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Amend Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Rule 1401 - New Source Review of Toxic Air Contaminants

SYNOPSIS: 

Rule 1402 is directed toward reducing risk from toxic air contaminants from existing stationary sources. Proposed amendments add an action level for risk reduction and accelerate the time to make reductions unless specific technical or economic criteria are met. PAR 1402 identifies industries that will not be subject to the risk reduction requirements if they will be regulated under source specific requirements. The proposal also includes additional inventory and public notification requirements, other changes to improve rule effectiveness, and improve public health. PAR 1401 will remove a requirement for a limited cumulative risk assessment.

COMMITTEE: 

Stationary Source, January 28, 2000, Reviewed and February 25, 2000, Reviewed.

RECOMMENDED ACTION:

Adopt the attached resolution:

1. Certifying the attached Final Environmental Assessment for Rule 1402 – Control of Toxic Air Contaminants from Existing Sources and Rule 1401 – New Source Review of Toxic Air Contaminants; and

2. Amending Rule 1402 – Control of Toxic Air Contaminants from Existing Sources; and

3. Amending Rule 1401 – New Source Review of Toxic Air Contaminants.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Rule 1402 was adopted in April 1994 and has not been amended. The objective of Rule 1402 is to reduce public health risks from cancer and non-cancer causing emissions of Toxic Air Contaminants (TACs) from existing facilities. Cancer risks from carcinogens are expressed as an added lifetime risk of contracting cancer as a result of a given exposure. This added risk to a maximally exposed individual is referred to as a "maximum individual cancer risk" or MICR. The risk to an exposed population, referred to as "cancer burden," is expressed as an estimate of the number of excess cancer cases which may occur in the population as a result of exposure. The health risk from exposure to non-carcinogenic TACs is evaluated by comparing the exposure to the TAC to a reference level. Exposure below this reference level is not expected to result in adverse health effects. The comparison is expressed as an acute (short-term) or chronic (long-term) hazard index (HI). The HI is a ratio of the estimated exposure to the reference level.

Rule 1402 implements a portion of the Air Toxics "Hot Spots" Act and state law requirements to establish a significant risk level and require risk reductions. The Hot Spots program requires facilities to report inventories of TACs to the AQMD and requires the agency to specify when facilities must prepare health risk assessments and notify the surrounding community. In October 1997 the Governing Board approved ten Environmental Justice (EJ) Initiatives. Part of EJ Initiative #10 was to reopen Rule 1402 for public comment on the toxics significance thresholds.

Rule 1401 was adopted in June 1990 and last amended in August 1999. Rule 1401 establishes risk levels for permitting for individual new, modified, or relocated equipment.

Public Process

Through the rulemaking process, the AQMD staff has been working with a Rules 1401/1402 Working Group that includes environmental organizations, the business community, agency representatives, academia, and other interested parties. Over the past year, the AQMD staff has held numerous working group meetings and meetings with specific industry groups to discuss proposed amendments to Rules 1402 and 1401. In addition, the AQMD staff held a public workshop and two public consultation meetings, which were well attended.

Proposal – PAR 1402

PAR 1402 is designed to provide greater protection of public health from major facilities and improve the effectiveness of the rule. Proposed amendments to Rule 1402 represent a balanced approach that strengthens risk reduction requirements for major toxic-emitting facilities in the Basin while recognizing potential technological and economic limitations. The proposed amendments to Rule 1402:

• Retain the Significant Risk Level at a Maximum Individual Cancer Risk (MICR) of 100-in-one million and Hazard Index (HI) of 5;
• Establish an Action Risk Level of 10-in-one million, HI of 3.0, and cancer burden of 0.5;
• Reduce the time for required reductions from five to three years;
• Allow time extensions for technical and economic reasons except for facilities exceeding the Significant Risk Level;
• Set forth a technology-based approach for specific industries with large number of facilities, and smaller sources for which technology-based source-specific rules will be brought to the Board within three years;
• Add emissions inventory requirements for specific TACs and industries upon Executive Officer request;
• Establish a schedule for emissions inventory updates for Hot Spots program Phase I Facilities with pending HRAs; and
• Require more frequent progress reports and new public notification requirements for facilities above the action risk level.

