REPORT:

Stationary Source Committee

SYNOPSIS:

The Stationary Source Committee met Friday, September 19, 1997. Following is a summary of that meeting. The next Stationary Source Committee meeting is October 24, 1997, at 10:30 a.m., in Conference Room CC8.

RECOMMENDED ACTION:

Receive and File.

Mee Hae Lee
Chair, Stationary Source Committee

Attendance

The meeting began at 11:13 a.m. Present were Committee Members Richard Alarcon, Jon Mikels, Leonard Paulitz, and James Silva. Also in attendance was Board Vice Chairman Norma Glover who chaired the meeting. Absent were Committee Chair Mee Hae Lee and Committee Member Ronald Loveridge. Board Member Nell Soto attended the meeting but did not participate.

Summary

The Committee reviewed the items on their agenda (attached). Comments were noted on the following items:

1. AQMD Compliance Report (Item #1 on the agenda)

Stationary Source Compliance Deputy Executive Officer Pat Leyden reported on the second in a series of operation reports on Stationary Source Compliance. The Committee heard a report last month on Permitting and this month on Compliance. Compliance activity at the AQMD is in three areas: (1) Small Business Assistance and Compliance Promotion Outreach, (2) Facility Inspections and Rule Evaluations, and (3) Community Complaints. Ms. Leyden told the Committee that 10,000 complaints are received each year from the community and over one-third are followed up with inspections. Responding to community complaints is a large part of the Compliance program. Also, through source education and public outreach, we try to help businesses know in advance what the regulatory requirements are so they can operate in compliance. Ms. Leyden explained the most frequently violated rules. In 1996-1997, over one-third of the violations were issued to companies operating equipment without a permit to construct or operate. The gasoline transfer/storage and vapor recovery rules account for about 23% of non-compliance, VOC rules account for about 15%, visible emissions/opacity rules about 10%, and public nuisance rules about 12%.

Ms. Leyden further explained the types of complaints received. In processing about 11,000 permits per year, we receive almost the same amount of complaints. About 60% of the complaints are for odors, and the remaining 40% for dust, smoke, asbestos, overspray, etc.

Ms. Leyden reported on Major Compliance Issues for 1996-1997. She told the Committee that Major Sources represent 80-98% of each criteria pollutant for stationary sources and that each of 1,281 major sources are inspected annually. An annual emission audit of every RECLAIM source was done and showed good emissions compliance in RECLAIM (92% - Second Year Audit). In 1996, there was strong field presence at the expense of significant overtime ($216,579).

Minor Source Compliance Issues were discussed. Ms. Leyden said there were over 30,000 permitted sources, plus thousands more of non-permitted sources, which are subject to AQMD rules. Compliance rates decline with inadequate field presence. Only an estimated 2,500 - 4,000 sources are inspected annually. With the layoffs a few years ago there is a significant problem of infrequent inspections of small sources, with many not inspected for 4-5 years.

Regarding Rule Compliance Audits, Ms. Leyden explained that during the last 18 months the audits showed mostly good compliance. One exception was Rule 461 - Gas Stations. The rule for gas stations requires 95% control to reduce emissions to 15 tons per day. She told the Committee that 400 of more than 4,100 stations were inspected and 37% had major equipment defects, and over 90% had some rule compliance problems. Ms. Leyden said staff resources, reduced from 16 inspectors in 1990 to four inspectors today, are inadequate.

Next, Ms. Leyden discussed Overall Field Presence in 1990-1997. She said that in 1990, a pre-recession year, about 50,000 inspections were done, last year 28,000, and in the first half of this year about 15,000. This is a 43% decrease in the field. In 1990, about 6,000 Notices to Comply (NCs) were issued, about 2,600 in 1996, and about 1,500 in the first half of 1997. In 1990, about 2,400 Notices of Violation (NOVs) were issued, about 800 in 1996, and about 670 in the first half of 1997.

In the area of Stationary Source Compliance staff, Ms. Leyden told the Committee the total number of Air Quality Inspectors and Supervising Inspectors/Section Chiefs in 1990 was 179, in 1996 the total was 94; and 95 in 1997. This represents a 48% decrease from 1990.

Ms. Leyden ended her presentation with a brief discussion on Major Compliance Objectives for 1997-1998. These objectives are to increase response to community concerns; correct the gas station compliance problem; correct the recordkeeping with dry cleaners; reverse the trend to operate without a permit; enforce periodic monitoring requirements under Title V; handle new significant workload increases from Title III; increase rule compliance audits; ensure equity in compliance assurance; and increase enforcement staff resources.

