BOARD MEETING DATE: December 11, 1998 AGENDA NO. 28

PROPOSAL:

Best Available Control Technology Guidelines

SYNOPSIS:

At the October 1998 Board meeting, the Board continued the BACT Guidelines for 60 days to allow time for the proposed reformatting to be reviewed by the Board’s Advisory Groups and for staff to address concerns expressed during the public hearing. The reformatted BACT Guidelines proposal includes an enhanced public participation process.

COMMITTEE:

Home Rule Advisory Group, October 27 and December 10, 1998, Reviewed Local Government and Small Business Committee, November 6, 1998, Reviewed Administrative Committee, November 20, 1998, Reviewed Stationary Source Committee, November 20, 1998, Reviewed

RECOMMENDED ACTION:

1. Approve the format, process, and procedure for updating the AQMD BACT Guidelines, as proposed;
2. Direct staff to develop BACT Guidelines Part B updates for Degreasers, Spray Booths, Boilers and other priority items, and provide a status report to the Board within 90 days;
3. Direct staff to continue to work with U.S. EPA on New Source Review issues and provide periodic progress reports to the Home Rule Advisory Group and Stationary Source Committee; and
4. Receive and File this report.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The BACT Guidelines have been updated several times in the recent past and reports have been provided to the Board in July and December 1997 and in April, May, June, and October 1998. At the October Board meeting, staff was directed to work with the Home Rule Advisory Group and other interested parties to develop a new format for updating the BACT Guidelines, and report back within 60 days. Staff has accordingly held several public meetings, consulted with many affected parties, and provided progress reports to several Board committees in the course of developing the proposal outlined below. The alternative format and enhanced public process for updating future BACT Guidelines should address major public concerns, while maintaining the integrity of BACT and LAER, which are mandatory permitting requirements under state and federal laws.

Proposal

The AQMD BACT Guidelines consist of two parts: Part A – Policy and Implementation Procedure, and Part B – BACT Determinations. While the first part provides broad policy and procedure overview, the second part lists BACT requirements for about 270 equipment categories. Part A was presented to the Board and approved in 1995, while several updates to sections of Part B were reported to the Board during 1997 and 1998. The BACT Guidelines are advisory and a vehicle for providing the most up-to-date information to permit applicants and the public so that correct determinations can be made. The reformatted guidelines will be able to realize this goal more effectively in the future, as discussed in further detail in the October 1998 Board letter for Agenda No. 41.

BACT Guidelines – Part A

Part A of the BACT Guidelines, published in 1995, is out of date. Staff proposes to update Part A of the BACT Guidelines to reflect all current policies, procedures, rules, statutes and laws that are applicable to BACT determinations. This will ensure that the applicant is aware of all federal, state, and local requirements and procedures and options for his/her permit application, relative to BACT.

BACT Guidelines – Part B

Part B of the BACT Guidelines contains actual guidance for specific types of sources. It is recommended that future updates to Part B consist of two sections, namely Section (1) – AQMD Permit Listings, and Section (2) – Other Information.

Section (1) of Part B will contain information on AQMD LAER determinations in issued NSR permits, except for certified or registered equipment such as gasoline dispensing equipment or portable internal combustion engines, for which a single generic description may suffice. Information will be provided on equipment or process, company, permit requirements, emissions, and control technology such that a new permit applicant will be able to assess the applicability of such technology and emissions limits to a similar equipment or process. Staff will also monitor the compliance status of listed permits and provide regular revisions or updates to the information contained in the BACT Guidelines. Further details of the listing criteria are presented in the attached Staff Report. Permits will be listed according to source categories defined in EPA’s LAER Clearinghouse or CAPCOA Clearinghouse to facilitate coordination with those databases. Permits will also be sorted to display the most stringent emission limits first, to assist in identification of LAER for specific equipment. Staff also proposes to utilize the Internet and present such information on the AQMD Website, with links to other sites, databases, and permitting resources, as appropriate.

Since specification of more stringent technologies with lower emission standards are sometimes controversial, staff is proposing a 30-day public review of such information prior to permit issuance with such standards. This review will be conducted in a public forum, with notice to affected parties, environmental groups, the AQMD Scientific Review Committee (SRC), CARB, and U.S. EPA. Comments received will be carefully considered by staff, in keeping with the Executive Officer’s obligation to issue permits in conformity with applicable laws, statutes, and rules.

Section (2) of Part B will contain relevant data, including LAER determinations at other agencies, and information on new and emerging emission control technologies not yet specified as LAER in permits. This information will be discussed with the public and the SRC upon development. Such information will help applicants assess new emission control technologies for potential applicability in the future, but will not constitute AQMD BACT or LAER determinations until the process outlined on Section 1 is completed. The type and extent of information presented will vary by source category, but will be adequate for peer review and technical assessment. Many of the general parameters included in Section (1) listings will be common to Section (2) listings as well.

Permitting Advisories

Staff will include a brief discussion of specific permitting factors for controversial source categories such as degreasers, boilers, etc., in the BACT Guidelines updates in the future. These permitting advisories are intended to list known areas of limitations, exceptions, or other technical issues for the benefit of both permit applicants and AQMD permitting staff. Staff will work with industry groups and the SRC to develop these permitting advisories on an "as needed" basis.

