BOARD MEETING DATE: March 12, 1999 AGENDA NO. 46
PROPOSAL:
Amend Rule 1142 – Marine Tank Vessel Operations
SYNOPSIS:
The proposed amendments to Rule 1142 will add the maintenance, monitoring, reporting and recordkeeping requirements necessary to ensure compliance of emission control equipment with the emission limitations. The proposed amendments will also clarify rule requirements by specifying a procedure for identifying organic liquids that comply with the emission standard without control.
COMMITTEE:
Stationary Source, January 22, 1999, Reviewed
RECOMMENDED ACTION:
Adopt the attached resolution:
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Rule 1142 - Marine Tank Vessel Operations, controls VOC emissions during loading, lightering, ballasting, and housekeeping of marine tank vessels that transport organic liquid. The rule was adopted on July 19, 1991, and became effective January 1, 1994. The rule was submitted to EPA for inclusion into the SIP, which EPA approved on December 13, 1994. Since the compliance date of the rule, several issues have been identified by the industry and by staff that require resolution.
Staff Proposal
The present rule requires that a marine tank vessel owner or operator maintain two sets of records of loading, lightering, ballasting, and housekeeping activities: one set on board the ship and another set at the marine terminal. The marine tank vessel owner or operator is also required to submit a report to AQMD annually. This has proven somewhat awkward and difficult to enforce because the vessel owner or operator may not be located in the District. Marine terminal operators who conduct the loading operations often submit this report for the marine vessel operators; however, this is not currently a requirement. Staff is proposing to require the marine terminals to record and report any loading activity, and marine vessels to keep one set of records and report all loading, lightering, ballasting, and housekeeping activities to AQMD.
The present rule requires a 48-hour notification prior to any loading or other affected activity. Because of the legitimate problems identified by the operators, staff proposes to amend the notification requirement to be consistent with that of the California State Lands Commission, which requires only a four to twenty-four-hour notice, except for barges, for which notification may, in certain situations, be made less than four hours prior to loading.
A primary focus of AQMD and EPA rulemaking in the past few years has been effective operation, maintenance, monitoring, recordkeeping, and reporting to assure compliance of air pollution equipment. The proposed amendments will improve rule enforceability.
Many low-volatility organic liquids can comply with the rule without emission controls. However, the current rule does not provide a ready means of determining which organic liquids require no control. In the set hearing package, staff proposed an exemption for diesel fuel, fuel oil, and other liquids with high flash points and, therefore, low volatility. However, comments from EPA and the public have expressed concern about possible emission increases allowed by the exemption. Accordingly, staff has revised the proposal to require those seeking an exemption to source test the organic liquid to establish that it can comply without control.
Two marine terminals have chosen to provide MSERCs through Rule 1610 - Old-Vehicle Scrapping rather than install emission controls. An attachment to the proposed amended rule was originally proposed to be included with Rule 1142 as a protocol for determining the amount of emission trading credits required by Rule 1610 or other trading rules that may be adopted by the Board in the future. However, EPA has said that the attachment would jeopardize the approvability of Rule 1142 because EPA has not approved Rule 1610. Therefore, the attachment was removed from the proposed amended rule.
Other changes are proposed simply for clarification and to facilitate enforcement. No additional VOC emission reduction is expected to result from compliance with the amendments proposed in this rule.
In addition to the previously described change in the proposed exemptions, staff has made other revisions to respond to EPA, CARB and public comments received after the set hearing package was prepared:
AQMP & Legal Mandates
The proposed amendments are not included in the AQMP and are not expected to result in additional emission reductions. The proposed changes are simply to improve enforceability and to clarify the intent of the rule.
CEQA and Socioeconomic Analysis
The proposed amendments to Rule 1142 are a "project’ as defined by the CEQA. AQMD is the lead agency for the project and has prepared appropriate environmental documentation pursuant to its Certified Regulatory Program [California Public Resources Code §21080.5 and California Code of Regulations §15251(m)]. The Draft Supplemental EA includes a project description and analysis of the proposal’s potential adverse environmental impacts. Results of the analysis indicate that the proposed amendments are not expected to generate significant adverse impacts in any environmental area. Copies of the Draft Supplemental EA are available at AQMD Headquarters or by calling the AQMD Public Information Center at (909) 396-3600.
Prior to making a decision on the proposed project, the AQMD Governing Board must review and certify the Final Supplemental EA as providing adequate information on the potential adverse environmental effects of the proposal.
The proposed amendments to Rule 1142 are expected to result in small increases in administrative costs to comply with the additional operation, monitoring, recordkeeping and reporting requirements, but not to result in any significant socioeconomic impacts. The socioeconomic assessment is attached.
Implementation Plan
Staff will prepare new reporting forms and other informational materials and send them to the marine terminals and ship operators to inform them of the rule amendments and revised requirements.
Resource Impact
The costs to review and approve the operation, maintenance and monitoring plans and the compliance plans will be offset by the plan fees paid by the applicants. Existing AQMD resources will be sufficient to enforce the rule as amended with minimal impact on the budget.
A. Summary of Proposed Amendments
B. Rule Development Flow Chart
C. Key Contact List
D. Resolution
E. Draft Rule Language
F. Staff Report
G. Supplemental Environmental Assessment
H. Socioeconomic Analysis
ATTACHMENT A
SUMMARY OF PROPOSED AMENDMENTS
ATTACHMENT B
RULE DEVELOPMENT PROCESS
PROPOSED AMENDED RULE 1142 – MARINE TANK VESSEL OPERATIONS
Development of October 1998-December 1998 |
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Internal Consultation Meetings: September 18, 1998 |
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| Public Consultation Meeting: October 29, 1998 Public Workshop: December 16, 1998 (500 notices mailed) Public Consultation Meeting: February 9, 1999 |
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| Set Public Hearing: February 12, 1999 Public Hearing: March 12, 1999 |
Total Time Spent in Rule Development Pre-Board Hearing: 6 months (Includes time to obtain background information for rule amendment)
ATTACHMENT C
KEY CONTACT LIST
Western States Petroleum Association (WSPA)
California State Lands Commission
United States Coast Guard
American Bureau of Shipping
Chevron Products
ARCO Pipeline
ARCO Marine, Inc.
GATX
Equilon
Mobil Oil Corporation
Ultramar Refining
Defense Energy Office - LA
CARB
EPA Region IX
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