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PROPOSAL:

Report on Action Items from July 10, 1998 Hearing on Rule 1401 - New Source Review of Toxic Air Contaminants

SYNOPSIS:

At the July 1998 Board meeting, the Board approved amendments to Rule 1401. This report fulfills the Board’s directive for staff to return to the Board in October 1998 to provide a progress report on source tests for metal plating processes and an assessment of the cumulative risk requirement for the motion picture film processing industry. Staff will also recommend updates to some risk factors to reflect recent changes by OEHHA.

COMMITTEE:

Stationary Source, September 18, 1998, Discussed

RECOMMENDED ACTION:

1. Receive and File the attached reports.

2. Adopt the attached resolution:
   (a) Directing staff to use revised risk factors for chemicals listed in Attachment B and to incorporate the revised factors in the "Risk Assessment Procedures for Rules 1401 and 212."

   (b) Certifying the addendum to the Final Environmental Assessments for Rule 1401.

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

Background

In July 1998, the South Coast Air Quality Management District (AQMD) Governing Board (Board) adopted revisions to Rule 1401 - New Source Review of Toxic Air Contaminants. In a subsequent motion, the Board postponed the consideration of adding nickel compounds, hydrochloric acid, and sodium hydroxide until January 1999. As part of the motion to postpone the addition of these compounds, the Board directed staff to return with a progress report on efforts to quantify the emissions of nickel, hydrochloric acid, and sodium hydroxide from processes used in the metal plating industry at the October 1998 board meeting. The Board also asked for an assessment of the 100 meter cumulative risk requirement on the motion picture film processing industry. This report includes the progress report for source tests of plating processes; an assessment of the cumulative risk requirement on the motion picture film processing industry (see Attachment A). The third component of this Board report is a recommendation to use revised risk factors to reflect recent updates by the Office of Health Hazard Assessment (OEHHA). An assessment and table of the revised risk factors of several Rule 1401 chemicals is included as Attachment B.

Nickel Plating

The metal plating industry raised concerns that the emission factors currently used for nickel plating, hydrochloric acid, and sodium hydroxide tanks were inaccurate. In cooperation with the Metal Finishing Association of Southern California (MFASC), the AQMD has been conducting source testing to better characterize the emissions from metal plating processes. The AQMD and representatives of the MFASC have been meeting on a weekly basis since the July 1998 Board meeting.

Preliminary data indicates that emission factors for hydrochloric acid and sodium hydroxide are lower than previous estimates.

During the past 90 days, sampling and testing protocols have been developed and sampling locations have been determined. Industry representatives sent out a questionnaire asking for volunteers for source testing and for a detailed description of their facilities. Based on the responses, AQMD and MFASC representatives selected four potential facilities. After site visits to each prospective facility, AQMD and MFASC representatives discussed each potential sampling location and selected the locations that allowed the best sampling opportunities, within the facility’s working schedule.

Based on discussions with industry representatives, eight different types of operations using nickel, sodium hydroxide and hydrochloric acid exist in the metal plating industry. Table 1 lists common plating equipment.

Table 1
Common Plating Equipment

Because of time and financial constraints, it was decided to test the sodium hydroxide electrocleaner tank, which is expected to have the highest emissions of the four operations using sodium hydroxide. The emissions from the electrocleaner would then be used to represent all sodium hydroxide tanks for current Rule 1401 permitting purposes. For better characterization of emissions from the other tanks, individual facilities may choose to perform source tests at a later time. In total, the AQMD tested 5 types of tanks and one spray tunnel.

At present, AQMD personnel have constructed the appropriate sampling equipment, have sampled the mutually selected locations, and are currently analyzing the collected samples. Most of the testing has been completed. Industry personnel have been present for each sampling event and were given (but did not choose to use) the option to collect split samples and to have them analyzed independently. The AQMD anticipates spending approximately $60,000 on these source tests. A completed report on this issue will be provided to the Board in January 1999.

