BOARD MEETING DATE: January 10, 1997 AGENDA NO. 15


Report:

Rule Forecast

Synopsis:

This report highlights AQMD rulemaking activity for 1997 and beyond. Upcoming public workshops are noted, both in the regular calendar and in a separate list at the end of the report.

Committee:

Not applicable.

Reccommendation:

Receive and file the attached report.

James M. Lents, Ph.D.
Executive Officer


Background

AQMD is required by state law to publish a list of all rules potentially scheduled for consideration during the coming year. Every January, the Rule Forecast Report is expanded for this purpose and to present a progress report to the Board. The rule schedule for 1997 is demanding and places great emphasis on VOC and PM10 reductions. In order for the region to maintain emission reduction progress toward attainment and implement the AQMP, staff will be bringing about 25 control measures contained in the 1997 AQMP and approximately 21 rules for proposed amendment before the Board for action in 1997.

Proposal

Several significant hearing items are scheduled to be brought before your Board in 1997. Among the most critical are the following:

Area Source Credits (CM# CMB-03 & 04)

Proposed rule will implement the market incentives program for area sources to supplement RECLAIM.

Intercredit Trading

AQMD is developing market incentive rules under the intercredit trading markets to broaden credit generation and use, and to maximize trading opportunities between stationary, area, and mobile sources. The program objectives minimize compliance costs, and promote advancement and commercialization of air pollution control technologies.

Title V Operating Permits

Regulation XXX was developed to establish the parameters for an operating permit program that satisfies the requirements of Title V of the Clean Air Act Amendments of 1990. On August 29, 1994, U.S. EPA proposed revisions to regulations that define the minimum elements of an approvable operating permit program. These regulations are expected to be finalized in 1996. Regulation XXX will then be amended to parallel changes in the EPA program. In addition, changes are proposed to facilitate approval and clarify approvability.

Fluid Catalytic Cracking Units (CM# CMB-09)

Proposed rule will reduce PM10 emissions from petroleum refinery fluid catalytic cracking units.

Solvent Degreasers (CM# CTS-02N)

Proposed amendments are expected to reduce VOC emissions by 36.9 tons per day. They will be based on aqueous cleaning technology in lieu of petroleum solvent usage. Remote reservoir cleaning operations will be removed from this rule since they are subject to Rule 1171.

Emission Reductions from Refinery Flares (CM# CMB - 07)

Proposed rule will take the first step of a two-step approach to potential flare emissions reduction by gathering data on flaring operations at petroleum refineries to assess the need for, or the level of, any future controls to reduce flare emissions. This first step will require refineries to monitor flaring activities for the amount and composition of gases being flared. If the data demonstrates a need to control flaring operations, step two of the rule will be to develop specific control requirements to reduce flare
emissions.

Title III Program & Regulation XVIII

Regulation XVIII will establish the structure for "Local Program Approval" for all Title III rules, including equivalency coverage of: emission sources, hazardous air pollutants, emission limits, and criteria for practical and enforceable monitoring, recordkeeping and reporting. Other rules that may need to be amended include Rules 108, 109, 461, 462, 463, 464, 466, 477, 481, 1101, 1106, 1124, 1125, 1126, 1129, 1130, 1130.1, 1136, 1141, 1162, 1173, 1176, 1179, 1401, 1402, 1405, 1406, and 1420.

Implementation Plan

Staff is committed to maintaining the proposed hearing dates established in the Rule Forecast Report to achieve the necessary emission reductions required by the AQMP. Additional information on projected emission reductions will be included in the February Rule Forecast Report.

RULE FORECAST REPORT - JANUARY 1997
Advance Target for Board Hearings

FEBRUARY 1997
2501 Air Quality Investment Program (AQIP) (CM# FLX - 02) Proposed rule is designed to provide a compliance option to those sources subject to AQMD rules and regulations, by allowing these sources to demonstrate compliance through investments in air quality projects that can produce equivalent or greater emission reductions or air quality benefit.

