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PROPOSAL:

Amend Regulation IX - Standards of Performance for New Stationary Sources and Regulation X – National Emission Standards for Hazardous Air Pollutants

SYNOPSIS:

The federal Clean Air Act authorizes EPA to delegate authority to local air districts, for the implementation and enforcement of standards set in 40 Code of Federal Regulations (CFR) Part 60, Standards of Performance for New Stationary Sources (NSPS) and 40 CFR Part 61, National Emission Standards for Hazardous Air Pollutants (NESHAPS). The NSPS standards were initially adopted by reference as AQMD Regulation IX on December 3, 1976 and the NESHAPS were adopted as Regulation X. Periodic amendments to Regulations IX and X incorporate new or amended standards by reference as necessary. Approximately twenty actions regarding NSPS and six regarding NESHAP are proposed for incorporation by reference, into Regulations IX and X, respectively.

COMMITTEE:

Stationary Source, June 18, 1999, Reviewed

RECOMMENDED ACTION:

Adopt the attached resolution:

1. Certifying the Notice of Exemption for Proposed Amended Regulations IX - Standards of Performance for New Stationary Sources, and X – National Emission Standards for Hazardous Air Pollutants.
2. Amending Regulation IX – Standards of Performance for New Stationary Sources, and Regulation X – National Emission Standards for Hazardous Air Pollutants.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The U.S. Environmental Protection Agency (EPA) periodically promulgates New Source Performance Standards (NSPS) and National Emission Standards for Hazardous Air Pollutants (NESHAPS). NSPS govern the operation of all new, modified, or reconstructed sources of air pollution identified in Part 60 of the Code of Federal Regulation (CFR). NESHAPS govern the operation of new and existing sources specifically identified in Part 61 of the CFR and emitting substances that pursuant to section 112 of the Clean Air Act Amendments, have been designated as hazardous air pollutants. In order to administer and enforce NSPS and NESHAPS at the local level, AQMD’s Governing Board initially adopted by reference the NSPS federal standards as AQMD Regulation IX, and the NESHAPS federal standards as Regulation X, on December 3, 1976. The Board has since amended these regulations to incorporate new or amended standards as necessary. In 1997, EPA delegated and redelegated its authority for specific sections of 40 CFR Parts 60 and 61, as listed in the April 23, 1997 Federal Register, Volume 62, No. 78, 19679 – 19682. Regulation IX was last amended January 1998 and Regulation X was last amended April 1994.

The 1990 Amendments to the federal Clean Air Act called for the EPA to establish maximum achievable control technology ("MACT") standards for new and existing major sources of hazardous air pollutants, starting within two years of enactment and finishing within ten years. The MACT standards are published in the CFR as Part 63. EPA has yet to delegate authority for the implementation and enforcement of Part 63 to the AQMD. The AQMD has sought and been granted equivalency with the MACT for Perchloroethylene Air Emission Standards for Dry Cleaning Facilities, through District Rule 1421. At this time staff is seeking equivalency on a number of other MACT standards and is not herein incorporating by reference the standards set through 40 CFR Part 63.

Proposal

Twenty NSPS actions for which the AQMD has delegation of authority have been promulgated by EPA during the past five years are now proposed for incorporation by reference into Regulation IX. Six NESHAPS actions for which the AQMD has delegation of authority have been promulgated by EPA during the past five years and are now proposed for incorporation by reference into Regulation X. This Board letter and its attachments serve as the staff report for proposed amendments to Regulations IX and X.

All new sources of air pollution and all modified or reconstructed sources of air pollution are required to comply with the more stringent of the applicable federal, state, and local standards, criteria, and requirements set forth in Regulation IX or other AQMD rules. The same is true for new and modified sources identified by source category for control in the NESHAPS. These standards are in effect and enforceable by AQMD pursuant to
§ 301, in conjunction with sections 110, 111(c)(1), and 112(d)(1) of the federal Clean Air Act, regardless of whether AQMD incorporates them by reference into Regulations IX and X. Nonetheless, adoption of NSPS and NESHAPS by reference into Regulations IX and X helps affected sources by providing a single point of reference for determining which federal and local requirements apply to their specific operations.

Public Workshops

EPA held public workshops with public comment periods as part of its rule development process. No public workshops were held by AQMD since the proposed amendments incorporate by reference existing legal requirements and therefore, do not significantly affect air quality or emissions limitations.

