July 14, 1995

South Coast Air Quality

Management District Board

Recommendation Regarding a Request for Proposal for Program Development to Simplify and Streamline Small Business Permitting Requirements

Background

At the April 1995 Board meeting, your Board approved Chairman Mikels' 12-point Business Clean Air Partnership. One of the key components of the partnership is to reduce red tape and forge a new partnership with the business community. This concept is embodied, in part, by Item II of the 12-point program, which will streamline and simplify the permitting requirements for most small businesses. This item builds and significantly expands on the certification/registration program developed by the South Coast Air Quality Management District (AQMD) in 1992.

By way of background, the certification/registration program has currently issued certified permits for eight different basic types of equipment including abrasive blasting, automotive spray booths, and degreasers. Sixty-six manufacturers are currently participating in the program, and over 600 registered permits have been issued to date. This concept can be greatly expanded to cover most of the equipment typically used by small businesses.

In preparation for this proposal, staff has analyzed the types of equipment and sources which would fit within the framework for this program - sources which emit less than four tons per year and do not create a significant toxic risk. As shown in figure 1, there are currently over 30,000 facilities with active permits in the AQMD. Of those, over 21,800 emit less than four tons per year. Staff has further analyzed the types of equipment for which applications have been issued to the less-than-four-tons-per-year facilities and has developed the list of equipment types in Table 1. These equipment types will be the initial items evaluated to include as part of an upgraded and expanded certification/registration program.

Proposal

Heretofore, the pre-certification of an equipment type depended upon the manufacturer's initiative in bringing forward the equipment type and associated information to pre-certify it. In order to expand the program to comprehensive coverage of small equipment types, staff proposes to work with a contractor to assist in the development of the program. The work will be divided into three phases - 1) compile the technical information required to evaluate the types of equipment identified and to verify that the emissions and toxic thresholds are not exceeded; 2) to prepare engineering evaluations and operating requirements for this equipment; and 3) to design a system and hardware necessary to receive and process this information consistent with AQMD central database requirements.

In order to pre-certify equipment, general information is needed on that process to ensure that air quality requirements are satisfied. The contractor will investigate each piece of equipment to establish the broad framework for a certification permit. Once that background information has been obtained, an engineering evaluation will be prepared. This evaluation will identify the specifications needed to ensure and verify compliance on this equipment in the field. This evaluation will address Best Available Control Technology (BACT), New Source Review, and source specification rule requirements. Finally, the contractor will prepare the system design and hardware needed to computer automate the issuance of registration documents.

Proposed work program and bidder qualifications

A detailed work program for this contract is provided in the attached Request for Proposals. The qualified bidder will be required to demonstrate, at a minimum, these qualifications: (1) experience with AQMD permitting requirements; (2) technical expertise with respect to types of equipment requiring air quality permits; and (3) knowledge of computer-based system design and hardware requirements for automation.

Financial terms

Staff recommends that one consultant be selected through an open bidding process according to the AQMD's consultant selection policy. Sufficient funds are available in the fiscal year 1995-96 Stationary Source Compliance budget to fund this work in an amount not to exceed $75,000. This project was presented to the Administrative Committee at its meeting on June 23, 1995, and was approved.

It is anticipated that after completion of this contract, a second contract will be developed to assist staff in developing the electronic links necessary to computer-automate this activity. The second contract will be to develop program codes compatible with the AQMD's system and accessible via modem or other connection.

THEREFORE, IT IS RECOMMENDED THAT YOUR BOARD

--Approve the attached Request for Proposals for program development to simplify and streamline small business permitting requirements.

Respectfully,

James M. Lents, Ph.D.

Executive Officer

Attachments

PL:WJF:RRP:cao

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