BOARD MEETING DATE: September 21, 2001 AGENDA NO. 25
REPORT:
Stationary Source Committee
SYNOPSIS:
The Stationary Source Committee met Friday, August 24, 2001. Following is a summary of that meeting. The next meeting will be September 28, 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 10:45 a.m. Present were Ronald Loveridge, Committee Chair, Jon Mikels, Leonard Paulitz, and Cynthia Verdugo-Peralta (arrived at 10:50). Absent were Norma Glover and Jane Carney.
INFORMATIONAL ITEMS
Rule 1107 – Coating of Metal Parts and Products
Laki Tisopulos, Manager, Planning, Rule Development and Area Sources, presented this item. A minor amendment to Rule 1107 is being proposed. CARB has requested two additional test methods to the rule and industry has requested the allowance of alternative test methods and the use of electrocoatings. A public workshop was held and there were no issues associated with the rule amendment. This item will go to the Board for consideration in November.
Rita Loof of RadTech, asked for the Committee’s support in adding an exemption for ultraviolet (UV) coatings.
Mr. Tisopulos noted that staff was not opposed to this exemption; however, EPA is considering a limited disapproval of this sort of exemption for a different source category. EPA is objecting to the recordkeeping provisions and they question the actual emissions impact of the UV coatings. Staff continues to work with EPA on these differences and believes that an agreement can be reached.
Evaluation and Review of RECLAIM Compliance and Enforcement
Danny Luong, Senior Air Quality Engineer, presented this item. Rule 2015 requires a six-month report to CARB and EPA from the date of the annual report. The year 2000 average annual NOx RTC prices as reported in March 2001 were $15,369 for 1999 compliance year RTCs and $45,000 in 2000 compliance year RTCs. Specific issues to be assessed include the rate of compliance with allocations, monitoring and recordkeeping, and reporting requirements under RECLAIM and the adequacy of penalty assessments on RECLAIM rule violations to assure deterrence. The aim is to decide whether or not there is enough incentive built into the rule to comply, so that this program remains enforceable and achieves the required emissions reductions. Staff believes that there is adequate incentive to comply and recommends to continue the rule as is.
RECLAIM Implementation Report
Danny Luong, Senior Air Quality Engineer, provided this monthly report on permit applications for NOx control equipment and RECLAIM trading credit prices. Between July 11 and August 10, only one NOx control application was submitted. That application was submitted by a facility that is subject to the compliance plan requirement under Rule 2009.1. Between January 1 and July 10, applications for 48 installations at 18 facilities were submitted. Eight of these facilities were subject to the compliance plan requirement. Last month, NOx RTC prices continued to decrease to a low of $10.00 per pound. Jon Mikels asked what the highest price had been and what the average price was. Mr. Luong responded that for Cycle 2 in the year 2000, the highest price was $40.00 per pound. The average price was $17.00 per pound. Supervisor Mikels then asked if there have been more simple trades or complex trades. Mr. Luong said that the majority of the trades reported are done with money. About 30 to 40 percent of the trades are swapped. Credit swaps are becoming more and more popular because reportedly there is no tax consequence for these trades.
Dr. Wallerstein commented on the sharply increasing SOx market prices, noting that owners are holding RTCs until they can get a higher price.
Rule 1634 – Pilot Credit Generation Program for Truck Stop Electrification
Jill Whynot, Manager, Planning, Rule Development & Area Sources, presented this item. This proposed rule is an additional pilot credit generation rule for NOx credits for use in RECLAIM, designed to meet state and federal requirements for credit generation. Currently, diesel trucks park at truck stops and run their engine to use air conditioning and other accessories while they are parked for an extended time. This rule would allow NOx credits to be generated when diesel engine idling is replaced with electrical hook-up. Cynthia Verdugo-Peralta asked what the source of the generation of the electricity at the truck stop is. Ms. Whynot said that there is already electricity at the truck stop, this would just extend the lines; however the rule would not preclude fuel cell use.
A public workshop was held on August 10, 2001. Staff continues to work with EPA and ARB to resolve some of the technical quantification issues. This item will go to the Board for consideration in October.
WRITTEN REPORTS
Status Report of Mobile and Area Source Credits for RECLAIM
The committee acknowledged the report.
Monthly Report on Home Rule Advisory Group
The committee acknowledged the report attached to the agenda.
Notice of Violation Penalty Summary
The committee acknowledged the report attached to the agenda.
Rule Forecast Report & Advance Calendar
Dr. Wallerstein commented that in September 2000, the Board amended Rule 1168 - Adhesives. In the process of doing that, the Board approved a staff recommendation to remove a small-users exemption, which will necessitate the materials to be reformulated to low VOCs. There are three techniques by which to do that; go to water-based adhesives or hot stick melt adhesives or put in an exempt solvent. One exempt solvent is methylene chloride, which is a carcinogen. The concern that has been brought to staff’s attention is that the method to install the headliner of a car would be to use adhesive with methylene chloride. There is a concern about the workers being in a car with methylene chloride based adhesives. Staff is working on a rule amendment, which will be brought to the Board in the near future. Dr. Wallerstein informed the Committee that it is his intent to use enforcement discretion until this rule amendment is brought to the Board
Dr. Elaine Chang, Deputy Executive Officer, Planning, Rule Development & Area Sources, brought up another item relating to Rule 1146. As requested, at the September Board meeting, staff will bring a test protocol for a hand held NO2 testing device, implemented under Rule 1146.
The committee acknowledged the report attached to the agenda.
Other Business
Cynthia Verdugo-Peralta inquired as to whether staff had gotten back to the Santa Fe Springs dry cleaners, in reference to trying to work with the local utility to show the cost effectiveness of installing the equipment now versus waiting four or five years. Staff will investigate and update committee member Verdugo-Peralta.
South Coast Air Quality Management District