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BOARD MEETING DATE: August 2, 2002 AGENDA NO. 22




REPORT: 

Stationary Source Committee

SYNOPSIS: 

The Stationary Source Committee met Friday, July 26, 2002. Following is a summary of that meeting. The next meeting will be August 23, 2002, at 10:30 a.m., in Conference Room CC8.

RECOMMENDED ACTION:

Receive and file.

Jon Mikels, Acting Chair
Stationary Source Committee


Attendance

The meeting began at 10:35 a.m. Present were Jon Mikels, acting Committee Chair, Jane Carney, Cynthia Verdugo-Peralta (arrived at 10:40), and Leonard Paulitz (arrived at 10:45). Absent were Ron Loveridge, Committee Chair, and Norma Glover, Vice Chair.

INFORMATIONAL ITEMS

  1. Staff Report on Proposed Amended Rule 1171 – Solvent Cleaning Operations
    Lee Lockie, Director of Area Sources presented this item. At the June meeting of the Stationary Source Committee, a representative of Radtech requested that the cleaning of Ultraviolet/Electron Beam (UV/EB) coating equipment fall under the VOC content limit of 800 g/l found in Rule 1171. Staff has determined that only the cleaning of UV coating equipment that is part of the UV/EB ink application process is currently subject to this limit. The cleaning of UV/EB coating equipment that is not part of the UV/EB ink application process falls under the VOC content limits of 550 g/l.

  2. Rule 1113 – Architectural Coatings
    Rule 1113 was put on the agenda in error and was not discussed.

  3. Rule 1631 – Pilot Credit Generation Program of Marine Vessels
    Jill Whynot, Planning and Rules Manager, gave an update on Proposed Amended Rule 1631 – Pilot Credit Generation Program for Marine Vessels at the preceding Mobile Source Committee meeting. Since all Board members present had attended that meeting, this Committee’s presentation was waived.

    Rule 1631 was adopted in May 2001 and is one of five credit generation rules approved by EPA into the State Implementation Plan (SIP). Amendments are planned to allow more flexibility and expand the number of marine vessels eligible to participate. There are two key areas of change – allowing trips outside the Basin without jeopardizing the "captive" vessel provisions and enabling engine remanufacturing, as well as engine replacement.

    Other credit rules allow "captive" vehicles to travel outside the Basin once per year for documented maintenance and repair. This rule amendment will allow a similar provision, which EPA agrees with. Staff is proposing up to two trips per year, as there are limited repair facilities available in District waters.

    Currently, Rule 1631 gives credits for engine replacement. Engines remanufactured with all new factory original parts result in equivalent emission reductions as new engines at significantly less cost. Remanufactured engines essentially keep the old engine block but replace all parts with new parts. Engines are certified to meet the same emissions standards as new engines. Dr. Wallerstein explained that replacing an engine requires cutting a whole in the side of the vessel. This is not required for remanufactured engines.

    Staff has had several conference calls with EPA, who is supportive of these changes. A working group meeting is scheduled for August. In addition, staff will hold a Public Consultation meeting in August to prepare for a Set Hearing on September 13, 2002 and a Public Hearing on October 4, 2002.

  4. Update on Proposed Rule 1426 - Metal Finishing, and 1469 – Hexavalent Chromium Emissions from Chrome Plating and Chrome Acid Anodizing Operations
    Jill Whynot, Planning and Rules Manager, gave an update on the Negotiated Rulemaking Pilot Program under the Governing Board’s Initiative #8. Two rules related to metal plating were selected for this process: Proposed Rule 1426 – Metal Finishing and 1469 – Hexavalent Chromium Emissions from Chrome Plating and Chromic Acid Anodizing Operations.

    Ms. Whynot provided information on the background for this rule development, including the March 2000 Air Toxics Control Plan and Rule 1402 – Control of Toxic Air Contaminants from Existing Sources. Both of these called for staff to evaluate source-specific rules for eight industry categories, including metal plating.

    A facilitator has been hired to lead discussions with the goal of helping stakeholders reach consensus on some or all aspects of the rule. A set of ground rules for participation was established at the first meeting. This process also includes an independent academic observer who will provide input into evaluation of the process.

    A working group has been formed, including industry, community groups, trade associations, technical experts, EPA and ARB. Four working group meetings and two technical subcommittee meetings have been held. All meetings are open to the public.

    There are 250 facilities in the Basin doing metal finishing. One hundred thirty-five do chrome plating, although only about three dozen plate with chromium-6, an occupational carcinogen. One hundred eighty (180) do nickel plating, and sixty-four (64) plate cadmium. The key toxic metals and processes being evaluated are hard chrome, decorative chrome, acid anodizing, nickel, and cadmium plating.

    The key elements of the proposed rules include: upgrading or adding controls; housekeeping measures; and periodic source tests for largest emitters. At the suggestion of the working group, alternative compliance options are being included, such as inventory, risk assessment, source tests, and pollution prevention techniques.

    The key issues are the schedule, justification for the rule, refining technical information, and providing alternative compliance options for facilities.

    Staff will continue with the working group and other public processes and is preparing the draft rules and staff report. CEQA and socio-economic impact assessments are also being prepared. A public workshop will be held in August with set hearing scheduled for September 2002. The Board Hearing is scheduled for October 2002. A report on the process will be provided at the November 2002 Governing Board meeting.

    Dr. Wallerstein highlighted that platers have concerns about risk factors being more stringent in California than the rest of the country and they have many processes that are already controlled to over 99%. He added that this process has had significantly more input from environmental groups at the earlier stages of rule making. Leonard Paulitz asked how this process differs from our traditional working groups. Dr. Wallerstein responded that, in addition to more environmental group participation, the facilitator was helping to get all views expressed and keep the discussions focused.

WRITTEN REPORTS

  1. Proposed Rule 1133 – Emissions from Composting Operations
    Committee members inquired about the status of Rule 1133 – Emission Reductions from Composting Operations, development activities. Dr. Chang, Deputy Executive Officer, Planning, Rule Development & Area Sources, described staff’s ongoing efforts to develop three separate rules for composting-related operations: Proposed Rule 1133 – Registration, Proposed Rule 1133.1 – Chipping and Grinding Operations, Proposed Rule 1133.2 – Co-Composting Operations. Staff is working with the Technical Advisory Committee to resolve technical and operating issues raised for the first two rules. With respect to Proposed Rule 1133.2, staff’s main focus is on new facilities due to affordability concerns. Committee members requested staff to include at least the draft rule language for existing co-composting facilities for Board consideration and allow the market to adjust itself to reflect the compliance costs. Some Committee members expressed the view the rule needs to require effective controls for existing co-composting facilities even if compliance costs increase.

All written reports were acknowledged by the Committee.

  1. Public Comment
    John Billheimer distributed written information regarding Mutual Settlement Program settlements reached by the District Prosecutor’s Office and indicated he was discussing his concerns with Peter Mieras.

The meeting was adjourned at 11:25 a.m.

Attachments

July 26, 2002 Committee Agenda (without its attachments)

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