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REPORT:

Stationary Source Committee

SYNOPSIS:

The Stationary Source Committee met Friday, December 18, 1998. Following is a summary of that meeting. The next meeting will be January 22, 1999, at 11:00 a.m., in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file.

Mee Hae Lee
Chair, Stationary Source Committee

Attendance

The meeting began at 11:00 a.m. Present were Committee Chair Mee Hae Lee, departing at 11:45, Committee Members Jon Mikels, and Leonard Paulitz arriving at 11:08. Absent were Committee Members Ron Loveridge and James Silva.

DISCUSSION ITEMS

1. Status of Environmental Justice Initiatives: Initiative #2: Ambient Air Toxic Monitoring

Mel Zeldin, Director of Planning and Policy, presented this item. The monitoring is proceeding as scheduled. The committee was referred to the attached progress report.

2. Air Quality Assistance Fund Progress Report and Recommendations

Lee Lockie, Director, Small Business Assistance and Special Projects, presented a brief progress report on the implementation of the Board’s recommendations from April of this year on the Air Quality Assistance Fund. The Small Business Assistance program surveyed a randomly selected group of fifty small businesses on their financing needs and examined the lending industry to determine the resources that are currently available. Federal, state and private/non-profit lenders were interviewed to determine what programs worked well and why they were successful.

Responses from businesses were summarized in the following three main points. First, they felt it was difficult to obtain loans from private and public sources and that government lending programs were often cumbersome due to application details and delays in processing the paperwork. Permitting delays and other regulatory uncertainties were often cited as leading to confusion in what types of equipment to purchase. Second, business found other AQMD fees and costs to be a problem as well. Third, businesses needed assistance in preparing loan packages, more effective referral points for sources of financing and prompt, individualized financial assistance. Ms. Lockie concluded by stating that the staff is preparing to issue an RFP to have a consultant examine the steps necessary to increase the leverage of the dollars remaining in the AQAF. Some of these steps could include selling the current portfolio and providing incentive points to a preferred list of lenders for issuing loans for control equipment purchases by small businesses.

3. Set Public Hearing February 12, 1999 to Amend Rule 1106.1 – Pleasure Craft Coating Operations

Elaine Chang, Planning Manager, Emission Inventory Analysis presented this item, which impacts the 17 boatyards in the basin, independent contractors, and consumers purchasing paint on their own. The rule was last amended in May 1992. Interim VOC limits are proposed to be adopted in February 1999 to bridge the time required to perfect low VOC coatings in this industry where coating operations usually are conducted outside. Establishment of new interim limits will address the current group and product variance issues created due to the lack of compliant material availability. HVLP application issues will also be addressed.

Committee members expressed concern that recent EPA action discouraging AQMP measure amendments in subsequent plans removes the incentive to adopt technology-forcing rules. Barry Wallerstein pointed out the Governing Board could adopt these type rules and direct staff not to submit them for EPA approval as part of the SIP until closer to the final compliance date when certain compliant materials have been developed. Supervisor Mikels requested staff present a discussion on the ramifications and potential consequences of adopting any future technology-forcing rules when presented to the Board for adoption. Although the total VOC emissions inventory is only three tons per day for this industry, staff pointed out the AQMP must include "all feasible measures" to reduce emissions.

4. Rule 1146.2 – Emissions of Oxides of Nitrogen from Large Water Heaters and Small Boilers Progress Report

Mike Mills, Senior Manager, Neighborhood Commercial presented this annual status briefing. This rule was adopted by the Board in January of 1998. Equipment subject to this rule can be subdivided into three general categories. Approximately 44,000 smaller units (two-thirds of all the units) require no retrofit/replacement, about 10,000 midsize units with most units exempt from retrofit/replacement requirements and an estimated 12,000 larger units that will be replaced or retrofitted. Some standby units in the latter category are exempt from retrofit/replacement requirements.

In cooperation with the public, industry, and trade associations, the following activities are ongoing: Implementation Steering Committee, overseeing implementation of the rule and studying specific rule-related issues; a third-party contractor study, which will provide further in-depth focus on specific rule-related issues; and the recently implemented equipment certification program which assists manufacturers and end-users by showcasing available, compliant products.

Outreach activities and assistance programs were highlighted in the handout distributed at the meeting.

5. Metal Finishing Association Presentation: "Risk Considerations for Nickel Plating"

The Metal Finishers Association of Southern California (MFASC) was scheduled to make a presentation on Risk Considerations for Nickel Plating. This item was moved to the end of the agenda because the presenters were not available at the start of the meeting. The presentation was not made because the Board members remaining at the end of the meeting had heard the presentation at the Technology Committee meeting the previous day.

Randy Solganik from the MFASC mentioned that one of the contractors that AQMD used to review literature regarding the carcinogenicity of soluble nickel has agreed to review their draft TERA study on this issue. That review will occur in mid-January.

6. Status of Environmental Justice Initiatives:

Initiative #10: Rules 1401 and 1402

Jill Whynot, Senior Manager, Registration and Credit Trading, described progress on this environmental justice initiative. Much of the current efforts relate to the January proposed amendments to Rule 1401, where the Board will consider adding nickel compounds, sodium hydroxide, and hydrochloric acid to the new source review program. Staff is also proposing to add 41 compounds that have had cancer risk values established recently. Impacts from these additions are anticipated to be minimal.

The working group met at the end of October and is starting to discuss options for addressing cumulative impacts. The working group is also following the MATES II efforts and several federal programs under development that may affect toxics. An industry and environmental group meeting in January should help identify if there are any common areas upon which to build. The next working group meeting will be in January.

7. Notice of Violation Penalty Summary

The Committee acknowledged the summary report attached to the agenda.

8. Rule Forecast Report

Jill Whynot mentioned that for the January Board meeting, Rule 1401 is likely to generate significant public comment. There will be a more comprehensive Rule Forecast Report in January because each January, the AQMD is required to include all rules which may possibly be amended during the year. Barry Wallerstein noted that he would be working with legal staff to make sure that all rules that may be required to be amended as a result of pending litigation on the 1994 AQMP be included in the report.

The meeting was adjourned at 11:55 p.m.

Attachments

December 18, 1998 Committee Agenda (without its attachments)

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