Minutes Environmental Protection Committee 2 Martin Luther King, Jr. Drive, S. E.

Suite 1252 East Tower Atlanta, GA 30334 February 27, 2007

Attending: Committee Members Tom Wheeler, Chairman Bill Archer Earl Barrs Gene Bishop Bill Carruth Cader Cox Joe Hatfield Walter Hudson Phyllis Johnson Bob Rutland Jim Walters, Chairman, ex-officio Staff Members Noel Holcomb Paul Burkhalter Carol Couch Dan Forster Susan Shipman Bob Donaghue Jim Ussery Paul Nelson Heather Abrams Jennifer Kaduck Doralyn Kirkland Jimmy Johnston Brad Gane Marlin Gottschalk J Wade Richard Cloues Becky Champion Jeff Cown Mike Kemp Emily Hitchcock Beth Brown Mary Ann Evans Hellen Harris

Board Members David Allen Sally Bethea Jenny Lynn Bradley Warren Budd Mabel Jenkins Loyce Turner

Visitors Greg Blount, Troutman Sanders Julie Mayfield, Georgia Conservancy Brad Carver, Summit Energy Doug Fulle, Oglethorpe Power Corporation Ronny Just, Georgia Power April Ingle, Georgia River Network Carolyn Danese, Humane Association of Georgia

Environmental Protection Committee Minutes February 27, 2007 Page 2 James Holland, Altamaha RiverKeeper Chandra Brown, Ogeechee RiverKeeper Todd Silliman, McKenna Long & Aldridge, LLP Patricia Bermeyer, King & Spalding Grant Dean, Property Owner Dr. Wendell Phillips, Presbytery of Greater Atlanta Charles Seabrook, Center for Sustainable Coast Joe Tanner, Georgians for Responsible Coastal Development Jim Stokes, Georgia Conservancy Wesley Woolf, Satilla RiverKeeper Teresa Stansel, Citizen - White County Peter Both, Citizen White County Emily Poe, Balch & Bingham Shawn Davis, Joe Tanner & Associates Tyler Newman, Home Builders Association of Georgia Bettie Sleeth, Home Builders Association of Georgia Chris DeScherer, Southern Environmental Law Center Billie Jo Parker, Altamaha RiverKeeper Stacy Shelton, The Atlanta Journal-Constitution Stacy Esterman, Office of Planning and Budget Glenn Dowling, Georgia Wildlife Federation Georgia Miners, Land Resource Angie Fiese, Senate Research Office

Environmental Protection Committee Minutes February 27, 2007 Page 3 The February 27, 2007 meeting of the Environmental Protection Committee was called to order by Board Chairman Jim Walters. Chairman Walters called on Tom Wheeler, Chairman of the Environmental Protection Committee. Mr. Wheeler stated that he would like to request that the Environmental Protection Committee items at the Board meeting on Wednesday, February 28, be presented at 10:00 or later because of the publicly advertised time of the meeting. Mr. Wheeler called on Carol Couch, Director, Environmental Protection Division (EPD), to present items for consideration from EPD. Dr. Couch called on Jennifer Kaduck, Chief, Land Protection Branch, to present the FY-07 Spending Plan for the Solid Waste Trust Fund (SWTF). Ms. Kaduck called attention to the Board packet and requested that Board members replace the February 16, 2007 memorandum in their notebooks with the February 27, 2007 memorandum regarding the Proposed FY-07 Spending Plan for the SWTF. Ms. Kaduck stated that EPD was proposing that the Committee recommend the approval of the expenditures of $11,228,325 from the SWTF for FY 2007. Ms. Kaduck briefly reviewed the SWTF for the benefit of new members of the Board. She stated that the SWTF was established in the early 90s as part of the Comprehensive Statewide Solid Waste Management Act and is funded by a $1 fee per tire on all retail tires sold in the state. She further stated that the fee brings about $6.5 million into the State Treasury per year, most of which is put into the SWTF for expenditures allowed by EPD under the Solid Waste Act. Ms. Kaduck stated that expenditures from the SWTF support Solid Waste Planning efforts for the proper management of solid waste and for emergency, preventative and corrective actions at abandoned, closed or currently operating disposal sites that pose health or environmental problems. She further stated that the fund provides grants to other state agencies and local governments for solid waste reduction, recycling, litter prevention and abatement. She added that funds are also used to eliminate scrap tire dumps and establish a statewide scrap tire management program to prevent future tire dumps. Ms. Kaduck reviewed SWTF expenditures and stated that the types and amounts of expenditures were recommended by the Governors Advisory Council. She further stated that EPD had worked closely with the Office of Planning and Budget and the Governors office on the activities included in the spending plan. Ms. Kaduck stated that the 2007 expenditure, designated for the closure of the Scales Road C&D Landfill in DeKalb County, was for $4,415,807 compared to $1.7 million expenditure approved by the Board in 2006. She further stated that the reason for the increase above $1.7 was due to a higher bid, which included higher fuel costs, lack of local soil supply, and additional erosion problems. She added that EPD had

