South Coast Air Quality Management District
South Coast Air Quality Management District
BOARD MEETING DATE: November 17, 2000 AGENDA NO. 32
Amend Rule 1102 – Petroleum Solvent Dry Cleaners
SYNOPSIS:
The proposed amendments will: address CARB comments to make the rule as stringent as other comparable rules in the state relative to transfer machines; include new provisions for closed-loop machines; and, incorporate appropriate perchloroethylene ATCM requirements. Proposed amended Rule 1102 will achieve VOC emission reductions through phasing out transfer machines that use solvents containing VOCs and requiring closed-loop machines instead. The proposed amendments will exempt all types of dry cleaning machines that use solvents containing Group II exempt compounds other than perchloroethylene except for certain recordkeeping and reporting requirements. Other minor changes will be made to improve clarity and enhance enforceability.
COMMITTEE:
Stationary Source, September 22, 2000, Reviewed
RECOMMENDED ACTION:
Adopt the attached resolution:
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Rule 1102 was adopted on January 6, 1978, and later amended four times. The last substantive amendment to Rule 1102 occurred on August 3, 1990. The rule contains both equipment and operating requirements for petroleum solvent dry cleaning operations. Those currently subject to the provisions of Rule 1102 include any facility that operates dry cleaning equipment that uses petroleum solvent. It should be noted that Rule 1102 does not apply to dry cleaning operations using perchloroethylene as a cleaning solvent. These operations are regulated by South Coast Air Quality Management District (AQMD) Rule 1421 - Control of Perchloroethylene From Dry Cleaning Systems.
The August 1990 amendment implemented 1989 AQMP Control Measure A-17: Further Emission Reductions from Petroleum Dry Cleaning Operations, and incorporated State Implementation Plan (SIP) revisions requested by the United States Environmental Protection Agency. The 1990 amendment eliminated a small user exemption and required the use of solvent recovery dryers or other add-on control equipment. It also included operational requirements to reduce fugitive emissions and provisions to improve enforcement.
As part of its review of the 1997 AQMP, the California Air Resources Board (CARB) cited Rule 1102 as an existing rule that does not meet all feasible control measures criteria, and recommended that AQMD determine where Rule 1102 could be made consistent with CARB’s ATCM for perchloroethylene dry cleaning machines, codified as AQMD Rule 1421, and amend Rule 1102 accordingly. Additionally in December 1999, the AQMD entered into a Settlement Agreement that includes a requirement to compare the stringency of the components of a number of existing rules, including Rule 1102, to comparable regulations of CARB and other California air districts and amend Rule 1102 to be at least as stringent where applicable.
Many advances in petroleum solvent dry cleaning equipment and solvent technology have occurred since the August 1990 amendment to Rule 1102. Whereas petroleum dry cleaning operations historically used Stoddard solvent in transfer machines, new technology uses a variety of specialized solvents in closed-loop machines. The availability of new specialized dry cleaning solvents necessitates expanding the rule’s applicability (and title) to include all dry cleaning solvents except perchloroethylene. The availability of closed-loop machines provides an opportunity to substantially reduce emissions from those petroleum dry cleaning operations that still use transfer machines.
Based on the above considerations, the proposed amendments update Rule 1102 to reflect the latest equipment and solvent technology and includes interim requirements to make the rule at least as stringent as other comparable rules in the state.
Proposal
A survey of dry cleaning facilities that would be subject to Rule 1102 has identified a total of 32 facilities. Five of these facilities continue to operate the old transfer machines, two operate closed-loop machines as transfer machines (i.e., with separate reclaimer dryers), and 25 operate closed-loop machines without separate reclaimer dryers.
The proposed amendments to Rule 1102 will allow facilities to operate the existing transfer machines until January 1, 2003. Facilities could choose to extend the operation of their transfer machines up to January 1, 2005, provided that: 1) the operator applies for a permit modification by January 1, 2001, to limit the amount of solvent used in the transfer machine to no more than 15 gallons per month; and, 2) the transfer machine has been operating in compliance with Rule 1102 for at least two years prior to November 17, 2000.
A unique facility would also be given until January 1, 2005, to phase out transfer machines since closed-loop technology has not yet been developed for this type of operation. The facility is defined in California Health and Safety Code §25144.6 as a hazardous waste facility that cleans reusable soiled textile materials. This facility cleans industrial gloves and absorbents to recover and recycle oils that would otherwise be disposed of as hazardous waste if the gloves and absorbents were thrown away. An Implementation Status Report will be prepared no later than January 2003, which shall include an assessment of the availability and feasibility of closed-loop machines for replacing transfer machines at this facility.
