BOARD MEETING DATE: March 12, 1999 AGENDA NO. 38


REPORT:

Stationary Source Committee

SYNOPSIS:

The Stationary Source Committee met Friday, February 19, 1999. Following is a summary of that meeting. The next meeting will be March 19, 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 Members Jon Mikels, acting for Committee Chair Mee Hae Lee, Leonard Paulitz and Ron Loveridge arriving at 11:15 am, departing at 12:35 pm.

DISCUSSION ITEMS

  1. Rule 102 – Definition of Terms

    The Committee acknowledged the brief summary provided by Anupom Ganguli, Senior Manager. One new exempt compound is proposed to be added per updated federal regulation.
  1. 1998 Annual Report on Compliance and Permitting Activity

    Carol Coy, Deputy Executive Officer, reported this status information would be presented next month in conjunction with a discussion on implementation plans for the permit streamlining activities.
  1. CTS-03 Consumer Product Education Labeling Program

    Larry Kolczak, Communicty Outreach Manager, Small Business presented this item. The 1997 Air Quality Management Plan included this control measure that would establish a program to help consumers select low-polluting consumer products. This measure proposed distribution of public education materials that encourage the use of less-polluting alternatives in various categories of consumer products. Information will be made available to the public through the Advisor publication, fact sheets and at various outreach events.
  1. Reg. XX - RECLAIM

    Pang Mueller, Sr. Enforcement Manager, presented this item. This rule is set for hearing in April. The rule revisions are intended to provide more flexibility for facilities with small process units that emit NOx to allow them to be able to specify concentration limits and therefore reduce monitoring costs by setting the limit at different levels than what the rule originally specified. The revisions also provide adjustments for other monitoring requirements and clarify new source review requirements for a RECLAIM change of ownership.

    Industry representatives expressed concerns regarding electronic reporting issues not addressed in the proposed rule revisions. Ms. Mueller updated them on system upgrades underway that will allow facilities to check the status of their electronic reports.
  1. RECLAIM Annual Audit Report for 1997 Compliance Year

    Pang Mueller reported that the RECLAIM program is doing very well. There has been a continued emission reduction trend and an active trading program during this year. The dollar amount of the fourth program year has been about 50% of the total trades since the inception of the program, mainly due to the sale of power plants as part of the California utility restructuring and the transfer of RTCs between owners. Program participants continue to demonstrate declining emissions and a high rate of compliance with program requirements.
  1. RFP 9899-21 (CENCO)

    Pang Mueller, reported that CENCO Refining Company intends to start up a refinery that has not been in operation since July 1995. The Hearing Board issued a stipulated Order for Abatement to CENCO imposing requirements for the refinery to demonstrate compliance to the Executive Officer and to the Hearing Board prior to equipment startup. CENCO has entered into a contractual agreement with AQMD to reimburse AQMD’s expenses associated with hiring an engineering contractor to assist the Hearing Board and the Executive Officer in reviewing and analyzing such compliance demonstrations, up to $200,000.

    The Committee recommended approval for recognizing these funds as collected and release of the RFP.
  1. Rule 1113 – Architectural Coatings

    Jack Broadbent, Deputy Executive Officer, presented this item. In terms of the AQMP, commitments are scheduled in three phases. The 1996 amendments were phase one. Phase two is what is currently being worked on for the May Board meeting. Phase three is part of the undefined future measures that will be examined as part of 2000 AQMP efforts. The Board had approved a study that has been under way looking at the durability of low VOC coatings versus higher VOC coatings. The results will be available at the end of this month. CARB is also updating its survey of paint sales and that is about 95% complete. Information indicates that there is a higher use of waterborne coatings and lower use of solvent borne coatings. Many paint companies can use the averaging provision in the rule. Staff is looking at expanding that averaging proposal.
  1. AB 2588 1998 Annual Report Air Toxics "Hot Spots" program

    Jack Broadbent commented that the AB 2588 1998 Annual Report provides a public status overview on our program implementation. Ben Shaw, Sr. Enforcement Manager stated that the report documents that the toxic programs are working. The report will be on the consent calendar in March.
  1. Rule 1158 Update

    Carol Coy briefed the Committee on the February 18 meeting of the Particulate Monitoring Advisory committee in which the community and industry representatives reviewed the results of the follow-up Long Beach/Los Angeles Harbor air monitoring project conducted October 20 to December 13, 1998. Wind patterns were overall more westerly than during the previous May 1997 study. PM10 levels were found to be regionally higher than measured in the May 1997 study with the highest average PM10 levels again found at the Hudson School site. In this case, compared to other Basin sites, the Hudson School site had levels of particulates similar to the Rubidoux area (perennially the highest PM10 site in the Basin). Microscopic analysis again showed road dust (including rubber) to be the dominant contribution to fallout at all sites. This analysis however also showed a greater influence from coal/coke dust at the Hudson School than at any other site. All study evidence indicates a source northwest (upwind) of the Hudson School site which has a significant influence upon that locale and adjacent areas. Staff believes the open coke storage and handling operation at the nearby ARCO refinery is a likely contributor. The community members of the advisory committee requested AQMD staff return to present this information in an evening meeting in the local neighborhood.

    Alene Taber, Planning and Rules Manager, presented an update on Proposed Amended Rule 1158 which is estimated to reduce 228 tons/year of PM10. The cost effectiveness is estimated to be $11,500 per ton of PM10 reduced and would range from $30,000 per ton for a facility that would need to construct an enclosure, among other measures, to comply to $3,000 per ton for a facility that needs to improve housekeeping.

    There has been an extensive outreach effort including twenty-five visits to affected facilities, ten meetings with industry, and three public meetings/workshops.

    The key industry issues are: 1) cost to comply; 2) covering trucks takes time and money; 3) a request for 40% outdoor storage; 4) concerns regarding compliance with street cleanliness requirements; and 5) the desire to have the Rule not include refineries.
  1. Status of Environmental Justice Initiatives:
  1. Notice of Violation Penalty Summary

    The Committee acknowledged the summary report attached to the agenda.
  1. Rule Forecast Report

    The Committee acknowledged the rule forecast report attached to the agenda.
    The meeting was adjourned at 1:00 p.m.

Attachments

February 19, 1999 Committee Agenda (without its attachments)

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