BOARD MEETING DATE: April 21, 2000 AGENDA NO. 30

The U.S. EPA periodically promulgates New Source Performance Standards (NSPS). NSPS govern the operation of all new, modified, or reconstructed sources of air pollution identified in Part 60 of the Code of Federal Regulation (CFR). In order to administer and enforce NSPS at the local level, AQMD’s Governing Board initially adopted by reference the NSPS federal standards as AQMD Regulation IX, on December 3, 1976. The Board has since amended this regulation to incorporate new or amended standards as necessary. The AQMD has historically amended both Regulation IX – Standards of Performance for New Stationary Sources, and Regulation X – National Emission Standard for Hazardous Air Pollution (NESHAPS) in the same Board package. For calendar year 1999, no new NESHAPS were adopted or amended for Part 61 NESHAPS. In 1997, EPA delegated and redelegated its authority for specific Sections of 40 CFR Parts 60, as listed in the April 23, 1997 Federal Register, Volume 62, No. 78, 19679 – 19682. Regulation IX was last amended August 1999.

The 1990 Amendments to the federal Clean Air Act called for the EPA to establish maximum achievable control technology (MACT) standards for new and existing major sources of hazardous air pollutants, starting within two years of enactment and finishing within ten years. The MACT standards are published in the CFR as Part 63. EPA has yet to delegate authority for the implementation and enforcement of Part 63 to the AQMD. The AQMD has sought and been granted equivalency with the MACT for Perchloroethylene Air Emission Standards for Dry Cleaning Facilities, through District Rule 1421. At this time staff is seeking equivalency on a number of other MACT standards and is not herein incorporating by reference the standards set through 40 CFR Part 63. However, AQMD enforces these standards pursuant to state law, Health and Safety Code Sections 39658 (b)(1) & (b)(2), and Section 39666.

Seven NSPS actions for which the AQMD has delegation of authority have been promulgated by EPA during the past year are now proposed for incorporation by reference into Regulation IX. Four of these actions pertain to Appendix A – Test Methods, which do not appear in the rule but are enforced by the District. There are no NESHAPs actions for which the AQMD has delegation of authority that have been promulgated by EPA during the past year. This Board letter and its attachments serve as the staff report for proposed amendments to Regulation IX.

All new sources of air pollution and all modified or reconstructed sources of air pollution are required to comply with the more stringent of the applicable federal, state, and local standards, criteria, and requirements set forth in Regulation IX or other AQMD rules. These standards are in effect and enforceable by EPA pursuant to § 301, in conjunction with Sections 110 and 111(c)(1) of the federal Clean Air Act, regardless of whether AQMD incorporates them by reference into Regulations IX. Also, our delegation agreement with EPA requires AQMD to adopt these NSPS Standards into AQMD rules. Also, adoption of NSPS by reference into Regulation IX helps affected sources by providing a point of reference for these federal requirements.

EPA held public workshops with public comment periods as part of its rule development process. No public workshops were held by AQMD since the proposed amendments incorporate by reference existing legal requirements and therefore, do not significantly affect air quality or emissions limitations.

Table 1 lists NSPS currently proposed for incorporation by reference into AQMD Regulation IX¹.

40 CFR Part 60	Title	EPA action (date)	Reference
Subpart WWW	Standards of Performance for New Stationary Sources: Municipal Solid Waste Landfills	Amended (February 24, 1999)	64 FR 9258 Vol. 64, No. 36
Subparts AA and AAa	Standards of Performance for Steel Plants: Electric Arc Furnaces Constructed after October 21, 1974 and on or before August 17, 1983, and Electric Arc Furnaces Constructed after August 17, 1983	Amended (March 2, 1999)	64 FR 10105 Vol. 64, No. 40
Subpart Dc	Standards of Performance for Small Industrial Commercial-Institutional Steam Generating Units	Amended (May 5, 1999)	64 FR 24049 Vol. 64, No. 86
Appendix A	Standards of Performance for New Stationary Sources: Test Methods: Three New Methods for Velocity and Volumetric Flow Rate Determination in Stacks or Ducts.	Amended (May 14, 1999)	64 FR 26484 Vol. 64, No. 93
Appendix A	Standards of Performance for New Stationary Sources: Test Methods: Three New Methods for Velocity and Volumetric Flow Rate Determination in Stacks of Ducts	Correction (July 9, 1999)	64 FR 37196, Vol. 64, No. 131
Appendix A	Standards of Performance for New Stationary Sources: Test Methods: Three New Methods for Velocity and Volumetric Flow Rate Determination in Stacks of Ducts	Correction (July 15, 1999)	64 FR 38241 Vol. 60. No. 135
Appendices A and B	Standards of Performance for New Stationary Sources: Test Methods: Method 51 – Determination of Low Level Particulate Matter Emissions from Stationary Sources and Performance Specifications	Amended (September 30, 1999)	64 FR 52828 Vol. 64 No. 189
	Method 51 – Determination of Low Level Particulate Matter Emissions from Stationary Sources and Performance Specifications

