PROPOSAL:

Set Public Hearing January 8, 1999 to Amend Rule 1401 – New Source Review of Toxic Air Contaminants

SYNOPSIS:

In July 1998, the Governing Board continued the hearing to January 1999 for consideration of adding sodium hydroxide, hydrochloric acid, and nickel compounds, pending source tests to better characterize emissions from metal plating operations. The proposed amendments would add these chemicals, as well as 41 compounds for which OEHHA has recently finalized risk values.

COMMITTEE:

Stationary Source, September 18, 1998, Reviewed

RECOMMENDED ACTION:

Set Public Hearing January 8, 1999 to Amend Rule 1401 – New Source Review of Toxic Air Contaminants

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In July 1998, the South Coast Air Quality Management District (AQMD) Governing Board (Board) made significant progress in implementing one of their Environmental Justice Initiatives by adopting revisions to Rule 1401 - New Source Review of Toxic Air Contaminants. Approximately 100 compounds and a requirement to consider non-cancer impacts were added to the rule. The Board postponed the consideration of adding more nickel compounds, hydrochloric acid, and sodium hydroxide until January 1999 and directed staff to conduct source tests to better quantify emissions from processes used in the metal plating industry. This proposed amendment recommends addition of these compounds.

This proposed amendment would also add 41 chemicals for which the Office of Environmental Health Hazard Assessment (OEHHA) has recently established risk values. This is consistent with the July amendments to the rule, which require staff to bring changes to the Board within 150 days of OEHHA’s final action. The proposal will also add 6 compounds previously analyzed for the July amendment but were omitted from the rule. A public workshop was held on October 7, 1998 to discuss the proposal. Approximately 100 people attended and a summary of comments received is contained in the attached staff report.

Proposal

Plating Operations

In cooperation with the Metal Finishing Association of Southern California (MFASC), the AQMD conducted source tests to better characterize the emissions from metal plating processes. From July to October, the AQMD and representatives of the MFASC met on a weekly basis and collaborated on all aspects of the sampling and testing.

Sampling and testing protocols were developed and sampling locations were selected. Five locations were mutually selected and sampled. Six source tests were run on five types of tanks and one spray tunnel. This effort cost over $70,000.

For sodium hydroxide and hydrochloric acid, the new and more accurate emission factors are much lower than the previous factor. This will enable many tanks to be added without triggering the risk threshold that would result in additional control equipment.

For nickel, three plating operations were tested – electroless and electroplating with or without agitation. Electroplating with physical agitation is the most common type of nickel plating. The test results demonstrated that electroless plating has negligible emissions and confirmed that the emission factors for electroplating are similar to the previous factor. In limited applications, changing to electroless plating may be possible. The most common types of nickel tanks would need controls to comply with Rule 1401 limits for new, modified, or relocated tanks.

Control of nickel emissions from these sources are estimated to range from $17,000 to $115,000, depending on tank size. Application of T-BACT would allow growth for this industry while protecting public health. As compliance options, operators may use electroless plating or demonstrate lower emissions through source testing.

Another issue impacting potential costs of controls for nickel tanks is the risk factor established by OEHHA, a branch of Cal/EPA. The MFASC would like OEHHA to consider the soluble forms of nickel used in plating differently than other nickel species. The MFASC has commissioned a study by Technical Excellence in Risk Assessment (TERA) to evaluate information available since OEHHA’s determination of a risk factor for nickel. The report is subject to peer review and the final report is to be completed in January 1999. This report will be submitted to OEHHA with a request to review the potency of soluble nickel.

At the Board’s direction in July, staff had two experts review relevant literature and summarize information available relative to the carcinogenicity of soluble nickel. An epidemiologist from the University of California at Berkeley, and a toxicologist from the University of California at Irvine were contracted. Both recommend that soluble nickel be treated as a human carcinogen.

Staff recommends that we follow the model previously established in Rule 1401 that we rely on the expertise of OEHHA for determination of cancer and other risk factors. If OEHHA revises the factor for soluble nickel after review of the TERA report or other information, we will bring the revised factor back to the Board. The OEHHA review may take 1-2 years. This approach is more protective of public health.

Revised Risk Numbers

Rule 1401 includes toxic air contaminants with risk factors established by OEHHA. OEHHA periodically reviews and revises risk factors. According to paragraph (e)(2) of Rule 1401, staff is required to report to the Board with recommendations to add chemicals within 150 days after OEHHA has finalized risk factors.

On June 3, 1998, the Scientific Review Panel approved factors developed by OEHHA for 41 carcinogenic air contaminants. OEHHA considers this approval as their final action. A review of the past 3 years permit history indicated that only a few permits per year may potentially be affected. In addition, there were six compounds, which were analyzed as part of the July 1998 amendments but were inadvertently not included in Table I of the rule.

AQMP & Legal Mandates

Rule 1401 is a program that is in part mandated by state and federal requirements. The proposed changes to Rule 1401 are consistent with CARB guidelines for toxic new source review.

CEQA & Socioeconomic

SCAQMD staff has reviewed the proposed Rule 1401 pursuant to state CEQA Guidelines Section 15002 (k)(2). A Draft Supplemental Environmental Assessment (SEA) with no significant adverse impacts has been prepared because, although the Draft SEA concluded that the proposed rule has the potential to adversely affect air quality and other environmental areas, the impacts will not be significant. The Draft SEA is being circulated for a 30-day public review and comment period which ends November 30, 1998. All comments received will be addressed and incorporated into the final SEA for the proposed project.

A socioeconomic assessment is included as part of the staff report. Impacts from adding compounds related to metal plating are expected to be lower than estimates in the July 1998 amendment package. The July 1998 report estimated that a range of 10 – 52 jobs per year would be foregone from the 2 main industries that use nickel plating, fabricated metal and electronic equipment. Control equipment is estimated at $17,000 - $115,000 per tank, depending on size. The estimated annual average cost to the metal plating industry is $608,000 to $3.4 million. Impacts from the addition of 41 new compounds is anticipated to be minimal, potentially affecting only a small number of permits per year.

Implementation Plan

Existing AQMD resources will be used to implement the rule. The guidance document will be updated for use in analyzing all permit applications for new, modified or relocated equipment emitting the affected compounds. Engineering staff will be trained on the changes to the risk values.

Attachments

Summary of Proposal
Key Issues and Responses
Rule Development Process
Key Contacts List
Proposed Rule Language
Draft Staff Report (including Socioeconomic Assessment and Draft Supplemental
Environmental Assessment)

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