The Stationary Source Committee met Friday, June 22, 2001. Following is a summary of that meeting. The next meeting will be July 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 10:35 a.m. Present were Ronald Loveridge, Committee Chair (left at 11:45), Norma Glover, Leonard Paulitz (arrived at 10:42), Jane Carney and Jon Mikels. Absent was Cynthia Verdugo-Peralta.
INFORMATIONAL ITEMS
Rule 2506 – Area Source Credits for NOx and SOx Annual Audit
Lee Lockie, Director of Area Sources, presented this annual audit report. Rule 2506 was originally adopted in May of 1997. Area Source Credits can be converted into RECLAIM Trading Credits or be used as an alternative means of compliance with other AQMD regulations that allow the use of area source credits. Staff recommends the approval of the annual audit and three-year program evaluation reports at the public hearing on July 20, 2001.
Rule 1113 – Architectural Coating Annual Status Report
Lee Lockie, Director of Area Sources, presented this item. Rule 1113 prohibits the manufacture, sale, distribution and application of any architectural coating within the District unless a specific VOC content limit is met. This is the second report, which follows the elements of the work plan that was approved by the Board after the rule was adopted in 1999. The work plan calls for a working group to oversee the administrative and technological details called for by the required technology assessments. The report also includes an update on CARB’s activities in this area. The working group has met five times since July 2000. The group has finalized the averaging implementation guidance document, updated the Essential Public Service Coating technology assessment, guidance to technology assessment for problematic coatings and updates on reactivity issues and litigation status.
Rule 1122 – Emission Reductions from Degreasing Operations
Lee Lockie, Director of Area Sources, presented this item. The proposed amended Rule, which is schedule to go to the Board in August, will reduce VOC and air toxic emissions from solvent cleaning operations. It will also include federal NESHAP requirements. Because of the low VOC limits, this rule affects the manufacturers and suppliers of low VOC materials. This rule also affects about 334 medium and large size businesses that still use open top vapor degreasers. The rule has been expanded to include NESHAPS toxics material, reduce VOC emissions and encourage further use of successful innovative control technology.
A technical advisory panel has been formed, which includes those that will be affected by this rule. A public workshop was held on May 30th. Many businesses still feel that they have specialized applications that cannot easily be cost effectively adapted to low VOC cleaning. Another public consultation meeting is scheduled for July 11th. This item will go to the Board for consideration in August.
Comment on Legislative Analyst Office Report Regarding Improving Oversight and
Direction of Local Air District
Peter Mieras, District Prosecutor, presented this item at Board Member Jane Carney’s request. The report was released on January 25, 2001. One of the areas looked at was how well the local air districts were doing in terms of their penalty assessments. The legislative analyst concluded that these penalties were inconsistent and not always sufficient to address chronic and serious violations. In supporting that conclusion, the legislative analyst made statements about this air district, which were inaccurate. At the meeting, Mr. Mieras distributed written copies of the comments, along with the District Prosecutor Civil Penalty Assessment Manual. Jane Carney requested that Barry Wallerstein, Executive Officer, forward these comments to the Legislative Analyst’s office for their information.
Rule 2000 – General
Jill Whynot, Manager, Planning, Rule Development & Area Sources, presented this item. At the July Board meeting, staff will be doing a follow-up item to the May 11th meeting which was to consider small refiners access to the RECLAIM AQIP. This is a temporary program, which is available to certain facilities through compliance year 2004. These companies would pay $7.50 per pound and can use this program if reductions are available. Small refiners are those which produce less than 55,000 barrels of oil per day. There are three facilities in the Basin that fit that definition, only one of which has expressed interest to use AQIP. Staff continues to work with small refiners to develop a mutually acceptable proposal. This item will go to the Board for consideration in July.
RECLAIM Implementation Report
Pang Mueller, Engineering and Compliance Manager, reported that at the Governing Board meeting in May, staff was asked to provide a monthly report to the Stationary Source Committee on the number of permit applications submitted for NOx control and RECLAIM trading credit prices. Applications have been submitted to the AQMD for eight installations at four facilities between January and March 15, 2001, and for thirty-one installations at eight facilities between March 15 and June 10, 2001. RECLAIM trading credit prices have dropped significantly since the adoption of the RECLAIM program revisions. The maximum price before the rule adoption of the amendment was approximately $60 per pound and is now reduced to approximately $25 per pound for current year NOx credits.
WRITTEN REPORTS
Monthly Report on Home Rule Advisory Group
This report includes the May & June Monthly Reports
The Committee acknowledged the reports attached to the agenda.
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