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R-02-11-14-13B8 - 11/14/2002Sherri Monroe Michael Thane Tuesday, December 03, 2002 1 1 :1 1 AM To: Sherri Monroe Subject: RE: Resolution From: Sent: Sherri, The Clean Air Force will be coordinating efforts to get original signatures from the judges and mayors. I will get a copy of these original signatures. I will bring it to you when complete. Michael - - -- Original Message-- - From: Sherri Monroe Sent: Tuesday, December 03, 2002 10'35 AM To: Michael Thane Subject: Resolution I am working on the resolutions that passed on November 14, 2002, and I was wondering if you wanted to hand carry the originals for the Early Action Compact for signatures. Just let me know what you would like me to do with the originals. Thanks, sl'ierr' Mowroe AcimiN stratiovt. Departmewt Ci,t of Rouvwi RDC R - OZ- II- - 13�� RESOLUTION NO. R- 02- 11- 14 -13B8 WHEREAS, the City of Round Rock is committed to protecting the health and economic vitality of the Round Rock community, and WHEREAS,protecting the region's air quality is important to the community's health and economic vitality, and WHEREAS, the City of Round Rock is examining a variety of measures to improve the area's air quality, and WHEREAS, the City of Round Rock understands that entering into an Early Action Compact Agreement with the Environmental Protection Agency (EPA) and the Texas Commission on Environmental Quality (TCEQ) provides Central Texas with a mechanism to address effectively the region's air quality issues, and WHEREAS, the Early Action Compact Agreement provides the City of Round Rock with flexibility to choose those air quality improvement strategies most suitable to its circumstances and resources, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the City Council of the City of Round Rock will participate as a signatory to the Early Action Compact for the Austin /San Marcos MSA as contained in the Agreement attached hereto as Exhibit "A" and incorporated herein for all purposes, and BE IT FURTHER RESOLVED, ODMMW ORLOOMO tW OO.CWSOLUlTRI114BB, W PD/me That Mayor Nyle Maxwell is authorized to sign the Early Action Compact Agreement on behalf of the City of Round Rock. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 14th day of November, 2002. CHRISTINE R. MARTINEZ, City Secretary 2 W L, Mayor City of Round Rock, Texas THE EARLY ACTION COMPACT Background Information The National Ozone Standards The Federal Clean Air Act is the comprehensive law that regulates airbome emissions from area, mobile, and stationary sources nationwide. This law authorizes the U.S. Environmental Protection Agency (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. Areas formally declared in violation of the NAAQS and adjacent contributing areas are designated "nonattainment areas.° Nonattainment areas must meet certain Clean Air Act requirements, such as: • Transportation Conformity - Requires a demonstration that regional long -range transportation plans will not negatively impact air quality, or federal transportation funds can be withheld. • New Source Review - Requires a review of new or expanded industrial operations to minimize air pollution. • Rate of Progress Requirements - A certain percentage of pollutants must be reduced each year. • Specific attainment date - Consequences of failure to reach attainment by the specified date include stricter control measures and the potential for stiff penalties. • 10 - year maintenance plan - Includes additional or continuing mandatory programs for 10 years following attainment. Another requirement obligates the state to develop and implement a prescriptive comprehensive clean air plan that mandates how the area will come into compliance with the standard. This plan and any revisions to it are known as the State Implementation Plan (SIP). The 1 -Hour Standard in Central Texas An area must have a monitored hourly peak ozone concentration below 125 parts per billion (ppb) 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 Austin/San Marcos Metropolitan Statistical Area (MSA) has not exceeded the 1 -hour standard since 1985. The 03 Flex Agreement In order to ensure continued attainment of the 1 -hour ozone standard, the region's leaders signed an air quality improvement plan called the Ozone Flex Agreement (0 Flex) in March of 2002. Elected officials and community leaders in Travis, Williamson, Hays, Bastrop and Caldwell counties entered into this agreement with EPA and the Texas Commission on Environmental Quality (TCEQ), formerly the Texas Natural Resource Conservation Commission, to proactively reduce ozone precursor emissions in their own operations. While EXHIBIT nAu 03 Flex requires community education and outreach, it imposes no mandatory requirements on the general public. The 8 -Hour Standard in Central Texas During the past several years, air quality planning in the Austin region has intensified as ozone concentrations have exceeded the value permitted by the 8 -hour ozone NAAQS. Due to legal challenges to the new NAAQS and ensuing litigation, EPA has not formally designated any areas of the United States in violation of the 8 -hour ozone NAAQS. The 8 -hour NAAQS has been upheld by the Supreme Court and EPA anticipates nationwide designation of nonattainment areas in 2004.. Based on recent monitoring data, it is probable that the Austin /San Marcos MSA will be designated a nonattainment area when formal designations occur. The 8 -hour ozone standard is found by averaging three years of the fourth highest 8 -hour ozone levels in an area. This number, called the design value, must be lower than 85 parts per billion (ppb) to meet the standard. Currently, the Austin /San Marcos MSA design value (averaging 1999, 2000, and 2001) is 88 ppb. Each year this design value will change slightly. Despite annual fluctuations in the design value, elected officials and the citizens of the region understand that long -term air quality will not improve without a concerted emission - reduction effort. The Early Action Compact (EAC) is the region's response. Protocol for Early Action Compacts EPA Region 6 endorsed the TCEQ Protocol for Early Action Compacts (EAC Protocol) on June 19, 2002. It 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. The EAC Protocol allows a region to enter into a memorandum of agreement (MCA) by December 31, 2002, committing to develop and implement a detailed technical plan to reach attainment by 2007. 