Back

PROPOSAL:

Amend Rule 1401 – New Source Review of Toxic Air Contaminants

SYNOPSIS:

In July 1998, the Governing Board continued the hearing to January 1999 for consideration of adding sodium hydroxide, hydrochloric acid, and nickel compounds, pending source tests to better characterize emissions from metal plating operations. The proposed amendments would add these chemicals, as well as 41 compounds for which OEHHA has recently finalized risk values.

COMMITTEE:

Stationary Source, December 18, 1998, Reviewed

RECOMMENDED ACTION:

1. Adopt the attached resolution;
2. Certify the Final Supplemental Environmental Assessment for Rule 1401 – New Source Review of Toxic Air Contaminants;
3. Continue the public hearing to the February 12, 1999 Governing Board meeting for consideration of proposed changes to the effective dates in Rule 1401 Table I; and
4. Amend Rule 1401 – New Source Review of Toxic Air Contaminants, except for proposed changes to the effective dates in Table I, as proposed, in accordance with the attached Resolution.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In July 1998, the South Coast Air Quality Management District (AQMD) Governing Board (Board) made significant progress in implementing one of its Environmental Justice Initiatives by adopting revisions to Rule 1401 - New Source Review of Toxic Air

Contaminants. Approximately 100 compounds and a requirement to consider non-cancer impacts were added to the rule. The Board postponed the consideration of adding more nickel compounds, hydrochloric acid, and sodium hydroxide until January 1999 and directed staff to conduct source tests to better quantify emissions from processes used in the metal plating industry. This proposed amendment recommends addition of these compounds.

This proposed amendment would also add 41 chemicals for which the Office of Environmental Health Hazard Assessment (OEHHA), a branch of Cal-EPA, has recently established risk values. This is consistent with the July amendments to the rule, which require staff to bring changes to the Board within 150 days of OEHHA’s final action. The proposal will also add 6 compounds which were previously analyzed for the July amendment but were omitted from the rule. A public workshop was held on October 7, 1998 to discuss the proposal. Approximately 100 people attended and a summary of comments received is contained in the attached staff report.

Staff also recommends a change in the effective date for some compounds in Rule 1401 Table I. A commitment was made by staff during rule development that the rule would be based on final risk values. Recently, however, staff has become aware that risk values for compounds with acute and chronic effects (with the exception of 2 chemicals), although utilized for AB2588 health risk assessments, have not yet received official final approval by the Scientific Review Panel. For these compounds, the risk values were published several years ago and have been incorporated within CAPCOA guidelines. In keeping with commitments, staff proposes to clarify Table I to define the effective date for chemicals with chronic and acute effects based on the Scientific Review Panel final approval. This change does not affect any carcinogenic risk values. Only 2 of these chemicals are associated with equipment that would possibly require control equipment to meet the risk limits in Rule 1401. Only a few permits per year are expected to use sufficient quantities of these chemicals that would require control equipment. The Scientific Review Panel will be considering finalizing acute risk values in January 1999. For chronic risk values, the process may take 6 – 9 months to finalize.

In order to provide adequate public notice, staff recommends continuing the public hearing to consider proposed changes to the effective dates in Table I until February 12, 1999. A public consultation meeting will be held in January.

The resolution for the July 1998 Rule 1401 amendments included a directive to staff to monitor the number and type of permit applications received between the rule adoption date (July 10, 1998) and implementation date (September 8, 1998) and compare this activity to a comparable period in recent history. A report to the Board was requested at the next proposed Rule 1401 or 1402 amendment. During this time period in 1998, approximately 1,100 permit applications were received (excluding change of ownership and compliance plans). The comparable number received during the 1997 time period was approximately 1,450. Staff found no significant increase in any particular equipment type which could be attributed to Rule 1401 amendments. Therefore, staff determined there was no impact due to the two-month delay between rule adoption and implementation.

Proposal

Plating Operations

In cooperation with the Metal Finishing Association of Southern California (MFASC), the AQMD conducted source tests to better characterize the emissions from metal plating processes. From July to October 1998, the AQMD and representatives of the MFASC met on a weekly basis and collaborated on all aspects of the sampling and testing.

Sampling and testing protocols were developed and sampling locations were selected. Five locations were mutually selected and sampled. Six source tests were run on five types of tanks and one spray tunnel. This effort cost over $70,000.

For hydrochloric acid and sodium hydroxide (electrocleaning and small spray tunnels – about 4 ft² or less), the new and more accurate emission factors are much lower than the previous factor. This will enable many pieces of equipment to be added without triggering the risk threshold that would result in additional control equipment.

A few very large sodium hydroxide spray tunnels are in operation, which, if uncontrolled, could exceed the hazard index permit threshold. Use of these large, rarely used equipment is typically with scrubbers which would reduce the risk and enable permitting. There are also some spray tunnels that use alternative chemicals that are not in the Rule 1401 list.

