September 8, 1995

South Coast Air Quality

Management District Board

Public Hearing to Amend Rule 461 - Gasoline Transfer and Dispensing


INTRODUCTION

Rule 461 - Gasoline Transfer and Dispensing was originally adopted on January 9, 1976 and subsequently amended a number of times with the latest amendment on July 7, 1989. This rule requires the use of Phase I and Phase II vapor recovery systems that are certified by California Air Resources Board (CARB) to reduce 95% of the VOC emissions from both the filling of storage tanks and fueling of motor vehicles at gasoline transfer and dispensing facilities.

There are approximately 7,400 gasoline transfer and dispensing facilities (4,100 retail and 3,300 non-retail) in the AQMD. These gasoline transfer and dispensing facilities are characterized by numerous dispenser and vapor recovery configurations. CARB has issued seventy-five (75) Executive Orders, including forty-two (42) configurations for Phase I vapor recovery systems and thirty-three (33) configurations for Phase II vapor recovery systems.

Due to the tremendous number of gasoline transfer and dispensing facilities located in the AQMD, Rule 461 is one of the most significant control strategies for VOC emissions. It is imperative that Phase I and Phase II vapor recovery systems are properly constructed and operated so that the necessary control efficiency can be maintained. In order to further enhance the effectiveness of the Phase I and Phase II vapor recovery systems and therefore reduce the VOC emissions from gasoline transfer and dispensing operations, staff has incorporated new procedures and technologies into the Proposed Amended Rule 461. The proposed amendments include a self-compliance program and a number of new rule measures. A further VOC emission reduction of 3.43 tons per day is expected from these proposed amendments.

The self-compliance program includes the requirements of daily maintenance inspections conducted by facility managers and periodic compliance inspections conducted by certified auditors. Currently, self-inspection and auditing programs are in place at both major and independent oil companies. Staff intends to establish a uniform structure and parameters for these existing programs. In order to simplify the process and minimize the impacts on the owners/operators of all retail gasoline transfer and dispensing facilities, this proposed self-compliance program is primarily based on the standard practices required by most of the oil companies.

The new rule measures originated from the control measures identified in the Federal Implementation Plan (FIP) (rescinded by President Clinton on April 10, 1995), State Implementation Plan (SIP) and Air Quality Management Plan (AQMP) as well as the recommendations from the public and staff. These measures reflect the advancement of Phase I and Phase II vapor recovery technologies. Staff includes future compliance dates in the proposed amendment to provide the existing facilities with sufficient time to phase out the old equipment.

Staff has been working with the oil companies, industry associations, and other governmental agencies to address all issues and concerns regarding the self-compliance program and new rule measures. Both major and independent oil companies have participated in a self-compliance pilot program with a small number of selected facilities since July 1995. By inspecting the selected facilities and documenting where corrective measures are needed, staff will be able to identify and resolve potential problems associated with the implementation of self-compliance program and thereby enhance the effectiveness of the full-scale program.

CONCLUSIONS

The AQMD has prepared the appropriate California Environmental Quality Act (CEQA) document consisting of an Environmental Assessment (EA) that does not identify any significant adverse environmental impacts resulting from the proposed amendments. This document was prepared pursuant to the AQMD's Certified Regulatory Program (Rule 110) and State CEQA Guidelines Section 15252. The EA analyzes each environmental topic, and includes supporting information for determining that the proposed amendments would not create any significant adverse environmental impacts. The Draft EA was circulated for a 30-day public review and comment period which ended July 17, 1995. There were no public comments received on the Draft EA. The final EA is attached in this rule package.

As per the Notice of Public Hearing, written comments were accepted through August 29, 1995. All written comments received by that date were reviewed and responded to by staff in the Final Public Hearing Package for the rule amendment.

THEREFORE IT IS RECOMMENDED THAT YOUR BOARD

--Certify the Environmental Assessment for the proposed amendments to Rule 461 - Gasoline Transfer and Dispensing in accordance with the attached resolution.

--Amend Rule 461 - Gasoline Transfer and Dispensing as proposed in accordance with the attached resolution.

Respectfully,

James M. Lents, Ph.D.

Executive Officer

RESOLUTION NO. 95-

A Resolution of the Governing Board of the South Coast Air Quality Management District certifying the Final Environmental Assessment prepared for Proposed Amended Rule 461 - Gasoline Transfer and Dispensing.

A Resolution of the Governing Board of the South Coast Air Quality Management District Board amending Rule 461 - Gasoline Transfer and Dispensing.