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 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. The Austin/San Marcos MSA Response The region is volunteering to participate in the EAC Protocol process to expedite air cleanup for future public health and welfare. The Austin/San Marcos MSA Response has two components: ii 1. The Early Action Compact (EAC) — The EAC is a Memorandum of Agreement to prepare and implement the 'Clean Air Action Plan. More specifically, the EAC sets measurable, enforceable milestones for developing and implementing the Clean Air Action Plan. 2. The Clean Air Action Plan (CAAP) — The CAAP serves as the region's official air quality improvement plan, with quantified emission - reduction measures. The CAAP will include all necessary elements of a comprehensive air quality plan, (like the plans in Dallas or Houston), but will be tailored to local needs and driven by local decisions. Moreover, the CAAP will be incorporated into the formal SIP and the region will be legally required to carry out this plan just as in nonattainment areas. For example, development of the CAAP will require the same scientific diligence and undergo the same scrutiny as the nonattainment areas' SIPs, so that the emission reduction strategies selected will be adequate to ensure the region stays in attainment of the 8 -hour standard. EAC Protocol Versus Traditional Nonattainment A major advantage of the region's participation in the EAC Protocol is the flexibility afforded to the signatories in selecting emission reduction measures and programs that are best suited to local needs and circumstances. Recognizing the varied socioeconomic and emissions characteristics within the region, not all measures can or should be implemented by every entity. 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 allows for more local control in selecting emission - reduction measures. • 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. Should any milestones be missed in designing or implementing the CAAP, the region would automatically revert to the traditional nonattainment requirements, with appropriate credit given for emission reduction strategies already implemented. EAC Protocol Versus 0 Flex The EAC Protocol specifically addresses the 8 -hour standard and will build on the emission reduction strategies outlined in the 0 Flex Agreement. However, the strategies needed to attain the 8 -hour standard likely will affect more people than those outlined in the 0 Flex Agreement, since the 8-hour standard is generally more difficult to achieve. ' tinder 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. iii EAC Protocol Timeline The Austin /San Marcos MSA EAC is designed to enable a local, proactive approach to ensuring attainment of the 8 -hour ozone NAAQS, and so protect human health. Using the EAC Protocol, the region could implement emission reduction measures by 2005 that are directed at attaining the 8 -hour standard by 2007. This allows for a significantly earlier start than waiting for formal EPA nonattainment designation and it gives the local area more flexibility in choosing which emission reduction strategies to implement in order to achieve attainment of the 8 -hour ozone NAAQS. The Area Encompassed by the EAC The Austin /San Marcos MSA, which comprises Travis, Williamson, Hays, Bastrop and Caldwell Counties, is the planning area for which this EAC is designed. This is the same area encompassed by the 03 Flex Agreement. Signatories and Their Responsibilities The individuals representing the entities that will sign this EAC are: the County Judges for Bastrop, Caldwell, Hays, Travis and Williamson Counties; the mayors for the cities of Austin, Bastrop, Elgin, Lockhart, Luling, Round Rock and San Marcos; and appropriate signatories from EPA and TCEQ. The local entities whose representatives support and sign the EAC are committed to holding primary responsitility for the development and implementation of the CAAP, and for maintaining communication with all parties. These commitments by local agencies are enumerated in the following Memorandum of Agreement, along with the commitments of TCEQ and EPA. Conditions for Modification or Early Termination This agreement may be modified or terminated at any time by mutual consent of all signatory parties before formal incorporation into the SIP in 2004. Before the CAAP is adopted into the SIP, any signatory 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 agreement will be void and the area's nonattainment designation immediately effective. Once the CAAP is incorporated into the SIP, modification is considerably more difficult, as the SIP is a legally binding state and federal agreement to carry out specific emission - reduction activities. iv Austin /San Marcos Metropolitan Statistical Area Early Action Compact Memorandum of Agreement This Early Action Compact (EAC) is a Memorandum of Agreement between the local govemments representing Bastrop, Caldwell, Hays, Travis and Williamson counties and the cities of Austin, Bastrop, Elgin, Lockhart, Luling, Round Rock and San Marcos (collectively, the local governments), the Texas Commission on Environmental Quality (TCEQ) and the United States Environmental Protection Agency (EPA). It is for the express purpose of developing and implementing a Clean Air Action Plan (CARP) that will reduce ground -level ozone concentrations in the Austin/San Marcos Metropolitan Statistical Area (MSA) to comply with the 8 -hour ozone standard by December 31, 2007, and maintain the standard beyond that date. Failure to meet these obligations results in immediate reversion to the traditional nonattainment process. I. General Provisions A. The signatory parties commit to develop, implement and maintain the CAAP 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 Protocol for Early Action Compacts Designed to Achieve and Maintain the 8 -Hour Ozone Standard. 