For nickel, three plating operations were tested – electroless and electroplating with or without agitation. Electroplating with physical agitation is the most common type of nickel plating. The test results demonstrated that electroless plating has negligible emissions and confirmed that the emission factors for electroplating are similar to the previous factor. In limited applications, changing to electroless plating may be possible. The most common types of nickel tanks would need controls to comply with Rule 1401 limits for new, modified, or relocated tanks.

Control of nickel emissions from these sources are estimated to range from $17,000 to $115,000, depending on tank size. Application of T-BACT would allow growth for this industry while protecting public health. As compliance options, operators may use electroless plating or demonstrate lower emissions through source testing.

Another issue impacting potential costs of controls for nickel tanks is the risk factor established by OEHHA. The MFASC would like OEHHA to consider the soluble forms of nickel used in plating differently than other nickel species. The MFASC has commissioned a study by Technical Excellence in Risk Assessment (TERA) to evaluate information available since OEHHA’s determination of a risk factor for nickel. The report is subject to peer review and the final report is to be completed in January 1999. This report will be submitted to OEHHA with a request to review the potency of soluble nickel.

Following Board direction in July, staff had two experts review relevant literature and summarize information available relative to the carcinogenicity of soluble nickel. An Epidemiologist from the University of California at Berkeley and a Toxicologist from the University of California at Irvine were contracted. Both recommend that soluble nickel be treated as a human carcinogen (see Staff Report, Chapter 3, Literature Review, Table 3-8 and 3-9).

Staff recommends that AQMD follow the model previously established in Rule 1401 and rely on the expertise of OEHHA for determination of cancer and other risk factors. If OEHHA revises the factor for soluble nickel after review of the TERA report or other information, staff will bring the revised factor back to the Board. The OEHHA review may take 1-2 years. This approach is more protective of public health.

Revised Risk Numbers

Rule 1401 includes toxic air contaminants with risk factors established by OEHHA. OEHHA periodically reviews and revises risk factors. According to paragraph (e)(2) of Rule 1401, staff is required to report to the Board with recommendations to add chemicals within 150 days after OEHHA has finalized risk factors.

On June 3, 1998, the Scientific Review Panel approved factors developed by OEHHA for 41 carcinogenic air contaminants. OEHHA considers this approval as their final action. A review of the past three years’ permit history indicated that only a few permits per year may potentially be affected. In addition, there are six compounds being added to the rule, which were analyzed as part of the July 1998 amendments but were inadvertently not included in Table I of the rule.

AQMP & 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.

CEQA & Socioeconomic Impact Analysis

AQMD staff has reviewed the proposed Rule 1401 pursuant to state CEQA Guidelines Section 15002 (k)(2). A Draft Supplemental Environmental Assessment (SEA) with no significant adverse impacts has been prepared because, although the Draft SEA 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 SEA has been circulated for a 30-day public review and comment period which ended November 30, 1998. Two comment letters were received on the Draft SEA. Responses to all comments received have been prepared and incorporated into the final SEA for the proposed project.

In addition, the AQMD Board postponed the consideration of adding more nickel compounds, hydrochloric acid, and sodium hydroxide until January 1999. In accordance with the CEQA, the AQMD, as lead agency, had reviewed the proposed amended Rule 1401 and prepared the June 1998 Final Environmental Assessment (certified at the July 1998 Governing Board meeting).

A final socioeconomic assessment is included as part of the staff report. Impacts from adding compounds related to metal plating are expected to be lower than estimates in the July 1998 amendment package, because some nickel tanks may not require controls. The July 1998 report estimated that a range of 10 to 52 jobs per year would be foregone from the two main industries that use nickel plating, fabricated metal and electronic equipment. Control equipment is estimated at $17,000 - $115,000 per tank, depending on size. Based on the July 1998 report, the estimated annual average cost to the metal plating industry as a whole is $608,000 to $3.4 million. Impacts from the addition of 41 new compounds is anticipated to be minimal, potentially affecting only a small number of permits per year.

Implementation Plan

Existing AQMD resources will be used to implement the rule. The guidance document will be updated for use in analyzing all permit applications for new, modified or relocated equipment emitting the affected compounds. Engineering staff will be trained on the changes to the risk values.

Attachments

Attachment A: Summary of Proposal
Attachment B: Key Issues and Responses
Attachment C: Rule Development Process
Attachment D: Key Contacts List
Attachment E: Resolution
Proposed Rule Language
Staff Report (including Final Socioeconomic Assessment and Final Draft Supplemental Environmental Assessment)

June 1998 Final Environmental Assessment (certified at the July 1998 Governing Board meeting) (Copies of this document are provided for AQMD Board Members only – others may obtain a copy by calling the Public Information Center at (909) 396-3600).

/ / /