Need for Amendments

Some representatives from the business community have commented that amendments to Rule 1402 are not needed and the benefits are not well known. Based on risk reduction estimates, implementation of PAR 1402 will provide public health benefits. For the approximately 40 facilities that are expected to implement risk reduction plans under PAR 1402, risk reductions of 40 to 90 percent per facility are anticipated. These risk reductions will produce localized risk reductions, particularly for neighborhoods near and around the facilities. Current modeling techniques are not sufficiently refined to estimate regional benefits from individual facilities. In addition, under PAR 1402, risk reduction benefits from the eight source-specific technology-based rules will be regional as these facilities are numerous and located throughout the Basin.

Risk Levels

Currently under Rule 1402, the significant risk level is based on a Maximum Individual Cancer Risk (MICR) of 100-in-one million and a total non-cancer acute (short-term) and chronic (long-term) Hazard Index (HI) of 5.0. Under Rule 1402, facility operators are required to reduce their facility-wide toxic emissions below the significant risk level within five years.

PAR 1402 will retain the current significant risk level for cancer and non-cancer toxic air contaminants (TACs) and adds an action risk level. The action risk level is based on a MICR of 10-in-one million, a cancer burden of 0.5, and a HI of 3.0. Under PAR 1402, any facility that exceeds the action risk level is required to reduce the facility-wide toxic emissions below the action risk level.

Risk Reduction Schedule

Under PAR 1402, any facility that exceeds the action risk level must achieve risk reductions below this risk level within three years. This risk reduction requirement will be implemented in two tiers, depending on the facility-wide risk level and the facility’s proximity to a school. Tier I is effective upon adoption of the proposed amendments and includes facilities that either (1) exceed MICR of 25-in-one million, cancer burden of 0.5, and HI of 3.0, or (2) exceed the action risk level and are located within 1,000 feet of a school. Tier II includes facilities with an MICR greater than the action level but less than 25-in-one million, and is effective July 1, 2002.

Time Extensions

Facilities below the significant risk level may request time extensions provided certain technical or economic criteria are met. The technical criterion addresses situations where there is no commercially available technology to achieve risk reductions. The economic criteria establishes a cost threshold of $4,000,000 per cancer case avoided and a cost-effective threshold of $18,000 per ton of pollutant reduced, which is applicable to those TAC risk reduction measures that will concurrently reduce criteria pollutants.

Technology-Based Approach for Specific Industry Groups

Based on AQMD data, seven industry groups have been identified that represent more than 7,500 individual facilities. The AQMD staff is proposing to develop technology-based source-specific rules for each industry group. Under the technology-based approach, rules will be designed to employ the best available technology, while considering cost-effectiveness, with the goal of achieving the action risk level of PAR 1402. Based on the large number and the types of businesses, development and implementation of risk reductions through source-specific rules is expected to best utilize resources for facilities and the AQMD. If, however, source-specific rules are not adopted within three years from the adoption of the proposed amendments, the Executive Officer may request an inventory and the facility may potentially be subject to risk reduction requirements of PAR 1402.

Based on recent comments received from the aerospace industry, a technology based-approach is also recommended for this industry as indicated in the Resolution. Adoption of these source-specific rules is expected to occur over a three-year period. The seven industry groups and the aerospace industry, with the anticipated adoption schedule are identified below:
 

Efforts will begin soon for rules identified for years 2 and 3. These rule development efforts are anticipated to be more complex, requiring more time.

Other Requirements

PAR 1402 includes inventory requirements for facilities not currently included in the Hot Spots Program. Inventory requirements are for facilities that use specific carcinogens in amounts that may be of concern due to their toxicity and/or the amount used. Inventories will be required upon request by the Executive Officer. In addition, the proposed amendments include a deadline for emissions inventory update requests for Phase I facilities that have Health Risk Assessments (HRAs) pending.

Proposed amendments include more frequent progress reports and annual public notification requirements for any facility that exceeds a MICR of 10-in-one-million or HI of 3.0. Facilities over 100-in-one million or HI of 5.0 will be required to hold annual public meetings.

Proposal – PAR 1401

PAR 1401 will remove the requirement to assess limited cumulative risk from emissions from units permitted after 1990 within 100 meters of a new permit application. Since the action risk level in PAR 1402 is based on a MICR of 10-in-one-million, the current cumulative requirement in Rule 1401 is no longer necessary. Risk assessments for PAR 1402 include all equipment within the facility, regardless of the permit date, which is more encompassing than the 100-meter cumulative requirement under Rule 1401.

