August 11, 1995

South Coast Air Quality

Management District Board

This report highlights AQMD rulemaking activity for 1995 and beyond. An update of VOC RECLAIM activities is provided below.

The Ozone Depleting Compounds Replacement and VOC Content/MSDS subcommittees have completed their work in support of the program. A meeting of the Enforcement/Penalties Working Group was held on July 19, 1995 at 1:30 P.M. A Data Management Workshop group met on July 20, 1995 at 9:30 A.M. A technical consultation meeting on the ODC Replacement Guidelines will be held in September 1995.

There are approximately 1,000 facilities in the VOC RECLAIM universe. The third draft allocations are scheduled to be provided to the universe facilities during early Fall 1995. In support of allocation changes, two instructional workshops will be conducted in late Fall 1995.

Draft VOC RECLAIM rules have been developed and made available to the public. Four public workshops were conducted in June. It is anticipated that the Public Hearing for the VOC RECLAIM program will be held in March 1996.

Persons with any questions regarding the hearing dates listed herein should call (909) 396-2040.

THEREFORE, IT IS RECOMMENDED THAT YOUR BOARD

--Receive and file the attached report.

Respectfully,

James M. Lents, Ph.D.

Executive Officer

PL:ELP:AG

Attachment

ADVANCE TARGET FOR BOARD HEARINGS

MONTH RULE(S)/ REGULATIONS/ CONTROL MEASURE

SEP '95 310 - Amnesty for Unpermitted Equipment
This proposed rule will implement Item X of the Business Clean Air Partnership Action Plan by creating an incentive for unpermitted sources to apply for required permits, thereby assuring compliance with AQMD rules and regulations and a '"level playing field" for all businesses in the South Coast Air Basin. This one-time amnesty program will last six months.

SEP '95 461 - Gasoline Transfer & Dispensing (CM# RFL-02)*
The proposed amendments will incorporate new procedures and technologies in order to further enhance the effectiveness of the Phase I and Phase II vapor recovery systems and thereby reduce the VOC emissions from gasoline transfer and dispensing operations. The amendments include a self-compliance program and a number of new rule measures, originating from the Federal Implementation Plan (FIP) (rescinded by President Clinton on April 10, 1995). State Implementation Plan (SIP), Air Quality Management Plan (AQMP) and recommendations from the public and staff.

SEP '95 Regulation VII - Emergencies
Proposed amendments will include incorporation of new federal and California episode criteria for forecasting and episode declaration; changes in emergency transportation plan requirements and stationary source requirements; modifications to notification requirements; and modifications to cautionary health statements and short-term school activity curtailment plans.

SEP '95 1130 - Graphic Arts
Proposed amendments will include changes required by U.S. EPA and address deficiencies identified by industry and AQMD staff. These include: (1) addition of a Purpose and Applicability section, (2) language clarifications, (3) increasing the overall control efficiency for publication gravure to a minimum of 75%, (4) addition of an equation for calculating the required equivalent overall control efficiency, (5) addition of a prohibition of specification and sale provision, (6) updating the test methods, and (7) limiting the flexographic metallic and matte finish ink exemption to facilities with a VOC potential to emit of 10 tons or less per year.

SEPT '95 1136 - Wood Products Coatings
Proposed amendments will: (1) add EPA required language for capture efficiency and test methods needed to correct SIP deficiencies, (2) clarify language and definitions, (3) add a provision for averaging, and (4)extend VOC limits for architectural millworks. The proposed amendments may result in a net emissions increase.

SEP.'95 2011 - Requirements for Monitoring, Reporting and Recordkeeping for Oxides of Sulfur Emissions;
2012 - Requirements for Monitoring, Reporting and Recordkeeping for Oxides of Nitrogen Emissions
The proposed amendments will: (1) establish provisions for reclassifying RECLAIM major sources as large NOx or SOx process units if the facility reduces emissions of these pollutants to the level of their year 2003 allocations and retires their excess RECLAIM Trading Credits; (2) expand the range of acceptable Continuous Emission Monitoring Systems (CEMS) data to 10 to 94 percent of the full CEMS range; and (3) include a more accurate, tiered approach of measuring emissions from major sources when their CEMS are measuring concentrations below 10 percent of the full CEMS range.

* - Potential Significant Hearing Item ADVANCE TARGET FOR BOARD HEARINGS (con't.)

MONTH RULE(S) / REGULATIONS/ CONTROL MEASURE

SEP '95 1612 - Credits for Clean On-Road Vehicles (CM# MON-05 and MON-06)
This proposed rule will allow AQMD to issue mobile source emission reduction credits for the operation of light-duty, medium-duty, and heavy-duty vehicles that are converted to low-emission configurations, as well as for the operation of new low-emission heavy-duty vehicles. This proposed rule will be based on guidelines published by ARB in February 1994.

