BOARD MEETING DATE: April 5, 2002 AGENDA NO. 35

EPA periodically promulgates New Source Performance Standards (NSPS) and NESHAPs. NSPS govern the operation of all new, modified, or reconstructed sources of air pollution identified in Part 60 of the Code of Federal Regulation (CFR). NESHAPs govern the operation of new and existing sources specifically identified in Part 61 of the CFR that emit substances that have been designated as hazardous air pollutants pursuant to Section 112 of the Clean Air Act Amendments (CAAA). In order to administer and enforce NSPS and NESHAPs at the local level, AQMD’s Governing Board initially adopted by reference the NSPS federal standards as AQMD Regulation IX, and the NESHAPs federal standards as Regulation X, on December 3, 1976. The Board has since amended these regulations to incorporate new or amended standards as necessary. In 1997, EPA delegated and redelegated its authority for specific Sections of 40 CFR Parts 60 and 61, as listed in the April 23, 1997 Federal Register, Volume 62, No. 78, 19679 – 19682. Regulations IX and X were last amended May 11, 2001.

The 1990 Amendments to the federal CAA called for EPA to establish maximum achievable control technology (MACT) standards for new and existing major sources of hazardous air pollutants, starting within two years of enactment and finishing within ten years. The MACT standards are published in the CFR as Part 63. EPA delegated authority for the implementation and enforcement of Part 63 to the AQMD on February 27, 1997. However, the AQMD has not established a separate regulation to encompass those standards but implements them directed to sources covered by the Part 70 program (Title V). The AQMD has sought and been granted equivalency with the MACT for Perchloroethylene Air Emission Standards for Dry Cleaning Facilities, through District Rule 1421.

Eight NSPS actions for which the AQMD has delegation of authority have been promulgated by EPA during the past year. These are proposed for incorporation by reference into Regulation IX. This Board letter and its attachments serve as the staff report for proposed amendments to Regulation IX.

All new sources of air pollution and all modified or reconstructed sources of air pollution are required to comply with the more stringent of the applicable federal, state, and local standards, criteria, and requirements set forth in Regulation IX or other AQMD rules. The same is true for new and modified sources identified by source category for control in the NESHAPs. These standards are in effect and enforceable by AQMD pursuant to CAA Section 301, in conjunction with Sections 110, 111(c)(1), and 112(d)(1) of the federal Clean Air Act, regardless of whether AQMD incorporates them by reference into Regulations IX and X. Nonetheless, adoption of NSPS and NESHAPs by reference into Regulations IX and X helps affected sources by providing a single point of reference for determining which federal and local requirements apply to their specific operations.

The nature of these actions includes correction of errors, monitoring exemptions and alternative compliance requirements, amendments to definitions, removal of requirements that had unintended consequences, and extension of compliance times.

EPA held public workshops with public comment periods as part of its rule development process. No public workshops were held by AQMD since the proposed amendments incorporate by reference existing federal requirements and therefore, do not significantly affect air quality or emissions limitations.

Table 1 lists NSPS currently proposed for incorporation by reference into AQMD Regulation IX.¹ Changes are listed in chronological order.