Motion Picture Film Processing

The July 1998 amendments to Rule 1401 added perchloroethylene (perc) to the list of toxic air contaminants (TACs). Perc is widely used by the motion picture film processing industry. During the public testimony, industry representatives raised concerns relative to the 100 meter cumulative impact requirement in Rule 1401. In response to this issue, the Board directed staff to bring an assessment of the 100 meter cumulative impact requirement in Rule 1401 on the motion picture film processing industry in the South Coast Air Basin (Basin) to the October 1998 meeting. The report found in Attachment A contains the findings of this assessment.

Perc is a carcinogen and has a significant potential to cause human health impacts. Perc effects a number of organs, including the liver, kidney, central nervous system, and gastro-intestinal system. Emissions from this industry are approximately 80 tons per year. Based on information from health risk assessments and information from industry, larger motion picture film processing labs may each create cancer risks to the surrounding community in the range of 5 to 70 in 1 million.

Since the July Board meeting, staff met three times with a group of industry representatives and had individual meetings and additional site visits to other companies. Each of the film laboratories were sent a questionnaire requesting information regarding prior efforts to reduce perc usage, current perc usage and equipment profiles, and future needs. Nearly 40 percent of the laboratories responded to this request for information, representing the majority of the film processing capacity in the Basin. Phone calls were made in an attempt to get additional information on equipment expansion plans from the remainder of the labs. In all, more than 80 percent of the labs were contacted. The information provided was used in the development of this report. Industry representatives were also provided the opportunity to review and comment on a draft version of this report. Their input on the preliminary draft was very helpful in producing this report.

This industry plans to expand in the future, although expansion needs vary from facility to facility. A number of the facilities commented that they expect to modernize their existing film cleaning and printing processes, thereby lowering their overall emissions. Eight of the labs plan to expand their operations or site new facilities in the next five years. Based on projection data of the REMI (Regional Economic Models Inc.) model, this industry is expected to grow 3 to 4 percent per year over the next 15 years.

Staff conducted an engineering evaluation to estimate how much expansion can occur before the 100 meter cumulative impact requirement in Rule 1401 limits further growth. A number of factors affect the level of risk from equipment, including the configuration of the facility, design of the equipment, amount of emissions, location of the nearest receptor, whether the equipment is vented to the atmosphere, and meteorological conditions. Depending on the size of the facility (based on the number of equipment and amount of film processed) and the level of emission controls, most film laboratories will be able to increase their film cleaning capacity by 25 to 75 percent or their film printing capacity by 30 to 100 percent, if their current operations do not change and the new equipment uses perc.

These results are based on a worse-case assessment and do not include numerous flexibility options available to the industry. These flexibilities include several Rule 1401 exemption provisions, such as modifications with no increase in risk, functionally identical replacement of equipment, and contemporaneous risk reductions. There are also control options to significantly reduce perc emissions from film processing, including use of alternative chemicals, use of perc free film cleaning technologies, and options for sizing external emission carbon control systems based on facility-specific needs.

The results of the assessment indicate that some facilities may approach the rule limit in the future if they do not use the flexibilities provided in Rule 1401, or use alternative solvents or perc-free film cleaning technologies that are currently available and in use. The 100 meter cumulative assessment in this report does not include consideration of these opportunities. Given the availability of these compliance options, the majority of facilities can expand and increase their existing film processing capacity, while remaining in compliance with Rule 1401. If a facility uses some or all of the compliance options described above, even more expansion would be possible.

Revised Risk Numbers

Rule 1401 includes TACs with risk factors established by the Office of Environmental Health Hazard Assessment (OEHHA), a branch of Cal EPA. OEHHA periodically reviews and revises risk factors for TACs. According to paragraph (e)(3) of Rule 1401, staff is required to report to the Board with recommendations regarding changes to risk factors for chemicals within 150 days after they have been finalized by OEHHA.

On June 3, 1998, the Scientific Review Panel (SRP) approved revised factors developed by OEHHA for 54 carcinogenic (cancer causing) air contaminants that are currently included in Rule 1401. OEHHA considers this SRP approval as their final action. Attachment B of the package contains a list of both the previous and revised factors.

