South Coast Air Quality Management District

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Stationary Source Committee

SYNOPSIS: 

The Stationary Source Committee met Friday, August 25, 2000. Following is a summary of that meeting. The next meeting will be September 22, 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 10:55 a.m. Present were Ron Loveridge, Committee Chair, Cynthia Verdugo-Peralta, and Norma Glover (left at 11:20 a.m.). Absent were Jon Mikels, Leonard Paulitz and Jane Carney.

DISCUSSION ITEMS

1. Rule 219, Rule 418, Rule 1107, Rule 1141, Rule 1141.1, Rule 1141.2 & Rule 1162
   
   Elaine Chang, Assistant Deputy Executive Officer, Planning, Rule Development and Area Sources presented this item. The proposed amendments are designed to implement the Recordkeeping Task Force recommendations by retaining the current daily recordkeeping, and adding a monthly option. This item will go to the Board for consideration in October.
   
   
2. Certificate Recognition Program for Small Business Inspections
   
   Carol Coy, Deputy Executive Officer, Engineering & Compliance, presented this item. It has been suggested that when an air quality inspector visits a facility which is in total compliance, a certificate of recognition be issued at the time of the inspection. There was discussion as to whether the certificate should be issued the day of the inspection or mailed to the facility after a personalized certificate is printed and the Senior Manager has signed the certificate. Norma Glover suggested that the inspection end on a positive note. After discussion of several options it was recommended that the facility be given a temporary certificate, with the original to follow in the mail. The Committee was in agreement with this procedure which will be implemented immediately.
   
   
3. RTC Trading Update
   
   Carol Coy gave a brief update on RTC trading prices. There has recently been an increase in RTC prices in the Cycle 2 market, closely followed by that for Cycle 1. This is due to the ongoing decline in RTC supply, need for RECLAIM facilities to install emissions control equipment, and the increased emissions from power plants generating electricity to help avert curtailment in a time of statewide generation shortfalls. The current high prices have now caught the attention of companies that have not yet installed cost-effective control equipment. There is significant control technology that is much less expensive than the current cost of credits. As these emissions reductions are made the cost of credits is expected to equilibrate.
   
   There will be a monthly update on RTC prices each month at this Committee.
   
   
4. RECLAIM – Ratification of Program Adoption Findings
   
   Pang Mueller, Engineering and Compliance Manager, presented this item. Health and Safety Code Section 39616(e) requires that the AQMD Governing Board ratify findings within seven years of RECLAIM adoption. The first of five findings is that RECLAIM will result in an equal or greater reduction in emissions with equal or less cost compared with current command and control regulations. Most larger companies remain in support of RECLAIM and far outnumber those not in support. Most company representatives expressing concern feel they will be impacted by the second tier of reduction. Also expressing concern are companies that are planning future expansion but feel they can’t add additional controls beyond what they already have. Industry is likely to express concern over the emission reduction rate under Tier II RECLAIM being high and needing adjustment. Some small companies that have already reduced emissions may want to exit RECLAIM, which would raise a number of issues including determination of appropriate replacement command and control rules. Other findings for consideration are that RECLAIM will not delay, postpone, or hinder District compliance with Health and Safety Code requirements, that RECLAIM provides an equivalent level of enforcement and monitoring to ensure compliance with emission reduction requirements, and that RECLAIM achieves emission reductions from a significant number of different sources and promotes privatization with the use of electronic data.
   
   
5. Notice of Violation Penalty Summary
   
   Peter Mieras, District Prosecutor, presented this item. Cynthia Verdugo-Peralta requested that on future summaries, an explanation is added as to what the violations were. Peter Mieras agreed to add an index of the rules. The Committee acknowledged the summary report attached to the agenda.
   
   
6. Rule Forecast Report
   
   Elaine Chang highlighted items that will be going to the Board at their next meeting. There will be Rule 431.2 (Sulfur Content of Liquid Fuels), Rule 1131 (Food Manufacturing and Processing Operations) and Rule 1168 (Emission Reductions from Adhesives). NSR Reg. XIII amendment will also be going to the Board in September. Coming up in October there will be two fleet rules.
   
   
7. Monthly Report on Home Rule Advisory Group
   
   Elaine Chang gave a brief overview of the meeting. She highlighted items which included the Subcommittee Status Reports on Credit Trading, NSR, Strategic Outreach, Model Program/EJ Complaint Process, State and Local Variance Programs and CARB’s Guidelines for Diesel Equipment. The Committee acknowledged the report.

The meeting was adjourned at 11:50 a.m.

Attachment

August 25, 2000 Committee Agenda (without its attachments)

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