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 nonattainment according to EPA's 8 -hour ozone implementation rules. C. Before formal adoption 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. The local government signatories will approve the CRAP before it is submitted to TCEQ for inclusion in the SIP. Once the CAAP 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. II. Local Government Responsibilities The local govemments agree to develop and implement a CAAP that will demonstrate attainment by year's end 2007 of the 8-hour ozone standard and maintenance until at least 2012. The local govemments will develop this plan in coordination with TCEQ, EPA, stakeholders and the public. The CAAP will include a process to monitor and maintain long term compliance with the standard. Local emission reduction strategies being considered for inclusion into the CAAP will be identified and described by June 16, 2003. The CAAP will be 1 EAC /CAAP Milestones June 16, 2003 Potential local emission reduction strategies identified and described November 30, 2003 Initial modeling emissions inventory completed Conceptual modeling completed Base case modeling completed December 31, 2003 Future year emissions inventory modeling completed Emissions inventory comparison and analysis completed Future case modeling Completed January 31, 2004 Attainment maintenance analysis completed Schedule for development of further episodes completed One or more modeled control cases completed Local emission reduction strategies selected Submission of preliminary CAAP to TCEQ and EPA March 31, 2004 Final revisions to modeled control cases completed Final revisions to local emission reduction strategies completed Final revisions to attainment maintenance analysis completed Submission of final CAAP to TCEQ and EPA December 31, 2004 CAAP incorporated into the SIP; SIP adopted by TCEQ December 31, 2005 Local emission reduction strategies implemented no later than this date December 31, 2007 Attainment of the 8 -hour standard submitted to TCEQ and EPA for review by January 31, 2004, and finalized by March 31, 2004, for inclusion in the SIP by December 31, 2004. In the event a development or issue arises that may impact performance or progress toward milestones (including if a milestone will be or has been missed and/or i if a termination or modification has been requested), the Capital Area Planning Council (CAPCO) or the signatory party responsible will notify all other signatories as soon as possible. A. Milestones and Reporting 1. Milestones 2. Reporting In order to facilitate self -evaluation and communication with EPA, TCEQ, stakeholders, and the public, the region will assess and report progress towards milestones in a regular, public process, at least every six months, beginning in June 2003. B. Emissions Inventories 1. An initial modeling emissions inventory will be developed by November 30, 2003. This inventory will include: a. Emissions modeling data for a 1999 or later episode that is representative of a typical ozone season exceedance and meets EPA episode selection guidance; b. MOBILE6 data with link based Travel Demand Model (TDM) mobile data in urban areas, c. NONROAD model data adjusted for local equipment populations and usage rates; d. Area source data, based on local survey data, when possible. 2 2. A 2007 future year modeling emissions inventory will be developed by December 31, 2003. This inventory will sufficiently account for projected future growth in ozone precursor emissions through 2007, particularly from stationary, non -road and on -road mobile sources 3. One further episode inventory will also be developed to represent the variety of situations that typically contribute to ozone production in the area and to include the most recent emissions modeling methods and data. Additional inventories will be contingent upon legislative appropriations or other funding. Selection of specific episode inventories will be partially determined by the conceptual model, which reflects an analysis of meteorological conditions typical of high ozone events. a. The conceptual model will be updated by November 30, 2003. b. A schedule for the development of further episode inventories will be completed by January 31, 2004. 4. Emissions inventories will be compared and analyzed for trends in emission sources over time. The emissions inventory comparison and analysis will be completed by December 31, 2003. C. Modeling 1. Base case modeling will be completed by November 30, 2003 and future case modeling will be completed by December 31, 2003. One or more modeled control cases will be completed by January 31, 2004, with final revisions completed by March 31, 2004. All modeling: a. Will be SIP quality and perform within EPA's accepted margin of accuracy; b. Will be carefully documented; c. Will sufficiently account for projected future growth in ozone precursor emissions; d. Will be accomplished with technical support and review by TCEQ and concurrently reviewed by EPA; e. 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. D. Emission Reduction Strategies 1. 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 base, future and control case modeling. 2. Additional local emission reduction strategies under consideration for inclusion in the CAAP will be identified and described by June 16, 2003. 3 3. Local emission reduction strategies needed to demonstrate attainment for the Austin/San Marcos MSA by December 31, 2007 will be selected by January 31, 2004, with final revisions completed by March 31, 2004. The selected local strategies will be implemented as soon as practical, but no later than December 31, 2005. 4. Local emission reduction strategies will be specific, quantified, permanent and enforceable. The strategies will also include specific implementation dates and detailed documentation and reporting processes. 5. Voluntary strategies can play a supporting role in the CARP. If emission reductions from voluntary strategies are quantified and credit is taken for them in the CAAP, those emission reductions will be enforceable. Additional strategies must be implemented to meet those quantified reduction requirements if quantified voluntary strategies fail. This is true for all quantified emission reductions. 6. Local emission reduction strategies will be designed and implemented by the community with stakeholder participation. 