PROPOSAL:

Set Hearing November 14, 1997 to Amend
Rule 1110.2 - Emissions from Gaseous- and Liquid-Fueled Internal Combustion Engines

SYNOPSIS:

Proposed amendments will revise the requirements for portable engines to be consistent with federal and state regulations, delete the continuous emission monitoring requirements for CO, remove compliance plan submittal requirements, revise source testing requirements for all stationary engines, specify that CEMS meet CFR requirements, allow an alternative to CEMS, and authorize alternate emission limits equivalent to replacement with electric motors. Further, the exemption for snow manufacture and ski lift operations will be amended, exemptions added for operations on San Clemente Island, EPA non-road engines, engines registered by CARB, and the exemption for operations during a declared disaster or state of emergency is deleted.

COMMITTEE:

Stationary Source, October 24, 1997, scheduled for review.

RECOMMENDED ACTION:

Set Public Hearing November 14, 1997 to Amend Rule 1110.2 - Emissions From Gaseous- and Liquid-Fueled Internal Combustion Engines.

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

Background

Rule 1110.2 was adopted in August 1990 to control Oxides of Nitrogen (NOx), Carbon Monoxide (CO), and Volatile Organic Compounds (VOC) from gaseous- and liquid-fueled internal combustion engines (ICEs). It was amended in September 1990 to clarify rule language. It was again amended in August and December of 1994 to modify the CO monitoring requirements and to clarify rule language. The rule requires emissions from all stationary engines over 50 bhp and portable engines over 100 bhp to be reduced to a compliance limit specified by the rule, or the engines be permanently removed from service or replaced with electric motors. The NOx compliance level for portable and most stationary ICEs is 36 ppm or 45 ppm of NOx at 15% O₂.

The EPA Nonroad Engine Regulation, 40 Code of Federal Regulation (CFR) Part 89 -- Control Of Emissions From New And In-use Nonroad Engines, was published in the Federal Register on June 17, 1994 to comply with Title II of the federal Clean Air Act Amendments of 1990. The regulation established emission limits regulated at point of manufacture and preempted states and local districts from certain regulatory requirements.

On March 27, 1997, the Air Resources Board (ARB) adopted sections 2450-2465, Title 13, California Code of Regulations, establishing a Statewide Portable Equipment Registration Program for portable internal combustion engines and associated equipment. The regulation (ARB Regulation) preempts districts from permitting, registering, or setting emission standards or limits for portable engines and equipment units registered with the state.

Presently, there are no suitable technologies to reduce the NOx emissions from portable compression-ignited ICEs to the required levels of Rule 1110.2. With the promulgation of the EPA Nonroad Engine Regulation and the adoption of the ARB Regulation, staff believes that there will be no new technologies developed for portable ICEs to meet the current compliance levels by the required compliance date, December 31, 1999.

Proposal

To be consistent with the state and federal regulations and RECLAIM, to ease the regulatory burden to the affected industry without sacrificing air quality in the AQMD, and based on review of available data, staff recommends the following amendments to Rule 1110.2:

For stationary engines:

• Add an exemption for engines operating on San Clemente Island (SCI engines).

• Revise the exemption for stationary engines operating for the manufacture of snow and/or operation of ski lifts (ski lift engines) to allow seasonal operation instead of annual operating time.

• Add a provision requiring the Executive Officer to conduct a technology assessment to determine relative contribution of ski lift engines to potential PM_2.5 violations, and report to the Board any recommended actions to be taken to ensure PM_2.5 standard compliance.

• Remove the CEMS requirements for CO for certain engines, since chances for CO concentration exceedance are remote.

• Revise the source testing requirements from annual to once every 3 years and add the provisions for non-operating engines, for consistency with RECLAIM testing requirements.

• Allow alternate emission limits equivalent to replacement with electric motors.

• Remove the exemption for declared disaster or state of emergency since the exemption is covered by Rule 118 - Emergency.

• Specify that CEMS meet CFR requirements.

