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PROPOSAL:

Best Available Control Technology Guidelines Update

SYNOPSIS:

The BACT Guidelines are being updated to reflect new federal Achievable LAER for two277 equipment categories for petroleum valves and large compressors, connectors, drains, gas turbines, internal combustion engines. valves, and vapor degreasers. These emission rates constitute both federal state BACTLAER and BACT under AQMD comply with state BACT, and constitute BACT under AQMD rules.

COMMITTEE:

Stationary Source, April 17, 1998, Reviewed.

RECOMMENDED ACTION:

Receive & file the amendments to the BACT Guidelines reflecting new LAER/BACT requirements for two2727 equipment categories listed in Attachment B of the Staff Report.

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

Background

In issuing pre-construction or operating permits for major and non-major sources, the Executive Officer is charged:

• under AQMD Regulation XIII - New Source Review (NSR) and Regulation XX - RECLAIM, to use BACT for any construction of a new or relocated source, or modification of an existing source which results in increased emissions of any nonattainment air contaminants, ozone depleting compounds, or ammonia;

• under Regulation XIII, to periodically publish BACT requirements for commonly permitted classes or categories of sources. The AQMD published the first BACT Guidelines in May 1983, and later it revised in October 1988; and

• to ensure that every permit subject to Regulation XIII or XX complies with federal LAER and BACT40440(b)(1)]. The AQMD implements BACT and federal LAER under Regulations XIII and XX. These regulations required that AQMD BACT mustay be at least as stringent as LAER, and extend the applicability of LAER to all sources in the South Coast Air Basin.

In March 1994, the Governing Board initiated a two-part program to update the BACT Guidelines. The purpose of this update was to: (1) establish a process for determining BACT, (2) comply with federal, state, and local statutory or regulatory requirements for nonattainment air contaminants, (3) allow for public review and comment, and (4) provide an up-to-date listing of BACT. The first part of the program provided procedures to be used for future updates of the BACT Guidelines.

proposed to establish the process by which AQMD would determine, update, and apply BACT. This bill was enacted into law in 1995 and added to the Health and Safety Code as Sections 40440.10, 40440.11, and 40920.6. The process established under the California Health and Safety Code, section 40440.11 applies only in cases where the AQMD is proposing to establish a BACT requirement that is more stringent than the federal LAER.

The second part of the Governing Board’s BACT update program requires establishing and updating BACT requirements to reflect current control technologies for at least 259 commonly permitted equipment categories. For this purpose, in 1996 the AQMD began updating the BACT Guidelines in 1996. On July 11, 1997, December 12, 1997, and April 10, 1998, the AQMD updated the BACT Guidelines to reflect Guidelines incorporatedLAER/BACT requirements for 45, 2, and 27 equipment, respectively,categories in the Phases II, IIA, and IIBA updates respectively.into the BACT Guidelines. This action constitutes the Phase IIC BACT Guidelines update. The remaining equipment categories are contained listed in Phases IIC, IIDB, III, and IVII in Attachment A of the Staff Report, and are scheduled for completion in the future..

AQMD Rule 1303(a) requires the Executive Officer or designee to periodically publish BACT guidelines for commonly permitted sources. Under the rule, BACT for other source categories is determined on a case-by-case basis. The BACT guidelines are advisory only; individual permit applications remain subject to current LAER as required by federal and state law and AQMD rules. Since EPA can and has taken enforcement action against permittees for noncompliance with LAER, it is important that AQMD LAER determinations be current, and that the guidelines contain up-to-date information for use by applicants.

Proposal

This Phase IICB BACT Guidelines update reflects LAER for two2727 equipment categories listed in Attachment A, and are requirement meets or exceeds the federal LAER. In the case of this update, the BACT requirements for the 33 categories are equivalent to federal LAER. It is expected that future updates for Phases IID, III, and IV will recommend more effective and less-polluting technology than present BACT standards. Staff expects to accomplish all phases of the BACT Guidelines update process in the end of 1998.

The AQMD staff held discussions with the Scientific Review Committee (SRC) on the emission standards in this package through five public meetings between August 1997 and March 1998. In addition to soliciting public input, staff held a public consultation meeting which was noticed in newspapers. Staff sincerely extends its appreciation to SRC members for their assistance in updating the BACT requirements in Phase IICB, as addressed herein.

