MINUTES MISSOURI AIR CONSERVATION COMMISSION

Elm Street Conference Center 1730 East Elm Street

Bennett Spring Conference Room Jefferson City, MO 65101

December 1, 2016 9:00 a.m.

Commissioners Present

Jack Baker, Member Mark Garnett, Member* Jack Jones, Member David Zimmermann, Vice Chairman*

Commissioners Absent

Gary Pendergrass, Chairman

Staff Members Present

Darcy Bybee, Air Quality Planning Section Chief, Air Pollution Control Program (APCP) Deanna Distler, Director’s Office, APCP David Gilmore, Director’s Office, APCP Kendall Hale, Permits Section Chief, APCP Steve Hall, Air Quality Analysis Section Chief, APCP Ashley Keas, Air Quality Planning Section, APCP Connie Kinney, Compliance/Enforcement Section, APCP Kyra Moore, Director, APCP Julia Katich Mudd, Assistant General Counsel, Department of Natural Resources Lisa Nahach, Public Information Specialist, APCP Richard Swartz, Compliance/Enforcement Section Chief, APCP Emily Wilbur, Air Quality Planning Section, APCP

Others Present by Attendance Record

Robert Brundage; Newman, Comley and Ruth P.C. Kathrina Donegan, St. Louis County Health Department, Air Pollution Control Program Gregg Hagerty, AECOM Jennifer Hernandez, Attorney General’s Office Jerry Monnis, Inquest Environmental Chris Schreiber, Schreiber Engineering LLC David Shanks, Boeing Roger Walker, Regulatory Environmental Group for Missouri Steve Whitworth, Ameren Midge Winkler, General Motors

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A. Call to Order

Commissioner Jack Baker called the December 1, 2016, meeting of the Missouri Air Conservation Commission to order. The following commissioners were present: Jack Jones, David Zimmermann*, Jack Baker, and Mark Garnett*. *Commissioners David Zimmermann and Mark Garnett participated by phone. Chairman Gary Pendergrass was absent from the commission meeting.

B. Minutes from October 27, 2016, Meeting

Commissioner Garnett moved to approve the October 27, 2016, minutes as written. Commissioner Jack Jones seconded the motion, and all commissioners voted to approve the October 27, 2016, minutes as written.

C. Recommended for Adoption and Actions to be Voted on Ms. Ashley Keas presented the Area Boundary Recommendations for the 2010 Sulfur Dioxide Standard: December 2017 Designations. More information on the recommendation can be found on page 105 of the briefing document. Vice Chairman Zimmermann moved to adopt the Area Boundary Recommendations for the 2010 Sulfur Dioxide Standard: December 2017 Designations. Commissioner Jones seconded the motion. All of the commissioners voted to adopt the Area Boundary Recommendations for the 2010 Sulfur Dioxide Standard: December 2017 Designations as revised.

D. Appeals and Variance Requests Ameren Missouri Variance Request Mr. Richard Swartz presented a variance request for Ameren Missouri. Information regarding the variance request can be found beginning on page 111 of the December 1, 2016, briefing document. Commissioner Jones asked what the percent of Sulfur Dioxide (SO2) would be from those sites in the course of a year. Mr. Swartz replied that the variance request shows, for at least some of these units, the actual emissions (in tons per year) were zero. That does not mean there were no emissions, but that the emissions were very low. The modeling used to generate the emission limits is based only on the electric steam generating unit emissions. The intention of the rule was the emissions limits in Table 1 (see Attachment A) would only apply to those steam electric generating units. Ms. Kyra Moore stated the equipment in question is emergency equipment and operated minimally. She said it was her opinion the emergency generators and fuel pumps emit less than half of a percent of the SO2 emissions at this plant.

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Commissioner Jones said that helps. He likes it if there is a number and to have things bracketed. Ms. Moore added that in 2015, Ameren Labadie reported 34,000 tons of actual SO2 emissions. The majority of these emissions are from the boilers. The emissions from the emergency generators and fuel pumps are a small fraction of the total emissions. Commissioner Garnett moved to grant a variance request to Ameren Missouri for 10 CSR 10-6.261 for a period of two years or until such time as the rule amendment comes into effect, whichever comes first. Vice Chairman Zimmermann seconded the motion. All commissioners voted to grant a variance to Ameren Missouri for 10-CSR 10-6.261 for a period of two years or until such time as the rule amendment comes into effect, whichever comes first.