40 CFR Part 60	Title	EPA Action (date)	Reference
Subpart CCCC	Standards of Performance for New Stationary Sources and Emission Guidelines for Existing Sources: Commercial and Industrial Solid Waste Incineration Units	Final rule; correction (March 27, 2001)	66 FR 16605 Vol. 66, No. 59
Subparts Da and Db	Standards of Performance for Electric Utility Steam Generating Units for Which Construction is Commenced After September 18, 1978; Standards of Performance for Industrial-Commercial-Institutional Steam Generating Units	Draft final rule; amendment (April 10, 2001)	66 FR 18546 Vol. 66, No. 69
Subpart Da and Db	Standards of Performance for Electric Utility Steam Generating Units for Which Construction is Commenced After September 18, 1978: Standards of Performance for Industrial-Commercial-Institutional Steam Generating Units	Partial Withdrawal of direct final rule (June 11, 2001)	66 FR 31177 Vol. 66, No. 112
Subpart Eb	NSPS for Large Municipal Waste Combustors for Which Construction is Commenced After September 20, 1994 or for Which Modification or Reconstruction is Commenced After June 19, 1996 and Emission Guidelines and Compliance Times for Large Municipal Waste Combustors That are Constructed On or Before September 20, 1994	Direct final rule; amendment (July 12, 2001)	66 FR 36473 Vol. 66, No. 134
Subparts Da and Db	New Source Performance Standards for Electric Utility Steam Generating Units for Which Construction is Commenced After September 18, 1978; and Standards of Performance for Industrial-Commercial-Institutional Steam Generating Units	Final Rule; removal of provision (August 14, 2001)	66 FR 42608 Vol. 66, No. 157
Subpart A	Amendments for Testing and Monitoring Provisions, Removal of a Provision for Opacity Monitoring	Direct final rule; (August 27, 2001)	66 FR 44978 Vol. 66, No. 166
Subpart Db	Standards of Performance for Commercial-Institutional Steam Generating Units	Direct final rule; amendment (October 1, 2001)	66 FR 49830 Vol. 66, No. 190
Subpart Eb	Standards of Performance for Large Municipal Waste Combustors for Which Construction is Commenced after September 20, 1994 or for Which Modification or Reconstruction is Commenced After June 19, 1996 and Emission Guidelines and Compliance Times for Large Municipal Waste Combustors That Are Constructed on or Before September 20, 1994	Direct final rule (November 16, 2001)	66 FR 57824 Vol. 66, No. 222

¹ Due to the bulk of these materials, the complete texts of Federal Register Notices announcing final action on NSPS proposed for incorporation by reference into Regulation IX have been distributed to Board members only. Anyone wishing to view this material may do so by contacting AQMD’s Public Information Center at (909) 396-3600.

Staff has reviewed the proposed amendments to Regulation IX - Standards of Performance for New Stationary Sources, pursuant to state CEQA Guidelines §15002(k)(1) - Three Step Process, and has determined that the proposed amendments are exempt from CEQA pursuant to state CEQA Guidelines § 15268 - Ministerial Projects. AQMD proposes to incorporate by reference federal NSPS requirements into Regulation IX. Because AQMD exercises no discretion with regard to the proposed project, it is considered to be ministerially exempt. If approved by the Board, a Notice of Exemption (NOE) will be prepared for the proposed project pursuant to state CEQA Guidelines §15062 – Notice of Exemption, and mailed to the county clerks of Los Angeles, Orange, Riverside, and San Bernardino counties.

No socioeconomic impact assessment was performed for the proposed amendments, since they will not significantly affect air quality or emissions limitations. In addition, the proposed amendments are verbatim adoption of current NSPS requirements and thus, do not impose new requirements in addition to the federal regulations.

These federal requirements are not included in the AQMD’s AQMP. Section 301, in conjunction with Sections 110, 111(c)(1), and 112(d)(1) of the federal Clean Air Act authorizes EPA to delegate authority to implement and enforce standards and related compliance times for new, modified, or reconstructed sources of air pollution set forth in 40 CFR Part 60, and for new and existing sources of air pollution set forth in 40 CFR Part 61, to local air districts. Adoption of new and amended NSPS into AQMD Regulation IX by reference formally recognizes AQMD’s authority to implement and enforce these federal regulations at the local level.

Proposed amendments do not materially affect the structure or function of existing programs associated with the implementation of Regulation IX - Standards of Performance for New Stationary Sources, or any other AQMD rules. Staff is available to assist those facilities affected by the proposed amendments.

Current AQMD resources are sufficient to implement and enforce proposed Regulation IX amendments.

^* Due to the bulk of these materials, the complete texts of Federal Register Notices announcing final action on NSPS proposed for incorporation by reference into Regulation IX have been distributed to Board members only. Anyone wishing to view this material may do so by contacting AQMD’s Public Information Center at (909) 396-3600.