BOARD MEETING DATE: May 14, 1999 AGENDA NO. 26


REPORT:

Stationary Source Committee

SYNOPSIS:

The Stationary Source Committee met Friday, April 23, 1999. Following is a summary of that meeting. The next meeting will be May 21, 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 11:05 a.m. Present were Committee Chair Mee Hae Lee, Leonard Paulitz and Jon Mikels.

DISCUSSION ITEMS

  1. High Desert Power Project

    Pom Pom Ganguli, Planning & Rules Manager, presented this item. The High Desert Power Project (HDPP) is a large power plant with 700 – 750 megawatts of power generation capability. Emission Reductions Credits (ERCs) are needed to offset the increase in NOx and VOC emissions from the HDPP. The ERC supplies are limited in the Mojave Desert and the project proponents need to buy about 1,400 lbs/day of ERCs to offset both VOC and NOx emissions in the Mojave Desert area. This constitutes an inter-district as well as an inter-pollutant trade. HDPP has requested the acquisition of 1,400 lbs/day of VOC ERCs from the SCAQMD. Inter-district trades are authorized by Senate Bill 1416 and NSR Rule 1309, but require Governing Board approval. The Board needs to consider the impacts of such trade on air quality, public health and the regional economy. Staff has determined that there is no adverse impact in the Southern California Air Basin (SOCAB) due to the fact that the proposed use is a downwind use of upwind reductions which overall is good for air quality. Secondly, it eliminates the potential for future emissions increases in the SOCAB because the ERCs are leaving the SCAQMD. Lastly, but most importantly, minimal impact is expected on the price of ERCs of this trade that will remain within the Southern California area. Therefore, staff recommends approval to release VOC ERCs as required by the HDPP for this specific project. The Committee acknowledged staff’s report.
  1. Reg. III Fees

    Jill Whynot, Planning and Rules Manager, gave a brief overview of the amendments to Reg. III which are scheduled for the May Board meeting. The proposal is an annual update to Reg. III. Staff recommended that results of ongoing permit streamlining activities and the fee study be considered as part of next year’s amendments. A 2.0% CPI increase is being proposed consistent with the state Consumer Price Index. Other changes involve portable equipment in the state program, spray booth fees, asbestos and lead demolition fees, fee for inter-pollutant trades, changes for equipment no longer exempt from Rule 219, and also implement a fee for transferring mobile source emission reduction credits (MSERCs). AQMD is also required to update the fee rule to implement the AB 2588 program. There are no increases in fees proposed this year for AB 2588. The Committee acknowledged staff’s report.
  1. Rule 1138 Status Report on Technology Development

    Jill Whynot, Planning and Rules Manager, reported that when Rule 1138 was adopted in November of 1997, the Board directed staff to continue working on the technology so that a cost effective and technically sound solution for under-fired charbroilers was developed. Over half of the chain-driven charbroilers in the District have installed catalysts to comply with Rule 1138 limits. AQMD entered into a contract with the Center for Environmental Research & Technology (CE-CERT) to evaluate technology development. Fourteen technologies were evaluated by a Technical Committee. Three of these technologies were selected for testing. To date, only one option is commercially available. Staff recommends additional work should be done to evaluate technology developments as they proceed. The Committee acknowledged staff’s report.
  1. Progress Report on Public Awareness and Education Programs to Reduce VOC Emissions

    La Ronda Bowen, Public Advisor, reported that on May 20, 1999 there will be a workshop with small laboratories as part of the ongoing program to obtain emissions reductions through education and outreach.
  1. Briefing on Area Sources

    Lee Lockie, Director, gave a brief introduction on the Area Source Team that has been formed as a result of the recent reorganization within the Office of Planning, Rule Development and Area Sources. Area Sources include small unpermitted equipment or processes whose emissions are distributed throughout the basin. The team will evaluate programs already in use at the District to ensure they are simple to understand and comply with as well as straightforward for the District to administer.
  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.
  1. Status Update on Proposed Amended Rule 1113 Architectural Coatings

    Jack Broadbent, Deputy Executive Officer, gave a brief status report on proposed amendments to Rule 1113 – Architectural Coatings. Staff conducted an extensive review of current available coatings in the categories that are proposed to be reduced. The proposed limits and dates are based on this assessment.

    An additional study was conducted by National Technical Systems to examine durability concerns with low VOC coatings. The results of the study indicated that low- and zero-VOC coatings compare with the high-VOC coatings in most categories. Results have been made available to the public.

    Comments received are focussed on requests for additional time, higher VOC limits and extended compliance dates. Representatives of El RAP and Dunn Edwards both provided comments to the committee. Dunn Edwards expressed support for the proposal while the El RAP representative requested a 90-day extension. Concerns continue to be the timing associated with the proposal. Staff recommends proceeding with the public hearing on May 14, 1999. The Committee acknowledged staff’s report.

The meeting was adjourned at 12:55 p.m.

Attachments

April 23, 1999 Committee Agenda (without its attachments)

/ / /