Affected Facilities

PAR 1402 will affect facilities that exceed the action risk level. Based on current estimates, there are approximately 40 facilities with draft or approved Health Risk Assessments (HRAs) that could be subject to risk reduction requirements. There are approximately 120 facilities that may be affected by new inventory requirements under PAR 1402. In addition, there are approximately 7,500 facilities whose risk reductions would be addressed through technology-based source-specific rules. The actual number of facilities to be affected by these source-specific rules are expected to be significantly less due to existing controls or other regulatory requirements, resulting in the current risk levels below the action levels.

Policy Issues

Business and environmental representatives have expressed widely divergent opinions on whether and how Rule 1402 should be amended. Although the AQMD staff has made considerable effort to reach consensus, there are remaining issues. The AQMD staff has attempted to provide a balanced proposal that strengthens public health protection, while addressing technological, economic and resource issues.

There are four key policy issues for PAR 1402. The most significant comments are regarding the need for amending PAR 1402 and the action risk level. Other key policy issues include the risk reduction time period, addition of diesel and future TACs, and public notification requirements. The Final Environmental Assessment for PAR 1402 and 1401 includes a range of alternatives for the Governing Board’s consideration.

Action Risk Level

One of the key issues raised under PAR 1402 is the action risk level. Industry representatives recommend establishing the action risk level at 50-in-one million while environmental representatives recommend establishing the action risk level at 1 or 10-in-one-million. The AQMD staff is proposing an action risk level of 10-in-one-million, with 3 years to make reductions. Extensions are available for technical and economic considerations. This represents a balanced approach that will provide greater public health benefits while considering technical, economic, and resource issues.

Establishing the action risk level at 50-in-one million would significantly minimize the potential risk reduction benefits of PAR 1402. An action risk level of 50-in-one million would forgo the public health benefits associated with over 25 facilities. Lowering the action risk level below 10-in-one million would be technically and economically difficult with significant resource impacts and minimal public health benefits. An action risk level below 10-in-one-million would affect over two hundred facilities and result in relatively small incremental risk reductions per facility.

Time Extensions

Environmental representatives recommend a one-time extension for technological issues, however, they oppose time extensions that are unlimited or that are allowed for economic reasons. Industry recommends renewable extensions based on technical and economic criteria. The staff proposal is consistent with the industry recommendation. This represents a balanced proposal that provides public health benefits, while recognizing possible technological and economic constraints on achieving these risk reductions within three years.

Diesel Particulate, New TACs & Changes to Risk Values

Industry representatives have expressed concern about the addition of diesel particulate, other new TACs or changes in risk values of existing TACs. To address these concerns, PAR 1402 and the resolution requires staff to promptly notify the Governing Board and affected industries when OEHHA finalizes the identification of a new TAC or revises the risk value of an existing TAC. Staff will report to the Governing Board before new TACs or changes in risk values are to be implemented in risk assessments for Rule 1402. The implementation period will normally have a one-year lead-time from the date the Governing Board receives and files the report that contains such notification, unless the Governing Board approves another implementation through an official board action. In addition, PAR 1402 and the resolution include a 150-day assessment period where staff will assess potential impacts on rule implementation associated with the new values. This assessment period and report to the Governing Board will provide an opportunity for the public to provide comments.

Public Notification and Progress Reports

The public noticing requirements under PAR 1402 have been significantly strengthened. Under PAR 1402 annual public notices are required for any facility greater than the action risk level and public meetings are required for any facility greater than the significant risk level. In addition, under PAR 1402, progress reports are required annually as compared to every two years in the current rule. Environmental representatives recommend progress reports, public notice and public meetings every 6 months. Staff recommends one year to allow sufficient time for meaningful progress to be made by facilities.

Emission Reductions

Based on draft and approved HRAs, PAR 1402 will require risk reductions for approximately 40 facilities in the Basin. Reductions from these facilities will reduce localized toxic impacts in neighborhoods near these facilities. Implementation of the action risk level of an MICR of 10-in-one-million is expected to reduce the cancer risk of each facility from between 40 to 90 percent, depending on the current risk level of the facility.