E. Public Hearing

None.

F. Reports - The following referenced reports are in the October 27, 2016, Missouri Air Conservation Commission Briefing Document and available online at dnr.mo.gov/env/apcp/macc.htm. 1) COMPLIANCE/ENFORCEMENT

Mr. Richard Swartz said the Compliance/Enforcement Report begins on page 45 with the Concern Report. A total of 86 concerns were received from September 16, 2016, through October 15, 2016. The largest number of concerns revolved around open burning and odor. During this time period 77 investigations were completed and three Notices of Violation were issued. The Ongoing Negotiations Report can be found on pages 69 and 70. There are 23 enforcement actions in the negotiation process at this time. The majority of those cases are regarding open burning. Three cases do not show up on this report: Zoltek, General Dynamics and NF Protein. The program is currently in the negotiation process with Zoltek. General Dynamics and NF Protein are more complicated and will be included in the database. The Finalized Agreement Report is on page 71. For the time period of September 16, 2016 through October 15, 2016, the department finalized two agreements with a total penalty of $4,000. Of that amount $4,000 was suspended. The Pending Referrals Report can be found on page 73. At this time, there are 15 Active Referrals. The Alpha Petroleum and Chaudhri cases, under Stage I Vapor Recovery, are expected to be settled soon and should drop off the report by the next commission meeting. Commissioner Jones said he noticed a strong odor in the vicinity of the Missouri River near Truman Road and Interstate 35 in Kansas City. He said the odor is

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persistent and has been there for years. He asked the program what might be causing the odor. Ms. Moore said that information would be provided to the commission at their next meeting.

2) PERMITS REPORT Mr. Hale stated the Permits Report begins on page 75 of the briefing document with the Permit Applications Received Report. A total of 437 construction and 197 operating permit projects have been received from January through October 2016. A total of 756 permit projects were received in 2015 for the same time period. Part of the reason for the fewer permit projects is due to the five-year life cycle of operating permits. The Permit Applications Completed report begins on page 83 of the briefing document. A total of 452 construction and 234 operating permit projects have been completed from January through October 2016. A total of 653 permit projects were completed in 2015 for the same time period. A total of 33 more projects have been completed in 2016 than last year. The Open Permits Report is on page 93 of the briefing document. This report details the types of projects currently open in the Permit Section. The Permits Section has decreased the number of open projects by 98 at this same time last year. There are currently 19 operating permits on public notice. No comments were received from the public for Buzzi Unicem or Metal Containers Corporation. Draft permits that are on public notice can be found on the Air Pollution Control Program’s website at http://dnr.mo.gov/env/apcp/permit-public-notices.htm.

3) AIR QUALITY PLANNING REPORT The slides from Ms. Bybee’s presentation can be seen in Attachment B of these

minutes or on the commission’s website at http://dnr.mo.gov/env/apcp/macc.htm.

a) Rule and State Implementation Plan (SIP) Agenda The Rule and SIP Agenda is found on pages 95 – 96. The only item on the agenda for today’s meeting was the Proposed Area Boundary Recommendations for the 2010 Sulfur Dioxide Standard: December 2017 Designations. Ms. Keas presented this information to the commission for adoption. This was round three of the 2010 SO2 National Ambient Air Quality Standards (NAAQS). These recommendations will be submitted to EPA and we expect EPA to formally designate in December 2017. There will be three items for public hearing at the January 31, 2017, commission meeting. These will be the regular updates to the state rules that incorporate federal rules by reference: New Source Performance Regulations, Maximum Achievable Control Technology Regulations, and

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Emission Standards for Hazardous Air Pollutants. These three public hearing items will then be presented to the commission for adoption in March. Additional discussion on these rules is found on the Rules In Progress Schedule section.

