Proposal:

Seek Federal Action to Provide Flexibility on the Records and Practices Required to Demonstrate Compliance with Title III Air Toxic Regulations

Synopsis:

The Home Rule Advisory Group is requesting Board approval to seek U.S. Congressional support for flexible criteria for local program approval and a one-year extension to resolve issues on monitoring, recordkeeping, reporting, and work practice requirements for specific federal Title III regulations.

Committee:

Legislative, June 27, 1997, reviewed and concurred with the general proposal.

Recommended Action:

Approve the proposal recommended by the Home Rule Advisory Group (HRAG).

Norma Glover Nell Soto S. Roy Wilson
Co-Chair, HRAG Co-Chair, HRAG Co-Chair, HRAG

Background

By the end of 1997, over 6,000 businesses in the South Coast Air Basin will become subject to the first 14 Title III regulations. In some cases, the federal regulations address Hazardous Air Pollutants (HAPs) not currently covered by local rules. In these cases, AQMD proposes to expand the scope of the local rules to match emissions requirements. Most of the Title III Regulations duplicate existing requirements and include significantly increased recordkeeping, reporting, and work practice requirements.

Most of the companies under Title III will be small businesses. Extensive recordkeeping requirements could prove difficult for these businesses to meet. Once the business has installed the required control equipment, or is using the prescribed VOC products, recordkeeping requirements should be kept to those that are absolutely required to ensure compliance. Field inspections and source education will supplement recordkeeping.

During the last two years, and extensively during the last seven months, the AQMD’s Home Rule Advisory Group has been working with CARB and the California Air Pollution Officers Association (CAPCOA) to integrate state and federal toxic program requirements. The goal is to match or exceed environmental benefit; and obtain authority to streamline the records companies have to keep to demonstrate compliance. Progress in the talks with EPA has been slow. Agreement has not been reached on the test to determine local program equivalency. Time is of the essence for finding a compromise. The first wave of Title III regulations will go into effect in 1997. The following chart summarizes the 14 regulations that will affect sources in the AQMD this year.

TITLE III REGULATIONS FOR 1997	Number of Sources in	SCAQMD*
Source-Specific NESHAPS	Subject to all Requirements (Major +)	Area Sources Initially Only Subject to Recordkeeping
Chrome Plating	235	0
HON/Vents, etc.	1	0
Secondary Lead Smelting	2	0
Dry Cleaning	6	2,380**
Wood Furniture Coating	5-10	800
Gasoline Distribution	4	150
Commercial Sterilization	0	5
Degreaser	523	2,129
Shipbuilding	3	0
Petroleum Refinery	11	0
Aerospace	72	223
Marine Vessel Loading	0	15
Printing/Publishing	5	0
Off-site Waste Recovery	10	0
Totals	877-882	5,702
General NESHAPS
General Provisions	Any facility with HAP emissions (at least 5,000 facilities)
112(g) New Source Review	Any major source of HAP emissions without NESHAP requirements.
112(l) Equivalency Provisions	250 facilities [Number of sources in categories actively seeking equivalency (chrome plating, refineries)]	All facilities subject to NESHAPS in SCAQMD
112(r) Accidental Releases	Approximately 1,000 facilities

* Numbers based on reported VOC emissions for most sources.

**State Air Toxic Control Measure deemed equivalent, thereby reducing some of the administrative burden.

California’s local districts have a long and well-established history of regulating emissions from the vast majority of these sources. Between rules for VOCs, air toxics, particulate matter, New Source Review, recordkeeping, etc. and permitting practices, field inspections, compliance audits, and source outreach and education, and previous reductions achieved under the AB 2588 air toxics program, the existing California and AQMD system to regulate emissions already does 90 to 95% of the job that the federal regulations are about to require. Beyond this, AQMD regulates many more toxic sources than Title III because of the AQMD’s long-standing commitment to reduce public risk.

Congress intended Title III to be based on the best of current practice, and thus, required EPA to base the emission requirements on the top 12% of local control requirements. The following figure illustrates the typical components of the NESHAP, and notes (in italics) the California recommendation for local program equivalency.

Rule Components & Equivalency

Proposal

The Home Rule Advisory Group recommends that the Governing Board approve the following proposal.

1. Seek Support from Senior Administration Officials and California’s Congressional Delegation for Flexible Criteria for Local Program Approval and a One-Year Extension of Time on Certain Title III Requirements

Authorize the Chairman and representatives from the Home Rule Advisory Group to meet with Senior Administration Officials and members of California’s Congressional Delegation and discuss options for:

• Actions to encourage EPA to be flexible in establishing the criteria for local program approval, through Section 112(l);

• Actions to encourage EPA to provide a one-year extension of time on all 1997 and 1998 NESHAPS in order to streamline monitoring, recordkeeping, reporting, and work practice requirements;

• The potential for local Congressional hearings to allow businesses the opportunity to provide input on the issue; and

• If resolution is not reached with EPA, consider legislation to provide a one-year extension of time on streamlining the records and work practices required to demonstrate compliance.

Specifically, the one-year extension of time would be granted pursuant to the following criteria:

A. Local districts would be allowed to streamline compliance demonstration requirements if they had local requirements in place that provided equivalent environmental benefit. The definition of equivalent benefit would be determined for each NESHAP and would be based on a simple four-step evaluation. Step One: Demonstrate that the same (or greater) number of businesses are regulated by the local rule. Step Two: Demonstrate that the same control equipment or VOC emission limits are required, with comparable control efficiency. Step Three: When a NESHAP lists a HAP not previously referenced in the local rule, provide for the automatic update of the local program to incorporate equivalent coverage. Step Four: Demonstrate that the local program in total addresses the basic components in the NESHAP.

B. In California, EPA should delegate this determination responsibility to local districts.

2. Seek Support from Other California Partners in Obtaining the One-Year Extension

The Home Rule Advisory Group is a part of a California coalition that includes CARB, CAPCOA, and a state task force with business and environmental representatives. Over a hundred public and private organizations are involved in the total effort. It will be valuable to broaden the base of the coalition and seek the support of the following groups: League of Cities, California State Association of Counties, Councils of Government, and Chambers of Commerce.

Authorize an outreach effort to seek the support of additional partners in this campaign for relief.

3. Launch a Business Outreach Program to ensure that companies affected by the 1997 Title III regulations are aware of the federal requirements.

Initiate the Business Outreach Program with a major Title III Users Conference to be held in September 1997. Invite EPA to present their regulations and participate in discussion groups with the affected industries. Follow the kick-off conference with a series of source education classes, to fully brief businesses on pending changes to permits, and new recordkeeping and reporting requirements. Notice for this conference will include: approximately 6,000 companies, over 200 identified interest groups, local governments, and office representatives from the AQMD’s Congressional Delegation.

Attachment

State of California Congressional Delegation for the South Coast Air Basin

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