¹ Due to the bulk of these materials, the complete text of Federal Register Notices announcing final action on NSPS proposed for incorporation by reference into Regulation IX have been distributed to Board members only. Anyone wishing to view this material may do so by contacting AQMD’s Public Information Center at (909) 396-3600.

Staff has reviewed the proposed amendments to Regulation IX - Standards of Performance for New Stationary Sources, pursuant to state CEQA Guidelines § 15002(k)(1) - Three Step Process, and has determined that the proposed amendments are exempt from CEQA pursuant to state CEQA Guidelines § 15268 - Ministerial Projects. AQMD proposes to incorporate by reference federal NSPS requirements into Regulation IX. Because AQMD exercises no discretion with regard to the proposed project, it is considered to be ministerially exempt. Furthermore, the proposed amendments are categorically exempt because they are considered actions to protect or enhance the environment pursuant to CEQA Guidelines §15308 - Class 8 Categorical Exemption – Actions by Regulatory Agencies for Protection of the Environment.

If approved by the Governing Board, a Notice of Exemption (NOE) will be prepared for the proposed project pursuant to CEQA Guidelines § 15062 - Notice of Exemption, and mailed to the county clerks of Los Angeles, Orange, Riverside, and San Bernardino counties.

No socioeconomic impact assessment was performed for the proposed amendments, since they will not significantly affect air quality or emissions limitations. In addition, the proposed amendments are verbatim adoption of current NSPS requirements and thus, do not impose new requirements in addition to the federal regulations.

These federal requirements are not included in the AQMD’s Air Quality Management Plan. Section 301, in conjunction with Sections 110 and 111(c)(1) of the federal Clean Air Act authorize EPA to delegate authority to implement and enforce standards and related compliance times for new, modified, or reconstructed sources of air pollution set forth in 40 CFR Part 60, to local air districts. Adoption of new and amended NSPS into AQMD Regulation IX by reference formally recognizes AQMD’s authority to implement and enforce these federal regulations at the local level.

Proposed amendments do not materially affect the structure or function of existing programs associated with the implementation of Regulation IX - Standards of Performance for New Stationary Sources, or any other AQMD rules. Staff is available to assist those facilities affected by the proposed amendments.

Current AQMD resources are sufficient to implement and enforce proposed Regulation IX amendments.

A. Summary of Changes to Regulation IX
B. Notice of Exemption
C. Draft Rule Language
D. Federal Register Notices of Final Action on NSPS²

² Due to the bulk of these materials, the complete text of Federal Register Notices announcing final action on NSPS proposed for incorporation by reference into Regulation IX have been distributed to Board members only. Anyone wishing to view this material may do so by contacting AQMD’s Public Information Center at (909) 396-3600.

A Resolution of the South Coast Air Quality Management District Board certifying the Notice of Exemption for the proposed amendments to Regulation IX - New Source Performance Standards.

A Resolution of the South Coast Air Quality Management District Board amending Regulation IX - New Source Performance Standards.