7. Local emission reduction strategies will be incorporated by the state into the SIP. In the event that the region desires to add, delete or substitute strategies after SIP submittal, the region will request a modification. CAAP modifications will be treated as SIP revisions and facilitated by the state. E. Maintenance for Growth 1. The CAAP will include a component to address emissions growth at least five years beyond December 31, 2007, ensuring that the area will remain in attainment of the 8-hour standard during that period. Attainment maintenance analysis will be completed by January 31, 2004, with final revisions completed by March 31, 2004. The analysis will employ one or more of the following or any other appropriate techniques necessary to make such a demonstration: a. Modeling analysis showing ozone levels below the 8 -hour standard in 2012; b. An annual review of growth (especially mobile and stationary source) to ensure emission reduction strategies and growth assumptions are adequate; c. Identification and quantification of federal, state, and /or local measures indicating sufficient reductions to offset growth estimates. 2. A continuing planning process that includes modeling updates and modeling assumption verification (particularly growth assumptions) will be conducted concurrent with the tracking and reporting process for the CAAP. This update and verification will be an ongoing process between the signatories, stakeholders and the public. Modeling updates and planning processes must consider and evaluate: a. All relevant actual new point sources; b. Impacts from potential new source growth; and 4 c. 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. 3. If the review of emissions growth in conjunction with the continuing planning process demonstrates that adopted emission reduction strategies are inadequate to address growth in emissions, additional measures will be added to the CAAP. 4. In the event that the continuing planning process identifies the need to add, delete, or substitute emission reduction strategies after the CAAP has been incorporated into the SIP, the local area will initiate, and TCEQ will facilitate a SIP revision to accommodate changes. F. Public Involvement 1. Public involvement will be conducted in all stages of planning by the signatory parties, with assistance from one or more of the following: The CLEAN AIR Force of Central Texas, CAPCO, Greater Austin Chamber of Commerce, or other appropriate party. Outreach may include one or more of the following techniques: public meetings and presentations, stakeholder meetings, websites, print advertising and radio. 2. 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. 3. Interested stakeholders will be involved in the planning process as early as possible. Planning meetings will be open to the public, with posted meeting times and locations. CAAP drafts will be publicly available, and the drafting process will have sufficient opportunities for comment from all interested stakeholders. 4. Public comment on the proposed final CAAP will follow the normal SIP revision process as implemented by the State. 5. Semi - annual reports detailing, at a minimum, progress toward milestones, will be publicly presented and publicly available. 111. The Texas Commission on Environmental Quality The state, represented by TCEQ, will provide support to areas throughout the planning and implementation process, including: 1. Technical assistance in the development of emission inventories, modeling process, trend analysis and quantification and comparison of emission reduction strategies; 2. Necessary information on all Federal and State adopted emission reduction strategies which affect the area; 3. Critical third party review of emissions inventory, modeling, and self- evaluation work; 5 4. Technical and strategic assistance, as appropriate, in the selection and implementation of emission reduction strategies; 5. Technical and planning assistance in developing and implementing processes to address the impact of emissions growth beyond the attainment date; 6. Maintenance of monitors and reporting and analysis of monitoring data; 7. Support for public education efforts; 8. Coordinate communication between local areas and EPA to facilitate continuing EPA review of local work; 9. Expeditious review of the locally developed CAAP, and if deemed adequate, propose modification of the SIP to adopt the CAAP; 10. Adoption of emission reduction strategies into the SIP as expeditiously as possible. The final complete SIP revision must be completed, adopted, and submitted by the state to EPA by 2004. IV. 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 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 2004. 4. Provided that the monitors in the area reflect attainment by December 31, 2007, EPA will move expeditiously to designate the area as attainment and impose no additional requirements. 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 designation(or re- designation if necessary) will become effective according to EPA's 8 -hour ozone implementation guidelines. 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 its nonattainment designation deferred, the area's 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. 6 Signatures: The Honorable Mike Heiligenstein The Honorable Samuel T. Biscoe Williamson County Commissioner Travis County Judge The Honorable H. T. Wright The Honorable Jim Powers Caldwell County Judge Hays County Judge The Honorable Ronnie McDonald The Honorable Eric Carlson Bastrop County Judge Mayor, City of Elgin The Honorable Robert Habingreither The Honorable Gustavo L. Garcia Mayor, City of San Marcos Mayor, City of Austin The Honorable Mike Hendricks The Honorable Ray Sanders Mayor, City of Luling Mayor, City of Lockhart The Honorable Tom Scott The Honorable Nyle Maxwell Mayor, City of Bastrop Mayor, City of Round Rock Gregg A. Cooke Administrator, Region 6, U.S. Environmental Protection Agency 7 Robert J. Huston Chair, Texas Commission on Environmental Quality DATE: November 7, 2002 SUBJECT: City Council Meeting — November 14, 2002 ITEM: 13.B.8. Consider a resolution authorizing the Mayor to execute a memorandum of agreement approving the Early Action Compact for the Austin /San Marcos Metropolitan Statistical Area. Resources: Jim Nuse, Chief of Operations /Assistant City Manager Michael Thane, Engineer History: As of September 14, 2002, Central Texas is in violation of the 8 -hour federal ozone standard. With expected