WHEREAS, the Governing Board of the South Coast Air Quality Management District obtains its authority to adopt, amend, or repeal rules and regulations from Sections 40000, 40001, 40440, 40441, 40463, 40702, and 40725 through 40728 of the California Health and Safety Code; and

WHEREAS, the Governing Board of the South Coast Air Quality Management District has determined that a need exists to amend Rule 461 - Gasoline Transfer and Dispensing to incorporate new procedures and technologies to enhance the effectiveness of Phase I and Phase II vapor recovery systems at gasoline transfer and dispensing facilities; and

WHEREAS, the Governing Board of the South Coast Air Quality Management District has determined that Rule 461 - Gasoline Transfer and Dispensing, as proposed to be amended, is written or displayed so that its meaning can be easily understood by the persons directly affected by it; and

WHEREAS, the Governing Board of the South Coast Air Quality Management District has determined that Rule 461 - Gasoline Transfer and Dispensing, as proposed to be amended, is in harmony with, and not in conflict with, or contradictory to, existing statutes, court decisions, or state or federal regulations; and

WHEREAS, the Governing Board of the South Coast Air Quality Management District has determined that Rule 461 - Gasoline Transfer and Dispensing, as proposed to be amended, does not impose the same requirement as any existing state or federal regulation, and the proposed rule is necessary and proper to execute the powers and duties granted to, and imposed upon, the South Coast Air Quality Management District; and

WHEREAS, the Governing Board of the South Coast Air Quality Management District in amending the regulation, references the following statutes which the District hereby implements, interprets or makes specific: Health and Safety Code Sections 40001 (rules to achieve ambient air quality standards), 40440(a) (rules to carry out the Air Quality Management Plan), and 40440(c) (cost effectiveness), and Federal Clean Air Act Section 172(c)(1) (RACT); and

WHEREAS, the Governing Board of the South Coast Air Quality Management District voting on this Resolution has reviewed and considered the staff's findings related to socioeconomic impacts of Proposed Amended Rule 461 - Gasoline Transfer and Dispensing, as set forth in the Socioeconomic Analysis included in the Final Staff Report made public with the agenda package for this meeting, and hereby finds and determines that the socioeconomic impact is as set forth in that analysis; and

WHEREAS, the Governing Board of the South Coast Air Quality Management District voting on this Resolution has reviewed and considered the staff's findings related to cost-effectiveness of Proposed Amended Rule 461 - Gasoline Transfer and Dispensing, as set forth in the Socioeconomic Analysis included in the Final Staff Report made public with the agenda package for this meeting and hereby finds and determines that the cost-effectiveness is as set forth in that analysis; and

WHEREAS, the Governing Board of the South Coast Air Quality Management District finds and determines that the proposed amendments to Rule 461 - Gasoline Transfer and Dispensing, are considered a "project" pursuant to the terms of the California Environmental Quality Act (CEQA); and

WHEREAS, the District has had its regulatory program certified pursuant to Public Resources Code Section 21080.5 and has conducted CEQA review pursuant to such program (Rule 110); and

WHEREAS, District staff has prepared an Environmental Assessment (EA) pursuant to its certified regulatory program (Rule 110), which did not identify any significant adverse environmental impacts and that the Draft EA was circulated to receive public comment, such that it is now a Final EA; and

WHEREAS, it is necessary that the adequacy of the Final EA be determined by the Governing Board prior to its adoption; and

WHEREAS, the Governing Board of the South Coast Air Quality Management District voting on this Resolution has reviewed, and considered and hereby approve the Final EA; and

WHEREAS, a public hearing has been properly noticed in accordance with all provisions of Health and Safety Code, Section 40725; and

WHEREAS, the Governing Board of the South Coast Air Quality Management District has held a public hearing in accordance with all provisions of law; and

NOW, THEREFORE BE IT RESOLVED that the Governing Board of the South Coast Air Quality Management District does hereby certify the Final EA for Proposed Amended Rule 461 - Gasoline Transfer and Dispensing, completed in compliance with California Environmental Quality Act provisions and the South Coast AQMD's Certified Regulatory Program, and the Draft EA was circulated for a 30 day public comment period and no comments received, and that the Final EA has been presented to the District Governing Board, whose members reviewed, considered, and approved the information therein prior to acting on Proposed Amended Rule 461 - Gasoline Transfer and Dispensing.

BE IT FURTHER RESOLVED, that the Governing Board of the South Coast Air Quality Management District does hereby amend, pursuant to the authority granted by law, Rule 461 - Gasoline Transfer and Dispensing, as set forth in the attached, and incorporated herein by this reference.

Attachments

DATE: _______________________________

CLERK OF THE DISTRICT BOARD


SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT


______________________________________________________________________________

Final Staff Report for Proposed Amendments to Rule 461 - Gasoline Transfer and Dispensing

August 1995

Deputy Executive Officer

Stationary Source Compliance

Patricia Leyden, A.I.C.P.

Assistant Deputy Executive Officer

Stationary Source Compliance

William J. Fray

Senior Manager

Stationary Source Compliance

Larry Bowen, P.E.