Environmental Protection Committee Minutes February 27, 2007 Page 4 coordinated with Georgia State Financing and Investment Commission (GSFIC) to ensure the validity of the bid. She further added that the Department of Administrative Services (DOAS) had issued a notice of intent to award the contract for the Scales Road Landfill cleanup at the $4,415,807 amount; however, the expenditure could not be awarded without the Boards approval. Ms. Kaduck stated that the SWTF request included $2,262,518 for a new initiative, Municipal Solid Waste Recycling, designed to improve Georgias statewide municipal solid waste reduction and recycling efforts. She further stated that municipal solid waste is waste that comes from households, which averages about 6.6 lbs. per person per day in Georgia (or about 3 lbs. above the national average). She added that this solid waste initiative would include a statewide recycling education campaign, special event/litter free event infrastructures, regional recycling hubs and a method of measuring and reporting the effectiveness of the various recycling programs throughout the state. Ms. Kaduck stated that a final item in the SWTF request includes $1,250,000 toward the Governors Litter It Costs You campaign for litter prevention through education, eradication and enforcement. She further stated that EPD has entered into an agreement with the Department of Community Affairs (DCA), designated as the lead state agency, to receive and administer the funds. Discussion ensued. Ms. Kaduck stated that EPD and DCA had looked at the costs and benefits of recycling and found that transportation cost was the greatest inhibitor to recycling. She further stated that low landfill tipping fees in Georgia make disposal cheaper than recycling. She added that as local governments make budget decisions, some have chosen to eliminate recycling opportunities, which accounts for the 12% decline in recycling efforts. She further added that recycling would create jobs and help Georgias industry, which has to depend on imported recyclable products instead of the 2.6 million tons of recyclable materials disposed of annually in Georgia. Several Board members requested an update on the Scales Road Landfill issue. Ms. Kaduck stated that she would review the situation and send a written report of her findings. Mr. Barr asked if a cost study had been done to determine the average tipping fee in Georgia and the point at which it becomes economical for people to recycle. Ms. Kaduck stated that EPD has not done that kind of analysis and that the Department of Community Affairs (DCA) may have a cost study since they work very closely with local governments to establish and continue their recycling programs. She

Environmental Protection Committee Minutes February 27, 2007 Page 5 stated that she would be glad to look into whether DCA has done a cost study to determine the economics of the dollar amounts for tipping fees. Mr. Wheeler requested that Ms. Kaduck send the cost study information to all of the Board members. He also requested that Ms. Kaduck give written information to the Board on the type of bonding requirements that are in place, why these decisions are being made, and if there is a need for a rule from the Board to tighten up landfill bonding requirements to avoid problems of the past. A motion was made by Mr. Rutland, seconded by Mr. Barrs, and carried unanimously that the Committee recommends that the Board adopt the Resolution to approve the FY 2007 Spending Plan for the Solid Waste Trust Fund. (Resolution attached hereto and made a part hereof) Mr. Wheeler called on Jennifer Kaduck to present the proposed Scrap Tire Pile Cleanup Reimbursement Guidelines for Local Governments. Ms. Kaduck stated that Georgia generates about 9 million scrap tires per year, and that EPD has cleaned up over 14 million scrap tires over the past 12 to 13 years. She further stated that some scrap tire dumping is still occurring. She added that the proposed scrap tire guidelines would make it easier for local governments to qualify for reimbursement at more sites where scrap tires are discovered; and it encourages communities to take proactive steps toward control of scrap tires and litter in their communities. She further stated that a number of local governments are waiting for the guidelines to be revised and for reimbursements from EPD. A motion was made by Mr. Cox, seconded by Mr. Barrs and carried unanimously that the Committee recommends that the Board adopt the Resolution to approve the proposed Scrap Tire Pile Cleanup Reimbursements Guidelines for Local Governments. (Resolution attached hereto and made a part hereof) Mr. Wheeler called on Heather Abrams, Chief, Air Protection Branch, to present the proposed amendments to Chapter 391-3-1, Rules for Air Quality Control, pertaining to the Clean Air Interstate Rule. Ms. Abrams stated that the Clean Air Interstate Rule (CAIR) is aimed at states that contribute Nitrogen Oxides (NOx) and Sulfur Dioxide (SO2) emissions to other states nonattainment areas. She further stated that Georgia was found to contribute fine particulate matter nonattainment in other states, which has led to the necessity of regulatory measures that require reduction in NOx and SO2 from utilities. She added that the CAIR would bring many of the current nonattainment areas into attainment including some of Georgias nonattainment areas, such as Columbus and Augusta. She further added that these regulatory measures would help the Atlanta area, but additional measures would have to be taken to bring it to complete attainment.