population growth it becomes increasingly unlikely that the region can come into compliance with the standard without implementing emission reduction strategies that involve the general public. The purpose of the Early Action Compact is to develop and implement a Clean Air Action Plan that will reduce ground -level ozone concentrations in this area in order to comply with the 8 -hour ozone standard. Funding: Cost: Uncertain as to the amount. Source of funds: General Fund and Utility Fund Outside Resources: Central Texas Clean Air Force Impact/Benefit: A major advantage of the region's participation in the Early Action Compact protocol is the flexibility afforded the signatories in selecting emission reduction measures and programs that are best suited to local needs and circumstances, instead of the EPA designating the control measures. By developing and implementing the Clean Air Action Plan, the Central Texas area can strive to demonstrate attainment for the 8 -hour ozone standard. Most importantly, reducing ozone levels provides for cleaner, healthier air. Public Comment: Numerous presentations have been made on air quality and the effects of elevated ozone levels. Sponsor: N/A ' 1 1 THE EARLY ACTION COMPACT Background Information The National Ozone Standards The Federal Clean Air Act is the comprehensive law that regulates airbome emissions from area, mobile, and stationary sources nationwide. This law authorizes the U.S. Environmental Protection Agency (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. Areas formally declared in violation of the NAAQS and adjacent contributing areas are designated "nonattainment areas." Nonattainment areas must meet certain Clean Air Act requirements, such as: • Transportation Conformity - Requires a demonstration that regional long -range transportation plans will not negatively impact air quality, or federal transportation funds can be withheld. • New Source Review - Requires a review of new or expanded industrial operations to minimize air pollution. • Rate of Progress Requirements - A certain percentage of pollutants must be reduced each year. • Specific attainment date - Consequences of failure to reach attainment by the specified date include stricter control measures and the potential for stiff penalties. • 10 -year maintenance plan - Includes additional or continuing mandatory programs for 10 years following attainment. Another requirement obligates the state to develop and implement a prescriptive comprehensive clean air plan that mandates how the area will come into compliance with the standard. This plan and any revisions to it are known as the State Implementation Plan (SIP). The 1 - Hour Standard in Central Texas An area must have a monitored hourly peak ozone concentration below 125 parts per billion (ppb) 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 Austin/San Marcos Metropolitan Statistical Area (MSA) has not exceeded the 1 -hour standard since 1985. The O, Flex Agreement In order to ensure continued attainment of the 1 -hour ozone standard, the region's leaders signed an air quality improvement plan called the Ozone Flex Agreement (03 Flex) in March of 2002. Elected officials and community leaders in Travis, Williamson, Hays, Bastrop and Caldwell counties entered into this agreement with EPA and the Texas Commission on Environmental Quality (TCEQ), formerly the Texas Natural Resource Conservation Commission, to proactively reduce ozone precursor emissions in their own operations. While 03 Flex requires community education and outreach, it imposes no mandatory requirements on the general public. The 8 - Hour Standard in Central Texas During the past several years, air quality planning in the Austin region has intensified as ozone concentrations have exceeded the value permitted by the 8 -hour ozone NAAQS. Due to legal challenges to the new NAAQS and ensuing litigation, EPA has not formally designated any areas of the United States in violation of the 8 -hour ozone NAAQS. The 8 -hour NAAQS has been upheld by the Supreme Court and EPA anticipates nationwide designation of nonattainment areas in 2004.. Based on recent monitoring data, it is probable that the Austin /San Marcos MSA will be designated a nonattainment area when formal designations, occur. The 8 -hour ozone standard is found by averaging three years of the fourth highest 8 -hour ozone levels in an area. This number, called the design value, must be lower than 85 parts per billion (ppb) to meet the standard. Currently, the Austin /San Marcos MSA design value (averaging 1999, 2000, and 2001) is 88 ppb. Each year this design value will change slightly. Despite annual fluctuations in the design value, elected officials and the citizens of the region understand that long -term air quality will not improve without a concerted emission - reduction effort. The Early Action Compact (EAC) is the region's response. Protocol for Early Action Compacts EPA Region 6 endorsed the TCEQ Protocol for Early Action Compacts (EAC Protocol) on June 19, 2002. It 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. 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. 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 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 retum areas to traditional SIP requirements should terms and /or milestones be unfulfilled, with appropriate credit given for emission reduction measures implemented. The Austin /San Marcos MSA Response The region is volunteering to participate in the EAC Protocol process to expedite air cleanup for future public health and welfare. The Austin /San Marcos MSA Response has two components: ii 1. The Early Action Compact (EAC) — The EAC is a Memorandum of Agreement to prepare and implement the Clean Air Action Plan. More specifically, the EAC sets measurable, enforceable milestones for developing and implementing the Clean Air Action Plan. 2. The Clean Air Action Plan (CAAP) — The CAAP serves as the region's official air quality improvement plan, with quantified emission - reduction measures. The CAAP will include all necessary elements of a comprehensive air quality plan, (like the plans in Dallas or Houston), but will be tailored to local needs and driven by local decisions. Moreover, the CAAP will be incorporated into the formal SIP and the region will be legally required to carry out this plan just as in nonattainment areas. For example, development of the CAAP will require the same scientific diligence and undergo the same scrutiny as the nonattainment areas' SIPs, so that the emission reduction strategies selected will be adequate to ensure the region stays in attainment of the 8 -hour standard. EAC Protocol Versus Traditional Nonattainment A major advantage of the region's participation in the EAC Protocol is the flexibility afforded to the signatories in selecting emission reduction measures and programs that are best suited to local needs and circumstances. Recognizing the varied socioeconomic and emissions characteristics within the region, not all measures can or should be implemented by every entity. 