The Stationary Source Committee met Friday, March 23, 2001. Following is a summary of that meeting. The next meeting will be April 27, 2001, 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 11:05 a.m. Present were Ronald Loveridge, Committee Chair, Norma Glover, Committee Vice Chair (arrived at 11:50 a.m.), Cynthia Verdugo-Peralta, Jon Mikels (left at 11:20 a.m.), Jane Carney and Leonard Paulitz.
ACTION ITEMS
Monthly Report on Home Rule Advisory Group
a)Goals and Objectives – for review and approval to forward to Governing Board
b)Membership List – for review and approval to forward to Governing Board
Dr. Elaine Chang, Assistant Deputy Executive Officer, Planning, Rule Development & Area Sources, and Frances Keeler, Senior Deputy District Counsel, presented these items to the Committee for approval. Staff requested clarification regarding how the committee would like to handle the attendance policy. Board Resolution 98-1 establishes a three consecutive meeting or 50% meeting missed threshold for removal for lack of participation. The Committee requested to be notified when a member misses three or more meetings.
The Committee recommended that the Board approve the Home Rule goals and objectives and the membership list.
Approve Agreement with California Pollution Control Financing Authority to Allow Participation in California Capital Access Program
Tim Brown, Public Advisor, presented this item for the Committee’s approval. The revised Air Quality Assistance Fund is a two-part program which includes bank loans and lease guarantees. The agreement being brought to the Governing Board pertains only to the bank loan program. Under the standard operating procedures, the borrower would complete a one-page application, staff would prepare a one-page technical eligibility report, and staff would issue a certificate of eligibility to the lending institution. The lending institution would makes all credit decisions to approve the loan and receives the CalCAP payment from the Finance Authority (CPCFA) who then debits the AQMD account for the borrower’s fee. The likely exposure to AQMD is zero.
The Committee recommended the Board approved the agreement with CPCFA to join the CalCAP program and transfer the already approved $100,000 to CPCFA to be used for paying borrower’s CalCAP fees and approved standard operating procedures.
INFORMATIONAL ITEMS
RECLAIM Working Group and Reg. XX Update
Jill Whynot, Manager, Planning, Rule Development & Area Sources, gave an update on the RECLAIM Working Group and Reg. XX. Ms. Whynot highlighted some of the key developments regarding ongoing rule development. A revised version of the compliance plan rules was distributed at the working group meeting. A letter was sent to all RECLAIM facilities requiring them under the provisions of the Health and Safety Code, to submit trade information to the AQMD within five days of the transaction. Staff is working on a web-based spreadsheet which will provide trade information as it becomes available.
Compliance plans will now be in separate rules. Compliance plans for both power plants and other types of facilities will not be subject to Title V. This was a key issue that staff has resolved.
The working group continues to meet on a weekly basis. Staff is also meeting by conference call with EPA and ARB on a weekly basis. This item will go to the Board for consideration in May.
Rule 1166 – Volatile Organic Compound Emissions from Decontamination of Soil
Lee Lockie, Director of Area Sources, presented this item to adopt proposed amended Rule 1166. This rule was adopted in August of 1988 and amended in July of 1995. The amendment would improve enforceability of this rule. A workshop has been held with no adverse comments. This item will go to the Board in April.
Reg. III - Fees
Laki Tisopulos, Manager, Planning, Rule Development and Area Sources presented this status report on the proposed amendments to Reg. III. Reg. III establishes fee rates to cover cost for AQMD programs and services such as permit processing, annual permit renewals, annual emissions fees and other district services. In recent years, there has been a decline in revenue recovery. A study conducted by an independent contractor showed that the fee structure under recovers permit processing costs and a better cost tracking system was needed. In an effort to address the revenue decline, staff implemented permit streamlining, improved performance by issuing more permits per engineer, implemented a time tracking study, formed a revenue committee and formulated the proposed amendments to Regulation III.
Staff proposes to adjust most fees according to the California Price Index, adjust the new permit fees to reflect the time tracking study, consolidate alteration/modification, retain the current change of condition fees and continue time tracking, adjust RECLAIM and Title V permit fees, establish a $75 flat annual emissions fee for all facilities, account for unpermitted emissions with total facility emissions greater than four tons per year, and restructure the annual operating fee structure for gasoline dispensing facilities. All fee adjustments will be phased in within two years.
A public consultation meeting is scheduled for April 4, 2001. This item will be going to the Board in May.
Rule 1631 – Pilot Credit Generation Program for Marine Vessels
Rule 1632 – Pilot Credit Generation Program for Hotelling Operations
Rule 1633 – Pilot Credit Generation Program for Truck/Trailer Refrigeration Units
Rule 2507 – Pilot Credit Generation Program for Agricultural Pumps
Jill Whynot, presented this item. These are proposed pilot credit rules for generation of NOx credits which can be used in RECLAIM. Staff continues to work closely with industry, environmental groups, ARB and EPA to resolve remaining issues. This item is scheduled to go to the Board for consideration in May.
Energy Issues Status Report
Mohsen Nazemi, Assistant Deputy Executive Officer, Engineering and Compliance, presented this status report. Mr. Nazemi highlighted the status of air pollution control equipment installation, new projects and the Governor’s Executive Orders. All air pollution control equipment installation on existing power plant units is expected to be complete this year, most before the summer season begins, with the exception of two units for which the ISO has deferred generation outage. Applications have been coming in for a number of new projects. Staff is implementing the Governor’s Executive Order to streamline permitting and accelerate construction of new power plants as well as projects to increase output from existing power plants.
WRITTEN REPORTS
Notice of Violation Penalty Summary
The Committee acknowledged the report attached to the agenda.
Rule Forecast Report
The Committee acknowledged the report attached to the agenda.
South Coast Air Quality Management District