To ensure that proposed amended Rule 1102 is as stringent as other comparable rules in California, AQMD staff compared the current version of Rule 1102 with other applicable California air quality rules, including Rule 1421. To date, there is no other similar rule in California that addresses closed-loop machines or the new solvents that are used in them. The proposed amendments that require the eventual phase out of transfer machines and specifically requiring closed-loop machines in Rule 1102 are consistent with CARB guidance. The portion of the proposed amendments that requires recordkeeping and reporting for dry cleaning machines that use Group II exempt compounds (other than perchloroethylene) is consistent with how Bay Area Air Quality Management District (BAAQMD) currently handles such equipment1. Finally, the proposed amendments will delete rule requirements that became obsolete effective January 1, 1993.
1 BAAQMD does not currently require a permit
for dry cleaning machines using less than 700 gallons per
year of any solvent, including Group II exempt compounds like VMS-based solvent.
However, operators of these machines are required to keep records to maintain
the permit exemption status.
Policy Issues
Staff has identified three policy issues relative to the proposed amendments to Rule 1102. These include: 1) the proposed phase out of transfer operations; 2) the use of a non-VOC solvent with pending toxicity data; and, 3) the availability of alternative cleaning methods that may eliminate VOC or toxic emissions from dry cleaning operations.
Issue #1: When Rule 1102 was last amended, transfer machines were the only technology available for dry cleaners using petroleum-based solvent. Over the past decade, closed-loop machines have surpassed the old transfer machines in terms of solvent recovery, fire hazard reduction, air pollution control, and overall efficiency. Because of the higher vapor control efficiency of the closed-loop technology (approximately 95 percent solvent recovery) as compared to the old transfer machines (at approximately 65 percent solvent recovery), the proposed amendments would phase out most transfer operations by January 1, 2003, and all transfer operations by January 1, 2005. This requirement means that five facilities will ultimately have to purchase new machines. Moreover, two facilities use separate reclaimer dryers in conjunction with closed-loop machines to increase the amount of clothes they can clean. These facilities interrupt the cleaning process prior to initiation of the drying cycle, remove the "wet" clothes, and transfer them to a separate dryer. Other facilities may also be considering the use of separate dryers because manufacturers of reclaimer dryers continue to market their use as being able to reap an increased throughput benefit. This practice is of concern because it results in the unnecessary release of excess VOC emissions that would otherwise be captured if the closed-loop machine’s cycle goes uninterrupted. For this reason, the proposed amendments would specifically prohibit the activity of interrupting the closed-loop cycle and the use of separate reclaimer dryers.
Issue #2: One class of specialty solvent, characterized as volatile methylated siloxane (VMS) and commonly known as D-5 or GreenEarthTM solvent, is not classified as a VOC and is not regulated by the current version of Rule 1102. VMS is considered a Group II exempt compound in the definition for VOC in AQMD Rule 102 – Definitions. In general, to be considered a Group II exempt compound, the substance is not a VOC, and the status of whether or not it is a stratospheric ozone depleter, or toxic air contaminant is unknown at this time. Though VMS solvent is not deemed a toxic material by any regulatory agency thus far, it is currently undergoing toxicity testing.
A concern was raised at the workshops for Rule 1102 that existing facilities that would otherwise be subject to proposed amended Rule 1102 might change to using VMS solvent to become exempt from regulatory requirements. Further, these facilities might also purchase separate reclaimer dryers to increase throughput. If VMS solvent is later determined to be toxic, it is likely that AQMD would regulate VMS as a toxic, either in Rule 1102 or a new rule, by prohibiting transfer equipment and prematurely opening the door of closed-loop machines. If AQMD regulates VMS in the future, facilities with recently purchased transfer equipment may face a compliance challenge and extra costs associated with purchasing additional equipment to maintain the same throughput.
Since VMS solvent is currently undergoing toxicity testing, to address this concern proposed amended Rule 1102 includes specific recordkeeping and reporting requirements for dry cleaning operations using Group II exempt compounds (which includes VMS solvent) to alert dry cleaners who may be considering switching to VMS solvent. Staff is also investigating means to provide relevant information to dry cleaners (e.g., via a brochure or pamphlet) regarding current and potential future air quality regulations and the relative merits and disadvantages of different dry cleaning technologies, including information pertaining to VMS solvents.
Issue #3: Staff has received oral and written comments in response to two public workshops for the rule and staff report to address the viability of professional wet cleaning or cleaning with liquid carbon dioxide as pollution prevention substitutes for dry cleaning. The comments referred to AQMD’s Air Toxic Control Plan which specifies the goal of identifying and promoting the use of pollution prevention technologies to primarily reduce toxic air contaminants.
Professional wet cleaning and liquid carbon dioxide machines do not use combustible, VOC- or toxic-emitting solvents and the laundering machines and equipment configurations are significantly different than perchloroethylene or petroleum dry cleaning machines. Professional cleaning using liquid carbon dioxide or water would be exempt from Rule 1102, provided that the detergents and additives used in these processes contain less than 50 grams per liter of VOC.