b) Rules In Progress Schedule The Rules In Progress Schedule is found on pages 97 – 98 of the briefing document. Two rules, 10 CSR 10-6.220, Restriction of Emission of Visible Air Contaminants (first row on page 97) and 10 CSR 10-6.210, Confidential Information (second row from the bottom, page 97) were filed with the Secretary of State on October 3, 2016, and are on track to be effective at the end of 2016. To view how these rules appear in the Missouri Register you may go to www.sos.mo.gov/cmsimages/adrules/csr/current/10csr/10c10-6b.pdf. Ms. Bybee informed the commission that the following three rules (5th – 7th rows, page 98) are available for comment: 10 CSR 10-6.070, New Source Performance Regulations; 10 CSR 10-6.075, Maximum Achievable Control Technology Regulations; 10 CSR 10-6.080, Emission Standards for Hazardous Air Pollutants. To view the proposed rule text or to submit comments you may go to https://dnr.mo.gov/proposed-rules/. These rules were published in the Missouri Register on November 15, 2016, and will go to public hearing on January 31, 2017. The public comment period for these rules will end on February 7, 2017, and then they will be brought before the commission for adoption at their March meeting. These rules are on track to be effective at the end of July 2017.

c) State Air Quality Plans Status Report The State Air Quality Plans Status Report can be found on pages 99 – 104 of the briefing document. Ozone Ms. Bybee presented a slide with information regarding the 2008 and 2015 standards and where this information can be found on the internet and within the briefing document. The Redesignation Request and Maintenance Plan for the 2008 Ozone Standard (page 100, row 2) and the Boundary Recommendation for the 2015 Ozone Standard (page 99, row 6) have been brought before the commission through the public process and have been submitted to the EPA. The program is currently waiting for feedback from the EPA. Designations for the 2015 standard are expected to be final by October 1, 2017. The 2016 ozone season ended on October 31, 2016. There were 40 exceedances; some of both standards and some of just the 2015 standard.

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There were no additional exceedances after the last commission meeting. The preliminary data will be quality assured early next year. The 2017 ozone season will begin on March 1st and run until October 31st as required under the 2015 Ozone Standard. For up to date preliminary ozone monitoring data, please see: http://dnr.mo.gov/env/apcp/docs/ozonemonitordata.pdf. Commissioner Jones inquired how 40 ozone exceedances matched up to past years. Ms. Kyra Moore replied that last year there were three exceedances and in 2012 there were over 200. In comparison, it was a moderate year for ozone exceedances. Ms. Bybee also explained that this year was the first year the program monitored for a lower ozone standard. Sulfur Dioxide Ms. Bybee provided an update to the commission for Rounds 1 through 4 of the 2010 SO2 NAAQS. This slide of her presentation also gave the web links and where the information could be found in the briefing document. Ms. Bybee explained that a portion of Jackson and Jefferson Counties were designated as nonattainment in Round 1 however recent monitoring data has shown that both areas are well on their way to attainment. The program has submitted a request for EPA to make a “Clean Data Determination” for the 2013-2015 monitoring data for the Jefferson County area. A Clean Data Determination request is where the program has submitted monitoring data and other supplemental information to EPA to request them to determine that that area has reached attainment based on monitoring data. EPA has not yet acted on the request. The program is currently working on a Redesignation Request and Maintenance Plan for the Jefferson County area. The program is planning to bring that before the commission early next year. Additional information regarding the clean data request and supplemental information can be found on the program’s website at http://dnr.mo.gov/env/apcp/sips.htm#Sulfurdioxide. For Round 2, the EPA did not designate any nonattainment areas in Missouri. Ms. Keas provided the Round 3 recommendations to the commission during the adoption portion of the meeting. These recommendations will be submitted to EPA. Round 4 is the air quality monitoring round. The four facilities that are choosing monitors must have the monitors in place starting in early 2017.

