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Monitoring, Recordkeeping, and Reporting Task Force Report on Implementation of Title V Program

SYNOPSIS: 

The Monitoring, Recordkeeping, and Reporting Task Force has reviewed issues related to the implementation of the Title V program. No further actions or enhancements are recommended at this time.

COMMITTEE: 

Not Applicable

RECOMMENDED ACTION:

1. Receive and File the Monitoring, Recordkeeping, and Reporting Task Force Report regarding Title V sources.
   
   

2. Direct the Task Force to monitor the progress in implementing the Task Force recommendations approved by the Governing Board in January, February, April, and July 2000, and report back to the Governing Board periodically.
   
   

3. Direct the Task Force to revisit issues related to the implementation of Title V program after a few years of operating history has been obtained, and report back to the Governing Board.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMD Governing Board established the Monitoring, Recordkeeping, and Reporting (MRR) Task Force in April 1999 to develop specific recommendations to the Board on how to streamline the MRR requirements for facilities subject to Regulation XI – Source Specific Rules, Regulation XX – RECLAIM, and Regulation XXX – Title V Permits, while maintaining the air quality objectives and business needs of AQMD’s customers. AQMD Vice-Chair Norma Glover was designated as the Task Force Chair and Board Member Ron Loveridge was appointed to the Task Force, to provide guidance and direction to the Task Force activities. The Task Force included representatives from industry, state and federal government, and businesses that are directly or indirectly impacted by the AQMD MRR requirements. (Attachment A provides a complete list of Task Force members’ names and affiliations.)

The Task Force directed its first effort towards reviewing AQMD MRR requirements for facilities using VOC-containing materials such as coating, inks, adhesive, and graphics art materials. This effort produced a Task Force Progress Report with six recommendations to streamline VOC recordkeeping, which was approved by the AQMD Governing Board on January 21, 2000. Three of these recommendations involve:

• Amending Rule 109 - Recordkeeping for Volatile Organic Compound Emissions, to provide facilities the option of demonstrating compliance or exemption status on a daily or monthly basis, as applicable. The AQMD staff has started the rulemaking process, and anticipates presenting the rules to the AQMD Governing Board at a public hearing in August 2000.
• Amending Regulation XI VOC rules and Rule 219 - Equipment Not Requiring Written Permit Pursuant to Regulation II, to allow daily or monthly demonstration of usage or mass emission exemption thresholds for facilities using low-VOC materials. The AQMD staff began rule development in April 2000, and anticipates presenting the rules to the AQMD Governing Board at a public hearing in October 2000.
• Amending Rule 301 – Permit Fees, and Rule 306 – Plan Fees, to provide discounts from processing fees for plans and permit applications that are not subject to BACT analysis. This recommendation has been implemented in Rules 301 and 306 as amended on May 19, 2000.

The Task Force also explored streamlining MRR requirements for Perchloroethylene (Perc)¹ dry cleaning operations; followed by an examination of the MRR requirements for RECLAIM facilities². The AQMD Governing Board approved the Task Force recommendations to streamline MRR requirements for both Perc dry cleaning operations, and RECLAIM facilities on February 18 and April 21, 2000, respectively. The Task Force recommendations for dry cleaning operations require no rule amendments, and, are in the process of being implemented by the AQMD staff currently. One of the Task Force recommendations to streamline MRR for RECLAIM facilities involves amending Rule 2011 – Requirements for Monitoring, Recordkeeping, and Reporting for Oxides of Sulfur (SOx) emissions, and Rule 2012 – Requirements for Monitoring, Recordkeeping, and Reporting for Oxide of Nitrogen (NOx) emissions, and the protocols for Rules 2011 and 2012 in order to provide the option of using an alternative electronic recording system to strip chart recorders. AQMD staff anticipates to start the rulemaking process in the near future.

¹Perc is not a Volatile Organic Compound (VOC) but a toxic air contaminant, which is regulated under AQMD Rule 1421 to control its emissions from dry cleaning operations.
²RECLAIM facilities are facilities that, in 1990 or subsequent year, reported 4 or more tons per year of NOx or SOx emissions, excluding emissions from on-site, off-road mobile source and other equipment categories listed in AQMD Rule 2000.