WHEREAS, South Coast Air Quality Management District staff reviewed the proposed project and determined with certainty that it is exempt from the requirements of CEQA; and

WHEREAS, the South Coast Air Quality Management District Board obtains its authority to adopt, amend, or repeal rules and regulations from Sections 39002, 39650 et seq. 40000, 40001, 40440, 40441, 40463, 40702, and 40725 through 40728, 41508, 41700, 42303 of the California Health and Safety Code; and

WHEREAS, the South Coast Air Quality Management District Board has determined that a need exists to amend Regulation IX - New Source Performance Standards, to provide a mechanism for the local enforcement of these federal standards; and

WHEREAS, the South Coast Air Quality Management District Board has determined that Regulation IX - New Source Performance Standards, as proposed to be amended, is written or displayed so that its meaning can be easily understood by the persons directly affected by it; and

WHEREAS, the South Coast Air Quality Management District Board has determined that Regulation IX - New Source Performance Standards, as proposed to be amended, is in harmony with, and not in conflict with or contradictory to, existing statutes, court decisions, or state or federal regulations; and

WHEREAS, the South Coast Air Quality Management District Board has determined that AB 1061, 1997, Machado, requires a District to prepare a written analysis of existing federal air pollution control requirements whenever it adopts or amends a rule. If the rule is a verbatim adoption or incorporation by reference of a federal New Source Performance Standard, the District may demonstrate that the proposed rule fits within the section. The District finds that this rule is an adoption by reference of the federal New Source Performance Standards; and

WHEREAS, a public hearing has been properly noticed in accordance with the provisions of Health and Safety Code Section 40725; and

WHEREAS, the South Coast Air Quality Management District Board has held a public hearing in accordance with all provisions of law; and

WHEREAS, the South Coast Air Quality Management District Board, in amending and adopting this regulation, references the following statutes which the District hereby implements, interprets, or makes specific: Title 42 U.S.C. Section 7411 (performance standards for new stationary sources), Health and Safety Code Sections 40001(a) (air quality standards), 40001(b) (air pollution episodes), 40440(a) (rules to carry out plan), 40702 (adopt regulations to execute duties), 42301 (permit system), and 41700 (nuisance); and

WHEREAS, Federal Clean Air Act § 111(c)(1) authorizes the U. S. Environmental Protection Agency (EPA) to delegate authority to local air districts to administer and enforce federal New Source Performance Standards; and

WHEREAS the Governing Board of the South Coast Air Quality Management District finds that the amendments to Regulation IX - New Source Performance Standards, are proposed to implement and enforce federally adopted regulations, which protect the environment; and

WHEREAS, the Governing Board of the South Coast Air Quality Management District has determined that the Environmental Protection Agency has already amended New Source Performance Standards so that these federal regulations are currently in effect and that the adoption of the proposed amendments would merely update District Regulations to comply with current EPA standards, and therefore will not significantly affect air quality or emission limitations;

WHEREAS, the Governing Board of the South Coast Air Quality Management District has determined that there is a problem that Regulation IX - New Source Performance Standards will alleviate, i.e., possible exceedances of federal ambient air quality standards for particulate matter, oxides of nitrogen, oxides of sulfur, and ozone in the Basin.

WHEREAS, the South Coast Air Quality Management District Board has determined that Regulation IX - New Source Performance Standards, as proposed to be amended, does impose the same requirements as any existing federal regulation and is necessary and proper to execute the power and duties granted to, and imposed upon, the District; and

NOW, THEREFORE, BE IT RESOLVED, that the South Coast Air Quality Management District Board does hereby certify the Notice of Exemption for Regulation IX - New Source Performance Standards as proposed to be amended, completed in compliance with State CEQA Guidelines Sections 15002(k)(1) - Three Step Process, and 15268 - Ministerial Projects. This information was presented to the Governing Board, whose members reviewed, considered, and approved the information therein prior to acting on Proposed Amended Regulation IX.

BE IT FURTHER RESOLVED, that the South Coast Air Quality Management District Board finds that Regulation IX - New Source Performance Standards, as proposed to be amended, incorporates by reference federal New Source Performance Standards for the following industries and operations: air and water resource and solid waste management, and refuse systems – solid waste landfills (North American Industrial Classification System codes 92411 and 562212); electric arc furnaces and argon-oxygen decarburization vessels; small industrial commercial institutional steam generating units; industries primarily engaged in operating fossil fuel powered electric power generation facilities; hazardous waste incinerators, hazardous waste burning cement kilns, and hazardous waste burning lightweight aggregate kilns.

NOW, THEREFORE, BE IT RESOLVED, that the South Coast Air Quality Management District Board does hereby amend and adopt, pursuant to the authority granted by law, Regulation IX - New Source Performance Standards, as set forth in the attached and incorporated herein by this reference.