Elaine Chang - 909.396.3186 CEQA: Jonathan Nadler (3071) Socio: Francis Goh (3075)

2506 * Area Source Credits (CM# CMB-03 & 04) (formerly 2009) Proposed rule will implement the market incentives program for area sources to supplement RECLAIM.
Pang Mueller - 909.396.2433 CEQA: Jonathan Nadler (3071) Socio: Sue Lieu (3059)

MARCH 1997
1168 Control of VOC Emissions from Adhesive Applications Proposed amendments will; (a) Implement recent amendments to the Health and Safety Code; (b) Restore certain future VOC limits to match availible technology; and

(c) Reflect certain changes in test methods. This will defer 0.7 tons/day of future VOC emission reductions.

Anupom Ganguli - 909.396.3185

Reg. XXX * Title V Operating Permits Regulation XXX was developed to establish the parameters for an operating permit program that satisfies the requirements of Title V of the Clean Air Act Amendments of 1990. On August 29, 1994, U. S. EPA proposed revisions to regulations that define the minimum elements of an approvable operating permit program. These regulations are expected to be finalized in 1996. Regulation XXX will then be amended to parallel changes in the EPA program. In addition, changes are proposed to facilitate approval and clarify approvability.

Pang Mueller - 909.396-2433

APRIL 1997
1134 Emission of NOx From Stationary Gas Turbines Proposed amendments will adjust emission limits for alternative-fueled gas turbines.

William Thompson - 909.396.2398

1421 Control of Perchloroethylene Emissions From Dry Cleaning Systems This rule is proposed for recision. If rescinded, it will be replaced by the statewide airborne toxics control measure regulating dry cleaning systems.

Mike Mills - 909.396.2578

Reg. XXV Intercredit Trading (CM# FLX-01) Proposed regulation will link AQMD's mobile and stationary source credit trading programs to increase compliance flexibility.

Elaine Chang - 909.396.3186 / Jill Whynot (3104) CEQA: Jonathan Nadler (3071)

Socio: Francis Goh (3075)

MAY 1997
102 Definition of Terms & 1302 Definitions (NSR) Proposed amendments will remove perchloroethylene and certain other compounds from the list of VOCs, consistent with the recent EPA determination that they are not precursors of ozone or other criteria pollutants.

Anupom Ganguli - 909.396.3185 CEQA: Tara Tisopulos (3102)

Reg. III Fees Proposed amendments support the AQMD FY 1997-98 budget and may include an across-the-board adjustment to match the change in the state Consumer Price Index.

Ed Pupka - 909.396.3332

JUNE 1997
1122 Solvent Degreasers (CM# CTS-02N) This implements AQMP Control Measure CTS-02N which is expected to reduce VOC emissions by 36.9 tons/day. Proposed amendments will be based on aqueous cleaning

technology in lieu of petroleum solvent usage. Remote reservoir cleaning operations will be removed from this rule since they are subject to Rule 1171.

Anupom Ganguli - 909.396.3185 CEQA: Darren Stroud (2526) Socio: Sue Lieu (3059)

JULY 1997
111 Definition of Minor Violation and Guidelines for Issuance of Notice to Comply Effective January 1, 1997 AB 2937 (Bruite) requires each air district in the state of California to develop a rule governing issuance of a Notice to Comply for minor violations. Proposed rule will meet the requirements of AB 2937.

Edwin Pupka - 909.396.3332

1415 Reduction of Refrigerant Emissions from Stationary Refrigeration and Air Conditioning Systems Proposed amendments will eliminate the biannual update of the registration plan submitted by impacted facilities.

Mike Mills - 909.396.2578 CEQA: Tara Tisopulos (3102) Socio: Bob Kneisel (3199)

AUGUST 1997
217 Provisions for Sampling & Testing Facilities Proposed amendments will clarify the responsibility of sources to provide safe and accessible sampling and testing provisions in their facilities.
217.1 Construction of Sampling & Testing Facilities Proposed rule will delineate the minimum requirements for permanent, safe, and accessible facilities for testing emissions from a stack or duct.

John Higuchi - 909.396.2267 CEQA: Jonathan Nadler (3071) Socio: Sue Lieu (3059)

SEPTEMBER 1997
1105.1 * Fluid Catalytic Cracking Units (CM# CMB-09) Proposed rule will reduce PM10 emissions from petroleum refinery fluid catalytic cracking units.

Mohsen Nazemi - 909.396.2662 CEQA: Jonathan Nadler (3071) Socio: Sue Lieu (3059 )

1146.2 Emissions of NOx from Boilers and Heaters 75,000 to 2MM Btu/Hr (CM# CMB-02B) (formerly Proposed rule will require NOx reductions for boilers and heaters rated between

1139) 75,000 and 2,000,000 Btu per hour.