Staff acknowledges that the expanded use of these technologies would reduce both the toxic emissions associated with perchloroethylene dry cleaning and VOC emissions associated with petroleum solvent dry cleaning. Professional cleaning methods using water and liquid carbon dioxide are proposed for exemption from Rule 1102, thus offering an inducement to move towards these cleaner technologies. Additionally, as discussed above, staff intends to provide relevant information to dry cleaners regarding the relative merits and disadvantages of different dry cleaning technologies.
It should be noted that the AQMD has been at the forefront of promoting alternative clean technologies to dry cleaning. In the past, AQMD has co-funded two projects pertaining to the professional wet cleaning technology. Two wet cleaners have been used as demonstration sites to increase the awareness of dry cleaners and other stakeholders regarding the wet cleaning technology. The dry cleaning industry, however, has not yet embraced this technology to a noticeable degree. Possible barriers to acceptance include dry cleaners’ lack of familiarity with this technology, skepticism about process quality and equipment durability, and concern over garment care warranties. Consequently, the Governing Board approved a staff recommendation (May 19, 2000, Board Agenda Item #15) to award a contract to the Pollution Prevention Education and Research Center at Occidental College to convert up to eight existing perchloroethylene dry cleaners to commercial professional wet cleaners, and use them as demonstration sites to enhance the exposure and acceptance of this technology among the dry cleaners and the other stakeholders.
Additionally in May 2000, the AQMD initiated the process to seek funding from the federal government through a proposal entitled "Clean Air Technology Transfer in the South Coast Air Basin" that includes a request for $2.0 million to motivate businesses to replace dry cleaning equipment with alternative cleaning processes such as professional wet cleaning, and cleaning with liquid carbon dioxide. Furthermore, the AQMD Legislative Subcommittee of the Governing Board unanimously approved a staff recommendation to support a proposed amended House of Representatives bill in Congress, HR1303, that proposes a 20 percent federal tax credit for dry cleaners who switch to using liquid carbon dioxide cleaning or professional wet cleaning.
Emission Reductions
Replacing transfer machines with closed-loop machines is estimated to achieve 30 percent solvent recovery relative to baseline conditions. The emission reductions based on permitted solvent usage levels from the phase out of transfer machines are estimated to be 34.86 tons per year or 268 pounds per day assuming a five-day workweek.
AQMP and Legal Mandates
In December 1997, CARB submitted to the AQMD its review of the 1997 AQMP. As part of that review, CARB also reviewed existing AQMD rules to determine whether they represent all feasible control measures. CARB cited Rule 1102 as an existing rule that does not meet all feasible control measures criteria. Specifically, CARB recommended that AQMD evaluated and identify components of CARB’s ATCM for perchloroethylene dry cleaning machines, codified as AQMD Rule 1421, that could also be incorporated into Rule 1102.
In December 1999, the AQMD entered into a Settlement Agreement as a result of litigation over implementation of the 1994 SIP for the South Coast Air Basin. The Settlement Agreement included a requirement to compare the stringency of the components of a number of existing rules, including Rule 1102, to comparable regulations of CARB and other California air districts and amend Rule 1102 to be at least as stringent where applicable. The Settlement Agreement compels the AQMD to amend Rule 1102 within nine months of the effective date of the Settlement Agreement (i.e., amend the rule by November 2000).
California Environmental Quality Act (CEQA)
Pursuant to the California Environmental Quality Act (CEQA) and AQMD Rule 110, the AQMD has prepared a Draft Environmental Assessment (EA) for the proposed amendments to Rule 1102. The Draft EA concludes that implementation of the proposed amendments would not result in significant adverse environmental impacts. The Draft EA was released for a 30-day public review and comment period. No comments were received on the Draft EA. The Final EA has been prepared and is included as part of this Adopt Hearing package.
Socioeconomic Assessment
The proposed amendments would affect 32 solvent dry cleaning facilities in the four-county area. Of the 32 facilities, five facilities are required to phase out their current transfer machines. Another twenty-three facilities with closed-loop machines are required to comply with the new operational requirements. The remaining four facilities that operate closed-loop machines using D-5 (Group II exempt compound solvent) would be subject only to specific recordkeeping and reporting requirements of the proposed amendments.
These 32 facilities belong to the sectors of dry cleaning (SIC 7216), hotel and motel services (SIC 7011), and miscellaneous retail (SIC 5999). The total average annualized cost of the proposed amendments is estimated at $0.27 million over the 2003-2015 period. The cost-effectiveness of the proposed amendments is estimated to be $7,118 per ton of VOC reduced, and is within the range of recently adopted VOC rules. The cost of compliance for the owner of one of the five facilities operating transfer machines would be much higher than the compliance cost for the other four facilities or typically occurring for a district rule on a percent of revenue basis. During development of the proposed amendment, however, the owner indicated that he was planning to sell his business, not necessarily as a dry cleaning operation, for reasons irrespective of air quality regulations.
Resource Impacts
Implementation of the proposed amendments is not expected to have adverse impacts on AQMD staff or fiscal resources.
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