After developing specific recommendations on how to streamline VOC, Perc, and RECLAIM MRR requirements, the Task Force directed its effort to examining the MRR requirements for Title V sources. A small Title V subcommittee consisting of AQMD staff and three Task Force members was formed to investigate the following specific issues for Title V facilities:

• Priority ranking of AQMD rules awaiting United States Environmental Protection Agency (U.S. EPA) approval for the State Implementation Plan (SIP);
• Periodic monitoring requirements in Title V permits;
• Identifying organic materials in storage tanks in Title V permits; and
• Re-sequencing of existing permit conditions.

The subcommittee composed of AQMD staff and Greg Adams (L. A. County Sanitation District), Curtis Coleman (California Manufacturers Association), and David Price (Western States Petroleum Association), and held three meetings between April and May 2000 to discuss these issues. These discussions produced five recommendations, listed below, which were reviewed and unanimously approved by the Task Force at their June 2000 meeting.

Monitoring, Recordkeeping and Reporting Requirements for Title V Facilities

Title V is a federal operating permit program that consolidates all applicable air pollution requirements into a single, comprehensive document covering all of a facility’s air pollution activities. This program does not create any new MRR requirements except in cases where an existing applicable rule lacks inadequate monitoring and recordkeeping to substantiate a facility’s compliance or exemption status. It is only in these cases that Title V permits may impose new "periodic monitoring" and recordkeeping requirements. The AQMD Title V program is contained in Regulation XXX - Title V Permits; however, the AQMD MRR requirements for Title V sources are contained in other applicable AQMD regulations.

The Title V program is intended to help facility operators comply with regulatory requirements by:

• Identifying all air pollution control requirements for each emission point at their facility;
• Eliminating or minimizing redundant, contradictory, and duplicative requirements; and
• Providing operational flexibility, thereby reducing the number of permit amendments as facilities undergo operational changes or make emission allowance trades.

The Task Force is aware that it would be more efficient to review the MRR requirements after Title V permits have been issued and some experience has been obtained with implementation activities. However, the following Title V issues were of immediate concern and were reviewed at this time, with recommendations for further review at an appropriate time in the future.

State Implementation Plan (SIP) Gap
Once approved by the Governing Board, AQMD rules are implemented and enforced by the staff, as directed by the Board. The California Air Resources Board (CARB) and U.S.EPA play an oversight role in ensuring that California local rules meet state and federal requirements, and must review and approve such rules and regulations for inclusion into the California SIP. Upon approval by the U.S. EPA, AQMD rules become federally enforceable by the public, and state and federal agencies, and replace and update any previous versions of the rule in effect. Because there is a lag between the time the AQMD Board, CARB, and U.S. EPA approve a rule, it is possible for one version of the rule to be enforced by AQMD staff while a previous version (that has been federally approved) remains legally enforceable by the public, CARB and U.S. EPA. This is commonly known as the 'SIP Gap', and may be problematic depending on the requirements and levels of stringency in the rule versions.

Recognizing this, AQMD staff, business organizations, and other entities have continued to work with U.S. EPA to reduce the 'SIP Gap', i.e., the number of rules that have yet to be federally approved by U.S. EPA. Through these co-operative efforts, the U.S EPA has established and began implementing an approval process that is based on a level of priority requested by the AQMD and the affected public. (Attachment B provides a list of AQMD rules that are awaiting U.S. EPA approval as of June 16, 2000). After review and discussion, the Task Force recommends that Attachment B is an adequate and updated list of AQMD rules awaiting U.S. EPA approval, and no adjustments or enhancements are recommended at this time. However, the Task Force suggests that the staff should continue to work with U.S. EPA to ensure that any future rules containing MRR requirements be prioritized for expeditious approval into the SIP.

Periodic Monitoring Requirements
Periodic monitoring and recordkeeping requirements are imposed on Title V permits in cases where an applicable rule requirement lacks monitoring and recordkeeping provisions to show a facility’s compliance or exemption status. Through the years, the AQMD staff, California Air Pollution Control Officer Association (CAPCOA), CARB, and U.S. EPA have created a "CAPCOA" guideline, which at a minimum, satisfies the periodic monitoring requirement for specific pollutants and equipment. In recognition of these past efforts, the Task Force recommends that the present guidance is adequate and other periodic monitoring issues should be handled on a case-by-case basis because the CAPCOA guidelines do not cover all pollutants and equipment.

