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PROPOSAL:

Amend Rule 1158 – Storage, Handling, and Transport of Coke, Coal and Sulfur

SYNOPSIS:

Ambient monitoring, on-going public nuisance complaints, and AQMD staff observations and inspections have shown that the current Rule 1158 is not sufficient in reducing PM10 emissions. To address these deficiencies PAR 1158 will: expand the scope of this rule by including coal and sulfur; establish a No. ½ Ringlemann visible emissions limitation; reaffirm the requirement that all coke piles be enclosed; allow optional open storage of prilled sulfur and coal, under an Executive Officer approved plan; set standards for silt loading on roads and truck exteriors; require paving and maintenance of surfaces and roads where material accumulates; and require covers or slot-tops for material transport trucks.

COMMITTEE:

Stationary Source Committee, November 20, 1998, February 19, 1999 and May 21, 1999 Reviewed

RECOMMENDED ACTION:

1. Adopt the attached resolution: certifying the Final Environmental Assessment for Proposed Amended Rule 1158 – Storage, Handling, and Transport of Coke, Coal and Sulfur; and
2. Amend Rule 1158 – Storage, Handling, and Transport of Coke, Coal and Sulfur, as proposed, in accordance with the attached Resolution; and
3. Adopt the Statement of Findings.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Rule 1158 was originally adopted on December 2, 1983. The rule addressed the open storage of coke in order to reduce public nuisances from particulate emissions. The rule required enclosure of coke piles, required an interim open storage plan until a pile was enclosed and allowed the Executive Officer to make an interim plan permanent, subject to annual review, if the facility demonstrated that it would not violate AQMD rules.

Since the original rule was adopted citizen complaints have continued about coke, coal, and sulfur emissions and fallout from the storage, handling and transport activities. Various monitoring studies and inspections have documented problems and violations resulting from these operations. The particulate emissions from these sources contribute to poor ambient air quality and visibility which are in violation of applicable standards. Health studies related to ambient air quality standards have linked particulate emissions to adverse health effects.

As such, the current Rule 1158 is proposed to be amended for a number of reasons:

• Monitoring studies, site observations by AQMD staff, continued violations of AQMD rules, and continued public nuisance complaints indicate the current Rule is not sufficient to address the problems it was designed to deal with.
• The facilities covered by this Rule contribute to the Basin’s continued exceedances of the federal and state ambient air quality standards and localized PM₁₀ concentrations.
• There is documented evidence that PM₁₀ causes serious adverse health affects.
• Sixteen facilities have enclosed their coke piles in compliance with the current Rule 1158. However, an exemption in the Rule allowed seven facilities to conduct outdoor coke storage for a significant period of time. The outdoor storage piles need to be enclosed because of emissions associated with wind erosion and handling, housekeeping, and reentrainment.
• The current Rule 1158 does not include coal and sulfur (which have had problems similar to coke in some instances).
• The current Rule 1158 does not adequately address housekeeping, transport, and handling, all of which can significantly contribute to the emissions problem, which PAR 1158 will address.
• Existing AQMD Rules 401- Visible Emissions, 402- Public Nuisance, and 403- Fugitive Dust are not sufficient to address the unique problems posed by coke, coal and sulfur storage, handling and transport.
• The technology for controlling emissions from these sources is readily available and has been employed by several facilities.
• The current Rule 1158 is difficult to enforce because it is very staff resource intensive, requiring the evaluation of numerous different facility plans, ambient monitoring, interviews with numerous complainants, and requires repeat on-site inspection visits by AQMD staff to evaluate visible emissions.

Proposal

PAR 1158 will reduce emissions of airborne particulate matter from the storage, handling and transport of coke, coal and sulfur between and including the points of origin and final transport; and will reduce the potential for a violation of AQMD Rules 401, 402 and 403.

To address the current deficiencies, proposed amendments to Rule 1158 will (a) expand the scope of this rule by including coal and sulfur; (b) establish clear and specific requirements including a No. ½ Ringlemann opacity limitation during storage, handling and transport operations; (c) reaffirm the requirement that all coke piles be enclosed, and allow optional open storage of prilled sulfur and coal, under an Executive Officer approved plan; (d) set standards for silt loading on roads and truck exteriors or require periodic street sweeping; (e) require paving and maintenance of surfaces and roads where material accumulates; (f) require covers or slot-tops and leak resistant bottoms for material transport trucks; (g) include end user facilities; (h) require quarterly testing for large facilities; and, (i) set a compliance schedule for facilities that need to construct or modify their facilities to comply with the amended Rule.

PAR 1158 will rely on existing technology that is currently employed by some of the facilities. No new technologies will need to be developed.

