CHATTANOOGA-HAMIL TON COUNTY AIR POLLUTION CONTROL BOARD June 30, 2014 MINUTES

Chairman Steve Meyercalled the meeting to order and noted an affidavit had been provided indicating that adequate public notice ofthe meeting had been published in the Chattanooga Times Free Press. A quorum ofthe membership was present. Mr. Meyerstated the minutes ofthe June 4, 2013 Board meeting had been provided to Board members and asked ifthere were additions, corrections, or deletions to the minutes. A motion to approvethe minutes as presented was then made by Mr. Lynch and seconded by Mr. Carmichael. The motion passed with no negative votes cast. The agenda was presented and approved.

DIRECTOR'S REPORT Expense Summary. Mr. Colby informed the Board thatthe Expense Summaryfor May had been provided. He stated the report shows that atthe end of Maythe budgetwas approximately 92% expended and thefiscal yearwas 91% complete. Hethen reviewed expenditures in several of the line items. He noted thatthe Salary line item included the payment ofaccumulated personal leave to Errol Reksten and Pam Hicks who have both retired. The Materials & Supplies line item, which is over budget, includes repairs to air monitoring equipment. The increases in both the Vehicle Expense and Insurance line itemswere attributed respectively to increases in fuel cost and repairs and an increase in premiums. (A copy ofthe summary is included as a part ofthese minutes and is attached to the original copy ofthese minutes.) Certificate of Exemption Approval. The TennesseeAir Pollution Control Board (State Board) approved the local program's Certificate of Exemption at its May meeting. Mr. Colby explained that the Certificate allows the local program to operatewithout State supervision. The local program is required to adopt and enforce rules which are no less stringentthatthe State in orderto receive the Certificate. The State Board approved the Hamilton County Certificate forthe period 2014-2016 with one deficiency noted. The State has adopted a requirementthat all new permits, permit renewals and permit modifications must be advertised in a paperofgeneral circulation with an opportunityfor public comment. The State has given the local program until July 2015 to prepare a local rule as stringent as the State's rule. Beginning July 1, 2014, the Bureau will implementthe procedure and will prepare a rule forthe Board's review and recommendation to the governing bodies. (A copy ofthe Certificate of Exemption is included as a part ofthese minutes and is attached to the original copy ofthese minutes.) Air Quality Update. Mr. Colby reported that Hamilton County air quality readings have been recorded in compliance with all current health based standards. He stated the current standard for ozone is 76 parts per billion (ppb) determined by a 3-year average ofthe 41 h highestvalues (referred

BoardMeeting-6/30/2014 Page I of7to as design value) at each monitor. Hamilton County's design value forthe reporting period 2011- 2013 is 72. During the current ozone season (March 1- October 31), there have been no exceedances ofthe 75 ppb standard and the highestvalue recorded was 67 ppb. The current annual standard for fine particles (PM2.5) is 12 micrograms per cubic meter ofair (1Jg/m3) determined by the weighted annual mean values recorded at each monitor. The 2013 weighted annual mean at the three monitors located in Hamilton County is 9.3 1Jg/m3or lower. The 2013 weighted annual mean atthe monitor located in Rossville Georgia which is included in our region for purposes ofattainment/nonattainment determinations is 10 1Jg/m3

. Mr. Colby also told the Board that Hamilton County is also meeting the daily standard forfine particles (PM2.5). The current standard is 35 1Jg/m3 and the values forthe four monitors in our region are 23 1Jg/m3or less. Asbestos Program. Mr. Colby stated there have been improvements made in the Bureau's asbestos program. He said that Bureau InvestigatorJohn Schultz is administering the program and has significantly increased inspections of projects. Staff Resignations. Copies of letters of resignation were provided to the Board from two employees. Engineering Manager Errol Reksten retired effective November 1, 2013. The Bureau's Engineering Secretary 

### I Receptionist Pam Hicks retired effective May 16, 2014. Mr. Colby noted that as in the past, the Bureau will workwith City Personnel Departmentto fill the positions. Staff Recognition. Mr. Colby ended his report by giving special recognition to members of the engineering department, Alan Frazier, Cynthia McDaniel and Sydney Spencerfortheirwork on preparing the Requestfor Redesignation which the Board will consider later in the meeting. He estimated consultant fees to prepare the documentwould have been $250,000 ifthese staff members had not prepared the submittal.