Regulation IX Proposal

Table 1 lists NSPS currently proposed for incorporation by reference into AQMD Regulation IX [ Due to the bulk of these materials, the complete text of Federal Register Notices announcing final action on NSPS proposed for incorporation by reference into Regulation IX have been distributed to Board members only. Anyone wishing to view this material may do so by contacting AQMD’s Public Information Center at (909) 396-3600.] .

Regulation X Proposal

Table 2 lists NESHAPS currently proposed for incorporation by reference into AQMD Regulation X [ Due to the bulk of these materials, the complete text of Federal Register Notices announcing final action on NESHAPS proposed for incorporation by reference into Regulation X have been distributed to Board members only. Anyone wishing to view this material may do so by contacting AQMD’s Public Information Center at (909) 396-3600.] .

Table 1. NSPS Proposed for Incorporation into Regulation IX

Table 2. NESHAPS Proposed for Incorporation into Regulation X

CEQA and Socioeconomic Analysis

Staff has reviewed the proposed amendments to Regulation IX - Standards of Performance for New Stationary Sources, and Regulation X – National Emission Standards for Hazardous Air Pollutants, pursuant to state CEQA Guidelines § 15002(k)(1) - Three Step Process, and has determined that the proposed amendments are exempt from CEQA pursuant to state CEQA Guidelines § 15268 - Ministerial Projects. AQMD proposes to incorporate by reference federal NSPS requirements into Regulation IX and NESHAPS requirements into Regulation X. Because AQMD exercises no discretion with regard to the proposed project, it is considered to be ministerially exempt. If approved by the Governing Board, a Notice of Exemption (NOE) will be prepared for the proposed project pursuant to state CEQA Guidelines § 15062 - Notice of Exemption, and mailed to the county clerks of Los Angeles, Orange, Riverside, and San Bernardino counties.

No socioeconomic impact assessment was performed for the proposed amendments, since they will not significantly affect air quality or emissions limitations. In addition, the proposed amendments are verbatim adoption, by reference, of current NSPS and NESHAP requirements and thus, do not impose new requirements in addition to the federal regulations.

AQMP and Legal Mandates

These federal requirements are not included in the AQMD’s Air Quality Management Plan. Section 301, in conjunction with sections 110, 111(c)(1), and 112(d)(1) of the federal Clean Air Act, authorizes EPA to delegate authority to implement and enforce standards and related compliance times for new, modified, or reconstructed sources of air pollution set forth in 40 CFR Part 60, and for new and existing sources of air pollution set forth in 40 CFR Part 61, to local air districts. Adoption of new and amended NSPS into AQMD Regulation IX and amended NESHAPS into AQMD Regulation X by reference formally recognizes AQMD’s authority to implement and enforce these federal regulations at the local level.

Implementation Plan

Proposed amendments do not materially affect the structure or function of existing programs associated with the implementation of Regulation IX - Standards of Performance for New Stationary Sources, and Regulation X – National Emission Standards for Hazardous Air Pollutants, or any other AQMD rules. Staff is available to assist those facilities affected by the proposed amendments.

Resource Impacts

Current AQMD resources are sufficient to implement and enforce proposed Regulation IX and Regulation X amendments.

Attachments

A. Summary of Changes to Regulation IX
B. Summary of Changes to Regulation X
C. Resolution
D. Notice of Exemption
E. Draft Rule Language
F. Federal Register Notices of Final Action on NSPS*
G. Federal Register Notices of Final Action on NESHAPS** (Note: Those Federal Register Notices that include actions for both NSPS and NESHAPS are not reprinted in Attachment G.)

______________________
* Due to the bulk of these materials, the complete text of Federal Register Notices announcing final action on NSPS proposed for incorporation by reference into Regulation IX have been distributed to Board members only. Anyone wishing to view this material may do so by contacting AQMD’s Public Information Center at (909) 396-3600.

**Due to the bulk of these materials, the complete text of Federal Register Notices announcing final action on NESHAPS proposed for incorporation by reference into Regulation X have been distributed to Board members only. Anyone wishing to view this material may do so by contacting AQMD’s Public Information Center at (909) 396-3600.

ATTACHMENT A
SUMMARY OF CHANGES TO REGULATION IX

1. Subpart A - Standards of Performance for New Stationary Sources: General Provisions
   
   (Amend)(EPA effective date: March 16, 1994)
   
   Reference: 59 FR 12408, No. 51, March 16, 1994
   
   This action amends Subpart A of Part 60 to bring it up to date with the amended Clean Air Act of 1990 and, where appropriate, to make it consistent with requirements in Subpart A of Part 63.