Facilities subject to PAR 1158 will include oil refineries, transporting operations, facilities involved in the storage and ship loading of these materials at the Los Angeles and Long Beach Harbors, and facilities that use any of these materials as a fuel source in their production operations. There are about 30 such facilities that would be subject to PAR 1158.

Emissions and Cost Effectiveness

Implementation of PAR 1158 will reduce PM₁₀ by 334 tons per year, which is expected to significantly reduce coke/coal related nuisances and complaints, reduce the potential for violating Rules 401, 402 and 403, and reduce incidences of visible fugitive dust fall-out and track-out from truck loads during transport.

Cost effectiveness analysis includes enclosure of piles, even though enclosures can be required under the current Rule 1158. The cost effectiveness calculations also include the costs of enclosing transfer points, conveyor upgrades, achieving silt loading standards (road cleanliness) by use of truck washes and street sweepers, and truck covers. The total cost effectiveness is $10,000 per ton of PM₁₀ reduced. The cost ranges from $30,000 per ton of PM₁₀ reduced for a facility that needs to construct an enclosure to $3,000 for a facility that needs to improve housekeeping.

Public Outreach

Over the last year and a half, the AQMD staff has made about 25 visits to affected facilities, and held about twenty meetings with industry, three public meetings in the harbor area, and one public workshop on the rule amendments. AQMD staff also visited a state-of-art facility, Koch Carbon, in Pittsburg, California. In addition, AQMD staff has received numerous letters about the proposed amendments. As a result of this public input, AQMD staff has revised the proposed rule language including developing specialized standards for end users, removing prescriptive requirements in favor of setting standards which give facilities the flexibility of determining the best compliance methods, removing unnecessary inspection and recordkeeping requirements, and allowing open storage of existing coal and sulfur piles under certain circumstances.

CEQA & Socioeconomic Analysis

Pursuant to the California Environmental Quality Act (CEQA) and AQMD Rule 110, AQMD has prepared a Final Environmental Assessment (EA) for the proposed amendments to Rule 1158 – Storage, Handling, and Transport of Coke, Coal, and Sulfur. The Draft EA was released for a 45-day public review and comment period from February 3, 1999 to March 23, 1999. During the 45-day public review and comment period, the AQMD received a total of 21 comment letters on the February 3, 1999 Draft EA. However, prior to certification of the February 3, 1999 Draft EA, additional pertinent information was added to Chapter 4 – Environmental Impacts and Mitigation, in response to comments received. Since potentially substantive new information was added to the February 3, 1999 Draft EA prior certification, the AQMD, as lead agency for PAR 1158, re-circulated only portions of the February 3, 1999 Draft EA that included new information.

The Draft Revised EA was released for a 45-day public review and comment period from April 5, 1999 to May 20, 1999. The Draft Revised EA included the following sections of Chapter 4: "Air Quality," "Transportation/Circulation," "Solid/Hazardous Waste," "Energy/Mineral Resources," and "Hazards." In addition, Appendix E – Emission Baseline And Reductions Calculation Methodologies was included in the April 2, 1999 Draft Revised EA. Also, two new appendices were added, Appendix H – Revised Construction and Operation Emissions from Non-enclosing Facilities, and Appendix I - Emission Baseline And Reductions Calculation Spreadsheets. None of the changes in this document altered any of the conclusions contained in the February 3, 1999 Draft EA.

Public comments were only accepted on the materials contained in the April 2, 1999 Draft Revised EA. During the 45-day public review and comment period, the SCAQMD received a total of four comment letters on the April 2, 1999 Draft Revised EA.

This Final EA for PAR 1158 includes: the new information contained in the April 2, 1999 Draft Revised EA; responses to comments received on the February 3, 1999 Draft EA; and responses to comments received on the April 2, 1999 Draft Revised EA. Only minor changes are necessary to make the April 2, 1999 Draft Revised EA and the February 3, 1999 Draft EA a Final EA.

Staff has prepared the socioeconomic assessment which was made available to the public prior to the AQMD Governing Board’s set hearing meeting, and the Final Socioeconomic Impact Assessment is attached. The total cost of the proposed amendments is estimated to be $4.15 million annually which is expected to be incurred by large industries, the petroleum and coal products industry and wholesale distributors of petroleum coke, coal and sulfur. An estimated average of 22 jobs foregone (new jobs not created) are expected to result.

Resource Impacts

PAR 1158 will reduce the administrative burden associated with the current Rule. Thus, it will be easier to implement and no additional staff will be needed.

Attachments

Attachment A: Rule Development Process
Attachment B: Key Contacts
Resolution
PAR 1158
Final Staff Report
Final Socioeconomic Impact Assessment
Final Environmental Assessment

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