Mike Mills 909.396.2578

NOVEMBER 1997
1173 * Fugitive Emissions of Volatile Organic Compounds (CM# FUG-04) Proposed amendments will address SIP recommendations identified by U.S. EPA; consider lowering leak thresholds for minor and major gas leaks; require the use of trained individuals for leak inspections; consider the new federal NESHAPs requirements; and address other issues regarding implementation of inspection and maintenance.

Mohsen Nazemi - 909.396.2662 CEQA: Darren Stroud (2526) Socio: Bob Kneisel (3199)

DECEMBER 1997
218 Continuous Emissions Monitoring Proposed amendments will delete obsolete language; clarify administrative requirements for non-RECLAIM continuous emissions monitoring systems (CEMS); and delete CEMS performance specifications.
218.1 Continuous Emission Monitoring Performance Specifications Proposed rule will revise and identify specifications for non-RECLAIM CEMS to meet AQMD requirements for approval.

John Higuchi - 909.396.2267 CEQA: Jonathan Nadler (3071) Socio: Bob Kneisel (3199)

TO-BE-DETERMINED 1997
212 Standards for Approving Permits Proposed amendments will bring AQMD's rule in line with state law governing public noticing requirements.

Ben Shaw 909.396-2394 CEQA: Darren Stroud (2526) Socio: Shah Dabirian (3076)

219 Equipment Not Requiring a Written Permit Pursuant to Regulation II Proposed amendments delete written permit requirements for equipment found to emit negligible amounts of air contaminants and adds written permit requirements for equipment found to emit significant amounts of air contaminants or are regulated by federal, state, or AQMD air emission standards.

Larry Bowen - 909.396.2575

442 Emission Reductions from Solvent Usage (VOC) (CM# CTS-02O) Anupon Ganguli - 909.396.3185
444 Open Fires Proposed amendments will delete obsolete language, clarify definitions, categorize burn activities, and delineate the minimum requirements of agricultural burns.

Ed Pupka - 909.396.3332

463 Storage of Organic Liquids (CM# FUG-03) Proposed amendments will take the first step of a two-step approach to reduce VOC emissions from organic liquid storage tanks by gathering data on storage tanks that are currently exempt from Rule 463 to assess the need for, or the level of, any future controls required to reduce VOC emissions from these tanks. If the data demonstrates a need to reduce VOC emissions, step two of the rule will include identification of the appropriate control options.

Mohsen Nazemi - 909.396.2662 CEQA: Steve Smith (3054) Socio: Sue Lieu (3059)

1107 Metal Products Coating (CM# CTS-02H) Proposed amendments will be based on a recent review of available technology. The technology review reveals that VOC concentration limits can be reduced to 185 grams per liter, as applied with powder coatings for both general and high gloss coatings. Non-compliant solvent-borne high solids coatings could be vented to control equipment. The use of acetone, an exempt solvent, will also reduce emissions.

Anupom Ganguli - 909.396.3185 CEQA: Mike Krause (2706) Socio: Francis Goh (3075)

1118 * Emission Reductions from Refinery Flares (M# CMB - 07) Proposed rule will take the first step of a two-step approach to potential flare emissions reduction by gathering data on flaring operations at petroleum refineries to assess the need for, or the level of, any future controls to reduce flare emissions. This first step will require refineries to monitor flaring activities for the amount and composition of gases being flared. If the data demonstrates a need to control flaring operations, step two of the rule will be to develop specific control requirements to reduce flare emissions.

Mohsen Nazemi - 909.396.2662 CEQA: Darren Stroud (2526) Socio: Sue Lieu (3059)

1121 Nitrogren Oxides Emissions Compliance Testing for Natural Gas-Fired Water Heaters and Small Boilers Proposed amendments will extablish the maximum nitrogen oxides emission limit for residential sized natural gas-fired water heaters and natural gas-fired mobile home water heaters with heat inputs rated at less than 75,000 Btu per hour. This rule also provides that certification of water heaters will expire in three years, and establishes a test protocol.

