• Status of Air Quality
- Overall, air quality continues to gradually improve. Originally, five areas throughout the state did not meet the 8-hour ozone standard. Of the five areas, four now meet the standard; two of these areas have recently had their redesignation requests approved by EPA, and two others have made similar applications.
- The Northern Virginia region is still in violation of the 1-hour standard.
- EPA has designated 9 localities in Northern Virginia area as nonattainment for the PM2.5 (fine particulate matter) standard, alleging that the emissions from these localities contribute to nonattainment in the Maryland and Washington, DC areas.
- DEQ's forecast modeling indicates that the projected emission reductions will reduce pollution to meet federal air quality standards for ozone and fine particulate matter by year 2009.

• Planning for the 1-hour Ozone Standard

The 1-hour ozone standard has been replaced by the 8-hour standard, and, as of April 15, 2005, is no longer in effect. The department is working with EPA to resolve a number of remaining administrative and logistical issues, which primarily affect the status of maintenance plans.

• Planning for the 8-hour Ozone Standard

- On June 2, 2003, EPA released its options for the planning requirements for areas that will be nonattainment under the 8-hour ozone standard.
- The final decision by EPA regarding designation of the 8-hour nonaftainment areas was promulgated on April 15, 2004. The affected localities are in the Northern Virginia area, Fredericksburg area, Richmond area, Hampton Roads area, and part of Shenandoah National Park. Many of the localities were at one time designated nonattainment for the 1-hour ozone standard but a few new localities were added.
- Two areas (Frederick County and Roanoke areas) that have been identified as potential nonattainment areas by both Virginia and EPA have agreed to abide by EPA's early action compact policy. Under this policy, the areas will have the nonattainment designation delayed in exchange for implementing emissions reduction controls earlier that otherwise required.
- On July 12, 2004, the Commonwealth submitted a request to reclassify the Richmond Ozone Nonattainment Area downward from moderate to marginal. This request was approved by EPA, and removed the need for certain control measures.
- The department submitted requests to redesignate the Fredericksburg and the Shenandoah National Park ozone nonattainment areas to maintenance. These requests were approved by EPA on December 23, 2005 and January 3, 2006, and removed the need to implement certain control measures.

• Planning for the PM2.5 Standard

- On April 1 2003Y EPA issued guidance to states on the process for designating areas for the purpose of implementing the PM2.5 (fine particulate matter) national ambient air quality standard.
- The Commonwealth submitted its recommendations on the designations of areas under the PM2.5 standard on February 13, 2004, requesting that all areas be designated attainment.
- Although there were no violations of the PM2.5 standard in the Commonwealth, EPA has designated 9 localities in Northern Virginia area as nonattainment, based on the assumption that the emissions from these localities contribute to nonattainment in the Maryland and Washington, DC area.
- Plans are due February 2008 that outline measures that will be taken to improve air quality to meet the PM2.5 standard.

• Clean Air Interstate Rule (CAIR)

- EPA's Clean Air Interstate Rule (CAIR), which EPA promulgated to address transport of NOx and SO2 emissions in 28 states in the East and Midwest and the District of Columbia, was published in the Federal Register on May 12, 2005. It became effective on July 11, 2005, except for provisions relating to the Acid Rain Program, which are effective July 1, 2006.
- In 2006, the Virginia General Assembly adopted legislation (HB1055/SB651) to set parameters for the Air Pollution Control Board's implementation of CAIR in Virginia. The legislation requires the board to provide allocations to renewable and energy efficiency projects. The legislation also provides the Air Pollution Control Board the authority to prevent electric generating facilities located within nonattainment areas in Virginia from meeting their NOx and SO2 compliance obligations through the purchase of allowances. Additional reductions of NOX (approximately 5000 tons) are also to be achieved in 2007 or 2008 from an electric generating utility whose combined emissions of NOx exceeded 40,000 tons in 2004.
- The department is currently engaged in developing a proposed regulation. The public comment period closed on September 8, 2006 and it is anticipated that the Board will adopt a final regulation in December of this year with a submittal to EPA in mid 2007.

• Clean Air Mercury Rule (CAMR)

- On May 18, 2005, EPA published in the Federal Register the Clean Air Mercury Rule (CAMR) to control emissions of mercury from electric utilities under § 111(d) of the Clean Air Act. States covered by CAIR must submit § 111(d) plans to implement CAMR by November 17, 2006.
- The department is currently engaged in developing a proposed regulation to meet the federal requirements.

• Clean Smokestacks Bill

- The 2006 General Assembly passed legislation, specifically Chapters 867 and 920, which requires electric generating units to reduce emissions of SO2, NOx, and mercury. The emission reductions required by this legislation require NOx emissions to be reduced by approximately 5000 tons during the 2007 or 2008. The legislation also benefits Virginia's air quality by requiring mercury reductions to occur within Virginia and surrounding areas. The provisions of this legislation are being addressed in the CAIR and CAMR regulations described above.