South Coast Air Quality Management District

Stationary Source Committee

SYNOPSIS: 

The Stationary Source Committee met Friday, January 26, 2001. Following is a summary of that meeting. The next meeting will be February 23, 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 11:00 a.m. Present were Norma Glover, Committee Vice Chair, Cynthia Verdugo-Peralta, Jon Mikels and Leonard Paulitz, Absent were Ron Loveridge and Jane Carney.

DISCUSSION ITEMS

1. Report on Rule 1425 – Motion Picture Film Labs
   Jill Whynot, Manager, Planning, Rule Development & Area Sources, gave a presentation on this rule. Proposed Rule 1425 will reduce air toxic emissions from motion picture film cleaning and printing operations. This rule is scheduled for a February set hearing and March public hearing. This rule was developed to implement part of the Air Toxics Control Plan and the source specific measures as part of the adoption of Rule 1402. The proposed rule will also include federal NESHAP requirements.
   
   Perchloroethlene (perc) is a carcinogen that also has potential chronic and acute health impacts. Approximately 39.5 tons per year of perc will be reduced (12 tons from NESHAP and an additional 27.5 tons from Proposed Rule 1425). There are approximately 55 motion picture film facilities, most of them in Hollywood and Burbank. Some of the facilities already have controls in place. Perc and other solvents are used for film cleaning. Perc is also used for film printing.
   
   The rule requires an 85% reduction in emissions for both film cleaning and printing. Film cleaners and contact printers must comply within one year, and optical printers must comply within two years. Alternative solvents may be used for film cleaning. For cleaning and printing using perc, the rule provides options, including carbon adsorption add-on controls, a facility cap, and an alternative demonstration. These facilities must also comply with the NESHAP requirement to reduce emissions from film cleaners by 70%.
   
   The staff has conducted six working group meetings on Proposed Rule 1425. There was a public workshop on November 15, 2000. Staff visited numerous sites, and tested in the field for capture efficiency.
   
   There were no significant impacts identified in the draft CEQA document. The document is currently out for a 30-day review. Typical carbon systems cost $1000 - $25,000 for canister systems, and $150,000 - $250,000 for regenerative systems. There are approximately 10-35 systems that will need to be installed. Some of those systems are required by the NESHAPS.
   
   Many of the technical issues regarding capture efficiency and testing have been resolved, and the rule provides flexibility to operators. No strong opposition is anticipated.
   
   
2. Rule 1612.1 - Mobile Source Credit Generation Pilot Program
   Jill Whynot, Planning and Rules Manager, gave a presentation on this rule. Proposed Rule 1612.1 will provide opportunities for generation of NOx mobile source emission reduction credits (MSERCs) through a pilot program. Credits can be generated from voluntary replacement of diesel-fueled captive heavy-duty fleets, yard hostlers or refuse trucks exempt from Rule 1193. NOx MSERCs generated through this program can be used in RECLAIM. The purpose of the proposed rule is to develop a pilot program that can be approved by ARB and EPA very quickly.
   
   The Working Group for Proposed Rule 1612.1 evolved from a Home Rule Advisory Group subcommittee. ARB and EPA have had extensive participation in the Working Groups. There was a public workshop on September 13, 2000, and a public consultation meeting on January 11, 2001.
   
   There are three categories in this phase of the rule: yard hostlers, class seven and eight vehicles, and refuse vehicles not under Rule 1193. Credits are issued based on projected activity. Credits will be issued until 2006, then regulatory programs will be evaluated to determine if credits are still surplus. The program includes a 10% environmental benefit. One percent may be used for funding a pool of reductions for Rule 518.2. There are MRR requirements to ensure integrity of credits. The rule also includes penalties. The program will be reviewed periodically.
   
   There are other categories that will be included in future rule development: marine vessels, agricultural pumps, electrification of distribution centers, and hotelling. More work is needed to evaluate these categories.
   
   Estimated credit generation potential was discussed for these categories and tugboats. The other future categories may provide more credit generation potential. Staff has made major progress with respect to what reductions are surplus. A couple of key remaining issues are the length of the pilot program, and the request for additional restrictions on use and cap on total credits. Staff is still receiving input from ARB, EPA, and other parties, and will continue to work to resolve any remaining issues. The rule was set for hearing in January for a March public hearing.
   
