BOARD MEETING DATE: August 13, 1999 AGENDA NO. 29


PROPOSAL:

Amend Rule 1401 – New Source Review of Toxic Air Contaminants and to Amend Rule 219 – Equipment Not Requiring a Written Permit Pursuant to Regulation II

SYNOPSIS:

On February 10, 1999, the Scientific Review Panel and the Office of Environmental Health Hazard Assessment approved acute reference exposure level risk values for approximately 60 chemicals. Rule 1401(e)(3) requires an analysis and report to the Board before new or updated risk factors are used for new source review. Proposed Amendments to Rule 1401 will update the list of compounds and effective dates in Table I. In addition, an administrative change to the Rule 1401 applicability section and the preamble of Rule 219 – Equipment Not Requiring a Written Permit Pursuant to Regulation II is proposed based on recommendations from the Permit Streamlining Task Force.

COMMITTEE:

Stationary Source, June 18, 1999, and July 23, 1999; Reviewed

RECOMMENDED ACTION:

Adopt the attached resolution:

  1. Certifying the attached Final Environmental Assessment for Rule 1401 – New Source Review of Toxic Air Contaminants and Rule 219 Equipment Not Requiring a Written Pursuant to Regulation II; and
  1. Amending Rule 1401 – New Source Review of Toxic Air Contaminants and Rule 219 Equipment Not Requiring a Written Pursuant to Regulation II, as proposed, in accordance with the attached resolution.

Barry R. Wallerstein, D.Env.
Executive Officer


Background

In October 1997, the South Coast Air Quality Management District’s (AQMD) Governing Board adopted a resolution that directed staff to implement ten Environmental Justice Initiatives. One of those initiatives was to reopen, for public comment, Rule 1401 - New Source Review of Toxic Air Contaminants, and Rule 1402 - Control of Toxic Air Contaminants from Existing Sources. Rule 1401 was adopted in June 1990, and then amended in December 1990, July 1998, January 1999 and March 1999.

Exposure to toxic air contaminants (TACs) can increase the risk of contracting cancer or result in other deleterious health effects. Other noncancer health risks associated with TAC exposure include birth defects and other reproductive damage, neurological, respiratory, and other adverse health effects.

The current rule establishes permitting requirements for new, relocated and modified sources that emit one or more of the identified TACs. The July 1998 and subsequent amendments resulted in significant progress under Environmental Justice Initiative #10 by regulating more compounds and adding noncancer assessment requirements. To date, Rule 1401 includes over 200 TACs. This amendment updates acute risk values to reflect recent actions by the state of California.

The Office of Environmental Health Hazard Assessment (OEHHA) establishes risk for TACs. The Scientific Review Panel (SRP) reviews and finalizes these values, which is considered final action by the state. Table I of the rule defines the effective date for chemicals with chronic and acute effects based on the SRP final approval. Rule 1401 paragraph (e)(2) includes a requirement for the AQMD to update the list of TACs within 150 days of final action by OEHHA. On February 10, 1999, the SRP approved the acute risk values and technical support document for more than 60 compounds. The final technical support document was subsequently released by OEHHA on April 5, 1999.

The July 1998 and January 1999 socioeconomic and CEQA documents analyzed impacts based on risk values used in AB 2588 from the CAPCOA guidelines. For some TACs, the AB 2588 draft factor and SRP approved risk values may be different. If the risk values are the same, the acute REL risk values would be effective the date of SRP approval; that is, February 10, 1999. If the SRP risk values are different, Rule 1401(e)(3) applies and additional analysis is required before using the revised factors. This provision of the rule was adopted in July 1998 and requires a notice, an impact assessment, and a report to the Board within 150 days of OEHHA changing risk values. This proposed amendment fulfills these requirements.

On February 10, 1999, the SRP approved acute reference exposure level (REL) risk values for 51 compounds, representing 63 individual chemicals. Two of the chemicals (hydrogen sulfide and ethylene glycol ethyl ether) had designated risk values the same as the AB 2588 values. On this basis, the July impact assessment is applicable, and these TACs will have an effective date for the evaluation of acute impacts of February 10, 1999, corresponding to the date of SRP approval.

