PROPOSAL:

Amend Regulation XXX - Title V Permits, Rule 3004 - Permit Types and Content (Continued from November 14, 1997 Board Meeting)

SYNOPSIS:

On November 14, 1997, the Board adopted amendments to Regulation XXX and directed staff to meet with industry and U.S. EPA to discuss portable equipment operation at Title V facilities and return to the Board on December 12, 1997 with additional amendments to Rule 3004. Staff is proposing two possible options to Amend Rule 3004. Option 1 addresses industry’s concerns to the extent likely allowed by U.S. EPA at this time. Option 2 provides industry greater flexibility for portable equipment operating at a Title V facility than likely acceptable to U.S. EPA.

COMMITTEE:

Stationary Source, November 21, 1997, Issues Reviewed

RECOMMENDED ACTION:

Amend Title V Rule 3004.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

The Governing Board amended Regulation XXX - Title V Permits, at the last Board meeting on November 14, 1997. Based on comments received from industry regarding portable equipment and staff’s recommendation, proposed amendments to Rule 3004 - Permit Types and Content, regarding portable equipment were deferred until the December 12, 1997 Board meeting. The purpose of the one-month delay was to allow staff to work with industry, U.S. EPA and other parties to resolve the issues regarding portable equipment.

AQMD’s Regulation XXX sets forth the requirements for a federally enforceable permit program that must be approved by U.S. EPA. Therefore, staff attempted to propose amendments to the regulation that are consistent with U.S. EPA’s policies and guidelines to the extent practicable.

Proposal

Staff and industry representatives met with U.S. EPA at their Region IX office in San Francisco on December 1, 1997 to resolve the issues regarding portable equipment. U.S. EPA does not agree to the amendments proposed by industry representatives at the last Board meeting (see further discussion in Policy Issues section).

Staff is proposing two rule amendment options for the Board to consider. Option 1 contains language exempting portable equipment that visits a Title V facility and operates for no more than twelve months during the life of the permit after commencing operation. This option is acceptable to U.S. EPA. Option 2 is identical to Option 1 with one exception. It is more flexible that Option 1 in that it only limits each visit to a Title V facility to a period not to exceed twelve consecutive months after commencing operation. For this reason, Option 2 is preferred by industry. However, Option 2 has not been approved by U.S. EPA. The proposed options are as follows:

Option 1:

• Removing the words "...as defined in Regulation XIII - New Source Review...", and adding language to describe portable equipment consistent with Regulation XIII.

• Removing the exceptions for operation at a RECLAIM facility. The RECLAIM facility will, however, have to report emissions from portable equipment as required by Regulation XX - RECLAIM. However, the emissions can be reported without requiring portable equipment to be listed on the permit.

• Adding a reference to the definition of major source in the Code of Federal Regulations (CFR). The current Regulation XXX does not define "major source."

• Removing the word "individually" before "...a major source..." because the federal definition of major source will, in some cases, require some groups of portable equipment operating together, such as an asphalt batch plant, to be considered a single stationary source.

• Clarifying that operation of the portable equipment at a Title V facility must not conflict with the terms and conditions of the facility’s Title V permit.

• Linking the conditions of paragraph (h)(1) with an "and" instead of an "or", because they all must be met.

• Clarifying the time limit criteria to be no more than twelve months after commencing operation for portable equipment operating at a Title V facility during the term of a facility’s Title V permit, and the equipment not be owned or operated by the facility.

• Removing the reference to the engine’s manufacturing date to avoid any potential conflict with U.S. EPA’s implementation policy for non-road engines.

Option 2 contains the same proposal as for Option 1 except:

• Clarifying the time limit criteria to be no more than twelve consecutive months after commencing operation for portable equipment operating at a Title V facility, to be consistent with AQMD’s Regulation XIII exemption for portable equipment.

Policy Issues

Industry representatives have recommended that Rule 3004, subdivision (h) exclude the following equipment from Title V permits:

• Equipment at a Title V facility over which the Title V facility operator has no direct control because it is operated by an independent contractor that is not under the common control of the Title V facility operator.

• Equipment used for non-routine and non-predictable operations at a Title V facility.

U.S. EPA has said that these proposed rule revision appear inconsistent with the Clean Air Act and the Code of Federal Regulation (40 CFR Part 70.) Staff believes that the amendments proposed by staff achieve even more than the amendments proposed by industry and is waiting for a final U.S. EPA position on the rule language.

AQMP and Legal Mandates

The amendments to Regulation XXX have no impact on emission limits, and no direct impact on air quality. Title V is a federally mandated permit program to include new permitting, monitoring, reporting, recordkeeping, public review, and EPA review requirements and does not include any new emissions limitations.

California Environmental Quality Act (CEQA) and Socioeconomic Impact Assessment

Pursuant to State CEQA Guidelines Section 15002 (k)(1) and AQMD CEQA Implementation Guidelines Section 1.2 (k)(1), AQMD staff has reviewed the proposed amendments to Rule 3004 and has determined with certainty that the proposed project is exempt from the requirements of CEQA. The amendments will involve administrative updates and do not have the potential to generate significant adverse impacts on air quality or any other environmental area. A Notice of Exemption has been prepared pursuant to State CEQA Guidelines Section 15061 (b)(3) and AQMD CEQA Implementation Guidelines Section 5.1 (b)(3) and will be filed with the county clerks immediately following the adoption of the proposed amendments. In addition, a Socioeconomic Impact Assessment was prepared to determine the impacts on the regulated communities of the amendments proposed for adoption on November 14, 1997. The further amendments to Rule 3004 will have no adverse socioeconomic impacts.

Implementation Plan

The proposed amendments make implementation of the Title V program easier. If they are adopted, staff will amend the Title V Technical Guidance Document (TGD) to reflect the changes.

Resource Impacts

The proposed amendments will result in Title V permits that are easier to review and prepare, thereby slightly reducing AQMD resource needs.

Attachments

Rule Development Flow Chart

Key Contacts

Notice of Exemption

Resolution

Rule Language

ATTACHMENT A

RULE DEVELOPMENT PROCESS

Total Time Spent in Rule Development: 24 months

ATTACHMENT B

KEY CONTACTS

Title V Working Group

• Industry
  
• Consultants
  
• Other Agencies

Title V Ad Hoc Committee

• Los Angeles County Sanitation District (LACSD)
  
• Los Angeles Department of Water and Power (LADWP)
  
• Pacific Enterprises
  
• Southern California Edison (SCE)
  
• Southern California Gas Company
  
• McDonnell Douglas Aircraft
  
• Northrop Grumman
  
• Chevron
  
• Union Oil of California (UNOCAL)
  
• Toyota Auto Body Corporation (TABC), Inc.
  
• Latham and Watkins
  
• Law Offices of Curtis Coleman
  
• McClintock, Weston, Benshoof, Rochefort, Rubalcava, & MacCuish, LLP
  
• Environmental Resource Institute
  
• Western States Petroleum Association (WSPA)

Environmental Groups

• Coalition for Clean Air
  
• Natural Resources Defense Council

United States Environmental Protection Agency

• Region IX
  
• Office of Air Quality Planning and Standards

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