Out of the 54 chemicals updated, the risk factor for twenty-six (26) TACs are less stringent and twenty-eight (28) are more stringent (shown in Table B-1 with an *) than the current factors. AQMD staff’s assessment indicates that these changes will not result in adverse economic or environmental impacts. This is because: (1) many of the emissions screening levels are not driven by the cancer risk; (2) the emissions are adequately controlled by an existing regulation; or (3) the chemicals are not widely used.

To ensure opportunity for public participation, a "Notice of Intent to Change Risk Values" was sent to industries that may use any of these chemicals, associations and environmental groups and the Rules 1401 and 1402 working group. A public consultation meeting to discuss the proposed revisions to the risk values was held on September 24, 1998. Approximately 50 industry representatives attended. Comments raised were addressed by staff. An appendix to Attachment B summarizes the comments. Staff recommends use of the revised OEHHA factors.

AQMP and Legal Mandates

Rule 1401 is a program that is in part mandated by state and federal requirements. Changes to Rule 1401 will be consistent with California Air Resources Board (CARB) guidelines for toxic new source review.

CEQA & Socioeconomic Analysis

Pursuant to the California Environmental Quality Act (CEQA) Guidelines §15164, the SCAQMD has prepared an Addendum to the June 1998 Final Environmental Assessment (certified at the July 1998 Governing Board meeting), the November 1990 Final Supplemental Environmental Assessment (certified at the December 1990 Governing Board meeting), and the May 1990 Final Environmental Assessment (certified at the June 1990 Governing Board meeting) for Rule 1401 to address the update of unit risk factors for Rule 1401 toxic air contaminants. The Addendum to the Final EAs concluded that the proposed changes to unit risk factors would not create any new significant adverse impacts or make substantially worse any existing significant adverse impacts generated by the original project. The proposed modification will not change the environmental analysis or conclusions in the previously certified Final EAs. Pursuant to CEQA Guidelines §15164 (c), an addendum need not be circulated for public review. Due to its sheer volume, the July 1998, December 1990, and June 1990 certified Final EAs for Rule 1401 have been provided as part of this agenda item to Board Members only. Others wishing to view these documents can obtain a copy from the SCAQMD’s Public Information Center by calling (909) 396-3600. This agenda item does, however, include a copy of the addendum.

No significant economic impacts are anticipated because few permits will be affected. Many of the chemicals with increasing stringency are not widely used or the changes to the factors will not cause additional controls. For the other chemicals, controls are already in place.

Implementation Plan

Minimal impacts are expected from the updated cancer risk values to 54 compounds listed in Rule 1401. These updated values will be used in analyzing all permit applications for new, modified or relocated equipment emitting the affected compounds. The Risk Assessment Procedures document has been updated to reflect the changes. Engineering staff will be trained on the changes to the risk values.

Attachments

Motion Picture Film Processing Industry, Rule 1401 – New Source Review of Toxic Air Contaminants Assessment of the 100 Meter Cumulative Impact

Revised Risk Factors

Addendum to the June 1998 Final Environmental Assessment (certified at the July 1998 Governing Board meeting), the November 1990 Final Supplemental Environmental Assessment (certified at the December 1990 Governing Board meeting), and the May 1990 Final Environmental Assessment (certified at the June 1990 Governing Board meeting) for Rule 1401

(Copies of the June 1998, November 1990, and May 1990 Final Environmental Assessments are provided for AQMD Board Members only – others may obtain a copy by calling (909) 396-3600)

RESOLUTION NO. 98-_____

A Resolution of the Governing Board of the South Coast Air Quality Management District (AQMD) certifying the addendum to the June 1998 Final Environmental Assessment (certified at the July 1998 Governing Board meeting), the November 1990 Final Supplemental Environmental Assessment (certified at the December 1990 Governing Board meeting), and the May 1990 Final Environmental Assessment (certified at the June 1990 Governing Board meeting) for Rule 1401.

A Resolution of the AQMD Governing Board directing staff to use revised risk factors for chemicals listed in Attachment B of the Board Letter and to incorporate the revised factors in the "Risk Assessment Procedures for Rules 1401 and 212."