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 allows for more local control in selecting emission - reduction measures. • 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. Should any milestones be missed in designing or implementing the CAAP, the region would automatically revert to the traditional nonattainment requirements, with appropriate credit given for emission reduction strategies already implemented. EAC Protocol Versus 0 Flex The EAC Protocol specifically addresses the 8 -hour standard and will build on the emission reduction strategies outlined in the 0 Flex Agreement. However, the strategies needed to attain the 8 -hour standard likely will affect more people than those outlined in the 0 Flex Agreement, since the 8 -hour standard is generally more difficult to achieve. 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. iii EAC Protocol Timeline The Austin /San Marcos MSA EAC is designed to enable a local, proactive approach to ensuring attainment of the 8 -hour ozone NAAQS, and so protect human health. Using the EAC Protocol, • the region could implement emission reduction measures by 2005 that are directed at attaining the 8 -hour standard by 2007. This allows for a significantly earlier start than waiting for formal EPA nonattainment designation and it gives the local area more flexibility in choosing which emission reduction strategies to implement in order to achieve attainment of the 8 -hour ozone NAAQS. The Area Encompassed by the EAC The Austin /San Marcos MSA, which comprises Travis, Williamson, Hays, Bastrop and Caldwell Counties, is the planning area for which this EAC is designed. This is the same area encompassed by the 03 Flex Agreement. Signatories and Their Responsibilities The individuals representing the entities that will sign this EAC are: the County Judges for Bastrop, Caldwell, Hays, Travis and Williamson Counties; the mayors for the cities of Austin, Bastrop, Elgin, Lockhart, Luling, Round Rock and San Marcos; and appropriate signatories from EPA and TCEQ. The local entities whose representatives support and sign the EAC are committed to holding primary responsitility for the development and implementation of the CAAP, and for maintaining communication with all parties. These commitments by local agencies are enumerated in the following Memorandum of Agreement, along with the commitments of TCEQ and EPA. Conditions for Modification or Early Termination This agreement may be modified or terminated at any time by mutual consent of all signatory parties before formal incorporation into the SIP in 2004. Before the CAAP is adopted into the SIP, any signatory 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 agreement will be void and the area's nonattainment designation immediately effective. Once the CAAP is incorporated into the SIP, modification is considerably more difficult, as the SIP is a legally binding state and federal agreement to cany out specific emission - reduction activities. iv Austin /San Marcos Metropolitan Statistical Area Early Action Compact Memorandum of Agreement This Early Action Compact (EAC) is a Memorandum of Agreement between the local govemments representing Bastrop, Caldwell, Hays, Travis and Williamson counties and the cities of Austin, Bastrop, Elgin, Lockhart, Luling, Round Rock and San Marcos (collectively, the local govemments), the Texas Commission on Environmental Quality (TCEQ) and the United States Environmental Protection Agency (EPA). It is for the express purpose of developing and implementing a Clean Air Action Plan (CAAP) that will reduce ground -level ozone concentrations in the Austin /San Marcos Metropolitan Statistical Area (MSA) to comply with the 8 -hour ozone standard by December 31, 2007, and maintain the standard beyond that date. Failure to meet these obligations results in immediate reversion to the traditional nonattainment process. 1. General Provisions A. The signatory parties commit to develop, implement and maintain the CAAP 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 Protocol for Early Action Compacts Designed to Achieve and Maintain the 8 -Hour Ozone Standard. 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 nonattainment according to EPA's 8 -hour ozone implementation rules. C. Before formal adoption 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. The local govemment signatories will approve the CAAP before it is submitted to TCEQ for inclusion in the SIP. Once the CAAP 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. 11. Local Government Responsibilities The local govemments agree to develop and implement a CAAP that will demonstrate attainment by year's end 2007 of the 8 -hour ozone standard and maintenance until at least 2012. The local govemments will develop this plan in coordination with TCEQ, EPA, stakeholders and the public. The CAAP will include a process to monitor and maintain long term compliance with the standard. Local emission reduction strategies being considered for inclusion into the CAAP will be identified and described by June 16, 2003. The CAAP will be 1 EAC /CARP Milestones June 16, 2003 Potential local emission reduction strategies identified and described November 30, 2003 Initial modeling emissions inventory completed Conceptual modeling completed Base case modeling completed December 31, 2003 Future year emissions inventory modeling completed Emissions inventory comparison and analysis completed Future case modeling Completed January 31, 2004 Attainment maintenance analysis completed Schedule for development of further