For smaller facilities, which may be numerous and ubiquitous throughout communities, the approach is to address risks through technology requirements in source-specific rules for certain industries. Reductions through this type of approach can reduce emissions on a local, as well as a more regional level.

California Environmental Quality Act (CEQA)

In accordance with the California Environmental Quality Act (CEQA), the AQMD, as the Lead Agency, has reviewed the proposed amendments to Rule 1402. Pursuant to state CEQA Guidelines Section 15002(k), AQMD staff has prepared a Draft Environmental Assessment (EA) for the proposed project which was released on December 30, 1999 for a 45-day public review and comment period. All comments received have been addressed and incorporated into the Final EA for PAR 1402. The Draft EA analyzed the potential adverse environmental impacts which are comprised primarily of cross-media impacts, including air quality, water resources, transportation, energy, hazards, public services and solid/hazardous waste, from installing air pollution control equipment. The analysis concluded no significant adverse impacts for any of the environmental areas.

Socioeconomic Assessment

The staff has also prepared a socioeconomic assessment which is part of the staff report. Based on the draft assessment, the compliance cost is estimated at an annual average of $1.7 million from year 2000 to year 2015. The assessment also estimates that an average of 20 jobs will be forgone annually from year 2000 to year 2015. This net result is beneath reliable detection levels for a regional model of this kind.

In response to comments received, staff has further updated the analysis by quantifying additional costs associated with implementation of PAR 1402 that were not included in the initial socioeconomic analysis. For the existing 40 Phase I facilities and 120 facilities that may be required to prepare toxic emissions inventories and subsequently reduce risks for some facilities under PAR 1402, annual average costs are estimated to be between $1.3 and $1.8 million. These revised cost estimates represents various control options such as reformulated materials and add-on control equipment and are within the range of the original annual cost estimate of $1.7 million. If the source-specific rules are not adopted, the annual average costs for facilities in these industries are estimated to be $2.5 million for facilities within specific industry groups that may be subject to PAR 1402. These assumptions do not account for the technical or economic feasibility of implementing these compliance options. It should also be noted that staff is proposing to adopt source-specific rules and during the development of each rule, an individual socioeconomic analysis will be prepared that will include additional refinements to the cost data and associated assumptions.

Recommendation

Staff recommends that proposed changes to Rules 1402 and 1401 be adopted. The changes will enhance public health protection by requiring the top toxic emitters to reduce their risks and by establishing a source-specific approach to more effectively reduce risk from several industries that typically have large numbers of smaller sources. Both approaches recognize potential technical and economic issues, as well as resource constraints.

Attachments (approx. 1,655 k.b.)

Summary of Proposal
Key Issues and Responses
Rule Development Process
Key Contacts List
Resolution
Proposed Rule Language
Staff Report (including Socioeconomic Assessment)
Final Environmental Assessment

KEY ISSUES AND RESPONSES

ATTACHMENT C

Nine (9) months spent in rule development.

KEY CONTACTS LIST

Over 100 industry representatives attended one or more of the public workshops, consultation meetings or working group meetings. The lists below include those Industry Organizations and Companies that participated in working group meetings on a regular basis:
 

RESOLUTION NO. 00-XX

                    A Resolution of the South Coast Air Quality Management District Governing Board (Governing Board) certifying the Final Environmental Assessment for Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants.

                    A Resolution of the Governing Board amending Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Rule 1401 - New Source Review of Toxic Air Contaminants.

                    WHEREAS, the Governing Board has determined that Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants, is a "project" pursuant to the terms of the California Environmental Quality Act (CEQA); and

                    WHEREAS, the AQMD has had its regulatory program certified pursuant to Public Resources Code § 21080.5 and has conducted CEQA review pursuant to such program (AQMD Rule 110); and

                    WHEREAS, AQMD staff has prepared a Draft Environmental Assessment (EA) pursuant to its certified regulatory program and state CEQA Guidelines §15252 setting forth the potential environmental consequences of Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants; and

                    WHEREAS, the Draft EA was released for a 45-day public review and comment period from December 30, 1999 to February 14, 2000. During the 45-day public review and comment period, public comments were received on the Draft EA to which staff has responded to; and