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More updates will be provided to the commission and through the websites. Federal Register Notices Ms. Bybee updated the commission on two recent EPA proposals: The Renewables Enhancement and Growth Support Rule and the Implementation of the 2015 National Ambient Air Quality Standards for Ozone: Nonattainment Area Classifications and State Implementation Plan Requirements. Both of these rules are open for comment and the program is reviewing them. Renewables Enhancement and Growth Support Rule: In this rule EPA intends to update fuel regulations, change the Renewable Fuel Standard Program and make other regulatory changes, clarifications, and technical corrections. The comment period closes January 17, 2017. There is an earlier comment period that closes on December 16, 2016. For the first comment period, EPA is requesting affected entities to verify certain information, cost estimates, and other types of suggestions to minimize impacts. For more information, interested individuals can follow the link at www.gpo/fdsys/pkg/FR-2016-11-16/pdf/2016-25292.pdf Implementation of the 2015 National Ambient Air Quality Standards for Ozone: Nonattainment Area Classifications and State Implementation Plan Requirements: This proposed rule defines nonattainment area classifications (marginal, moderate, serious, severe, or extreme) by setting design value criteria. It also proposes attainment dates for each of those classifications and proposes to officially revoke the 2008 standard. The comment period on this proposed rule closes January 17, 2017. For more information on this federal register notice, interested individuals can follow the link at www.gpo/fdsys/pkg/FR-2016-11-17/pdf/2016-27333.pdf As the rule is currently proposed, St. Louis would be a marginal area, which is the same classification it had under the 2008 standard. The attainment date for a marginal area is proposed as three years after designation. A nonattainment plan for a marginal area appears to require an emissions inventory demonstration information (similar to what was required under the 2008 standard) rather than a full blown, resource intensive modeling demonstration. At this time the program is still reviewing this information. More information will be provided to the commission as it becomes available.

4) DIRECTOR’S REPORT

a) Ozone Ms. Moore provided more information regarding Commissioner Jones’s question regarding ozone. Based on the preliminary exceedance report,

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there were 40 ozone exceedances in 2016, readings over 70 ppb. Of those, 18 were over 75 ppb.

b) Sulfur Dioxide Ms. Moore presented a slide showing the location of the four Sulfur Dioxide (SO2) monitoring sites: two new (North and Southwest) and two existing (Northwest and Valley) at Ameren Labadie. This slide is available in black and white as Attachment C to these minutes or a color copy of the slide is available on the Missouri Air Conservation Commisssion website at http://dnr.mo.gov/env/apcp/macc.htm.

c) Monitoring Network Plan

The program is required by federal law to establish a monitoring network plan and submit it to EPA every year. The draft monitoring network plan was available for public inspection in May 2016. Due to the additional monitors EPA required under the Data Requirments Rule, the program amended the plan. The amended plan was reissued for public inspection on November 15, 2016 to December 15, 2016. http://dnr.mo.gov/env/apcp/docs/2016monitoringnetworkplan.pdf.

d) Air Program Advisory Forum The Air Program Advisory Forum is rescheduled to January 31, 2017. The meeting will take place after the commission meeting.

e) Other Updates The program is actviely seeking to fill two of its eight vacancies. Both of the vacancies are in the Permits Section. The program continues to review vacancies to determine which vacancies to fill immediately and which positions to hold, balancing expenditures with workload. The next commission meeting is in the Bennett Spring Conference Center on Tuesday, January 31, 2017. All commission meeting dates and locations are finalized for 2017. Commissioner Garnett asked who the current Department Director is. Ms. Moore responded Mr. Harry Bozoian took over as Department Director after Ms. Sara Parker Pauley moved to the Department of Conservation.

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G. New Business Election of Officers for 2017 This portion of the meeting was postponed until the next commission meeting so all commissioners could be present, in person, to hold the election.

H. Unfinished Business

None.

I. Open Session No one addressed the commission.

J. Future Meeting Dates

January 31, 2017 – Tuesday Elm Street Conference Center 1730 East Elm Street Lower Level Bennett Spring Conference Room Jefferson City, MO 65101 March 30, 2017 – Thursday Elm Street Conference Center 1730 East Elm Street Lower Level Bennett Spring Conference Room Jefferson City, MO 65101 April 27, 2017 – Thursday Kansas City Regional Office 500 Northeast Colbern Road Missouri River Conference Room Lee’s Summit, MO 64086 May 25, 2017 – Thursday Elm Street Conference Center 1730 East Elm Street Lower Level Bennett Spring Conference Room Jefferson City, MO 65101