ADMINISTRATIVE COMMITTEE REPORT AND SALARIES AND LONGEVITY PAY FOR FY 2015 Chairman Meyerstated the Administrative Committee met on April 30, 2014 to review the proposed budgetfor 2014-2015 (FY 2015). The Committee approved the proposed budget and recommended its approval by the Board. (A copy ofthe Administrative Committee Report including the FY2015 Proposed Budget is attached to the original copy ofthese minutes and is included as a part ofthese minutes.) The FY 2015 budget of$1,410,576 represents a decrease of$15,817 from the FY 2014 budget requestwith the same level offunding from the City and County as was received following lastyear's request. The budget presented also represents an increase of$1,916 more thatthe income projections forthe current fiscal year. Mr. Colby stated the Bureau is expecting a decrease in funding from EPA, although that is subjectto change as Congress considers the federal budget later in the year. The Bureau is also projecting about a 17% decrease in Part 70 emission fees and a 10.9% increase in non-Part 70 permits fees. Mr. Colby noted the Board has historicallyfollowed the City's process in regards to salary and benefits. As in FY 2014, Mr. Colby stated the proposed budget was prepared with no salary increases since it was not known whatthe Citywould do with their pay plan in FY 2015. In FY 2014 the Board followed the City's pay plan and granted salary increases of3% for Bureau employees and longevity pay of$75 peryear ofservice, for employees with more than 5 years ofcontinuous service, up to a maximum of$2,250. Atthetime the Administrative Committee metthe City had not

BoardMeeting-6/30/2014 Page2 of7completed the budgeting process and the Administrative Committee recommended thatthe Board authorize longevity pay for Bureau employees consistentwith whatthe City's ultimately did with their plan. The salary and fringe benefit line item in the proposed budget includes longevity pay of$75. The City Council has now completed the FY 2015 budget and has revised its pay plan to grant a 1.5% increase for non-sworn personnel and the payment of longevity payfor employees with morethan 5 years ofcontinuous service of$75 peryear ofservice, up to a maximum of$2,250. Mr. Colby stated proposed Resolution 0614-01 with respect to Bureau salaries and Resolution 0614-02 with respect to longevity payfor FY 15 have been prepared consistent with the City pay plan. A motion to accept and adoptthe recommendations ofthe Administrative Committee and Mr. Colby as presented and to approve Resolutions 0614-02 and 0614-03 was made by Mr. Carmichael and seconded by Mr. Howard. The motion was approved. (Copies of Resolution 0613-01 and 0613- 02 are attached to these minutes and are included as a part ofthese minutes.)

PERSONNEL MATTER- STEVE LANGSTON Mr. Colbythen recommended approval ofa request by InstrumentTechnician Steve Langston for leave for armed forces reserve duty. Mr. Langston is a member ofthe U.S. Navy Reserves and will be on active duty in the Persian Gulffrom July 3, 2014 through November26, 2014. Mr. Colby stated the Bureau's policy manual provides that personal leave for morethan fifty (50) consecutive working days must be approved in advance by the Board. The request by Mr. Langston includes 20 days ofpaid military leave from the Bureau (July 3- 30, 2014); 6 days ofpersonal leave (July 31-August 7, 2014); and leavewithout pay from August 8- November26, 2014. In response to questions from the Board Mr. Colby stated the other members ofthe air monitoring departmentwill cover Mr. Langston's responsibilities but he noted additional temporary help may be needed. A motion to approve Mr. Langston's request and to approve his leave as outlined was made by Dr. Tuckerand seconded by Mr. Carmichael. The motion was approved with no negativevotes cast. (A copy of Mr. Langston's request and his Military Orders are attached to these minutes and are included as a part ofthese minutes.)