SEP '95 1620 - Credits for Clean Off-Road Equipment (CM# MOF-04)
The proposed rule will allow AQMD to issue mobile source emission reduction credits in exchange for repowering or retrofitting existing equipment or purchasing new equipment to meet specified emission targets.

SEP.'95 Best Available Control Technology Methodology Report (BACT)
Staff has worked with a Scientific Review Committee (SRC) to address the policy issues associated with Best Available Technology (BACT). This report presents the discussions on the policy issues between staff, the SRC, and the public, along with staff recommendations on the methodology of BACT.

SEP '95 VOC RECLAIM Study Session
The AQMD Governing Board will hold a VOC RECLAIM study session at their September 7, 1995 meeting. The Board will hear comments on the development of VOC RECLAIM, including identification of participating sources, determination of allocations, compliance and monitoring, air toxics, and other issues.

OCT '95 301 - Permit Fees
Proposed amendments provide for a waiver of permitting and annual operating fees for businesses creating high employment and low levels of emissions. "Super-clean" businesses that create more than 500 jobs, while producing half the emissions per employee identified in the 1994 AQMP for the Year 2010 goal for that industry, will be eligible for the fee waiver for two years.

OCT '95 431.1 - Sulfur Content of Gaseous Fuels
Proposed amendments for Rule 431.1 include an extension of the compliance date for the 40 ppm sulfur compound limit for landfill gas and a daily average interim sulfur compound limit of 150 ppm for landfill gas; clarification of sulfur compound limits for small refineries; an exemption to allow non-RECLAIM SOx facilities to burn, purchase from, or sell to RECLAIM SOx facilities gaseous fuels with sulfur compounds in excess of applicable limits; and rule language cleanup.

OCT.'95 1501 - Work Trip Reduction Plans
1501.1 - Alternatives
A status report will be given by staff on the implementation of the April 14, 1995 amendments to Rule 1501 and the alternatives for the new Rule 1501.1.

OCT '95 1610 - Old-Vehicle Scrappage
Proposed amendments will provide consistency with adopted Rule 1501.1 by allowing CO emission reduction credits, and extending credit life to 5 years.

OCT '95 1902 - Transportation Conformity
The proposed amendment will replace section (f) with the Interagency Consultation Memorandum of Understanding recently completed by the AQMD, SCAG, ARB, U.S. EPA, and the local CTCs.

ADVANCE TARGET FOR BOARD HEARINGS (con't.)

MONTH RULE(S)/ REGULATIONS/ CONTROL MEASURE

OCT '95 2100 - Registration of Portable Equipment
The public hearing was continued to October by the Board in July. This proposed new rule will begin implementation of Point II of the action plan of the Business Clean Air Parnership. Certain types of portable equipment may be registered for a reduced fee. Registered equipment may then be operated here or in any other participating California air district. Participation on the part of the applicant is optional.

NOV '95 1110 - Emissions from Stationary IC Engines (Demonstration) (CM# CMB-F)
1110.1 - Emissions from Stationary IC Engines (CM# CMB-F)
1110.2 - Emissions from Gaseous- & Liquid-Fueled IC Engines (CM# CMB-F)

Proposed amendments will consolidate the above rules to update emission limits and other requirements; eliminate duplicate or obsolete language; reflect requirements of U.S. EPA non-road engine rulemaking; establish consistency with Proposed Regulation XXI - Portable Equipment - Statewide Regulation; and address AQMP Control Measure CMB-F.

NOV '95 1134 - NOx Emissions from Stationary Gas Turbines
Proposed amendments will address SIP recommendations identified by U.S. EPA and provide additional time for two affected facilities in the Southeast Desert Air Basin to achieve compliance.

NOV '95 1173 - Fugitive Emissions of Volatile Organic Compounds (CM# FUG-04)*
Proposed amendments will address SIP deficiencies identified by U.S. EPA; lower the leak threshold for minor gas leaks from 1,000 ppm to 500 ppm; and address issues regarding implementation of the I&M provisions of the existing rule.

NOV '95 XIII - New Source Review*
Proposed amendments will address the supply-and-demand balance of the Community Bank and Priority Reserve, as well as state and federal NSR requirements applicable to AQMD. Specifically, the proposed amendments will replace the Community Bank with a 4 ton per year exemption level; adjust the Priority Reserve; define the equivalency demonstration process; narrow exemptions; streamline trading zones; forgive positive balances for offset purposes; and exempt from offsets increases in VOC emissions resulting from transitioning away from ozone-depleting compounds.