                    WHEREAS, the Draft EA has been revised such that it is now a Final EA; and

                    WHEREAS, it is necessary that the adequacy of the Final EA, including the response to comments, be determined by the Governing Board prior to its adoption; and

                    WHEREAS, no significant adverse environmental impacts were identified from Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants; and

                    WHEREAS, the AQMD Governing Board voting on this Resolution has reviewed, and considered the Final EA for Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants; and

                    WHEREAS, the Governing Board has determined that the socioeconomic impact assessment of the Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants; is consistent with the Governing Board March 17, 1989 and October 14, 1994 resolutions and the provisions of Health and Safety Code Sections 40440.8, 40728.5 and 40920.6; and

                    WHEREAS, the Governing Board has reviewed and considered the staff's findings related to cost and employment impacts of Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants as set forth in the socioeconomic impact assessment, and hereby finds and determines that cost and employment impacts are as set forth in that assessment; and

                    WHEREAS, the Governing Board has determined that Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants are not control measures in the amended 1997 Air Quality Management Plan (AQMP) in 1999 and thus, were not ranked by cost-effectiveness relative to other AQMP control measures in the amended 1997 AQMP and further that cost-effectiveness in terms of dollars per ton of pollutant reduced is not applicable to rules regulating toxic air contaminants. This, however, does not imply that cost considerations are not applicable in development of toxic rules; and

                    WHEREAS, the Governing Board has determined that staff has actively considered the socioeconomic impact analysis and made a good faith effort to minimize any socioeconomic impacts; and

                    WHEREAS, the Governing Board obtains its authority to adopt, amend, or repeal rules and regulations from Sections 39002, 39650 et. seq., 40000, 40001, 40440, 40441, 40463, 40702, 40725 through 40728, 41508, 41700, 41706, 42300, and 44390 through 44394 of the California Health and Safety Code; and

                    WHEREAS, the Governing Board has determined that a need exists to adopt Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants to reduce public health exposure to toxic air contaminants, to meet the intent of the Board's Environmental Justice Initiatives, and to clarify the intent and implementation of Rule 1402 requirements; and

                    WHEREAS, the Governing Board has determined that Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants, as proposed to be amended are written or displayed so that their meaning can be easily understood by the persons directly affected by them; and

                    WHEREAS, the Governing Board has determined that Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants, as proposed to be amended are in harmony with, and not in conflict with or contradictory to, existing federal or state statutes, court decisions, or regulations; and

                    WHEREAS, the Governing Board has determined that Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants, as proposed to be amended do not impose the same requirements as any existing state or federal regulation and the proposed rules are necessary and proper to execute the powers and duties granted to, and imposed upon, the District; and

                    WHEREAS, the Governing Board has determined that Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants, as proposed to be amended, references the following statutes which the AQMD hereby implements, interprets or makes specific: Health and Safety Code Sections 39666 (District new source review rules for toxics), Health & Safety Code Sections 44390 et seq. (Risk Reduction Audits and Plans), 41700 (nuisance) and Federal Clean Air Act Section 112 (Hazardous Air Pollutants); and

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

                    WHEREAS, the Governing Board has held a public hearing in accordance with all provisions of law;

                    WHEREAS, the Governing Board has determined there is a need for staff to provide monitoring and implementation updates on progress and issues related to Rule 1402 to the Governing Board; and

                    WHEREAS, the AQMD specifies the manager of Rule 1402 as the custodian of the documents or other materials which constitute the record of proceedings upon which the adoption of this proposed amendment is based , which are located at the South Coast Air Quality Management District, 21865 E. Copley Drive, Diamond, California; and

                    WHEREAS, staff is committed to including an analysis of impacts on Proposed Amended Rule 1402 for future VOC rules or technology assessments; and

                    NOW, THEREFORE BE IT RESOLVED that the Governing Board does hereby certify the Final EA for Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants which was completed in compliance with CEQA and Rule 110 provisions; and finds that the responses to comments are adequate and in compliance with CEQA, and that the Final EA was presented to the Governing Board, whose members reviewed, considered and approved the information therein prior to acting on Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants; and

                    BE IT FURTHER RESOLVED, that the Governing Board does hereby approve the written response to CEQA comments; and

                    BE IT FURTHER RESOLVED, that the Governing Board does hereby approve the Socioeconomic Impact Assessment; and