Proposal

The proposed revisions would add nine compounds for which OEHHA has established new acute risk values to Table I of Rule 1401. The proposed amendment also specifies an effective date for analyzing acute impacts for the other compounds based on the date of Board approval. In addition, the revisions will specify an effective date for analyzing acute impacts for 47 chemicals that are currently listed in Table I. Of these, 15 TACs had RELs greater (less stringent) and nine TACs had RELs lower (more stringent) than those previously analyzed. The balance of 23 chemicals will require analysis of acute risk for the first time in Rule 1401.

The OEHHA finalized list of TACs with SRP approved risk values also included 5 criteria and related pollutants (carbon monoxide, nitrogen dioxide, ozone, sulfates, and sulfur dioxide). Staff does not recommend adding these compounds to Rule 1401. The main purpose of Rule 1401 is to control toxics at the new source review permitting stage. Criteria pollutants have been subject to increasingly more stringent emission reductions over the past 50 years, including best available control technology (BACT) and best available retrofit control technology (BARCT). Future AQMD command and control, state, and federal regulations will continue to reduce these emissions.

Since the requirements for evaluating carcinogenic, chronic, and acute impacts have different effective dates, Table I has been reformatted to better reflect these dates.

This proposal also includes a recommendation by the Permit Streamlining Task Force to amend the applicability section of Rule 1401 and the preamble of Rule 219 – Equipment Not Requiring a Written Permit Pursuant to Regulation II. This amendment is based on a recommendation of the Permit Streamlining Task Force to amend the language relative to the implementation of Rule 1401 requirements for equipment exempt from permit, as specified in Rule 219. Currently, Rule 219 requires any exempt equipment to obtain an AQMD permit if it exceeds the Rule 1401 screening emissions level. Similarly, Rule 1401 requires new, modified, and relocated equipment that would normally be exempt under Rule 219 that exceeds the screening emissions level to obtain a district permit, regardless if further analysis shows that the equipment will not exceed the risk threshold requirements of Rule 1401. The proposed amendment is intended to require a permit for Rule 219 exempt equipment (existing or new, modified or relocated) only if the equipment exceeds the risk threshold requirements of Rule 1401. This will prevent bringing equipment into the permit system unless emissions from the equipment would cause an exceedance of the Rule 1401 risk threshold requirements, thereby requiring permit actions to limit the risk from the equipment. This administrative change is the only proposed amendment to the language in Rule 1401 and Rule 219.

California Environmental Quality Act (CEQA) Analysis

SCAQMD staff has reviewed the proposed Rule 1401 pursuant to state CEQA Guidelines Section 15002 (k)(2). A Draft Environmental Assessment (EA) with no significant adverse impacts has been prepared because, although the Draft EA 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 EA was circulated for a 30-day public review and comment period which ended June 18, 1999. No written comments to the Draft EA were received.

Socioeconomic Assessment

Based on a review of emissions and permitting history, relatively few permitted equipment are anticipated to have to install control equipment. Staff’s assessment of the impacts of the proposed amendment shows that approximately 14 control devices may be installed on an annual basis to control sources of ammonia, copper, sodium hydroxide, styrene and acid emissions solely to meet the acute risk level requirements in Rule 1401. Control devices, such as wet scrubbers and thermal oxidizers, may be installed on plating lines, fabric/fiber dyeing operations, and caustic cleaning processes. The average annualized cost for this equipment, which includes wet scrubbers and thermal oxidizers, is estimated to be $768,500. Assuming every year the same number of new, relocated, and modified sources will be subject to the proposed amendments, the average annualized cost over a ten-year period is approximately $4.5 million.

AQMP and 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.

Implementation Plan

Existing AQMD resources will be used to implement the rule. The Risk Assessment Procedures for Rules 1401 and 212 (guidance document) will be updated for use in analyzing permit applications for new, modified or relocated equipment emitting the affected compounds. AQMD compliance and permit processing engineers will be trained on the addition of chemicals to Table I and updates to the risk values.

Attachments

A. Summary of Proposal
B. Key Issues and Responses
C. Rule Development Process
D. Key Contacts List
E. Resolution
F. Proposed Rule Language
G. Staff Report (including Socioeconomic Assessment)
H. Final Environmental Assessment

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