August 11, 1995

South Coast Air Quality

Management District Board

Stationary Source Committee Report


The Stationary Source Committee met on July 21, 1995. Chair Mee Hae Lee and Committee Members Candace Haggard, James Silva, and Ron Loveridge were present. In addition, Chairman of the Board Jon Mikels participated in the meeting.

The Committee reviewed the agenda (Attachment #1) and spent a considerable amount of time on three particular items:

A brief synopsis of each item follows:

1. Rule 461 requires Stage Three vapor recovery at gas stations. Staff presented proposed amendments to the rule. The major change in the rule will be the introduction of self-audit requirements. This change is a privatization project which shifts part of the inspection and compliance workload from the public sector to the private sector. This rule amendment will implement one of the major proposals presented to the Board last year as part of the restructuring of District duties tied to the reduction of the work force. The Committee also reviewed an inspection report, and discussed the rule violations found in the field. Staff was requested to check inspection records prior to the layoffs and see if there is a correlation between the number of inspectors in the field and the rate of non-compliance.

2. Proposed amendments to Regulation XXX were continued at the June Board meeting for consideration in August. Staff provided a progress report on the meetings that have been held with EPA, ARB, industry, and environmental representatives (see Attachment #2). Significant progress has been made on the issue of "variances." A new rule is being developed to establish an EPA-approved (SIP) program to account for the temporary emission increases allowed by variances. This proposal (Rule 518) will be scheduled for a Board hearing this fall. The Committee discussed the need to include a schedule for action on Rule 518 in the Board's Resolution on Regulation XXX in August.

3. Supervisor Antonovich requested the Committee's review of Rule 1136. Some businesses had expressed concern over their ability to comply with the September 1995 limits in the rule, and have requested an extension of time.

Staff reviewed the current status of the rule. Based on a survey of 100 facilities, 39 percent of the companies are already meeting the September limits. In addition, another 48 percent of the companies said they would be using coatings which meet the limits come September. The survey results demonstrate the availability of the coatings and indicate that over 80 percent of the sources are in a position to comply with the rule.

Presently, Rule 1136 is scheduled for a Board hearing in October to address EPA concerns with the rule. The Committee asked if the schedule could be accelerated to a September Board hearing. Staff noted that the extension of the compliance date would result in an additional 5 tons/day of VOC emissions, and would require an Environmental Assessment. Compliance with CEQA and need to workshop this new rule amendment, could not legally be accomplished by September. Staff was directed to continue to work with industry on their concern.

During the public comment period, a coating formulator spoke to the fact that his company has spent a considerable amount of money developing a product that complied with the rule. Board action to delay would undermine the conversion to clean coatings and economically penalize the market for responding to the District's rules.

The next meeting of the Stationary Source Committee will be August 18, 1995.

THEREFORE, IT IS RECOMMENDED THAT YOUR BOARD

--Receive and file this report.

Sincerely,

Mee Hae Lee

Chair

Stationary Source Committee

PL:sh

Attachments

(board5)



SCAQMD Board Stationary Source Committee

Mee Hae Lee, Chair July 21, 1995

Marvin Braude 10:30 a.m.

Candace Haggard Conference Room CC-8

Ronald Loveridge

James Silva

Nell Soto

A G E N D A

1. Proposed Amended Rule 461 - Gasoline Transfer & Dispensing Bill Fray

(Self-Compliance Program) (Attachment #1)

2. Pilot Program to Prepare Air Toxics "Hot Spots" Information and Ben Shaw

Assessment Act of 1987 (AB 2588) Health Risk Assessments (Attachment #2)

3. Regulation XXX - Title V Permits and Rule 518 - Hearing Board Procedures Jill Whynot

for Title V Facilities (Attachment #3)

4. Proposed Rule 301.2 - Annual Operating Permit Emissions Fee - Reduced Jack Broadbent

Penalty for Underpayment (Handout at the meeting)

5. Advance Calendar (Attachment #4) Pat Leyden

6. Public Comment Period - (Public Comment on Non-Agenda All

Items, Pursuant to Government Code Section 54954.3)

7. Discussion of Rule 1136 Bill Fray

cc: Jon Mikels

Attachments

(sscjuly)