episodes completed One or more modeled control cases completed Local emission reduction strategies selected Submission of preliminary CAAP to TCEQ and EPA March 31, 2004 Final revisions to modeled control cases completed Final revisions to local emission reduction strategies completed Final revisions to attainment maintenance analysis completed Submission of final CAAP to TCEQ and EPA December 31, 2004 CAAP incorporated into the SIP; SIP adopted by TCEQ December 31, 2005 Local emission reduction strategies implemented no later than this date December 31, 2007 Attainment of the 8 -hour standard submitted to TCEQ and EPA for review by January 31, 2004, and finalized by March 31, 2004, for inclusion in the SIP by December 31, 2004. In the event a development or issue arises that may impact performance or progress toward milestones (including if a milestone will be or has been missed and /or if a termination or modification has been requested), the Capital Area Planning Council (CAPCO) or the signatory party responsible will notify all other signatories as soon as possible. A. Milestones and Reporting 1. Milestones 2. Reporting In order to facilitate self- evaluation and communication with EPA, TCEQ, stakeholders, and the public, the region will assess and report progress towards milestones in a regular, public process, at least every six months, beginning in June 2003. B. Emissions Inventories 1. An initial modeling emissions inventory will be developed by November 30, 2003. This inventory will include: a. Emissions modeling data for a 1999 or later episode that is representative of a typical ozone season exceedance and meets EPA episode selection guidance; b. MOBILE6 data with link based Travel Demand Model (TDM) mobile data in urban areas; c. NONROAD model data adjusted for local equipment populations and usage rates; d. Area source data, based on local survey data, when possible. 2 2. A 2007 future year modeling emissions inventory will be developed by December 31, 2003. This inventory will sufficiently account for projected future growth in ozone precursor emissions through 2007, particularly from stationary, non -road and on -road mobile sources 3. One further episode inventory will also be developed to represent the variety of situations that typically contribute to ozone production in the area and to include the most recent emissions modeling methods and data. Additional inventories will be contingent upon legislative appropriations or other funding. Selection of specific episode inventories will be partially determined by the conceptual model, which reflects an analysis of meteorological conditions typical of high ozone events. a. The conceptual model will be updated by November 30, 2003. b. A schedule for the development of further episode inventories will be completed by January 31, 2004. 4. Emissions inventories will be compared and analyzed for trends in emission sources over time. The emissions inventory comparison and analysis will be completed by December 31, 2003. C. Modeling 1. Base case modeling will be completed by November 30, 2003 and future case modeling will be completed by December 31, 2003. One or more modeled control cases will be completed by January 31, 2004, with final revisions completed by March 31, 2004. All modeling: a. Will be SIP quality and perform within EPA's accepted margin of accuracy; b. Will be carefully documented; c. Will sufficiently account for projected future growth in ozone precursor emissions; d. Will be accomplished with technical support and review by TCEQ and concurrently reviewed by EPA; e. 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. D. Emission Reduction Strategies 1. 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 base, future and control case modeling. 2. Additional local emission reduction strategies under consideration for inclusion in the CAAP will be identified and described by June 16, 2003. 3 3. Local emission reduction strategies needed to demonstrate attainment for the Austin /San Marcos MSA by December 31, 2007 will be selected by January 31, 2004, with final revisions completed by March 31, 2004. The selected local strategies will be implemented as soon as practical, but no later than December 31, 2005. 4. Local emission reduction strategies will be specific, quantified, permanent and enforceable. The strategies will also include specific implementation dates and detailed documentation and reporting processes. 5. Voluntary strategies can play a supporting role in the CAAP. If emission reductions from voluntary strategies are quantified and credit is taken for them in the CAAP, those emission reductions will be enforceable. Additional strategies must be implemented to meet those quantified reduction requirements if quantified voluntary strategies fail. This is true for all quantified emission reductions. 6. Local emission reduction strategies will be designed and implemented by the community with stakeholder participation. 7. Local emission reduction strategies will be incorporated by the state into the SIP. In the event that the region desires to add, delete or substitute strategies after SIP submittal, the region will request a modification. CARP modifications will be treated as SIP revisions and facilitated by the state. E. Maintenance for Growth 1. The CAAP will include a component to address emissions growth at least five years beyond December 31, 2007, ensuring that the area will remain in attainment of the 8 -hour standard during that period. Attainment maintenance analysis will be completed by January 31, 2004, with final revisions completed by March 31, 2004. The analysis will employ one or more of the following or any other appropriate techniques necessary to make such a demonstration: a. Modeling analysis showing ozone levels below the 8 -hour standard in 2012; b. An annual review of growth (especially mobile and stationary source) to ensure emission reduction strategies and growth assumptions are adequate; c. Identification and quantification of federal, state, and /or local measures indicating sufficient reductions to offset growth estimates. 