                    BE IT FURTHER RESOLVED, that the Governing Board directs staff to report to the Board every two years with a Rule 1402 implementation progress report regarding the number of inventories received, the number of health risk assessments prepared and approved, the number of facilities exceeding the action level identified, the number and type of facilities applying for and receiving time extensions, the implementation costs and resource impacts, and risk reduction benefits from reduction efforts; and

                    BE IT FURTHER RESOLVED, based on the findings in the biennial progress report described above, staff may recommend modifications to the rule requirements for the Governing Board’s consideration; and

                    BE IT FURTHER RESOLVED, that the Governing Board directs staff to promptly notify the Governing Board and affected facilities after OEHHA finalizes changes to a TAC or risk value and to establish a 12-month lead time for using the new TAC or risk value in a risk assessments for Rule 1402, from the date the Governing Board receives and files the report that includes such notification, unless the Governing Board approves another implementation schedule through an official Board action; and

                    BE IT FURTHER RESOLVED, that the Governing Board directs staff to report to the Governing Board within 150 days of OEHHA actions related to new chemicals or changes in risk values regarding a preliminary estimate of Rule 1402 program impacts; and

                    BE IT FURTHER RESOLVED, that the Governing Board directs staff to develop eight source-specific rules for the Governing Board’s consideration over a three-year timeframe for reducing toxic risks. Staff will continue working with the Rules 1401 and 1402 Working Group and form individual rule working groups for these rule development efforts. The anticipated three-year adoption schedule is as follows:
 

                    BE IT FURTHER RESOLVED, that the Governing Board directs staff to develop enhanced compliance assistance programs, including seeking additional grant funding for compliance costs through programs such as the proposed Clean Air Technology Transfer Program; and

                    BE IT FURTHER RESOLVED, that the Governing Board directs staff to develop the eight source-specific industry rules, considering technical and economic feasibility, that will seek to achieve the action level in PAR 1402. Whenever feasible, seek to modify existing rules to implement toxic reductions, and to design requirements for toxics that are complementary to existing rules while ensuring, with the exception of good management practices, that facilities are not subject to both source-specific AQMD toxic rule requirements and Proposed Amended Rule 1402. In addition, if necessary, staff may develop other source-specific rules for the Governing Board’s consideration; and

                    BE IT FURTHER RESOLVED, that the Governing Board directs staff to work with industry, community, and agency representatives to develop periodic future technology assessments if the action risk level cannot be achieved by a source-specific rule at the time of initial rulemaking; and

                    BE IT FURTHER RESOLVED, that the Governing Board directs staff to report to the Governing Board when no further amendments are found necessary for a source-specific rule and to identify potential impacts on PAR 1402 if a source-specific rule is not adopted; and

                    BE IT FURTHER RESOLVED, that the Governing Board directs staff, in the development of the source-specific rules, to include alternative compliance demonstrations that provide flexibility to facilities that choose to prepare risk assessments and implement risk reduction measures consistent with the goal of reducing Toxic Air Contaminant emissions to achieve the action risk level in PAR 1402, provided there is no backsliding of existing toxic or criteria pollutant controls; and

                    BE IT FURTHER RESOLVED, that the Governing Board directs staff to develop simplified procedures for preparation, review, and approval of risk assessments to implement alternative compliance demonstrations in source-specific rules. Simplified procedures may include the use of enhanced reference tables and screening procedures for small businesses to minimize administrative costs; and

                    BE IT FURTHER RESOLVED, that the Governing Board directs staff in the development of the source specific rules, to review the information in the MATES II regarding hexavalent chromium and nickel and any relevant new information; and

                    BE IT FURTHER RESOLVED, that the Governing Board directs staff to prepare outreach materials that can be included in public notifications or responses to public records requests that explain relative risks, provide prospective of potential exposure to air pollution, and provide a qualitative explanation of uncertainty in risk estimation techniques; and

                    BE IT FURTHER RESOLVED, that the Governing Board does hereby amend, pursuant to the authority granted by law, Proposed Amended Rule 1402 - Control of Toxic Air Contaminants from Existing Sources and Proposed Amended Rule 1401 - New Source Review of Toxic Air Contaminants, as set forth in the attached and incorporated herein by reference.

DATE:____________________                            ______________________________
                                                                                        Clerk of the District Board

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