______________________________________________________________________________

Authors: Michael Krause Air Quality Engineer I

Randy Matsuyama Air Quality Engineer I

Maria Vibal Air Quality Inspector II

Reviewed By: Denice Brue Senior Deputy District Counsel

Allen Mednick Senior Deputy District Prosecutor

Brian L. Yeh, P.E. Air Quality Analysis and Compliance Supervisor

Technical Assistance: Lou Roberto Supervising Air Quality Inspector

Tran Vo, P.E. Senior Air Quality Engineer

ATTACHMENT A

SUMMARY OF PROPOSED AMENDMENTS

Rule 461 - Gasoline Transfer and Dispensing

Self-Compliance Program:


    Amendment                               Description                          

Self-Inspections   Owner/operator of retail gasoline transfer and dispensing     
                   facilities shall implement a self-compliance program          
                   consisting of the following inspections by July 1,1996:       
                     Daily maintenance inspection                                
                     Periodic compliance inspection                              

Training and       Any person conducting a daily maintenance inspection or       
Certification      periodic compliance inspection shall complete an              
                   AQMD-approved training program and obtain a certificate, if   
                   required.                                                     

Inspection         Detailed protocols for the daily maintenance inspection and   
Protocols          periodic compliance inspection are specified in attachment C  
                   & D.                                                          



New Rule Measures:


    Amendment                               Description                          

Include Mobile     Vapor recovery systems are required for truck/trailer with    
Fuelers            mounted tanks that fuel gasoline motor vehicles.              

Installing Phase   Any time an underground stationary storage tank installed or  
I Certified CARB   replace at any gasoline transfer and dispensing facility, a   
Spill Box          "CARB certified" spill box shall be installed.  The spill     
                   box shall be equipped with an integral vapor-tight drain      
                   valve to return spilled gasoline to the underground           
                   stationary storage tank.                                      

Installing         A person shall not install or permit the installation of any  
Certified Phase I  Phase I vapor recovery system of the coaxial design at any    
Systems            gasoline transfer and dispensing facility unless such system  
                   was certified by CARB after January 1, 1994.  A person shall  
                   not install or permit the installation a Phase I vapor        
                   recovery system of the dual-point design at any gasoline      
                   transfer and dispensing facility unless such system           
                   incorporates "CARB certified" poppetted drybreaks or          
                   spring-loaded vapor check valves on the vapor return          
                   coupler.                                                      

Phase II           A person shall not install or permit the installation of any  
Certified          balance-system bellows equipped nozzle at any gasoline        
Interlock          transfer and dispensing facility unless the nozzle is         
Mechanism          equipped with a "CARB certified" insertion interlock          
Required           mechanism.                                                    

Phase II Vapor     A person shall not install or permit installation of any      
Check Valve        balance system nozzle at a new or altered gasoline transfer   
Required           and dispensing facility unless a vapor check valve is         
                   located in the nozzle.  Effective January 1, 1997, a person   
                   shall not operate or permit the operation of any              
                   balance-system nozzle unless the vapor check valve is         
                   located in the nozzle.                                        

Phase II Coaxial   A person shall not install or permit the installation of any  
Hose Required      nozzle at a new or altered gasoline transfer and dispensing   
                   facility unless the nozzle is equipped with a coaxial hose.   
                   Effective January 1, 1998, a person shall not operate any     
                   gasoline-dispensing nozzle unless the nozzle is equipped      
                   with a coaxial hose.                                          

Required Diameter  The nominal inside diameter of the connection between the     
of Riser/          riser and dispenser cabinet shall not be less than 0.75       
Dispenser          inches.  If flexible tubing is used for this connection, the  
Connection         material shall be listed for use with gasoline and shall be   
                   capable of maintaining electrical continuity between the      
                   riser and dispenser.                                          



ATTACHMENT A (continued)

SUMMARY OF PROPOSED AMENDMENTS

Rule 461 - Gasoline Transfer and Dispensing


    Amendment                               Description                          

Require            All liquid removal devices required by CARB Executive Orders  
Liquid-Removal     shall be maintained to achieve a minimum liquid removal rate  
Devices in Hoses   of five milliliters per gallon transferred.  This standard    
                   shall apply at dispensing rates exceeding five gallons per    
                   minute, unless a higher removal rate is specified by the      
                   Executive Order.                                              

Pressure-Vacuum    A person shall not install or permit the installation of any  
Relief Valve       vent pipes on gasoline storage tanks at gasoline dispensing   
Required on Vent   facilities without a "CARB certified" pressure-vacuum relief  
Pipe               valve.  Effective January 1, 1997, all open vent pipes on     
                   gasoline storage tanks shall be equipped with a "CARB         
                   certified" pressure-vacuum relief valve.                      