Policy Issues

BACT update for petroleum process valves was postponed due to comments received from the Western States Petroleum Association and U.S. EPA Region IX. Staff has discussed the issues with the representatives of these two organizations and revised its approach by proposing the same level of control requirements for smaller (2 inches and smaller) and larger (greater than 2 inches) process valves in one combined category. The applicant would then have the flexibility of using theto include an emissions equivalency option while maintaining the BACT/LAER required level of emission controls.

StaffThe District has received comments that the proposed BACT for large engines should be based on more than one data point multiple examples and that . Tthe proposed BACT emission limits (especially the NO_x limit) may not be achievable and sustainable when the equipment is subject to Districtunder actual stack testing. requirements, which may or may not include CEMS. Although there is only one data point, DAQMDistrict staff believes that these engines are good examples of the equipment included in this source category and that the proposed emission limits can be achieved for most permitting and operating scenarios. District staff responded to source testing concerns by requesting the complete source testing report for the engines used to set the BACT emission limitsfor actual operating scenarios, and have . The District’s Source Testing & Engineering Section has evaluated the report and determined that the stack testing was performed in accordance with established protocols and provided a good indication of the emissions from the subject engines. With a good operating and maintenance program, there is no reason to believe that required emission limits cannot be sustained over time.Significant comments were received by staff for the source categories of vapor degreasers and gas turbines. The issues presented can be broadly grouped under: (1) compliance with state law (SB 456) with reference to LAER determinations; (2) prohibition of direct cost consideration directly in LAER determinations; (3) applicability of LAER to non-major sources (businesses emitting less than 10 tpy of VOC or NO_X) and modifications to existing equipment; and (4) concerns regarding technical feasibility and applicability to various permitting and operating scenarios. Staff has responded to all issues in Chapter 3 of the Staff Report and recommends that applicants take advantage of equivalency options and flexibility in the permitting process to address permit-specific concerns. policy issues for any of the 27 equipment categories.conveyorized cold cleaners. spray booth operations and process valves. , along with a recent request from United States Environmental Protection Agency (USEPA), Region IX, staff will delay the BACT update for spray booths and process valves to allow further discussion of appropriate BACT determinations operations Phase IIB until May 1998. Therefore, the identified emission standards constitute BACT/LAER for this class of engines.

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, , Ssection 51.165(a)(1)(xiii) as the more stringent rate of emission between (1) the most stringent emission limitation which is 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, and (2) the most stringent emission limitation which is 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 BACT for new and modified sources.

CEQA

AQMD staff has reviewed the proposed update to the BACT Guidelines and has determined that since the update is mandated by EPA and the BACT Guidelines are strictly guidance to the AQMD’s Governing Board when determining BACT for permit applications, the update to the BACT Guidelines does not constitute a project for CEQA purposes. In spite of the fact that the AQMD believes the proposed updates to the BACT Guidelines does not constitute a project as defined by CEQA, AQMD staff has taken the conservative approach that the proposed updates to the BACT Guidelines are a project, but exempt from CEQA. The reason for the conclusion that updates to the BACT Guidelines, if a project, are exempt from CEQA is that AQMD staff has determined pursuant to state CEQA Guidelines Section 15002 (k)(1) and 15061 (b)(2) that the updates to the BACT Guidelines constitute a ministerial action. The proposed project consists of incorporating federal LAER determinations into the AQMD BACT Guidelines for information purposes. Since the SCAQMD has no discretionary authority to relax LAER determinations, the proposed project is considered a ministerial project as defined in state CEQA Guidelines Section 15369. Ministerial projects are exempt by statute pursuant to state CEQA Guidelines Section 15268 (a). A Notice of Exemption will be prepared pursuant to state CEQA Guidelines Section 15062 - Notice of Exemption, for the proposed project and will be filed with the four county clerks within the jurisdiction of the AQMDCEQA Guidelines Section 15002 (k)(1) and 15061 (b)(2). The proposed project update reflects Guidelines for public onlypurpose of the update is for public information only, and the proposed update is Guidelines Section 15369. Ministerial projects are exempt by statute pursuant to state CEQA Guidelines Section 15268 (a). In addition, the project is categorically exempt as an action to protect or enhance the environment [Class 8 Categorical Exemption, state CEQA Guidelines Section 15308]. Section 15062 - Notice of Exemption, for the proposed project and will be filed with the four county clerks within the jurisdiction of the AQMD.

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 the affected public. 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 Impact

Existing 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

Key Issues and Responses

Final Staff Report

Notice of Exemption from the CEQA

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