Listing of Organic Material in Title V Permits
Some AQMD operating permits for refinery storage tanks lack a means of verifying their compliance with applicable regulatory requirements such as Regulation XIII - New Source Review (NSR), or Regulation XIV - Toxic, programs. Because of the Title V program directives, these permits would have to be modified to reflect permit conditions, which would enable staff to determine compliance with applicable requirements. The condition is based on data submitted at the time the application was evaluated by AQMD. The Task Force recognized that this issue is similar to the periodic monitoring requirement, but was also concerned that conditions may be imposed on permits that are not subject to any applicable rule requirements when the applications were originally deemed complete. As such, the Task Force recommends that vapor pressure or other organic material’s physical or chemical properties may be listed to ensure compliance with Regulation XIII or XIV, but only when such tanks were subject to these regulations when the permits were deemed complete for processing.

Re-sequencing of Permit Condition
Permit re-sequencing is a process of numerically re-arranging permit conditions in order to eliminate duplicative conditions to streamline the permit. Industry representatives recognized the need for permit re-sequencing and the benefits at the initial stage; however, there was concern that if an existing permit is amended, original conditions could be re-arranged further such that facilities would have to spend additional time to review and understand the recorded permit. The AQMD staff is currently working on a Facility Permit Processing System (FPPS), which would eliminate the need for re-sequencing, if desired. Although Task Force members were concerned with unintended re-sequencing, they were equally concerned that revamping the current AQMD Facility Permit System may be too costly and cumbersome since the FPPS is expected to be operational. Therefore, the Task Force recommends that staff should continue to re-sequence permit conditions for Group A Title V and RECLAIM permits until the FPPS is deployed. The AQMD staff anticipates FPPS to be deployed within the next 6 months.

Prompt Reporting
Title V requires a facility operator to promptly report any non-compliance situations with respect to permit conditions or requirements to the permitting agency. Several discussions were held previously between AQMD and affected businesses on the impact of the AQMD prompt reporting requirements on Title V facilities. The discussions resulted in a July 2, 1999, letter from AQMD to Mr. Michael J. Carroll enumerating and clarifying AQMD policies on prompt reporting. Upon review of these letters, the Task Force recommended that staff should continue to implement the current prompt reporting guidelines with the caveat that the matter may be further reviewed in future.

The Task Fore unanimously recommends the following approach for each of the issues identified with the Title V program at this time:

1. Attachment B is an adequate and updated list of AQMD rules awaiting the approval of U.S. EPA into the SIP. No further adjustments are necessary at this time.
2. Periodic monitoring should only be imposed if an applicable requirement does not specify any periodic monitoring requirements. Furthermore, the CAPCOA guidelines for visible emissions are adequate to ensure compliance with applicable AQMD visible emissions provisions.
3. Vapor pressure or other organic material’s chemical or physical properties may be listed to ensure compliance with Regulation XIII or Regulation XIV provisions. This may include listing of organic material’s throughput. However, no new permit conditions will be imposed when there are no applicable rule requirements.
4. Staff should continue to re-sequence permit conditions for Group A Title V and RECLAIM facilities until the Facility Permit Processing System (FPPS) is deployed. Once implemented, the FPPS will address this issue by maintaining the sequence of permit conditions in previous permits, upon future revisions.
5. Staff should continue to implement AQMD prompt reporting guidelines, subject to further developments in the future.

In addition, it is recommended that the Board direct staff to reconvene the MRR Task Force from time to time to review the progress in implementing all the Task Force recommendations approved by the Board between January and July 2000. Furthermore, it is also recommended that the MRR Task Force be reconvened after several years of experience have been obtained in implementing the Title V program for additional review of the Title V MRR requirements.

The existing AQMD resources are sufficient to implement the Task Force recommendations with no impact on the budget.

Attachment A: Task Force Member List
Attachment B: AQMD Rules Awaiting U.S. EPA Approval

ATTACHMENT A

MONITORING, RECORDKEEPING AND REPORTING TASK FORCE
MEMBER LIST 

Adewale Oshinuga, Air Quality Engineer

Attachment B: AQMD Rules Awaiting U.S. EPA Approval of June 16, 2000

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