BUREAU LEASE EXTENSION
Mr. Colby reported thatthe current lease from Blue Flame Realty Partners, LLC for Bureau office space expires in August 2014. The lease provides for a ten (10) year renewal option following the original 10-year lease. Underthe terms ofthe current lease, with its Consumer Price Index escalator clause, the annual rent forthe 2014-2016 period would increase from $103,046 to $131,356 (a 27.5% increase). Following negotiationswith Blue Flame, the Board has been offered the option to amend the lease and to extend the lease at an annual rate forthe first year of $102,000 ($8,500 per month) beginning September 1, 2014, with an annual increase of3.5% each yearthereaftertill the expiration ofthe lease on August 31, 2024. Also, Mr. Colby stated the proposed lease amendment allows for a 12-monthtermination clause should there be a change in ownership ofthe building. Blue Flame has indicated they do notforesee a change in ownership.

BoardMeeting-6/30/2014 Page 3 of7A motion to approve the FirstAmendment to Lease, which was provided to the Board, and to authorize the Board Chairman to executetheAmendmentwas made by Mr. Howard and seconded by Mr. Lynch. The motion was approved with no negative votes cast. (A copy ofthe First Amendmentto Lease is attached to the minutes and is included as a part ofthese minutes.)

PART 70 PERMITS
Mr. Colby told the Board that an opportunity for public comment on several Part 70 permits was published in the Chattanooga Times Free Press and on-line at Chattanooga.com and APCB.org. He noted that onlyfederally-enforceable certificates ofoperation ("synthetic minor" permits") are required to go through the public hearing process. All other permits must be the subject ofa public notice and comment period, but a public hearing must be held only ifsuch a hearing requested in writing. The following Part 70 permit actions were advertised and no comments or requests for hearing were received. ASTEC Industries, Inc., 4101 JeromeAve., Chattanooga, TN 37407, which manufactures asphalt plants and burner units, soil remediation units, and asphalt emulsion plant components has applied for a significant modification of its Part 70 operating permit. The proposed modification involves an increase in allowablefuel usage for Production Burner Testing, Emission Unit 003. The facility has requested an increase in natural gas usage from 2.5 million cubic feet peryearto 10.6 million cubic feet peryear and an increase in usage of#2 fuel oil from 17,400 gallons peryearto 18,000 gallons peryear. Due to a correction in the emission factors used to calculate emissions from Production Burner Testing, this modification only involves a 0.45 tons peryear increase in allowable emissions ofvolatile organic compounds (VOCs). (The Public Information File forASTEC Industries, Inc. was entered into the record and marked as Exhibit 1.) Volkswagen Group ofAmerica Chattanooga Operations, LLC, 8001 Volkswagen Drive, Chattanooga, TN 37416, which operates an automotive manufacturing facility, has submitted an application for a Part 70 operating permit. The source was previously issued a Prevention of Significant Deterioration (PSD) permitto construct and initially operate the facility. There is no increase in emissions associated with this proposed permit. (The Public Information File forVolkswagen Group ofAmerica Chattanooga Operations, LLC was entered into the record and marked as Exhibit 2.) City ofChattanooga Summit Landfill, Woodland Drive, Chattanooga, TN 37416, a closed municipal solid waste landfill, has submitted an application for renewal of its Part 70 operating permit. A Part 70 permit has previously been issued forthe facility. There are no changes in emissions involved in this action. (The Public Information File for City of Chattanooga Summit Landfill was entered into the record and marked as Exhibit 3.) Rock-Tenn Converting Company, 701 Manufacturers Road, Chattanooga, TN 37405-3703, which manufactures recycled paperboard, has submitted an application for renewal of its Part 70 operating permit. There are no changes in emissions involved in this action. (The Public Information File for Rock-Tenn Converting Companywas entered into the record and marked as Exhibit 4.) A motion to authorize the Directorto issuethese permits was made by Mr. Howard and seconded by Mr. Lynch. The motion was approved with no negative votes cast.

