South Coast Air Quality Management District

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Stationary Source Committee

SYNOPSIS: 

The Stationary Source Committee met Friday, October 27, 2000. Following is a summary of that meeting. The next meeting will be December 1, 2000, at 10:30 a.m., in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file.

Ronald O. Loveridge
Chairman, Stationary Source Committee

Attendance

The meeting began at 10:50 a.m. Present were Ron Loveridge, (left at 10:55 a.m.) Committee Chair, Cynthia Verdugo-Peralta, Jon Mikels (left at 11:45 a.m.), Jane Carney and Leonard Paulitz. Norma Glover was absent.

DISCUSSION ITEMS

1. Rule 442 – Usage of Solvents
   
   Lee Lockie, Director of Area Sources, presented this item. Rule 442 was one of the first VOC rules adopted when the District was first formed. This rule applies to activities not covered under source specific rules and affects approximately 60 facilities whose emissions are greater than 5 tons per day. The emission inventory shows 2.3 tons per day of potential emissions from sources subject to the rule. The proposed amendments would reduce emissions to 1.6 tons per day by January 1, 2003. Processes that would be affected include inkjet printing, printed circuit boards, machine shop and metal working, film cleaning and stone and leather coating operations.
   
   Two public workshops have been held on Rule 442. Most issues have been resolved. Staff recommends this item go to the Board for consideration in December. The Committee recommended the item.
   
   
2. Rule 1132 – Emission Reductions from Large Solvent and Coating Operations
   
   Laki Tisopulos, Manager, Planning, Rule Development & Area Sources, presented this item. Rule 1132 implements AQMP control measure CTS-09, and is also an item in the SIP litigation settlement agreement. The proposal at this time is to focus on emissions from spray booths. Preliminary analysis indicates that the anticipated emission reduction is approximately 3.7 tons per day. SIP creditable reductions would be 3 tons per day under the current annual average emissions inventory or 5 tons per day under the 2010 SIP inventory. These reductions adequately cover the AQMP commitment for Phase I of the control measure CTS-09. The two most important remaining issues are feasibility of controls and add-on controls vs. source reduction.
   
   Working group meetings will continue. This rule will go to the Board for consideration in January, 2001. The Committee recommended the item.
   
   
3. VOC ERC Transfers to Blythe Energy (Mohave Desert AQMD) and Northrop Grumman Corporation and Lockheed Martin Aeronautics Company (Antelope Valley APCD)
   
   William Thompson, Engineering and Compliance Manager presented this item. The SCAQMD has been requested to transfer 1,771 lb/day of VOC ERCs from SCAQMD to MDAQMD. SCAQMD is also requested to transfer 298 lb/day of VOC ERCs, 5 lb/day NOx ERCs, 3 lb/day PM10 ERCs and 1 lb/day CO ERC to AVAPCD. In order for these requests to be approved, Governing Boards of both Districts must adopt a resolution to approve the transfer. There is a total of about 28,000 lbs VOC ERCs in the SCAQMD, which would leave a balance of about 20,000 VOC ERCs. Other considerations include anticipated power plant projects, potential future inter-district transfers and potential inter-pollutant transfers. Staff recommended approval to transfer VOC ERCs for Blythe Energy Project for 1,771 lb/day, Northrop for 150 lb/day and Lockheed for 148 lb/day. Staff recommended disapproval for transfer of Lockheed’s ERCs for 5 lb/day NOx, 3 lb/day PM10 and 1 lb/day CO. Staff also proposed a temporary moratorium on future transfers of ERCs outside of the District until further analysis of credit needs have been completed. The Committee moved approval with no objection.
   
   
4. Power Generation/ISO Power Dispatch Update
   
   Carol Coy, Deputy Executive Officer, Engineering and Compliance presented this update which was requested at the September Stationary Source Committee meeting. Ms. Coy presented a brief history of the emergency notifications for this year to date. Stage I and Stage II alerts have increased substantially over previous years due to generation shortfalls and increased demand. Currently staff is meeting with CAPCOA and ISO representatives statewide on the issues of power generation, NOx emission control, and the use of diesel-fired emergency generation equipment to prepare for next summer. Ms. Coy suggested that staff keep the Committee updated on the discussions that are taking place statewide with CAPCOA and ISO representatives. Cynthia Verdugo-Peralta expressed concern that the District should receive direct notification from the ISO when emergency alerts take place. Ms. Coy responded that the CAPCOA Enforcement manager Committee shared that concern and that AQMD would seek direct notification from the ISO. This is an informational only item at the Committee’s request and will be placed on the January agenda for an update.
   
   
5. RECLAIM Trading Credit Price Update/RECLAIM Backstop Measures
   
   Carol Coy, Deputy Executive Officer, Engineering and Compliance, presented this status report. Staff continues to see very active trading on RTCs. The current compliance year is the one that has been the most critical concern due to the quickly escalating price of RTCs. Higher priced trades are now occurring in compliance years 2001 and 2002. Prices have increased due to the declining allocation, deferred control equipment installation, and the extraordinary demand for NOx credits by the power companies. As reported to the Board at their October meeting, very cost-effective NOx emission reductions remain to be made. A RECLAIM Advisory Committee made up of representatives from a variety of segments of interested parties will begin meeting in November with staff to develop backstop provision options for Board consideration to reduce and stabilize the price of RTCs.
   
   
6. Notice of Violation Penalty Summary
   
   Peter Mieras, District Prosecutor, brought the attention of the Committee to one large power company settlement and Stipulated Order for Abatement regarding an expected RECLAIM allocation exceedance. The Committee acknowledged the report.
   
   
7. Rule Forecast Report
   
   Jack Broadbent, Deputy Executive Officer, Planning, Rule Development & Area Sources, highlighted upcoming items. The Committee acknowledged the summary report attached to the agenda.
   
   
8. Monthly Report on Home Rule Advisory Group
   
   Jack Broadbent, Deputy Executive Officer, Planning, Rule Development & Area Sources, highlighted key items. The Committee acknowledged the summary report.

The meeting was adjourned at 12:30 p.m.

Attachment

October 27, 2000 Committee Agenda (without its attachments)

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