Committee Member Silva recommended a study session for the Board to interact with staff on goals and objectives for compliance. The Committee agreed and staff will work with the Board Chairman and Vice-Chairman to select a date for the study session.

Committee Member Alarcon commented on the reduced inspector positions and reduced workload. Ms. Leyden explained that there would be a request for additional positions in the next few months, through the budget process. Mr. Alarcon also commented on the $4 million loan fund and whether some of this money could be used for more inspectors. Ms. Leyden explained that this program is administered through the Public Advisor’s Office and a report could be brought back at the next Committee meeting on how the program is doing. Mr. Alarcon suggested there may be a way to use some of that money to increase the number of inspectors.

Committee Member Paulitz asked whether Ms. Leyden’s budget request was for an adjustment this year or for next year. Ms. Leyden said the request would be for next year, but in the short term she had discussed a proposal with Acting Executive Officer Barry Wallerstein to reassign three additional inspectors to the gas station program. Mr. Paulitz suggested that a mid-year budget review might be necessary, so that unforeseen problems could be considered by the Board.

Curt Coleman, representing California Manufacturers Association, Southern California Air Quality Alliance Association, and California Aerospace Environmental Association, recommended that some contact be made with the service stations association and that jointly they and the AQMD could develop compliance improvement programs. Ms. Leyden said this was already being done.

2. Gas Station Audit (Item #5 on the agenda)

Stationary Source Compliance Assistant Deputy Executive Officer Jack Broadbent presented this item. He reported to the Committee the results of the Retail Gasoline Dispensing Facility Rule 461 Audit (attached) This rule requires installation of equipment at gasoline dispensing facilities that CARB certifies to control VOC and hazardous air pollutant emissions by 95%. There are approximately 4,100 retail and 3,300 non-retail facilities which pump 6.5 billion gallons of gasoline annually, resulting in uncontrolled emissions of 170 tons per day of VOC. With controls, these emissions are reduced to 15 tons per day. The rule was amended in August 1995 to require daily and periodic self-inspection and periodic compliance verification testing for retail stations. The AQMD staff provided self-compliance training to station operators, and an administrative audit was conducted on 400 randomly selected facilities.

Stationary Source Compliance Senior Manager Larry Bowen demonstrated the two types of systems used at gasoline service stations. Vapor recovery was first required in the late 1970s. He explained Phase I vapor recovery (tanker truck dispenses gasoline into an underground tank and displaced vapors go back into the truck), and Phase II vapor recovery (gas pump to car with displaced vapors going back into the underground tanks). Mr. Bowen’s demonstration involved Phase II, and the differences between the bootless nozzle and the balance and assist nozzle.

Mr. Broadbent concluded his presentation with the following recommendations to: enhance field presence with existing resources; develop resources for an enhanced compliance testing strategy; consider the addition of resources to re-establish compliance levels consistent with AQMD policy; evaluate current policies, procedures, and methods to identify opportunities for more efficient operations; assist the industry in the correction of their poor compliance status; consider future amendments to Rule 461; and report on an action plan at the next Stationary Source Committee meeting.

Ron Wilkniss of the Western States Petroleum Association says he has met with staff and is disappointed with the results, and is taking the issue very seriously. It is his belief that industry has put forth a significant effort and needs to do a better job--and will. He is talking to staff to see what can be done and hopes the news is not as bad as it appears. Mr. Wilkniss says some equipment is subject to abuse by the motoring public. He told the Committee that one issue being worked on with staff is to address the requirements under state law of allowable defects.

3. Regulation XXX - Title V Permits and Rule 212 - Standards for Approving Permits (Item #2 on the agenda) and Title V Public Notifications and Hearings (Item #4 on the agenda)

Stationary Source Compliance Senior Manager Pang Mueller reported on the two rules being heard together to address changes and concerns that industry and the environmental community have. She told the Committee that proposed amendments for Regulation XXX would exclude facilities that have permanently reduced emissions from Phase I; provide for concurrent public and EPA review to reduce permit processing time; use actual emissions to determine applicability for new and modified facilities; clarify requirements for portable equipment; and extend the deadline for requesting a public hearing, from 10 days to 15 days. She said proposed amendments for Rule 212 would update rule language to comply with noticing requirements under state law; eliminate the one-fourth mile radius notification requirement for non-hazardous air pollutant emission increases; and revise the noticing level for sources emitting carcinogenic air contaminants.