2. Appendix A – Standards of Performance for New Stationary Sources: Test Methods
   
   (Amend)(EPA effective date: April 22, 1994)
   
   Reference: 59 FR 19306, No. 78, April 22, 1994
   
   This action makes revisions to Method 18, "Measurement of Gaseous Organic Compound Emission by Gas Chromatography" and to Method 26, "Determination of Hydrogen Halide and Halogen Emissions from Stationary Sources – Midget Impinger Method," and adds Method 25D, "Determination of the Volatile Organic Concentration of Waste Samples," and Method 26A, "Determination of Hydrogen Halide and Halogen Emissions from Stationary Sources – Isokinetic Method," to Appendix A of 40 CFR Part 60. Method 18 is being revised to clarify the phrase "engineering judgement" as it relates to choosing a sampling methodology. Method 26 for an isokinetic determination of hydrogen chloride emissions is being revised to add provisions for determining emissions of other hydrogen halides and halogens. Method 25D is being added as the applicable test method for the determination of the volatile organic concentration of wastes. Method 26A is being added as an isokinetic version of Methods 26.

3. Subpart MM – Standards of Performance for Automobile and Light-duty Truck Surface Coating Operations
   
   (Amend)(EPA effective date: October 11, 1994)
   
   Reference: 59 FR 51383, No. 195, October 11, 1994
   
   This action revises the final NSPS to be consistent with the performance of the best demonstrated prime coating system and prime coat materials. The revision of the standard does not reflect a change in the basis of the standard, but reflects a better understanding of the performance of the prime coating system and prime coat material upon which the standard was originally based.

4. Subpart QQQ - Standards of Performance for VOC Emissions from Petroleum Refinery Wastewater Systems
   
   (Amend)(EPA effective date: August 18, 1995)
   
   Reference: 60 FR 43244, No. 160, August 18, 1995
   
   This action amends standards of performance for two stationary sources: Standards of performance for equipment leaks of volatile organic compounds (VOC) in the synthetic organic chemicals manufacturing industry (SOCMI); and standards of performance for VOC emissions from petroleum refinery wastewater systems. The amended standards were previously promulgated under section 111 of the Clean Air Act.

5. Appendix A – Standards of Performance for New Stationary Sources: Test Methods: Amendments to Method 24 for the Determination of Volatile Matter Content, Water Content, Density, Volume Solids, and Weight Solids of Surface Coatings
   
   (Amend)(EPA effective date: September 11, 1995)
   
   Reference: 60 FR 47095, No. 175, September 11, 1995
   
   This action establishes procedures for the determination of volatile matter content, density, volume solids, and water content for non thin film ultraviolet radiation-cured coatings.

6. Subparts A – Standards of Performance for New Stationary Sources: General Provisions
   
   (Amend)(EPA effective dates: June 19, 1996)
   
   Reference: 60 FR 65387, No. 243, December 19, 1995
   
   The 1998 amendments to Regulation IX added the action pertaining to Subpart Eb, Standards of Performance and Emission Guidelines for Municipal Waste Combustors. However, there was no action taken in those amendments specifically pertaining to Subparts A. The Federal Register action amended Subparts A by adding several test methods through incorporation by reference.

7. Subpart F – Standards of Performance for Portland Cement Plants
   
   (Correction)(EPA effective date: April 3, 1996)
   
   Reference: 61 FR 14637, No. 65, April 3, 1996
   
   This action corrects Title 40, Part 60, revised as July 1, 1995, by removing §60.62 paragraph (a)(3)

8. Appendix A – Standards of Performance for New Stationary Sources: Method 29, Determination of Metals Emissions from Stationary Sources
   
   (Amend)(EPA effective date: April 25, 1996)
   
   Reference: 61 FR 18260, No. 81, April 25, 1996
   
   This action adds Method 29, Determination of Metals Emissions from Stationary Sources to Appendix A of Part 60 so that it can be used to determine cadmium, lead and mercury emissions from municipal waste combustors (MWC) under Subpart Ea of Part 60.

9. Subpart Dc – Standards of Performance for Small Industrial-Commercial-Institutional Steam Generating Units
   
   (Amend)(EPA effective date: May 8, 1996)
   
   Reference: 61 FR 20734, No. 90, May 8, 1996
   
   This action promulgates revisions to the new source performance standards for new, modified, and reconstructed small industrial-commercial-institutional steam generating units. The revisions exclude certain small steam generating units, when conducting combustion research, from the category of small steam generating units subject to NSPS control requirements for sulfur dioxide (SO₂) and particulate matter (PM).

