South Coast Air Quality Management District
South Coast Air Quality Management District
BOARD MEETING DATE: March 16, 2001 AGENDA NO. 38
Amend Rule 3003 – Applications
Amend Rule 3005 – Permit Revisions
Adopt Rule 3008 – Potential to Emit Limitations
SYNOPSIS:
Proposed amendments to Rule 3003 extend the deadline to file Title V facility permit applications and proposed amendments to Rule 3005 correct deficiencies. Proposed Rule 3008 establishes a new emissions limitation for specific sources based on the potential to emit and actual facility emissions. The adoption of the rule will reduce the number of facilities required to obtain a Title V Facility Permit, and compliance will be determined based on specific reporting and recordkeeping requirements.
COMMITTEE:
Stationary Source, December 1, 2000, Reviewed
RECOMMENDED ACTION:
Adopt the attached resolution:
- Certifying the Notice of Exemption for Proposed Amended Rules 3003 and 3005 and Proposed Rule 3008 and;
- Amending Rule 3003 - Applications and Rule 3005 - Permit Revisions and Adopting Rule 3008 - Potential To Emit Limitations.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
South Coast Air Quality Management District (AQMD) Regulation XXX - Title V Permits, requires facilities in Phase II of the Title V program to submit permit applications for Title V permits if they exceed the federal potential to emit (PTE) thresholds. The AQMD is currently implementing Phase II of the Title V permitting program in accordance with the United States Environmental Protection Agency (EPA) Transition Policy dated January 25, 1995. EPA issued the policy to provide local agencies in the interim a mechanism to establish a non-major source status. This policy allowed certain facilities to qualify as non-major sources for a period of time until issues relating to the PTE determination were resolved. The original policy was to remain in force for a period lasting no longer than two (2) years, with an expiration date no later than January 25, 1997. The EPA has since twice extended the policy to July 1998, and again to December 2000. The final extension allowed agencies to request a one time six month extension. Per EPA’s final extension to the Transition Policy, the AQMD applied for an extension to June 30, 2001 and is presently operating under this extension request. These extensions have allowed states and local agencies more time to establish a standard for determining PTE, or in lieu of determining the PTE, to comply with the temporary provisions in the memorandum. Throughout the transition period, from January 1995 through June 30, 2001, AQMD was given the authority under the memorandum to treat low-emitting facilities as non-major sources if the facility maintained adequate records to demonstrate that actual emissions are less than 50 percent of the major source thresholds. The Transition Policy allowed the AQMD to consider approximately 25,000 facilities as non-major sources, thereby sparing these facilities laborious and possibly inaccurate PTE calculations. These facilities are exempt from obtaining a Title V permit as long as the EPA Transition Policy is in force.
With the expiration of the current EPA Transition Policy, the AQMD has elected to develop Proposed Rule (PR) 3008 - Potential To Emit Limitations which will essentially adopt, and make permanent, the concept of low emitting facilities being exempt from Title V permitting requirements similar to the EPA Transition Policy. Several other districts in California have already taken this approach and adopted a model rule that was developed by California districts and CARB in consultation with EPA. The AQMD has used the same rule as a model to develop PR 3008. In effect, non-major sources will be able to categorically avoid Title V requirements by complying with the provisions of PR 3008 or, in lieu of complying with PR 3008, a facility may accept an operational facility-wide permit condition that would ensure that the facility’s emissions remain below the applicable major source emission threshold levels as allowed by Rule 3001 - Applicability. The permit condition limiting the facility’s emissions must be legally and practically enforceable by the EPA and citizens, or the AQMD. A facility that elects to accept this condition will be subject to a facility-wide emissions cap and is defined as a "synthetic-minor source".
In addition to the proposed adoption of Rule 3008 - Potential To Emit Limitations, staff is proposing amendments to Rule 3003 - Applications and Rule 3005 - Permit Revisions in order to: preserve the application shield for facilities which have not yet applied for their Title V permit; to correct deficiencies identified by EPA; and, resolve issues relevant to the implementation of the rules. These amendments are intended to clarify existing requirements and improve enforceability.
Proposal
PR 3008 applies to facilities that have a PTE equal to or greater than the major source emission thresholds and whose facility-wide actual emissions are less than 50% of the major source thresholds. The rule will allow approximately 25,000 low-emitting facilities to avoid complex Title V permitting requirements by complying with PR 3008. The proposed rule will also provide additional compliance options that are equivalent to emission thresholds and are based on material throughputs to allow for a more streamlined rule implementation process. Proposed Amended Rule 3003 will extend the deadline for filing Title V applications and Proposed Amended Rule 3005 will clarify rule language in accordance with deficiencies identified by EPA, respectively.
Policy Issues
During the rule making process, a model rule developed by the California Air
Pollution Control Officers Association and CARB in consultation with EPA was
used as a guide in the development of PR 3008. The model rule was developed
based on areas designated as severe non-attainment. The AQMD has modified
the model rule by adjusting the emission thresholds to reflect the
extreme non-attainment status of the South Coast Air Basin, and to be consistent
with AQMD’s Annual Emission Reporting program.
AQMP & Legal Mandates
The proposed amendments to Rules 3003 and 3005 and the proposed adoption of Rule 3008 will have no impact on emission limits, and no direct impact on air quality.
California Environmental Quality Act (CEQA) & Socioeconomic Analysis
Pursuant to State CEQA Guidelines §15002 (k)(1), staff has reviewed the proposed amendments to Rules 3003 and 3005 and the proposed adoption of Rule 3008 and has determined with certainty that the proposed project does not have the potential to adversely impact air quality or any other environmental area. Staff has concluded that the proposed project is exempt from CEQA pursuant to State CEQA Guidelines §15061 (b)(3) – Review for Exemption. A Notice of Exemption has been prepared pursuant to State CEQA Guidelines §15062 – Notice of Exemption and will be filed with the county clerks of Los Angeles, Orange, Riverside and San Bernardino counties immediately following the adoption of the proposed amendments and rule. In addition, since the proposed rule and amendments are administrative in nature, they will not have an effect on air quality or emissions and therefore, no socioeconomic impact is expected.
Resource Impacts
PR 3008 will result in a reduced workload burden on both affected facilities and the AQMD because the adoption of PR 3008 will allow about 25,000 low-emitting facilities to comply with Rule 3008 in lieu of getting a Title V permit or applying for a "synthetic minor" permit with a facility-wide emission cap. The proposed amendments to Rules 3003 and 3005 are administrative in nature and implementation of such amendments will not require additional AQMD resources.
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