September 8, 1995

South Coast Air Quality

Management District Board

INTRODUCTION

In non-attainment areas, such as the Los Angeles Basin, both federal and state law require a New Source Review (NSR) program that mandates lowest achievable emission rates (LAER) for new and modified sources of emissions. In California, LAER has been redefined as Best Available Control Technology (BACT). BACT has been a requirement of the South Coast Air Quality Management District since October 1976 - first with Rule 213, Standards for Permits to Construct: Air Quality Impact; and now with Regulation XIII, New Source Review; and Rule 2005, New Source Review for RECLAIM.

In March 1994, the Board initiated a program to update and revise the BACT Guideline. The purpose of the update was to: meet federal, state, and local requirements for non-attainment and toxic air contaminants; establish criteria for the update of all BACT standards; and provide for public review and comment. A Scientific Review Committee (SRC) was created to assist staff with the policy issues used to develop and implement BACT.

In establishing the new BACT Guidelines, two separate parts have been created. The first part is the BACT Methodology Report which details discussions of and recommendations on the BACT policy. The Report also contains a detailed users guide, Part A of the Report. The second part will be the actual listing of BACT Equipment and Emission Standards for commonly permitted equipment based on the policies recommended in the Report.

SCIENTIFIC REVIEW COMMITTEE

Recognizing the need to not only update the guidelines, but to create a more certain and predictable process, staff began discussions with the SRC in July 1994 on the policy issues of BACT through a series of open, noticed meetings. The SRC is composed of 19 public and private members (see attachment for the membership of the SRC). The members have contributed greatly in giving of their time and knowledge to the development of the BACT Methodology Report and as such it is proposed to make them a standing committee to review matters dealing with BACT. With the SRC, staff held a public workshop on the BACT Methodology Report in June 1995.

KEY RECOMMENDATIONS

BACT Methodology Report

• New Criteria
  - Marginal cost effectiveness will be used to look at the cost of new
  technology
  - Small business will get special and expanded criteria
  - BACT will be simplified and strengthened to minimize case-by-case review
  - "Off-Ramps" have been designed into the process to address unique project
  characteristics
  - Alternate Basic Equipment (ABE) will no longer be used as BACT
  
• Public Process
  - Public will be notified prior to updating of BACT
  - SRC will review BACT recommendations prior to update
  
• Incentives
  - Emission Reduction Certificates for equipment going beyond BACT
  - BACT manufacturer designation
  
• User's Guide
  - Provides a easily followed road map to navigate through BACT
  

BACT Equipment and Emission Standards

• BACT Determinations
  - Provides listing of commonly used equipment with BACT emission limits or
  equipment that will comply with BACT requirements
  - Listings separated into three easily read categories for BACT, Small
  Business BACT, and a reference table for BARCT and T-BACT

FUTURE WORK

Using the policy issues to define the framework of the guideline, the Executive Officer will update the BACT requirement for commonly permitted equipment. In continuing with the open and public process staff has used for the methodology report, the individual BACT requirements will be reviewed with the SRC and through a public meeting before the Executive Officer reports back to this Board. After that meeting, Executive Officer will publish the new BACT Guideline, which will apply prospectively to applications received by the AQMD.

The entire process is shown schematically below.

Approval of the affected methodology is exempt from the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et seq.) pursuant to CEQA Guidelines Section 15308 -- Class 8 -- Actions by Regulatory Agencies for Protection of the Environment.

THEREFORE IT IS RECOMMENDED THAT YOUR BOARD

--Receive and file the report; and

--Establish the Scientific Review Committee as a standing committee to consider future BACT issues, and

--Direct the Executive Officer to update the BACT Guideline consistent with the report recommendations.

Respectfully,

James M. Lents, Ph.D.

Executive Officer

ATTACHMENT

List of Scientific Review Committee Members

        Member                             Affiliation                       

Dick Baldwin                    Ventura County Air Pollution Control         
                                District                                     

Dr. Gerald Bonetto              Printing Industries of California            

Edward Camarena                 AQMD Hearing Board                           

Dr. Hal Cota                    California Polytechnic State University at   
                                San Luis Obispo (Cal Poly SLO)               

Keith Golden                    California Energy Commission (CEC)           

Dr. Nick Hazelwood              AQMD Advisory Council                        

Keith J. Herbert                Manufacturers of Emission Controls           
                                Association (MECA)                           

Larry Johnson                   Southern California Edison Co. (SCE)         

   (Martin Ledwitz, Alternate)                                               

Dr. Frank N. Jones              Eastern Michigan University, National        
                                Science Foundation                           

Ed Laird                        Small Business Coalition (SBC)               

Dr. Joseph Norbeck              University of California at Riverside,       
                                College of Engineering - College of          
                                Environmental Research (CE-CERT)             

Gerardo Rios, P.E.              Environmental Protection Agency, Region IX   

Dr. G. Scott Samuelsen          University of California at Irvine (UCI)     

Larry J. Sasadeusz              Southern California Gas Company              

Dr. Bud Scott                   Environmental Compliance Support             
                                Association of California (ECOSA)            

Rich Sommerville                San Diego County Air Pollution Control       
   (Stan Romelczyk, Alternate)  District (SDAPCD)                            

James F. Stahl                  Technical Advisory Committee (TAC) of the    

(Greg Adams, Alternate)         Interagency AQMP Implementation Committee    
                                (IAIC)                                       

Peter Venturini                 California Air Resources Board (CARB)        

   (Michael Tollstrup,                                                       
Alternate)                                                                   

Ronald Wilkniss                 Western States Petroleum Association (WSPA)