Public Process

There is a need for an open and enhanced public process for discussion of control technologies, their applicability, and limitations for BACT assessment purposes. There is also a need to ensure that the public gets fast and ready access to the latest scientific and technical data on control technologies that may constitute LAER. Staff is therefore proposing the following improvements to the current process:

• The SRC will be reconstituted to include some of the present members and other technical experts to focus on technical aspects of control technologies that may qualify as BACT. This committee will meet monthly to review information on new technologies. The SRC serves in an advisory capacity to assist in keeping the BACT Guidelines up-to-date with accurate technical information.

• Staff will provide a 30-day public review period for interested parties to review control technologies that are being specified in a permit to meet a new and more stringent BACT standard for the first time. The SRC may meet to discuss such new and emerging control technologies. All advice and review comments will be carefully considered by the AQMD staff.

• BACT Guidelines Updates to Section (1) of Part B, consisting of AQMD Permit listings, will be done on a real-time basis on the Internet. This will provide the most current and relevant information to future permit applicants in a timely manner. Section (2) Updates, consisting of other information that may be useful for LAER determination, will be done on a quarterly basis, also on the Internet. Staff will provide a standing status report on all BACT Guidelines Updates to the Board’s Stationary Source Committee and the Governing Board on a quarterly basis, starting in March 1999.

• Staff will follow all criteria prescribed in Health & Safety Code 40440.10 & 40440.11 regarding BACT and BACT Guidelines when staff intends to require BACT that is more stringent than federal LAER for a new source permit.

• Staff will provide a status report on various aspects, including operating data for new types of controls, of the newly modified BACT Guidelines update process to the SRC at 6-month intervals. Further refinements and revisions may be suggested at that time, based on new findings and comments received.

Public Comment Docket

A docket is proposed to be established for public comments and responses from the staff or public with respect to BACT listings. This is intended to provide dissenting or divergent points of view from the public regarding technologies, emission standards, or other information contained in the BACT Guidelines. Staff intends to maintain the docket on an on-going basis and have it made readily available to the public for review.

Permit Appeals

There are existing processes for applicants to take issue with staff BACT determinations through the AQMD Hearing Board, Regulation XII provisions, and finally at the state courts of law. In addition, the BACT Review Committee composed of senior AQMD staff will be available to hear requests by any person regarding the appropriateness of BACT determinations prior to permit issuance. Staff will work towards making this option well known and available to all types of businesses at no cost to the applicant. The Executive Officer will carefully consider the recommendations of the BACT Review Committee in specific permit cases.

Future Plans

Conversion of the BACT Guidelines from the present format to the proposed new format requires adequate time to develop the information and conduct a public process with due diligence. Hence it is proposed to go through an orderly transition to update the BACT listings for specific source categories of interest to the public, following Board approval.

Staff proposes to focus on the following three source categories in an expedited manner and develop information in the new BACT Guidelines format within 90 days: Degreasers, Spray Booths, and Boilers. Other high priority items may be expedited as well. These listings will then replace the existing BACT Guidelines information on those respective source categories in Part B of the Guidelines. These BACT listings will be prepared with the existing information on examples of these source categories. In the future, regular updates will be done for all other source categories, as information becomes available, over time. When sufficient data becomes available for LAER determination in any source category, these listings will replace the existing BACT Guideline for that source category. The dynamic nature of this process ensures the validity and timeliness of information available to the public for determination of LAER in specific permitting situations.

Policy Issues

There are several policy issues with U.S. EPA’s LAER determination methodology that impacts AQMD BACT determinations, since AQMD BACT must be at least as stringent as federal LAER. Staff is working with the U.S. EPA, CARB, and members of the Home Rule Advisory Group to seek additional flexibility and a greater degree of local control in the application of BACT to local businesses. Staff will continue to provide progress reports to the Home Rule Advisory Group and other Board committees on such important policy issues. Options being investigated in this area include changes or clarifications in federal LAER policy, new directions in the federal NSR Reform, and revisions to AQMD NSR rules and regulations.

AQMP & Legal Mandate

In non-attainment areas, federal LAER is required for new and modified major sources [Section 173(a)(2) of the federal Clean Air Act; 42 U. S. C. Section 7503(a)(2)]. LAER is defined in Title 40 of the Code of Federal Regulations, section 51.165(a)(1)(xiii) as the most stringent emission limitation which is (1) contained in the implementation plan of any state for such class or category of stationary source, unless the owner or operator of the proposed stationary source demonstrates that such limitations are not achievable, or, (2) achieved in practice by such class or category of stationary sources. The AQMD implemented the mandate for LAER by adopting the requirements for BACT for new, modified, and relocated installations in Regulation XIII - New Source Review, and Regulation XX -Regional Clean Air Incentives Market (RECLAIM). California Health and Safety Code Section 40440(b)(1) also requires the AQMD to use state BACT which is defined the same way as LAER for new and modified sources.

Implementation Plan

Staff will continue to implement BACT in conformity with both the requirements of federal LAER and Regulations XIII and XX. Work will continue towards updating the remaining BACT requirements, in close cooperation with the SRC and affected and interested parties. All permit holders and interested parties will be kept informed of developments in this area through mail, outreach, and Internet postings on the AQMD Home Page.

Resource Impacts

AQMD resources are sufficient to implement the changes to the BACT Guidelines with no impact on the budget.

Attachments

Summary of BACT Guidelines Update
BACT Guidelines Development Process
Key Contacts
Staff Report

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