Environmental Protection Committee Minutes February 27, 2007 Page 6 Ms. Abrams stated that CAIR is a Cap and Trade program. She further stated that the proposed amendments would reduce the 2005 emissions of SO2 from over 600,000 tons per year to 213,057 tons in Phase I (2010-2014), and down to 149,140 tons per year in Phase II (2015 and beyond). She added that the proposed amendments would reduce the 2005 emissions of NOx from over 111,000 tons per year to 66,321 tons in Phase I (2009-2014), and down to 55,268 tons per year in Phase II (2015 and beyond). Ms. Abrams stated that the proposed SO2 portion of the rule would be identical to the federal rule, and that the NOx portion of the rule allows for streamline approval by the federal Environmental Protection Agency (EPA). She further stated that NOx allocations would not be given to permanently retired units and that initial allocations would be for three years. She added that annual allocations would be done thereafter with a five-year baseline period for reallocations. She further added that there would be a 3% set-aside for new sources coming into the state. Mr. Wheeler called on Greg Blount, Troutman Sanders, representing Georgia Manufacturers Association, who stated that he supports the proposed amendments to the CAIR and had commented on the rule because of the potential for pass through costs in utility rates. He further stated that he would urge the Board to adopt the rule as proposed by EPD. Mr. Wheeler called on Julie Mayfield, the Georgia Conservancy, who stated that the Governors Energy Plan, finalized in December, set as a priority the use of energy and energy efficiency to meet Georgias growing energy demand. She further stated that she felt that the CAIR is an opportunity to promote renewable energy and energy efficiency. She added that in the wake of the Boards adoption of the rule, she would urge EPD to reconvene the relevant stakeholders and start new conversation on the appropriateness of amending the CAIR to support energy efficiency and renewable energy projects. Mr. Wheeler called on Brad Carver, Summit Energy, who stated that Georgia has the greatest biomass potential of any state, and that incentives are needed to bring biomass industry here. He further stated that his client would use wood waste, peanut shells, and pecan shells to generate electricity and would have to purchase the same NOx credits required for coal fired plants. He added that the EPA federal rule provided for a 5% set aside for renewable energy projects. He further added he would urge the Board to amend the proposed CAIR rule at a later date to include a 3% set aside for renewable projects, which would include everyone including existing power plants that would use biomass energy. Mr. Wheeler called on Doug Fulle, Oglethorpe Power Corporation, who stated that Oglethorpe Power has participated in the stakeholder process since it began in 2005. He further stated that Oglethorpe supports the proposed rule that resulted from the stakeholder process, including EPDs decision not to include the energy efficiency

Environmental Protection Committee Minutes February 27, 2007 Page 7 renewable energy set aside program in the final CAIR. He added that CAIR is a rule that is designed to reduce the significant contribution of Georgia emissions of nonattainment in downwind states, and is not designed to promote energy efficiency and renewables. He further added that while Oglethorpe is working to offer energy efficiency incentives and generation from renewables to all of its members, he does not believe that CAIR is the appropriate vehicle to fund the energy efficiency renewable energy program. Mr. Wheeler called on Ronny Just, Georgia Power, who expressed appreciation for EPDs stakeholder process. Mr. Just stated that Georgia Power and the Electric Membership Corporations had been supportive of the renewables; and with more information coming from the Public Service Commission, there would be more discussion of renewable energy going forward. He further stated that the issue would be to determine the best vehicle for promoting energy efficiency and renewables. He added that he felt that a state comprehensive renewable energy policy would be the best way to approach the issue rather than with the CAIR. He further added that he felt that those who would receive the environmental benefits from renewables should be participating in funding the program. Discussion ensued. Ms. Abrams stated that she would check to see when the Governor is expected to complete and release his state energy plan. She further stated that the plan proposed to the Governor by Georgia Environmental Facilities Authority (GEFA) in December is not his official energy plan, and added that after EPD receives the Governors energy plan, EPD could determine if more is needed to be done with CAIR. She further added that approval of the proposed CAIR would allow the rule to meet EPAs deadline and that the rule could be revisited at a later date for further evaluation and changes. She stated that she is open to the suggestion to reconvene the stakeholder meetings at a later date to go through the process again if necessary. She further stated that at any time the Board could come back and revisit CAIR, make changes and resubmit it to EPA. A motion was made by Mr. Barrs, seconded by Mr. Carruth, and carried with one abstention by Mr. Archer, that the Committee recommends that the Board adopt the Resolution regarding the proposed amendments to Chapter 391-3-1, Rules for Air Quality Control, pertaining to the Clean Air Interstate Rule. (Resolution attached hereto and made a part hereof) There being no further business, the meeting was adjourned.