10. Subpart VV – Standards of Performance for Equipment Leaks of VOC in the Synthetic Organic Chemicals Manufacturing Industry
    
    (Correction)(EPA effective date: June 12, 1996)
    
    Reference: 61 FR 29875, No. 114, June 12, 1996
    
    This action corrects typographical and cross-referencing errors in 40 CFR Part 60 Subpart VV and 40 CFR part 63, National Emission Standards for Hazardous Air Pollutants: Petroleum Refineries, which was issued as a final rule August 18, 1995.

11. Subpart A – Standards of Performance for New Stationary Sources: General Provisions
    
    (Amend)(EPA effective date: April 25, 1997)
    
    Reference: 62 FR 8314, No. 36, February 24, 1997
    
    This action finalizes the credible evidence revisions to Part 60 proposed in the October 22, 1993 Federal Register. These revisions were designed to clarify that non-reference test data can be used in enforcement actions, and to remove any potential ambiguity regarding this data’s use for compliance certifications under Section 114 and Title V of the Clean Air Act.

12. Subpart X – Standards of Performance for the Phosphate Fertilizer Industry: Granular Triple Superphosphate Storage Facilities
    
    (Amend)(EPA effective date: June 16, 1997)
    
    Reference: 62 FR 18277, No. 72, April 15, 1997
    
    This action clarifies the coverage of the NSPS in Subpart X, to limit its applicability to those facilities which store fresh granular triple superphosphate.

13. Subpart A and Appendix A – Standards of Performance for New Stationary Sources: General Provisions, and Method 14A – Determination of Total Fluoride Emissions from Selected Sources at Primary Aluminum Production Facilities
    
    (Amend)(EPA effective date: October 7, 1997)
    
    Reference: 62 FR 52384, No. 194, October 7, 1997
    
    This action amends 40 CFR Subpart A adding language to include Method 14A, and clarifying applicability and designation of affected facilities. This is done in conjunction with the promulgation of national emission standards for primary aluminum reduction plants. The action also amends Part 60, Appendix A by revising the appendix heading and adding, in numerical order, Method 14A – Determination of Total Fluoride Emissions from Selected Sources at Primary Aluminum Production Facilities.

14. Subpart OOO - Standards of Performance for Nonmetallic Mineral Processing Plants
    
    (Notice of Policy; Clarification)(EPA effective date: November 26, 1997)
    
    Reference: 62 FR 62953, No. 228, November 26, 1997
    
    This action clarifies the applicability of the NSPS for Nonmetallic Mineral Processing Plants, correcting guidance and preamble language regarding the regulation’s applicability erroneously appearing in the April 1991 Regulatory and Inspection Manual for Nonmetallic Mineral Processing Plants and a response to a comment in the preamble to the June 9, 1997, Federal Register document for the final amendments to Subpart OOO.

15. Appendix A – Standards of Performance for New Stationary Sources: Method 29 – Determination of Metals Emissions from Stationary Sources
    
    (Correction)(EPA effective date: February 9, 1998)
    
    Reference: 63 FR 6493, No. 26, February 9, 1998
    
    This action corrects the effective date of the rule published April 25, 1996 (61 FR 18260), to February 9, 1998 to be consistent with sections 801 and 808 of the Congressional Review Act (CRA) enacted as part of the Small Business Regulatory Enforcement Fairness Act, 5 U.S.C. 801 and 808.

16. Subpart A – Standards of Performance for New Stationary Sources: General Provisions
    
    (Amend)(EPA effective date: June 23, 1998)
    
    Reference: 63 FR 24436, No. 85, May 4, 1998
    
    This action amends the General Control Device Requirements applicable to flares in 40 CFR Part 60 which were issued as a final rule on January 21, 1986. This action also amends existing specifications to permit the use of hydrogen-fueled flares.

17. Subpart WWW – Standards of Performance for Municipal Solid Waste Landfills
    
    (Amend)(EPA effective date August 17, 1998)
    
    Reference: 63 FR 32743, No. 115, June 16, 1998
    
    This action amends, corrects errors, and clarifies regulatory text of the "Standards of Performance for New Stationary Sources and Guidelines for Control of Existing Sources: Municipal Solid Waste Landfills," which was issued as a final rule and guideline on March 12, 1996.