Pre-Backfilling    Owner/operator of a new or altered gasoline transfer and      
Inspection         dispensing facility shall have all underground storage tank   
                   installation and associated piping configuration inspected    
                   prior to any backfilling to verify that all underground       
                   equipment is properly installed in accordance with the        
                   requirements specified in the applicable CARB Executive       
                   Order.  AQMD shall be notified by telephone at least 24       
                   hours prior to the backfilling                                

Post-Construction  Owner/operator of a new or altered gasoline transfer and      
Inspection         dispensing facility shall have all phase I and phase II       
                   vapor recovery systems inspected upon completion of the       
                   construction to verify that all components were installed in  
                   accordance with the description specified in the Permit to    
                   Construct and in compliance with all AQMD requirements.       
                   AQMD shall be notified in writing of any changes to the       
                   information and specifications submitted with the             
                   application under which the Permit to Construct was issued.   

Testing            Within 30 days of operation, the following tests shall be     
Requirements       conducted to verify performance of Phase I and Phase II       
                   vapor recovery systems:                                       
                   Phase I:  leak decay test                                     
                   Phase II:  leak decay, back pressure, air to liquid ratio,    
                   or liquid removal rate (whichever is applicable)              
                   In addition, reverification tests shall be conducted in       
                   accordance with the following schedule:                       
Leak Decay - annually for vacuum assisted and every five      
                   years for balance systems.  Backpressure - every five years.  
A/L (for bootless nozzle) - every five years                 

Recordkeeping      The owner/operator is required to keep records of all         
Requirements       inspections and repairs, test results and throughput.  All    
                   records, except test results, shall be maintained for a       
                   period of two years.  Records of test results shall be        
                   maintained for a period of five years.                        

Testing Methods    All appropriate CARB test methods are referenced in this      
                   subdivision.                                                  



ATTACHMENT B

RULE DEVELOPMENT PROCESS

RULE 461 - Gasoline Transfer and Dispensing



First Request For Public Input


February, 1995




Initial Rule Development, Identification of Alternatives and Initial Environmental Socioeconomic Assessment




March, 1995





Input from Other Agencies and Oil Industry




March-May, 1995




1 Public Workshop: June 1, 1995
4 Rule Reiterations
8055 Notices Mailed





Date Set for Hearing: August 11, 1995



Date of Hearing: September 8, 1995



Total Time Spent in Rule Development

Pre-Board Hearing: 7 months

ATTACHMENT C

KEY CONTACTS LIST

RULE 461 - Gasoline Transfer and Dispensing

INDUSTRY ORGANIZATIONS

Western States Petroleum Association (WSPA)

Automotive Trade Organizations of California (AUTO)

California Service Station and Automotive Repair Association (CSSARA)

National Association of Convenience Stores

California Independent Oil Marketing Association (CIOMA)

Petroleum Equipment Contractors of California

Society of Independent Gasoline Marketeers of America (SIGMA)

Petroleum Equipment Institute (PEI)

COMPANIES

Major Oil Companies ARCO

Chevron

Mobil Oil

Shell Oil

Texaco

Ultramar

UNOCAL

Independent Oil Companies G & M Oil

Thrifty Oil

United Oil

USA Petroleum

Winall Company

World Oil Company

GOVERNMENT AGENCIES

Environmental Protection Agency, Region IX

California Air Resources Board

Board of Equalization, State of California, Sacramento

Bay Area Air Quality Management District

San Diego Air Pollution Control District

Ventura County Air Pollution Control District

Los Angeles County, Department of Weights and Measures

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

GOVERNING BOARD

Chairman: JON D. MIKELS
Supervisor, Second District
San Bernardino County Representative

Vice Chairman: WILLIAM A. BURKE, Ed.D.
Speaker of the Assembly Appointee

MEMBERS:

MICHAEL D. ANTONOVICH
Supervisor, Fifth District
Los Angeles County Representative

MARVIN BRAUDE
Councilmember, City of Los Angeles
Cities Representative, Los Angeles County/Western Region

CANDACE HAGGARD
Mayor Pro Tem, City of San Clemente
Cities Representative, County of Orange

HUGH HEWITT
Governor's Appointee

MEE HAE LEE
Senate Rules Committee Appointee

RONALD O. LOVERIDGE
Mayor, City of Riverside
Cities Representative, Riverside County

LEONARD PAULITZ
Councilmember, City of Montclair
Cities Representative, San Bernardino County

JIM SILVA
Supervisor, Second District
Orange County Representative

NELL SOTO
Councilmember, City of Pomona
Cities Representative, Los Angeles County/Eastern Region

S. ROY WILSON, Ed.D.
Supervisor, Fourth District
Riverside County Representative

EXECUTIVE OFFICER

JAMES M. LENTS, Ph.D.