• Remove compliance plan submittal requirements.

For portable engines:

• Lower the applicability of the rule to portable engines from 100 bhp to 50 bhp for consistency with the federal and state regulations.

• Mirror the portable engine definition, emission limits, and final compliance date (2010) in the ARB Regulation. This will allow implementation of the Chairman’s initiative to address the localized impact of portable equipment in a manner that complements the existing statewide registration program.

• Add an exemption for engines registered with the state.

• Add an exemption for EPA nonroad engines.

• Remove compliance plan submittal requirements.

Policy Issues

A public workshop was held on December 14, 1995 to solicit information and suggestions from the public. The second public workshop was held on July 3, 1997 to receive additional comments and suggestions. Staff has addressed the concerns raised by industry and the public in Appendix A - Response to Comments on Proposed Amended Rule 1110.2.

AQMP & Legal Mandates

The proposed amendments will result in an emission increase of 6.9 tons per day of NOx. Except for a small emission increase due to the proposed exemption for SCI engines and proposed revision to the exemption for the ski lift engines, the emission increase is due to the changes in requirements for portable engines to provide consistency with the statewide registration program. Staff has reviewed the available monitoring data, conducted modeling, and determined that the proposed exemption for SCI engines and the proposed revision to the exemption for ski lift engines will not have a detrimental effect on air quality in the AQMD. Staff will return to the Board within 120 days with suggestions on how the emission reduction foregone might be mitigated through future controls on IC engines or other sources..

CEQA & Socioeconomic Analysis

The AQMD has reviewed the proposed project pursuant to State California Environmental Quality Act (CEQA) Guidelines §15002 (k)(1) and AQMD CEQA Implementation Guidelines §1.2 (k)(1), the first step of a three-step process for deciding which document to prepare for a project subject to CEQA. Accordingly, the AQMD has prepared the appropriate CEQA document, consisting of a Draft Subsequent Environmental Assessment (SEA) to the original Environmental Assessment prepared for Rule 1110.2 (adopted on August 3, 1990). The Draft SEA identified potential adverse environmental impacts to air quality and energy and mineral resources that may result from adopting the proposed project. Further, the Draft SEA includes a comparison of project alternatives. The Draft SEA has been circulated for a 45-day public review and comment period and is included as part of this package. The Final SEA will be prepared and will include responses to all comments received on the Draft SEA.

A Socioeconomic Assessment is included as an addendum to the Staff Report. The Assessment indicates that the proposed amendments will provide a potential cost savings for owners/operators of stationary engines and all portable engines except those in the 50-to 100-bhp size class. Owners of these small portable engines may incur minor costs as a result of replacing or retrofitting them to meet the proposed amended interim and final emission limits.

Implementation Plan

Notify all engine permit holders of the state registration program when it becomes available and the following major amendments to Rule 1110.2:

• The change in the source testing requirements.

• The inclusion of portable engines rated at 50 - 100 bhp.

• The removal of the compliance plan submittal requirements.

• The removal of CEMS requirements for CO.

• The authorization of an approved alternative to CEMS.

• The authorization of alternate emission limits equivalent to replacement with electric motors.

Resource Impacts

Deletion of the CO continuous monitoring requirements may require the AQMD to conduct more source tests for CO compliance verification. Since the number of engines of 1,000 bhp or greater operating more than 2,000,000 bhp-hours a year is small, resources may be reallocated internally to meet increasing needs.

Since most or all portable engines will be registered with the state, there will be a loss in AQMD revenue. Staff estimates that the annual revenue loss will be $560,000 if 75% of all eligible engines are registered with the state and 25% continue to be permitted with the AQMD, and $740,000 if 100% of all eligible engines are registered with the state. Staff believes that the revenue loss will occur whether Rule 1110.2 is amended or not, and this has been accounted for in the AQMD budget.

Attachments

A Summary

B. Rule Development Process

C. Key Contacts

D. Revised Rule Language

E. Staff Report

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