BoardMeeting-6/30/2014 Page 4 of7MOTION TO TERMINATE CONSENT DECREE -INVISTA S.a 

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This agenda item was present by Board Counsel Josiah Baker. Mr. Bakerstated lnvista has requested that a motion be filed to terminate the Consent Decree as it applies to lnvista's Chattanooga facility. Mr. Baker provided the Board members a Briefing Pamphletwhich detailed the provisions ofthe original Consent Decree, the remedial actions that had been taken and the penalty provisions ofthe Consent Decree. (A copy of Mr. Baker's Briefing Pamphlet is attached to these minutes and is included as a part ofthese minutes.) The Consent Decree came about as a result ofan environmental audit done by lnvista when lnvista purchased Dupont. The audit identified problems at several locations including the facility in Chattanooga. lnvista reported the problems to EPA and a global consent decreewas prepared. At its July 9, 2009 Board meeting, the Board authorized Mr. Bakerto approve the proposed Consent Decree and tojoin with the U.S. Department ofJustice in lodging the Decree. Mr. Baker noted that undertheterms ofthe Consent Decree, lnvista agreed to pay a $1.7 million civil penalty and to spend upto an estimated $500 million to correct the self-reported environmental violations. Mr. Baker reported to the Board that lnvista has prepared a Motion to be filed to terminate the Consent Decree and has requested the Board approval that it be filed as an "unopposed" motion. Mr. Bakerstated lnvista has accomplished all that was required of it and has done more than was required of it at the Chattanooga facility. He explained that lnvista paid a $100,000 civil penaltyto the Board and has taken remedial action to correctthe problems identified. Mr. Baker noted thatthe civil penaltywas divided between the City ofChattanooga and Hamilton County on the basis ofthe percentagefunding ofthe local program and was not credited to the Board's budget. The remedial actions taken by lnvista atthe Chattanooga site included an investment of$8.9 million to install 2 new gas-fired boilers, and $633,000 on installation ofa new monitoring system. Mr. Baker recommended that Board approve the filing ofthe Unopposed Motion to Terminate Consent Decreewith Respectto the Chattanooga Facility and to authorize him, as Board Counsel to sign the Motion. A motion to approve Mr. Baker's recommendation was made by Mr. Carmichael and seconded by Mr. Howard. The motion was approved with no negative votes cast.

PUBLIC HEARING Chairman Meyerthen opened the public hearing forthe Synthetic Minor PermitforALSTOM Power, Inc. and forthe PM2.5 Redesignation Request. A court reporterwas present and atranscript ofthe public hearing was prepared. Therefore only a briefsummary appears here. A copy ofthe transcript is included as a part ofthese minutes and is attached to the original copy ofthese minutes. Synthetic Minor Permit- ALSTOM Power, Inc. Mr. Colby stated ALSTOM Power, Inc., located at 1119 Riverfront Parkway, Chattanooga, TN 37402, has made application forfederally enforceable certificates ofoperation, also referred to as a synthetic minor permit. He explained that ALSTOM has operated for several years as a majorsource under Part 70 Permit No. 47-065-0690 dueto emission levels ofvolatile organic compounds (VOCs) and HazardousAir Pollutants (HAPs). The facility has reformulated their coatings which has resulted in lower emissions ofVOCs and HAPs. The lower emissionswill allowthe facility to operate below majorsource status thresholds.
The notice ofthe public comment period and public hearing was published on May 23, 2014 in the Chattanooga News Free Press and on-line at Chattanoogan.com and APCB.org. No comments were received on the proposed permit priorto the meeting and no members ofthe

BoardMeeting-6/30/2014 Page 5 of7audience made comments. (The Public Information File forALSTOM Power, Inc. was entered into the record and marked as Exhibit 5.) A motion to approve the proposed Synthetic Minor Permit and to authorize the Directorto issue the permit after completion of EPA's reviewwas made by Dr. Tucker and seconded by Mr. Carmichael. The motion was approved with no negative votes cast. (A copy of Resolution 614-03 is included as a part ofthese minutes and is attached to the original copy ofthese minutes.) PM2.5 Redesignation Request. Mr. Colby stated the Bureau proposes amendments to Hamilton County's portion ofTennessee's State Implementation Plan (SIP). The proposed State Implementation Plan revision includes the Bureau's request underthe Clean AirActthatthe Chattanooga, TN/GA/AL annual PM2.s (fine particulate matter) nonattainment area be redesignated from non-attainmentto attainmentwith respect to the 1997 National AmbientAir Quality Standard (NAAQS) for PM2.5 as well as the Bureau's plan to maintain attainment ofthe 1997 annual PM2