DEC '95 1405 - Control of Ethylene Oxide & CFC Emissions from Sterilization or Fumigation Processes
Proposed amendments will clarify requirements for testing inlet samples.

ADVANCE TARGET FOR BOARD HEARINGS (con't.)

MONTH RULE(S)/ REGULATIONS/ CONTROL MEASURE

DEC '95 1623 - Credit for the Use of Small Off-Road Utility Equipment (CM# MOF-03)
The proposed rule will develop a mechanism to allow AQMD to issue mobile source emission reduction credits for purchasing low-emission off-road utility equipment such as electric-battery-operated lawn mowers and leaf blowers, and for scrappage of old units.

DEC '95 Regulation XX - RECLAIM
This proposal will review control technologies for glass melting furnaces, gray cement kilns, steel slab reheating, metal melting furnaces, and hot mix asphalt. Revisions will be proposed for year 2000 emission factors for some of these industries.

TBD '95 217 - Provisions for Sampling & Testing Facilities
Proposed amendments will clarify the responsibility of sources to provide safe and accessible sampling and testing provisions in their facilities.

217.1 - Construction of Sampling & Testing Facilities
Proposed Rule 217.1 will delineate the minimum requirements for permanent, safe, and accessible facilities for testing emissions from a stack or duct.

TBD '95 218 - Continuous Emission Monitoring
Proposed amendments will delete obsolete language; clarify administrative requirements for non-RECLAIM continuous emission monitoring systems (CEMS); and delete CEMS performance specifications.

218.1 - Continuous Emission Monitoring Performance Specifications
Proposed Rule 218.1 will revise and identify specifications for non-RECLAIM CEMS to meet AQMD requirements for approval.

TBD '95 FCAA Title III Program*
This program will necessitate the adoption of new rules to implement administrative requirements and NESHAPS. Rules that may need to be amended include Rules 1169, 1122, 1171, 1405, 461, 1406, 1101, 1420, 1173, 1141, 1124, 108, 109, 1126, 1130, 1130.1, 1129, 1125, 481, 1106, 1150, 1150.1, 1150.2, 1179, 1136, and 447.

TBD '95 Lead Abatement Rule
This is a place holder for a rule to control lead emissions during abatement activities. This rule will be coordinated with Cal-EPA's statewide strategic plan to reduce lead poisoning.

ADVANCE TARGET FOR BOARD HEARINGS (con't.)

MONTH RULE(S)/ REGULATIONS/ CONTROL MEASURE

FEB '96 1113 - Architectural Coatings
Rule 1113 is proposed for re-adoption following the 1990 court judgment on the Environmental Assessment. Staff will prepare a revised CEQA document to comply with the court ruling. Staff will also propose that the small container exemption be extended for two years.

FEB '96 1504.1 - Parking Cash-Out (CM# ISR-07)*
The proposed rule will eliminate trips and reduce emissions by requiring employers who lease parking to offer the cash equivalent of the parking subsidy they provide to their employees. Employees will have the option either to continue receiving their subsidized parking space or receive the cash equivalent.

MAR '96 Regulation XX - RECLAIM (CM# CTS-01)*
The proposed amendments will extend trading privileges and other requirements to the VOC market from 1996. Many existing RECLAIM rules will be revised and several new rules will be proposed to incorporate the VOC RECLAIM program.


New Rules:

2003 - VOC Allocations
2004.1 - Requirements for VOC
2013 - VOC Monitoring, Reporting & Recordkeeping Requirements

2014 - VOC Manufacturers/Suppliers Requirements
2016 - Federal Clean Air Act, Title III Equivalency for VOC Reclaim


Amended Rules:

2000 - General
2001 - Applicability
2004 - Requirements
2005 - New Source Review
2006 - Permits
2007 - Trading
2008 - Mobile Source Credits
2010 - Administrative Remedies & Sanctions
2015 - Backstops & Audits

MAR '96 2009 - Area Source Credits (CM# CMB-03)*
This proposed rule will implement the market incentives program for area sources to supplement RECLAIM.

APR '96 1503 - Trip Reduction for Schools (CM# ISR-05)*
The proposed rule will facilitate the reduction of student trips to high schools, colleges, and universities. The rule will provide a list of trip reduction strategies from which schools will select actions to achieve their trip reduction goals.

ADVANCE TARGET FOR BOARD HEARINGS (con't.)

MONTH RULE(S)/ REGULATIONS/ CONTROL MEASURE

JUN '96 1506 - Registration and Commercial Vehicles (CM# ISR-03)*
This proposed rule will be used to compile data on commercial vehicle trips. Data will be used to design a rule that reduces emissions and congestion from commercial vehicle activities generated by commercial business facilities. This rule will specify a menu of actions that the operators of commercial businesses may implement at their facilities.

