South Coast Air Quality Management District

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Report on Executive Officer’s Intent to Execute MOU between AQMD and Individual Refineries Regarding Refinery Modifications to Produce Gasoline to Meet California Reformulated Gasoline Regulation

SYNOPSIS: 

The Executive Officer intends to enter into an MOU with individual refineries operated in the South Coast Air Basin to expedite the preparation of the CEQA documents and permit review for California Reformulated Gasoline (CaRFG) Regulation Phase 3 projects. The CaRFG Regulation mandates that the refineries in the state of California produce cleaner Phase 3 gasoline no later than January 1, 2003. Parties to this MOU would agree to dedicate sufficient resources for timely submittal, preparation and review of both CEQA documents and permit applications. In addition, the parties agree to work with other government agencies to identify and resolve issues expeditiously to ensure timely and efficient review of necessary permits.

COMMITTEE: 

Stationary Source, July 28, 2000, Reviewed

RECOMMENDED ACTION:

Receive and file.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On March 25, 1999 Governor Davis issued Executive Order D-5-99 calling for the removal of methyl tertiary-butyl ether (MTBE) from gasoline at the earliest possible date, but not later than December 31, 2002. Governor Davis found that, on balance, there is a significant risk to the environment from using MTBE in gasoline in California. As a result, the Executive Order also directed CARB to adopt CaRFG regulations by December 31, 1999 that provided additional flexibility in lowering or removing the oxygen content requirement while maintaining current emissions and air quality benefits and ensuring compliance with the SIP. The CaRFG Phase 3 regulation was adopted by CARB on December 9, 1999.

Proposal

To assist the refineries in the South Coast Air Basin in the production of gasoline that meets the CaRFG Phase 3 specifications at the earliest possible date, the Executive Officer intends to execute an MOU with individual refineries to expedite the CEQA and permit review processes. The MOU will require the refineries to provide information to the District promptly and for the District to act promptly after receiving the information and to expedite application processing through Green Carpet program service. Additionally, parties in the MOU will participate in a task force to address major policy issues that may arise during the permit and CEQA review of the CaRFG Phase 3 projects.

District staff and the refinery representatives have jointly developed the standard MOU language. The Executive Officer anticipates signing the MOU with several refineries within the next three months. The specific language and schedule in each MOU may vary depending on the scope of the project for the individual refineries. The District anticipates completing the CEQA and permit review process by October 31, 2001. This date may also vary depending on when the refinery initiates the project, the scope of the project, the completeness and accuracy of the initial applications, the refineries’ responses to information requests and the need for the District to ensure all CEQA and other legal requirements are satisfied.

Attachment

Draft MOU

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