.5, standard in the Chattanooga, TN/GA/AL area. Additionally, the Bureau proposes an official withdrawal ofthe previously approved PM2

.5 attainment demonstration SIP submitted to US EPA sincethe ambient air qualitystandard forthe 1997 PM2.5 standard is being met. US EPA has requested withdrawal ofthat previous submittal. Mr. Colby requested approval from the Board to request thatwithdrawal once EPAapproves the redesignation request. Notice ofthe public hearing and the public comment period was published on May 24, 2014 in the Chattanooga News Free Press and on-line at Chattanoogan.com and APCB.org. (The Public Information File forthe PM2 .s Redesignation Request was entered into the record and marked as Exhibit 6.) Onewritten commentwas received on the proposal. Mr. Colby stated the commentwas from U.S. EPA Region 4. Hethen read the comments made by EPAand gavethe Bureau's responses. A copy of EPA's comments and the Bureau's responses are included as a part ofthese minutes and are attached to the original copy ofthe minutes. Thefirst commentfrom EPAwas a request that text be added in the Maintenance Demonstration portion ofthe proposal to further discuss the status ofthe permits at Caraustar Mill Group, Inc. (doing business as Chattanooga Paperboard). The facility ceased operations on July 22, 2008; and, EPA noted that because no emissionswere being used for boilers foryears after 2008 additional clarification should be added. Mr. Colby stated additional text has been added to indicate thatthe operating permits for Chattanooga Paperboard were withdrawn after all operations atthe plant ceased. The second comment requested that emissions from PM2-5 point sources be added to Appendix F. Mr. Colby stated thatAppendix F contains only S02and NOx emissions from Hamilton County point sources and are that data is used in Tables 2-3 and 2-4 for comparison to annual emissions of S02and NOxfrom power plants in nearby counties. No such comparison to PM2.s emissions is made orwarranted. Therefore no change to Appendix F is necessary. The next commentwas a request by EPAthatAppendix H be revised to include titles, data units and a description of howthe data was used in the development ofemissions inventories. Mr. Colby stated the Bureau has madethe changes as suggested by EPA and has also revised Appendix K to included titles, data units and a calculation methodologyforthe calculation ofarea source emissions. The final commentfrom EPAwas thatAppendix J be revised to include additional textual narratives for aircraft and marine vessels and to explain how port emissions differfrom underway

BoardMeeting-6/30/2014 Page 6 of7em1ss1ons. The comment also requested an explanation of how data is updated, projected or developed from 2005 to 2007 as used in the State Implementation Plan Narrative. Mr. Colby stated textwas added to explain that emissions data in Appendix

### J for aircraft, marine and railroad sources were determined by the U.S. EPA Also as requested, textwas added to indicate types and sources ofdata thatwere used by the U.S. EPA as the basis for emissions from marine vessels in orderto showthe difference between the "port" and "underway" emission categories. Furthermore, although not requested, textwas also added to this paragraph to indicate types and sources ofdata thatwere used as the basis for emissions from both aircraft and railroad sources. A motion was made by Mr. Carmichael and was seconded by Mr. Lynch to approve the draft Redesignation Request and Maintenance Plan, including the revisions discussed and to authorize the Bureau Directorto submitthatto the TennesseeAir Pollution Control Board for consideration and approval and to send that on to U.S. EPA Region 4 for action to redesignate Hamilton County. The motion further authorized the Bureau Directorto withdrawthe previous State Implementation Plan submittal for PM2-5 nonattainment once EPA approves the current submittal. There being no further business to come before the Board, the meeting was adjourned. Submitted by:

Bob Howard, Secretary

Approved on behalfofthe Board by:

Steve Meyer, Chairman

DateApproved

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