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December 18, 2002 Austin-San Marcos MSA THE EARLY ACTION COMPACT Background Information The National Ozone Standards The Federal Clean Air Act is the comprehensive law that regulates airborne 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 Aqreement 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