   
3. Rule 1303 – New Source Review Requirements
   Dr. Elaine Chang, Assistant Deputy Executive Officer, Planning, Rule Development & Area Sources, gave the staff presentation on proposed amendments to Rule 1303 to address the Emission Reduction Credits (ERCs) issued for compounds that are no longer considered VOCs (de-listed compounds) by U.S. EPA due to their low or negligible photochemical reactivity. Staff’s proposal to address de-listed compound ERCs was first brought to the Board at the October 2000 meeting and the public hearing on the issue was continued to February 2001. At the time, staff’s proposal was to invalidate the de-listed compound ERCs. Since then, based on input from ARB, EPA and the public, staff developed an alternative proposal that would allow 90 days for the out of Basin transfer or voluntary retirement of the de-listed compound ERCs. All active ERCs at the end of the 90-day transaction period would be devalued and re-issued to account for the remaining de-listed ERCs. Both alternatives would be available for the Board’s consideration. Supervisor Jon Mikels made the motion, which was subsequently approved, for the committee to recommend the second alternative. Greg Adams commented that the devalued portion of ERCs be re-issued to the original holders rather than being permanently retired for potential future uses other than offsets. Staff indicted they will look into it.
   
   
4. RECLAIM Amendments to Rules 2011 and 2012 and RECLAIM Advisory Committee Update
   Pang Mueller, Engineering and Compliance Manager, reported that minor amendments to Rules 2011 and 2012 will be brought before the Board March 16, 2001, to implement recommendations from the Monitoring Recordkeeping and Reporting Task Force. The rules will streamline recordkeeping by allowing the use of electronic data recorders in lieu of strip charge recorders. A public workshop was held January 10, 2001. Twelve hundred notices were sent out to RECLAIM facilities and other interested parties. Forty-one public members attended the workshop. The only concern expressed at the public workshop was for District staff to clarify the format for data storage or printing of the recorded data.
   
   
5. Approve Memorandum Of Understanding with California Pollution Control Financing Authority to Allow Participation in California Capital Access Program
   Tim Brown, Public Advisor, informed the committee that the MOU is still being reviewed by AQMD and California Pollution Control Financing Authority legal departments. Staff will report back on this item at a later meeting.
   
   
6. Notice of Violation Penalty Summary
   The Committee acknowledged the report attached to the agenda.
   
   
7. Rule Forecast Report
   The Committee acknowledged the report attached to the agenda.
   
   
8. Monthly Report on Home Rule Advisory Group for December and January and NSR Interim Report
   Dr. Elaine Chang, Assistant Deputy Executive Officer, Planning, Rule Development and Area Sources, provided the Committee with the meeting minutes of the December, 2000 and January, 2001 meetings of the Home Rule Advisory Group (HRAG), including an interim report from the NSR Subcommittee. There are a few action items that require the Committee’s approval, as follows:
   

   - Lyle Nelson be appointed an alternate to HRAG member Nader Mansour. (This was from the December meeting.)
   
   - To accept the NSR Subcommittee’s Interim Report; and
   
   - To have the Chair of the Stationary Source Committee appoint Ms. Maria Souza-Rountree, who replaces Barb Garrett, on the HRAG, and that the alternate be Gary Gero.
   (The last two items were from the January meeting.)

   
   The Committee Chair approved the appointments of Mr. Nelson, Ms. Souza-Rountree, and Mr. Gero.
   
   Committee Chair Glover requested staff to provide, in the future, a summary table upfront for the action items. Dr. Barry Wallerstein, Executive Officer, also mentioned to the Committee that staff in general agrees with several of the NSR Subcommittee’s recommendations, but would like to review in more detail each of the specific items. He intends to meet with the Subcommittee Members personally to go over the recommendations.
   
   
9. Yearly Status Report on Home Rule Advisory Group
   The Committee acknowledged the report attached to the agenda.

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

Attachments

January 26, 2001 Committee Agenda (without its attachments)

/ / /