BOARD MEETING DATE: October 20, 2000 AGENDA NO. 33
REPORT:
Stationary Source Committee
SYNOPSIS:
The Stationary Source Committee met Friday, September 22, 2000. Following is a summary of that meeting. The next meeting will be October 27, 2000, at 10:30 a.m., in Conference Room CC8.
RECOMMENDED ACTION:
Receive and file.
Norma J. Glover, Acting Chair
Stationary Source Committee
Attendance
The meeting began at 10:40 a.m. Present were Norma Glover, acting Committee Chair, Committee members Cynthia Verdugo-Peralta, Jon Mikels, Leonard Paulitz (arrived at 10:50) and Jane Carney (left at 11:05). Absent was Ron Loveridge. William Burke viewed the meeting by teleconference and was appointed to the Committee by Norma Glover.
DISCUSSION ITEMS
Rule 1146 – Emissions of Oxides of Nitrogen from Industrial Institutional and
Commercial Boilers, Steam Generators, and Process Heaters
Jill Whynot, Manager, Planning, Rule Development & Area Sources, presented this item. Rule 1146 covers large boilers and does not apply to boilers in the RECLAIM universe. The settlement agreement and the 1999 amendments to the 1997 AQMP require AQMD to compare our rule with other rules throughout the state and make each part of the AQMD rule as stringent as the most stringent element in any other state rule. There are three areas where the current rule is less stringent - the emission limit for NOx, testing, and monitoring requirements. The proposal involves changes in these three areas. The effective date is January 2002. The current limit for boilers is 40 ppm which would be changed to 30 ppm or a weighted average of 30 – 40 ppm for dual-fueled equipment. There would be about 90 additional tons per year reduction in NOx. Also being proposed in this rule would be annual source tests. Staff is proposing use of hand held monitors to reduce costs. The third change would be a requirement for a fuel flow meter if a weighted average is used for dual-fueled equipment. Average cost reduction effectiveness would be about $7,000 per ton. This item will go to the Board for consideration in November.
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. A working group was formed, including representatives from each of the affected industries. Staff has compiled background information, visited the facilities and began exploring several control options. Preliminary results show that add-on controls are feasible and cost-effective for most facilities. The proposal at this time is to focus on emissions from spray booths. Preliminary analysis indicates that the anticipated emission reduction is approximately 4.2 tons per day or 40% reduction. SIP creditable reductions would be 2.5 tons per day or 23% reduction. The two most important remaining issues are feasibility of controls and the role of existing rule requirements.
Working group meetings will continue. This item will be brought back to the Committee as the proposal is refined. This rule will go to the Board for consideration in January, 2001.
Rule 1102 – Petroleum Solvent Dry Cleaners
Alene Taber, Manager, Planning, Rule Development & Areas Sources, gave a brief overview of the proposed amendment to Rule 1102. Petroleum Solvent dry cleaning is a method of cleaning with a non-aqueous solvent to dissolve and remove contaminants. The older model of machines (transfer) require moving the materials from a washer to a dryer, where the newer machines (closed loop) are only one unit. Those primarily affected by this regulation would be the seven operators of the older transfer machines.
CARB has required that Rule 1102 be as stringent as other petroleum dry cleaning regulations in the basin. This rule is also part of the settlement agreement, which requires the AQMD to make this rule consistent with other rules in California. This amendment is expected to reduce emissions by 35 tons per year at a cost effectiveness rate of $7,000 per ton. Changes to the rule will affect new and existing facilities and solvents containing VOCs. The rule would require phase out of dip tanks and drying cabinets by January 1, 2001, and phase out of transfer machines by January 1, 2003. Exemptions are being added for water and perc. New closed-loop machines will be required to be equipped with a lock until the drying cycle is complete. The amendments would delete obsolete rule language and require recordkeeping/reporting for Group II exempt compounds.
Staff is continuing to do site visits. The next public workshop is scheduled for October, 4, 2000. This item will go to the Board for consideration in November.
Air Quality Assistance Fund
Tim Brown, Public Advisor, presented this item. At the July Board meeting the Board approved the use of a small business consultant to assist staff in creating a bank loan and lease guarantee program. The funding for this consultant would come from the interest earned on the air quality assistance fund and not from the District budget. Based on panel evaluation, the RFP closed on September 5, 2000, in which time two proposals were received. Staff recommends the contract be awarded to EnviroTech Financial, Inc. The item was moved and seconded with no opposition.
Stationary Source Committee Meeting Date Discussion for November & December
Carol Coy, Deputy Executive Officer, Engineering and Compliance, brought this item to the Committee for discussion. Due to the scheduled November and December holidays, Ms. Coy suggested combining the two meeting dates and meeting on December 1, 2000, at 10:30 a.m. In effect, this would delay the November meeting, which falls on Thanksgiving weekend, one week. This item was moved and seconded with no opposition.
Notice of Violation Penalty Summary
Peter Mieras, District Prosecutor, brought to the Committee’s attention that an index has been added to the summary, at Leonard Paulitz’s suggestion. The Committee acknowledged the report.
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.
Monthly Report on Home Rule Advisory Group
The Committee acknowledged the report.
Other Business
Cynthia Verdugo-Peralta highlighted the memo sent to Board members from Barry Wallerstein regarding the stage III power alert which was forecast for September 19, 2000. Mohsen Nazemi, Assistant Deputy Executive Officer, Engineering & Compliance, explained that the ISO issued a stage I alert and was predicting a stage II emergency power alert. Presently, the ISO does not provide the District with any notice regarding these alerts. It was explained that staff receives notice from a utility company that is cooperating to forward the information. Ms. Verdugo-Peralta expressed her concern that in fact, no stage III incident materialized and that the District should be notified directly by the ISO. An agreement is being negotiated with the ISO. This item will be agendized for further discussion at the next Stationary Source Committee meeting in October.
Dr. Burke and Ms. Verdugo-Peralta also requested that the increase in NOx RECLAIM Trading Credit (RTC) prices be discussed at the next meeting. They both expressed interest in exploring alternative program design concepts for small business participation.
South Coast Air Quality Management District