JUL '96 1176 - Sumps and Wastewater Separators (CM# FUG-02)*
Proposed amendments will require application of active drainage to petroleum and chemical facilities. The control of oil field well cellars is being evaluated.

AUG '96 1510 - Special Events Centers (CM# ISR-01)*
The proposed rule will reduce emissions and congestion generated by special event centers. The rule will specify a menu of actions that reduce emissions and congestion. Operators of special event centers will select actions from the menu to be implemented at their facilities.

OCT '96 1505 - Regional Shopping Facilities*
The proposed rule will reduce emissions and congestion generated by vehicle trips to and from large regional shopping centers. The rule will specify a menu of actions that operators of regional shopping centers may implement at their facilities.

DEC '96 1512 - Airport Ground Access (CM# ISR-04)*
The proposed rule will reduce emissions and congestion from passenger trips to and from airports. A menu of actions that reduce emissions and congestion will be specified in the rule. Operators of airports will select actions from the menu to be implemented at their facilities.

TBD '96 219 - Equipment not Requiring a Written Permit Pursuant to Regulation II
Proposed amendments will update equipment not requiring a written permit.

TBD '96 403.2 - Fugitive Dust - Contingency Requirements for the Coachella Valley
The proposed rule will develop fugitive dust contingency measures as required under the Clean Air Act. This rule is to be adopted but not implemented unless future milestone targets are not met.

TBD '96 403.3 - Fugitive Dust - Contingency Requirements for the South Coast Air Basin
The proposed rule will develop fugitive dust control contingency measures as required under the Clean Air Act. This rule is to be adopted but not implemented unless future milestone targets are not met.

TBD '96 442 - Usage of Solvents
Proposed amendments are necessary to align the definition of volatile organic compounds (VOC) with current practices and U.S. EPA guidelines.

TBD '96 1105.1 - Fluid Catalytic Cracking Units (CM# CMB-09)*
The proposed rule will reduce PM10 emissions from petroleum refinery fluid catalytic cracking units.

ADVANCE TARGET FOR BOARD HEARINGS (con't.)

MONTH RULE(S)/ REGULATIONS/ CONTROL MEASURE

TBD '96 1138 - Restaurant Operations (CM# PRC-03)*
The proposed rule will address VOC and PM10 control requirements in AQMP Control Measure PRC-03 for commercial charbroilers.

TBD '96 1410 - Hydrogen Fluoride Storage and Use*
Rule 1410 specifies restrictions on the storage and use of hydrogen fluoride in the South Coast Air Basin. It requires that preventive measures be implemented to minimize hydrogen fluoride emissions in the event of an accidental release; establishes reporting requirements for its storage and use; and institutes a phase-out schedule for large users of hydrogen fluoride. This rule was suspended by court action on June 8, 1992. The proposed new rule considers alternatives and mitigations other than the phase-out, and revises compliance dates and other requirements as necessary due to the suspension of the rule.

TBD '96 Regulation XXX - Title V Operating Permits*
Regulation XXX was developed to establish the parameters for an operating permit program that satisfied the requirements of Title V of the Clean Air Act Amendments of 1990. On August 29, 1994, U.S. EPA proposed revisions to regulations that define the minimum elements of an approvable operating permit program. These regulations are expected to be finalized in 1995. Regulation XXX will then be amended to parallel changes in the EPA program.

OTHER AQMP CONTROL MEASURES

MONTH RULE(S)/ REGULATIONS/ CONTROL MEASURE

TBD '95 CMB-04 - Area Source Credits for Energy Conservation (Nox)

TBD '95 CMB-05 - Clean Stationary Fuels

TBD '95 CMB-07 - Emission Reductions from Petroleum Refinery Flares (All Pollutants)

TBD '95 CMB-10 - Emission Reductions from Glass Melting Furnaces (Non-RECLAIM) (Nox)

TBD '95 MON-02 - Eliminate Excessive Car Dealer Cold Starts

TBD '95 CMB-A - Control of Emissions from Miscellaneous Combustion Sources

TBD '96 CMB-11 - Emission Reductions from (Non-RECLAIM) Incinerators

TBD '96 ISR-06 - Enhanced Regulation XV

TBD '96 RFL-01 - Emission Reductions from Utility Engine Refueling Operations (VOC)

TBD '96 RFL-03 - Control of Emissions from Pleasure-Boat Fueling Operations

TBD '96 PRC-02 - Further Emission Reductions from Bakeries (VOC)