Jill Whynot 909.396.3104

1124 Aerospace Component Coating Proposed amendments will respond to NESHAP and/or CTG regulations.

Alene Taber - 909.396.2576 CEQA: Mike Krause (2706) Socio: Shah Dabirian

1138 Restaurant Operations (CM# PRC-03) Proposed rule will address VOC and PM10 control requirements in AQMP Control Measure PRC-03 for commercial cooking operations and restaurants.

Jill Whynot - 909.396.3104 CEQA: Mike Krause (2706) Socio: Shah Dabirian (3076)

1140 Abrasive Blasting Proposed amendments will prohibit sand blasting of materials with lead in confined spaces.

Mike Mills 909.396.2578

1151 Motor Vehicle and Mobile Equipment Non-Assembly Line Coating Operations Staff is evaluating the current requirements and will recommend amendments as necessary.

Fred Lettice 909.396.2576

1168 Adhesives (CM# CTS-02E) Proposed amendments will be based on a recent review of available technology. The majority of facilities using adhesives are currently able to utilize available low-VOC (or zero-VOC) adhesives.

Anupom Ganguli - 909.396.3185

1169 Hexavalent Chromium - Chrome Plating and Chromic Acid Anodizing Proposed amendments will incorporate the requirements of the chrome plating NESHAP.

Ben Shaw - 909.396.2394 CEQA: Darren Stroud (2526) Socio: Shah Dabirian (3076)

1403 Asbestos Emissions from Demolition/Renovation Activities Proposed amendments will clarify the prohibition of abrasive blasting of asbestos-containing materials unless properly controlled. This amendment will coincide with proposed amendments to Rule 1140 - Abrasive Blasting.

Ben Shaw - 909.396.2394

1405 Control of Ethylene Oxide & CFC Emissions from Sterilization or Fumigation Processes Proposed amendments will clarify requirements for testing inlet samples.

John Higuchi - 909.396.2267 CEQA: Darren Stroud (2526) Socio: Bob Kneisel (3199)

1423 Lead Abatement Rule This is a place holder for a rule to control lead emissions during abatement activities. This rule will be coordinated with Cal-EPA's statewide strategic plan to reduce lead poisoning.

Ben Shaw - 909.396.2394 CEQA: Steve Smith (3054) Socio: Sue Lieu (3059)

1437 Furniture Stripping Operations Proposed rule will control methylene chloride emissions from furniture stripping operations.

Ben Shaw - 909.396.2394

Reg. XVI Mobile Source Offset Programs Amendments to rules will be required if Rule 2500 - Intercredit Trading is approved.

Henry Hogo - 909.396.3184

Title III * Title III Program & Regulation XVIII Regulation XVIII will establish the structure for "Local Program Approval" for all Title III rules, including equivalency coverage of: emission sources, hazardous air pollutants, emission limits, and criteria for practical and enforceable monitoring, recordkeeping and reporting. Other rules that may need to be amended include Rules 108, 109, 461, 462, 463, 464, 466, 477, 481, 1101, 1106, 1124, 1125, 1126, 1129, 1130, 1130.1, 1136, 1141, 1142, 1162, 1173, 1176, 1179, 1401, 1402, 1405, 1406, and 1420.

Ben Shaw - 909.396.2394 CEQA: Mike Krause (2706) Socio: Francis Goh (3075)

CTS-03Consumer Product Education Labeling Program

CTS-04Public Awareness/Education Programs - Area Sources

TO-BE-DETERMINED 1997 Continued. . .

MOF-07 Credits for the Replacement of Existing Pleasure Craft Engines with New Lower

Polluting Engines

MON-09In-Use Vehicle Emission Mitigation

MON-10Emissions Reduction Credit for Truck Stop Electrification

MSC-01 Promotion of Lighter Color Roofing and Road Materials and Tree Planting

Programs

MSC-02 In-Use Compliance Program for Air Pollution Control Equipment (all pollutants).

Jill Whynot - 909.396.3104 CEQA: Tara Tisopulos (3102) Socio: Sue Lieu (3059)

MSC-03 Promotion of Catalyst-Surface Coating Technology Programs for Air Conditioning

Units

PRC-01 Emission Reductions from Woodworking Operations

WST-02 Emission Reductions from Composting Operations

WST-03 Emission Reductions from Waste Burning

WST-04 Disposal of Materials Containing VOC

TO-BE-DETERMINED 1998
WST-01 Emission Reductions from Livestock Waste Laki Tisopulous- 909.396.3123