WHEREAS, paragraph (e)(3) of Rule 1401 requires staff to, within 150 days of risk values for compounds in Table I of the rule being updated by the Office of Environmental Health Hazard Assessment (OEHHA), to: (1) publish a Notice of Intent to change risk values; (2) perform an impact assessment, including socioeconomic effects; and (3) submit a report to the District Governing Board with recommendations for changing the risk values in the procedures for determining risk pursuant to paragraph (e)(1) of the rule; and

WHEREAS, on June 3, 1998 the Scientific Review Panel approved revised risk factors developed by OEHHA for 54 carcinogenic air contaminants listed in Table I of Rule 1401; and

WHEREAS, the AQMD staff published a Notice of Intent to change risk values pursuant to paragraph (e)(3) of Rule 1401 and conducted a public consultation meeting with potentially affected industry representatives and no significant concerns were raised; and

WHEREAS, the AQMD staff conducted an assessment pursuant to paragraph (e)(3) of Rule 1401 and found that the risk factor changes will not result in adverse economic or environmental impacts; and

WHEREAS, the AQMD staff submitted a report to the District Governing Board pursuant to paragraph (e)(3) of Rule 1401 with recommendations for changing the risk values in the procedures for determining risk pursuant to paragraph (e)(1) of the rule; and

WHEREAS, the AQMD staff has prepared, pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15164, an addendum to the following final EAs to Rule 1401: June 1998 Final Environmental Assessment (certified at the July 1998 Governing Board meeting), the November 1990 Final Supplemental Environmental Assessment (certified at the December 1990 Governing Board meeting), and the May 1990 Final Environmental Assessment (certified at the June 1990 Governing Board meeting) to address the update of unit risk factors for Rule 1401 toxic air contaminants; and

WHEREAS, the AQMD Governing Board has determined that the proposed changes to risk factors would not create any new significant adverse environmental impacts or make substantially worse any existing significant adverse environmental impacts generated by the original project. The proposed modifications to risk values will not change the environmental analysis or conclusions in the previously certified Final Environmental Assessment; and

WHEREAS, the AQMD Governing Board has determined that the proposed changes to risk factors would not create any significant economic impacts because few affected permits are anticipated and many of the chemicals with increasing stringency are not widely used or the changes to risk factors will not cause additional control requirements and for the other chemicals, controls are already in place; and

WHEREAS, the AQMD has had its regulatory program certified pursuant to Public Resources Code Section 21080.5 and has conducted CEQA review and analysis pursuant to such program (Rule 110); and

WHEREAS, the AQMD Governing Board has determined that the requirements for a subsequent environmental assessment have not been triggered pursuant to CEQA Guidelines Section 15162 and that an addendum to the previously certified Final EAs to Rule 1401 is appropriate; and

WHEREAS, pursuant to CEQA Guidelines Section 15164 (c) an addendum need not be circulated for public review; and

WHEREAS, it is necessary that the adequacy of the environmental document be determined by the AQMD Governing Board prior to its certification; and

WHEREAS, the Board package includes the June 1998 Final Environmental Assessment (certified at the July 1998 Governing Board meeting), the November 1990 Final Supplemental Environmental Assessment (certified at the December 1990 Governing Board meeting), and the May 1990 Final Environmental Assessment (certified at the June 1990 Governing Board meeting) for Rule 1401, as well as the addendum to these certified Final EAs, the socioeconomic impact analysis and other supporting documentation, and this information was presented to the AQMD Governing Board and that the Board has reviewed and considered the entirety of this information before approving the staff recommendations; and

NOW, THEREFORE BE IT RESOLVED, that the AQMD Governing Board certifies the addendum to the June 1998 Final Environmental Assessment (certified at the July 1998 Governing Board meeting), the November 1990 Final Supplemental Environmental Assessment (certified at the December 1990 Governing Board meeting), and the May 1990 Final Environmental Assessment (certified at the June 1990 Governing Board meeting) for Rule 1401; and

BE IT FURTHER RESOLVED, that the AQMD Governing Board does hereby direct staff to use revised risk factors for chemicals listed in Attachment B and to incorporate the revised factors in the "Risk Assessment Procedures for Rules 1401 and 212."

DATE: _________________

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