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July 27, 2017 – Thursday Elm Street Conference Center 1730 East Elm Street Lower Level Bennett Spring Conference Room Jefferson City, MO 65101 August 31, 2017 – Thursday St. Louis Regional Office 7545 South Lindbergh, Suite 220 DESE Conference Room St. Louis, MO 63125 September 28, 2017 – Thursday Elm Street Conference Center 1730 East Elm Street Lower Level Bennett Spring Conference Room Jefferson City, MO 65101 October 26, 2017 – Thursday Southwest Regional Office 2040 West Woodland East and West Conference Rooms Springfield, MO 65807 December 7, 2017 – Thursday Elm Street Conference Center 1730 East Elm Street Lower Level Bennett Spring Conference Room Jefferson City, MO 65101

K. Discussion of Pending Litigation and Legal Matters

None.

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L. Missouri Air Conservation Commission

Commissioner Jones moved to adjourn the December 1, 2016, Missouri Air ConservationCommission meeting. Commissioner Garnett seconded the motion, and allcommissioners voted to adjourn the meeting.

Commissioner Baker adjourned the December 1, 2016, Missouri Air ConservationCommission meeting.

Respectfully submitted,

____________________________________ Kyra L. Moore, Director Air Pollution Control Program

Approved:

Gary Pendergrass, Chairman Missouri Air Conservation Commission

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Signature on File

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Table I – Sources with SO2 emission limits necessary to address the one (1)-hour SO2 National Ambient Air Quality Standard*

Source Source ID Emission Limit per Source/Unit (Pounds SO2 per

Hour)

Averaging Time

Ameren Missouri — Labadie Energy Center

0710003 40,837 24 hour block average

Ameren Missouri — Meramec Energy Center

1890010 7,371 24 hour block average

Ameren Missouri — Rush Island Energy Center

0990016 13,600 24 hour block average

Independence Power and Light — Blue Valley Station Unit 1 Unit 2 Unit 3

0950050

Natural gas Natural gas Natural gas

N.A. N.A. N.A.

Kansas City Power and Light Co. — Hawthorn Station Boiler #5 Combustion turbine 7 Combustion turbine 8 Combustion turbine 9

0950022

785 Natural gas Natural gas Natural gas

30 day rolling N.A. N.A. N.A.

Kansas City Power and Light Co. — Sibley Generating Station Boiler #1 Boiler #2 Boiler #3

0950031

1,468.17 1,447.01 10,632.02

30 day rolling 30 day rolling 30 day rolling

Veolia Energy Kansas City Inc. — Grand Ave. Station Boiler 1A Boiler 6 & 8 Boiler 7

0950021

0.5 351.8 0.5

1 hour 1 hour 1 hour

Attachment A

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Air Quality Planning

Darcy BybeeAir Quality Planning Section Chief

Air Pollution Control Program

Missouri Air Conservation Commission Meeting

Jefferson City, MO

December 1, 2016

Air Quality Planning Updates

• Rule and State Implementation Plan (SIP)agenda

• Rules in Progress Schedule• State Air Quality Plans Status Report• Federal Register Notices

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Attachment B

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Rule and SIP Agenda

Pages 95-96

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Rule and SIP AgendaBriefing Document, page 95

December 1, 2016Public Hearing:NoneActions to be voted on:Proposed Area Boundary Recommendations for the 2010 Sulfur Dioxide Standard: December 2017 Designations

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Rule and SIP AgendaBriefing Document, pages 95-96

January 31, 2017Public Hearing:Rule Amendments:

• 10 CSR 10-6.070, New Source PerformanceRegulations

• 10 CSR 10-6.075, Maximum Achievable ControlTechnology Regulations

• 10 CSR 10-6.080, Emission Standards forHazardous Air Pollutants

Actions to be voted on:None

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Rule and SIP AgendaBriefing Document, page 96

March 30, 2017Public Hearing:None Actions to be voted on:Rule Amendments:

• 10 CSR 10-6.070, New Source PerformanceRegulations

• 10 CSR 10-6.075, Maximum Achievable ControlTechnology Regulations

• 10 CSR 10-6.080, Emission Standards forHazardous Air Pollutants

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Rules in Progress Schedule

Pages 97-98

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Rules in Progress ScheduleBriefing Document, page 97