Ms. Mueller briefed the Committee on the key issues of Regulation XXX. Currently there are 60 new and amended rules that are awaiting EPA approval into the State Implementation Plan (SIP); and 21 rules are high priority because they are either necessary for Title V implementation or they relax the previous rule requirements. Regarding public hearings, the time limit to request a public hearing is increased to 15 days; forms and information brochures are being developed to assist the public; and Title V facilities will have an option to share the cost by combining public hearings.

Ms. Mueller reported that portable equipment that operates on a routine and predictable basis at a Title V facility must be included in the Title V permit and is subject to applicable requirements in Regulation XXX, and CARB-registered portable equipment is subject to the same requirements as portable equipment. Proposed periodic monitoring requirements for each SIP-approved rule were released for public comment on August 22, 1997; a public consultation meeting was held on August 27, 1997; and industry expressed concerns about annual source testing requirements.

In conclusion, Ms. Mueller told the Committee that a large number of both compliance and permitting staff has been reallocated from other permitting and compliance activity for this effort; during FY 1999-2000, additional staff will be needed, and all permits issued by March 31, 2002; and due to additional procedural and monitoring requirements, it will take 60 days or more to process most permit applications for Title V facilities.

Curt Coleman told the Committee that there were a couple of issues that have not been resolved with staff on Rule 212 and Regulation XXX. Some disagreement exists with EPA on Title V requirements for portable equipment. The Ad Hoc Title V Committee will meet with staff in a week to discuss these issues.

4. Status Report on Port Activities (Update) (Item #3 on the agenda)

Ms. Coy reported to the Committee on the Particulate Monitoring Advisory Committee. A large public meeting was held in August 1996 in the port area. Concerns from that meeting focused on general air quality in the port area. As a result, AQMD pledged $25,000 for a community air monitoring program, and a community advisory committee was formed to design that monitoring program. As a result, monitoring was conducted at eight sites, which were selected with this monitoring committee of citizens, who met with AQMD staff four times.

Ms. Coy said the Long Beach station average showed a pretty representative level of dust in the areas. The results indicated diesel products made up the largest portion of the samples, as well as road dust, tree sap, etc. Ms. Coy said the citizens are happy the study was done and a final report will be presented to the committee next week. The report will also be presented at a public meeting, date and time to be determined.

5. Federal Air Toxics: Title III Conference (October 7, 1997) (Item #6 on the agenda)

Ms. Leyden briefly discussed the conference agenda. She said a full agenda package with background material will be sent to Board members who are participating . Thus far, two reminder notices have been sent to approximately 8,000 companies affected by the regulations. Also, follow up telephone calls have been made. About 250 people have pre-registered and 300-400 people are expected to attend the conference, which will be held at the Sheraton Industry Hills, City of Industry.

6. Board Air Toxics Workshop (Item #7 on the agenda)

Mr. Broadbent gave an update on the workshop. He said that at the May 1997 Governing Board meeting, Rule 2501 - Air Quality Investment Program was adopted. The resolution for that rule included a commitment to hold an AQMD workshop on the health impacts of toxic and hazardous air pollutants and a review of regulatory efforts. At the last Board meeting, Chairman William Burke introduced his Environmental Justice Initiatives. One of those initiatives calls for "The Governing Board to re-open for public comment the toxics significance thresholds for cancer and non-cancer impacts contained in Rule 1402 - Control of Toxic Air Contaminants from Existing Sources, and consideration of adding additional compounds and non-carcinogenic impact prevention into Rule 1401 - New Source Review of Carcinogenic Air Contaminants." In response to this initiative, the Board’s Air Toxics Workshop will also be a forum for discussing Rules 1401 and 1402. Staff is proposing a special Board meeting in December for this event. Mr. Broadbent said Board members will be asked to facilitate the meeting. The target audience will be citizens, environmental groups, industry, and regulators.

7. Public Comments (Item #8 on the agenda)

John Billheimer commented on Rule 212. He said that requirements for public comments on permits on this rule are 180 degrees opposite permit streamlining. Any permit subject to public notice cannot be processed in less than 90 days, which is a very long time for a small business to wait for a permit.

The meeting was adjourned at 12:45 p.m.

Attachments

1. September 24, 1997 Committee Agenda (without Attachs. #2 & #3)

2. AQMD Compliance Report (Attachment #1 on the agenda)

3. Retail Gasoline Dispensing Facility Rule 461 Audit

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