2. A continuing planning process that includes modeling updates and modeling assumption verification (particularly growth assumptions) will be conducted concurrent with the tracking and reporting process for the CAAP. This update and verification will be an ongoing process between the signatories, stakeholders and the public. Modeling updates and planning processes must consider and evaluate: a. All relevant actual new point sources; b. Impacts from potential new source growth; and 4 c. 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. 3. If the review of emissions growth in conjunction with the continuing planning process demonstrates that adopted emission reduction strategies are inadequate to address growth in emissions, additional measures will be added to the CAAP. 4. In the event that the continuing planning process identifies the need to add, delete, or substitute emission reduction strategies after the CAAP has been incorporated into the SIP, the local area will initiate, and TCEQ will facilitate a SIP revision to accommodate changes. F. Public Involvement 1. Public involvement will be conducted in all stages of planning by the signatory parties, with assistance from one or more of the following: The CLEAN AIR Force of Central Texas, CAPCO, Greater Austin Chamber of Commerce, or other appropriate party. Outreach may include one or more of the following techniques: public meetings and presentations, stakeholder meetings, websites, print advertising and radio. 2. 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. 3. Interested stakeholders will be involved in the planning process as early as possible. Planning meetings will be open to the public, with posted meeting times and locations. CAAP drafts will be publicly available, and the drafting process will have sufficient opportunities for comment from all interested stakeholders. 4. Public comment on the proposed final CAAP will follow the normal SIP revision process as implemented by the State. 5. Semi - annual reports detailing, at a minimum, progress toward milestones, will be publicly presented and publicly available. III. The Texas Commission on Environmental Quality The state, represented by TCEQ, will provide support to areas throughout the planning and implementation process, including: 1. Technical assistance in the development of emission inventories, modeling process, trend analysis and quantification and comparison of emission reduction strategies; 2 Necessary information on all Federal and State adopted emission reduction strategies which affect the area; 3. Critical third party review of emissions inventory, modeling, and self- evaluation work; 5 4. Technical and strategic assistance, as appropriate, in the selection and implementation of emission reduction strategies; 5. Technical and planning assistance in developing and implementing processes to address the impact of emissions growth beyond the attainment date; 6. Maintenance of monitors and reporting and analysis of monitoring data; 7. Support for public education efforts; 8. Coordinate communication between local areas and EPA to facilitate continuing EPA review of local work; 9. Expeditious review of the locally developed CAAP, and if deemed adequate, propose modification of the SIP to adopt the CAAP; 10. Adoption of emission reduction strategies into the SIP as expeditiously as possible. The final complete SIP revision must be completed, adopted, and submitted by the state to EPA by 2004. IV. 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 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, including submission of the early action SIP revision by 2004. 4. Provided that the monitors in the area reflect attainment by December 31, 2007, EPA will move expeditiously to designate the area as attainment and impose no additional requirements. 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 designation(or re- designation if necessary) will become effective according to EPA's 8 -hour ozone implementation guidelines. 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 its nonattainment designation deferred, the area's 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. 6 Signatures: The Honorable Mike Heiligenstein The Honorable Samuel T. Biscoe Williamson County Commissioner Travis County Judge The Honorable H. T. Wright The Honorable Jim Powers Caldwell County Judge Hays County Judge The Honorable Ronnie McDonald The Honorable Eric Carlson Bastrop County Judge Mayor, City of Elgin The Honorable Robert Habingreither The Honorable Gustavo L. Garcia Mayor, City of San Marcos Mayor, City of Austin The Honorable Mike Hendricks The Honorable Ray Sanders Mayor, City of Luling Mayor, City of Lockhart The Honorable Tom Scott Mayor, City of Bastrop Gregg A. Cooke Administrator, Region 6, U.S. Environmental Protection Agency 7 arable Nyle Maxwell Mayor, City of Round Rock Robert J. Huston Chair, Texas Commission on Environmental Quality Christine Martinez From: Gill, Bill [bgill @capco.state.tx.us] Sent: November 18, 2002 11:36 AM To: 'Christine Martinez' Subject: RE: 11/14/02 Council Meeting, Item 13. B. 8. Resolution in suppor t of Early Action Compact Thanks for the quick response." — Yes, I would like a copy of the resolution, r as approved. My address is: Bill Gill -- Capital Area Planning Council'"' 2512 IH 35 South, Suite 200 ,. (� C, Austin Texas 78704 I ' - `\_ v Original Message From: Christine Martinez Jmailto:christinem 3 round -rock tx.usl Sent: Monday, November 18, 2002 10:57 AM To: 'Gill, Bill' Subject: RE: 11/14/02 Council Meeting, Item 13. B. 8. Resolution in suppor t of Early Action Compact Yes, the Council considered this item on November 14th and the resolution was approved. Would you like a copy of the resolution mailed to you? If so, I will need your address. Thank you, Christine ------------------------------------------------- Christine R. Martinez Administration City of Round Rock 221 E. Main Street Round Rock, Texas 78664 Phone: (512) 218 -5404 Fax: (512) 218 -7097 Email: christinem(around- rock.tx.us Original Message From: Gill, Bill Jmailto:boill(aicapco.state.tx usl Sent: November 18, 2002 11:02 AM To: 'christinem @round - rock.tx.us' Subject: 11/14/02 Council Meeting, Item 13. B. 8. Resolution in support of Early Action Compact Can you tell me if the subject resolution conceming approval for entering into a memorandum of agreement to sign an Early Action Compact (for an air quality improvement plan) was considered, as scheduled, and whether it passed/ Thanks.