• Page 97, 1st row:– 10 CSR 10-6.220, Opacity Rule

• Page 97, 2nd row from the bottom:– 10 CSR 10-6.210, Confidential Information Rule

• Rule text (rules effective 12/1/16):www.sos.mo.gov/cmsimages/adrules/csr/current/10csr/10c10-6b.pdf

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Rules in Progress ScheduleBriefing Document, page 98

• Page 98, 5th-7th rows:– 10 CSR 10-6.070, New Source Performance

Regulations– 10 CSR 10-6.075, Maximum Achievable

Control Technology Regulations– 10 CSR 10-6.080, Emission Standards for

Hazardous Air Pollutants

• Proposed rule text/submit comments:https://dnr.mo.gov/proposed-rules/

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Timeline: NSPS, MACT, NESHAP Updates

• Published in the Missouri RegisterNov. 15, 2016

• Public hearing at MACCJan. 31, 2017

• Public comment period closesFeb. 7, 2017

• Proposing for adoption by MACCMarch 30, 2017

• Rules effectiveJuly 30, 201710

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State Air Quality Plans Status Report

Pages 99-104

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Ozone Update

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Ozone

– 2008 Standard: Redesignation Request andMaintenance Plan

• Page 100, Row 2• dnr.mo.gov/env/apcp/sips.htm#Ozone

– 2015 Standard: Boundary Recommendations• Page 99, Row 6• dnr.mo.gov/env/apcp/naaqsboundarydesignations.htm#Ozone

– Ozone monitor information:dnr.mo.gov/env/apcp/docs/ozonemonitordata.pdf

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Sulfur Dioxide Update

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Sulfur Dioxide– Round 1: Page 101, Row 2 & Page 102, Row 4

• http://dnr.mo.gov/env/apcp/sips.htm#Sulfurdioxide

– Round 2: Page 101, Row 3• http://dnr.mo.gov/env/apcp/naaqsboundarydesignations.

htm#SO2

– Rounds 3 & 4: Page 102, Row 1• http://dnr.mo.gov/env/apcp/so2.htm

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Federal Register Notices

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Federal Register Notices for Possible Comment

• “Renewables Enhancement and GrowthSupport Rule”

• “Implementation of the 2015 NationalAmbient Air Quality Standards for Ozone:Nonattainment Area Classifications andState Implementation Plan Requirements”

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“Renewables Enhancement and Growth Support Rule”

• Updates fuel regulations to reflect marketplacechanges and to promote the growing use ofethanol/non-ethanol biofuels

• Changes the Renewable Fuel Standard Program• Proposes other regulatory changes, clarifications,

and technical corrections– Comment period closes Jan. 17, 2017– www.gpo.gov/fdsys/pkg/FR-2016-11-16/pdf/2016-25292.pdf

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“Implementation of the 2015 National Ambient Air Quality Standards for Ozone…”

• Establishes nonattainment area classificationsand implementation requirements

• Sets attainment dates for each classification• Revokes the 2008 ozone NAAQS

– Comment Period closes Jan. 17, 2017– www.gpo.gov/fdsys/pkg/FR-2016-11-17/pdf/2016-

27333.pdf

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Division of Environmental Quality Director: Leanne Tippett Mosby

Date: December 1, 2016

Nothing in this document may be used to implement any enforcement action or levy any penalty unless promulgated by rule under chapter 536 or authorized by statute.

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Director’s Report

Kyra L. Moore, DirectorAir Pollution Control Program

Missouri Air Conservation Commission MeetingJefferson City, MODecember 1, 2016

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Attachment C

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2016 Monitoring Network Plan• Initial public inspection May 27, 2016 - June 28, 2016• Revision to plan open for public inspection

November 16, 2016 – December 15, 2016• http://dnr.mo.gov/env/apcp/docs/2016monitoringnetwork

plan.pdf– Response to comments received during initial public

inspection are in Appendix 6– Submit comments to cleanair@dnr.mo.gov– Comments accepted through close of business

December 15th

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Division of Environmental Quality Director: Leanne Tippett Mosby

Date: December 1, 2016

Nothing in this document may be used to implement any enforcement action or levy any penalty unless promulgated by rule under chapter 536 or authorized by statute.

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