a continuation from the prior maintenance plans, and as such do not represent any changes in implementation.

Measuring, sampling, monitoring and reporting

These maintenance plans contain provisions for measuring, monitoring, and reporting air quality in Grants Pass to be carried out by DEQ. This is a continuation from the prior maintenance plans, and as such do not require any changes in implementation.

Systems

These maintenance plan s do not require changes to any DEQ system

.

Training

These maintenance plans do not require changes or any additional training for DEQ staff.

Staff Report page | 15

### Five

- year review ORS 183.405

Requirement ORS 183.405

Oregon law r equires DEQ to review new rules within five years after EQC adopts the m. The law also exempts some rules from review. DEQ reviewed the rules this report describes and determined whether they are subject to the five

- year review. DEQ based its analysis on the law in effect when EQC adopted these rules.

Exemption

The Administrative Procedures Act exempt s all of the proposed rules from the five

- year review because the proposed rules would amend or repeal an existing rule. ORS 183.405(4).

Staff Report page | 16