18. Subparts Da and Db – Standards of Performance for Electric Utility Steam Generating Units for Which Construction is Commenced after September 18, 1978, and Standards of Performance for Industrial-Commercial-Institutional Steam Generating Units
    
    (Amend)(EPA effective date: November 16, 1998)
    
    Reference: 63 FR 49442, No. 179, September 16, 1998
    
    This action promulgates revised standards of performance for Subparts Da and Db, for nitrogen oxides (NO_x) by reducing the numerical NO_x emission limits for both utility and industrial steam generating units to reflect the performance of best demonstrated technology. The revisions also affects quarterly sulfur dioxide (SO₂), NO_x and opacity emission reporting requirement of the utility and industrial steam generating unit regulations contained in Subparts Da and Db.
    
19. Subpart Y – Standards of Performance for Coal Preparation Plants
    
    (Amend)(EPA effective date: October 5, 1998)
    
    Reference: 63 FR 53288, No. 192, October 5, 1998
    
    This action serves as an interpretation concluding that coal unloading that involves conveying coal to coal plant machinery is subject to the NSPS, and that fugitive emissions, if any, from coal dumping must be included in a determination of whether a coal preparation plant is a major source subject to Title V permitting requirements.

20. Subpart AAA - Standards of Performance for New Residential Wood Heaters
    
    (Amend)(EPA effective date: November 24, 1998)
    
    Reference: 63 FR 64869, No. 226, November 24, 1998
    
    This action revises the wood heater rule to expand the conditions under which EPA can initiate a "recall" of wood heaters from distributors and retailers by prohibiting sales other than sales back to the manufacturer. The action also makes revisions to reduce the recordkeeping and reporting burden.

ATTACHMENT B

SUMMARY OF CHANGES TO REGULATION X

1. Subpart M – National Emission Standards for Hazardous Air Pollutants for Asbestos
   
   (Notice of Clarification)(EPA effective date: January 5, 1994)
   
   Reference: 59 FR 542, No. 3, January 5, 1994
   
   This action clarifies requirements of the NESHAP in which one or more layers of asbestos are present.

2. Subpart A – National Emission Standards for Hazardous Air Pollutants: General Provisions
   
   (Amend)(EPA effective date: March 16, 1994)
   
   Reference: 59 FR 12408, No. 51, March 16, 1994
   
   This action amends Subpart A of Part 61 to bring it up to date with the amended Clean Air Act and, where appropriate, to make it consistent with requirements in Subpart A of Part 63.

3. Subpart M - National Emission Standards for Hazardous Air Pollutants for Asbestos
   
   (Amend)(EPA effective date: June 17, 1994)
   
   Reference: 59 FR 31157, No. 116, June 17, 1994
   
   This action clarifies the Asbestos NESHAP as it affects roof removal operations by: specifying which roof removal operations EPA construes the NESHAP to cover; and specifying roof removal work practices that EPA deems to be in compliance with the NESHAP in roofing operations where the NESHAP applies. The clarification is added by including an Appendix A to Subpart M – Interpretive Rule Governing Roof Removal Operations.

4. Subpart M – National Emission Standards for Hazardous Air Pollutants for Asbestos
   
   (Notice of Clarification)(EPA effective date: July 28, 1995)
   
   Reference: 60 FR 38725, No. 145, July 28, 1995
   
   This action clarifies that in EPA’s opinion, the demolition or renovation of an isolated small residential building by any entity is not covered by the asbestos NESHAP. This notice does not affect EPA’s policy regarding demolition by fire. However, EPA also believes that the demolition or renovation of multiple (more that one) small residential buildings on the same site by the same owner or operator (or owner or operator under common control) is covered by the asbestos NESHAP.

5. Subpart M – National Emission Standards for Hazardous Air Pollutants for Asbestos
   
   (Notice of Clarification)(EPA effective date: December 19, 1995)
   
   Reference: 60 FR 65243, No. 243, December 19, 1995
   
   This action is intended to address common questions in which one or more layers may contain asbestos, and supplement the January 5, 1994 Federal Register clarification (59 FR 542).

6. Subpart A – National Emission Standards for Hazardous Air Pollutants: General Provisions
   
   (Amend)(EPA effective date: April 25, 1997)
   
   Reference: 62 FR 8314, No. 36, February 24, 1997
   
   This action finalizes the credible evidence revisions to Part 61 proposed October 22, 1993. These were designed to clarify that non-reference test data can be used in enforcement actions, and to remove any potential ambiguity regarding this data’s use for compliance certifications under Section 114 and Title V of the Act.

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